Pros and Cons of Different Property Ownerships
Before buying a home, it’s important to consider what type of lifestyle you live. If you travel a lot, a house may not be the best choice. No matter what type of home you choose, there are advantages and disadvantages. It makes sense to review all the pros and cons of home you're looking for.
Advantages of Single Family Homes:
- Solely investing in a tangible asset
- Building equity as you pay down your mortgage.
- Greater privacy and an option to renovate it to your personal style
- Stable monthly payments on a fixed mortgage mean you’ll pay the same monthly amount until the end of your mortgage term
Disadvantages of Single Family Ownership:
- It will be more difficult to pick up and move to another city.
- Maintenance costs are yours and over time, something will need to be replaced from a leaking faucet to new shingles
Advantages of owning a Condomium:
- Easier upkeep
- Condo fees usually cover the cost of exterior maintanance, common areas, heat & water and sometimes electricity and cable costs
- Communal living (you are part owners of a greater area and may even become part of the managment board)
Disadvantages of Condomium Ownership:
- Condo fees (In addition to your mortgage you must pay monthly condo fees)
- Less Privacy (Depending on the style most condos share at least one wall with thier neighbor)
- Restrictions (Depending on the complex there may be restrictions such as noise, odor, pets, ect)
Pros of owning houses:
- Freedom to do what you want from demolishing the house to adding additional rooms, gardens, garage or basement suites for residual income.
- Even if the value of the structure itself depreciates, the land on which it sits can become more valuable
- Backyard BBQs & entertaining outdoors
Pros of owning townhouses:
- Semi-private yards
- If there is a major upgrade, the cost is sharded by each unit
- Your own parking spot/garage
- You can change anything in the interior of the home from kitchens to fresh paint
- Your neighbour can keep an eye on your property while you are away
- There will be a monthly condo fee
- You are responsible for maintaining the interior of the property
- You are living close to your neighbour
- Condo fees can increase
Pros of owning apartment condos
- Condo fees usually cover the cost of heat & water and sometimes electricity and cable costs
- No exterior yard work
- Less cost to homeownership
- Less privacy. Your neighbours will know when you come home and when you leave.
- There may be rules on the type of flooring you are allowed to put in your property
- Must abide by all bylaws
- Pet restrictions
- Condo fees can increase
Pros of owning new builds:
- Alberta new home warranty
- You will be the first person to live there
- Everything is fresh
- New appliances
- The cost of new builds is higher than resale.
- Added GST (usually already hidden in the price)
- If there is an issue, you will need to deal with the builder
- You will be responsible for adding fences and completing landscaping
- The cost of finishing a basement
- Annual HOA Fees
- New builds are on the rise due to a higher lumber cost
If you have questions about buying a home in Edmonton or the surrounding area, we are here to help. Contact us today!