Buying in Toronto: condo vs. house

Should my first house actually be a condo? Ultimately, your decision around condo vs. house depends on three things: your budget, what’s available in your area, and what features you're looking for.

If you’re looking for something that will accommodate a growing family, vehicles and/or pets, and you have your heart set on a backyard or garden, then buying a house could be the right choice. But there’s also a downside: houses in Toronto are expensive. That probably isn’t news to you if you’re been keeping track of the market. Prices for houses - especially detached ones - keep going up and up and show no signs of slowing down. And you’re a first-time buyer, that can mean a house is out of reach.

Another thing to consider? With a house, maintenance and costs are your responsibility. If you’re hit with a plumbing issue or a leaky roof, you’re on the hook for it - you’ll either have to fix it yourself or hire someone to do it for you. With condo living, on the other hand, a lot of that is managed for you.

Read more: condo or house - weighing the pros and cons

Condos: an opportunity to get into the market

If a house is your end goal but you can’t afford one right now, buying a condo you can afford will get you into the market. It doesn’t have to be your forever home - all you have to do is hang on to it until you’ve built some equity and the value has gone up, and you can move up to a bigger and better place. (That’s why it’s called the property ladder...it’s okay to get on at the bottom rung, because you won’t be there forever.)

Now is a good time to buy a Toronto condo

Right now, condo sales in the GTA have cooled a bit, and as a result, prices have come down slightly. But that probably won’t last. House prices haven’t seen the same cooling, and with so many buyers priced out of the single-family housing market, it will only be a matter of time before there’s a shortage of listings again...and condo prices go up again.

Condo vs. house: what’s the difference?

A condominium is a single unit within a community or multi-unit building. It can be an apartment or townhouse style, or occasionally even completely detached. Condo owners jointly contribute to expenses like the upkeep of common areas (courtyards, hallways, pools and gyms) by paying monthly maintenance fees.

Read more: so what is a condo, anyway?

The pros and cons of buying a condo

Pro #1: Lower upfront costs

Finding the money to buy a home in Toronto can be a challenge, especially as prices continue to climb. But condos tend to cost less than houses, and that’s a deciding factor for a lot of buyers.

Pro #2: Less work

Don’t want to shovel snow or worry about fixing your roof? When you’re in a condo, someone else does that for you. It’s a great option if you have a busy lifestyle, or just aren’t the DIY type.

Pro #3: An awesome lifestyle

While living spaces tend to be smaller, being in a condo can give you access to a lifestyle that many houses can’t. Toronto condos are often in great urban locations, and there’s nothing quite like living right in the thick of things, close to great restaurants and shops. Amenities are a pretty big perk too: you can work out in an on-site gym, go for a swim, get your pooch clean in a dog-washing station, or pick up your packages from the 24-hour concierge.

Con #1: Maintenance fees

One of the downsides to living in a condo are definitely maintenance fees. They can add a pretty big chunk to your monthly budget, so be sure to look at those closely before you buy. But remember, those fees don’t mean you’re throwing away money every month. They cover a lot of stuff: they pay for your amenities, for cleaning and maintenance of common areas, and in many buildings, they include your utilities. Some buildings even include internet. In a house, on the other hand, when your furnace breaks down or the carpet in the hallway needs to be replaced, you pay for that. In a condo, that’s what maintenance fees are for.

Con #2: Lots of rules

Expect rules around what you can keep on your balcony, the colour of your outward-facing curtains, what size pet you can have, what you can hang on your door, and what you’re allowed to renovate in your unit. They’re a necessity when so many people all live in the same building: rules are in place to make life better for everyone. And different buildings will have different rules - the condo board determines them. Most aren’t unreasonable, but if you’re not a rule follower, you have a big dog or you’re really set on those fuschia curtains, you might not be able to live life exactly the way you want.

Con #3: Less space

Unless you’re looking at high-end luxury properties, condos are generally smaller than houses, so you need to be prepared to live in a smaller footprint. Outdoor space is limited too - while balconies and terraces are great, a backyard will always be bigger. But in a condo, remember: you have access to the whole building, from party rooms to libraries to rooftop terraces. You aren’t limited to just your unit.

So there you have it. We aren’t saying condo living doesn't have its downsides. It’s not for everyone. But there is one very big plus that we think outweighs any of the negatives: it’s the most affordable way to enter the Toronto real estate market.