Have you ever considered living in a condo or apartment in Canada? With the rapid growth of Canadian cities, choosing between a condo and an apartment has become one of the main challenges for those seeking an urban lifestyle. Each option offers unique amenities and advantages, yet there are significant differences in costs, ownership rules, and even lifestyle. In this article, we’ll take a closer look at the condo vs. apartment comparison to help you make an informed choice for your future. Join us to discover which option best aligns with your lifestyle, budget, and needs.
This article has been prepared by the Research and Development unit of Lasting Oak to help you make a more informed decision on choosing the right place to live.
What’s the Difference Between a Condo and an Apartment?
Condos and apartments are both popular choices for urban living, but they differ in key ways.
A condo (short for condominium) is a unit where the individual owns the property. This ownership includes access to shared amenities such as a pool, gym, and parking, which all residents can use. To maintain these shared spaces, a monthly fee called a condo fee is required.
In contrast, an apartment is typically owned by a large property company or landlord, and each unit is rented out to tenants. Renters do not own their apartment units and therefore aren’t responsible for shared maintenance costs. Additionally, apartments may have fewer amenities than condos.
Cost Differences(1)
Condo
Buying a condo in Canada involves several key costs: the main one being a mortgage, which requires an initial down payment and ongoing monthly payments. Condo owners must also pay property taxes, which vary by city and property value, and monthly condo fees (typically between $150 and $500), which cover maintenance of shared facilities like pools, gyms, and communal areas. While these fees may increase over time—especially if major repairs are needed—owning a condo allows residents to build equity over time, creating a valuable financial asset.
Apartment
Renting an apartment usually includes a monthly rent of around $1,885 and tenant insurance, typically around $25 per month. In some cases, utilities such as water or heat are included in the rent, though not always. Compared to owning a condo, renting generally comes with lower and more predictable monthly expenses, though tenants do not build financial assets through rent payments.
Amenities and Features(3)
Condo
Condos often offer a wide range of amenities, including swimming pools, gyms, co-working spaces, event rooms, and pet-friendly facilities. In recent years, condos have begun including more modern conveniences, such as car wash stations, tool libraries, and lush green spaces. However, these added facilities contribute to higher monthly maintenance fees, meaning condo owners pay for these services whether they use them or not. (2)
Apartment
Apartments typically provide fewer amenities than condos, focusing on simplicity and affordability. Many apartment buildings offer only basic facilities, such as parking and modest green spaces, without the luxury of pools or fitness centers. This simplicity can make apartment living a more budget-friendly choice for those who do not need extensive amenities.
Ownership and Management Rules
Condo
Owning a condo often involves membership in a condo board that oversees building management and enforces rules. These regulations may include restrictions on renovations, the use of shared spaces, and even rules for pet ownership. Condo owners have the freedom to make changes within their units, but they must still follow the community’s rules.
Apartment
Apartment tenants follow the regulations set by the property owner or management company, with no role in building governance. Tenants typically cannot make significant changes to their units and rely on management for maintenance, which can be an advantage for those who prefer minimal responsibilities.
Investment and Value Appreciation
Condo
One of the key advantages of condo ownership is building long-term equity. As mortgage payments are made, the condo owner gains a valuable financial asset that can appreciate over time. In high-demand areas like Toronto and Vancouver, condo prices have risen steadily, offering owners the potential for significant financial gain.
Apartment
Conversely, apartment renters do not accumulate equity and instead treat rent as a recurring expense. While renting typically involves fewer initial costs, it does not yield any long-term financial assets for the tenant.
Flexibility and Lifestyle
Condo
Condo owners generally commit to staying longer and may face restrictions set by the condo board and monthly fees. For those who value stability and want to invest in property, condos can be an appealing choice, though they come with certain responsibilities.
Apartment
Apartment tenants enjoy greater flexibility, as they can move more easily by providing notice to the landlord. This option is ideal for individuals who travel frequently or who may not want to settle in one place for a long period.
Key Similarities Between Condos and Apartments: What You Need to Know
Structure and Appearance
Condos and apartments often look very similar, as both are usually found in multi-story buildings located in urban areas. Each unit includes private spaces like bedrooms, kitchens, and bathrooms, all within a shared building with multiple similar units.
Proximity to Urban Amenities
Both types of housing are typically located in or near city centers, providing easy access to public transportation, shopping centers, restaurants, and entertainment facilities. This setup is ideal for individuals who enjoy living in busy, central locations with plenty of amenities.
Shared Spaces
Condos and apartments both include shared areas like parking lots, hallways, and sometimes common spaces such as lobbies or community rooms. In either type, residents are expected to follow certain rules to ensure smooth, respectful use of these shared spaces.
Building Security and Management
Both condos and apartments often feature security measures like controlled entry doors, surveillance cameras, and sometimes on-site security staff. Additionally, both are typically overseen by a management company or condo board responsible for maintaining communal areas and ensuring overall building security.
Rental Options
In both condos and apartments, renting is possible. Condos are typically rented out by individual owners, while apartment units are managed and rented by property management companies. In both cases, renters are expected to pay monthly fees and follow building policies.
Social Living Experience
Living in a condo or apartment involves a more social lifestyle due to shared spaces and the proximity of units. This can be ideal for individuals who enjoy the sense of community and interaction that comes with multi-family housing.
These similarities make both condos and apartments attractive options for those who want to live in urban areas with access to shared amenities and a community-oriented lifestyle.
Condos and apartments both provide comfortable urban living options, but they differ significantly in terms of ownership, costs, amenities, and flexibility. While condos generally come with higher upfront costs and monthly fees, they allow owners to build equity over time, which can be a valuable financial investment. Apartments, on the other hand, offer flexibility with fewer responsibilities and typically lower monthly costs, making them ideal for those who prioritize affordability and mobility over ownership.
Comprehensive Guide for Buyers: Which Option is Right for You?
- Choose a Condo if You:
- Want to Invest in Property: Condos allow you to build equity, making them a strong choice for long-term investment.
- Seek More Amenities: Condos often include added perks like gyms, pools, and social spaces, which may enhance your quality of life.
- Value Ownership: If having full control over your space and customizing it to your taste is essential, a condo is ideal.
- Plan to Stay Long-Term: Owning a condo makes sense if you intend to settle in one place for several years.
- Choose an Apartment if You:
- Prefer Flexibility: Renting an apartment allows you to relocate easily, making it suitable for those with changing job locations or lifestyles.
- Want Lower Upfront Costs: Without the need for a down payment or mortgage, renting requires less initial investment, making it more accessible financially.
- Prefer Minimal Maintenance: With property management handling most repairs, renting can be less of a hassle, especially if you don’t want to manage upkeep.
- Have a Short-Term or Transitional Need: Apartments are a good fit for people who don’t want to commit to a long-term property
In summary, for individuals seeking financial growth and stability, condos may be the better choice. However, if flexibility and reduced responsibility are more important, apartments might be the ideal option. Both choices offer distinct benefits, so weigh these factors based on your lifestyle, financial goals, and future plans to make the right decision.