Bonnyville Homes Blog

If you are new to the real estate market, you may wonder what’s the difference between homes that have a condo fee versus that of a freehold. Asides from the extra fees, there are a few pros and cons that come with having a home that is either a free hold or part of a condominium.

To best understand the difference of condos and freehold, here are some facts to consider.

Condos are part of a community

When it comes to a condo, there are condo fees often associated with the purchase. These fees are given to the homeowner and then are responsible to pay monthly. Sometimes, when it comes to getting a mortgage, one may have to consider the limit on what they can get as it will play on what they can be approved on.

With a freehold, the homeowner does not pay a monthly maintenance fee or if there is any work that needs to be done, it will be up to the condo association to fix and maintain. Freeholds, it would be entirely up to the homeowner to address any issues and pay out of pocket.

Out of pocket vs. community fund

Condo homeowners pay a monthly fee, also known as condo fees, which are then pooled in a special account. This money is then used to pay for grounds maintenance, if there are communal spaces, this also pays for that. It also pays for certain elements, such as walkways, doors and windows – each condo is different, so it’s important to double check.

Homeowners of freeholds however must pay for any repairs, upgrades and modifications. In a way, this can impact a potential homeowner’s budget. Freeholds can be costly if the house is one that needs repairs and updates.

When it comes to choosing a home – whether it be a condo or freehold, consider what your needs and budget are. If the roof gives out, would you be able to afford it? How much privacy do you want, as some condos are back to back. Enter the real estate market knowing the facts and being informed.

homebuyers to consider when looking for that dream home.

Public Transportation – Do you own a car? Do you need access to public transit? This may be important to consider when looking at your potential house. Is it within walking distance? How long will it take to get from home to work? Unless you don’t need public transit, this is something that may make or break a decision.

Family-Friendly Attractions – Most people who looking to buy a home are either seeking to upgrade their existing home or because their family is expanding. Consider when you are buying a home what kind of family necessities you will need. How far or close are the schools? Parks? Community centres? Is your dream home in a community that has other families or not?

Traffic and Roads – Will your new home be on a busy street or road? How loud is the traffic? If you have a young family, you don’t want a home that is necessarily on a busy road or that will be loud. Consider the neighbourhood and the traffic.

Safety – Some neighbourhoods naturally have a reputation; therefore, it is important to consider how safety the area is. This is information that can be found on a simple neighbourhood website.

While in a perfect world it would be nice to take our dream home and move it to where we want, that isn’t the case. It is for this reason it is important to consider the location and the surrounding area of the house of interest. Maybe the neighbourhood isn’t perfect but the house is – don’t feel discouraged, there will be another home for you!