Real Estate Insight – Condo or Freehold

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.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate, Sellers, Sellers

This post was written by kamloopshomesearchcom