Condo or house: what should I buy in Toronto?

Some Toronto perspective homeowners buy houses, while others settle in condos.  If debating between buying a condo or house in Toronto, here are the things to consider when making your real estate purchase.

The pros and cons of living in a condo or house in Toronto:

Advantages of owning a condo in Toronto:

• Condos are more affordable: an average condo sale price in Toronto in 2013 is $342,760
• Condo buildings offer amenities, such as gyms, swimming pools, and concierge cervices
• Condos are safe, which is important if you are a single woman
• There is no need to shovel snow or cut grass if you live in a condo
• There are no unexpected repairs, especially if purchasing a condo in a relatively new building
• The maintenance fee usually covers most utility costs, so you can budget accordingly

Advantages of owning a house in Toronto:

• Houses are easier to resell, due to low supply of houses in Toronto and high demand
• Houses are larger than condos; some houses have basements and income suits, that can be rented out
• Houses increase in values faster than condos
• Houses can accommodate family changes
• Houses have backyards for kids and adults to play
• Homeowners can increase square footage by building additions, which in turn increases house value
• Living in a house provides a feeling of belonging to the neighborhood

Disadvantages of owning a condo in Toronto:

• Currently there is a large supply of condos in Toronto, which may have a negative impact in case you need to resell
• Condos tend to be smaller than houses
• Condos have limited access to outdoors, so no backyard there
• Maintenance fees can be high, and may increase overtime
• If planning on having a family, condos are hard to accommodate kids
• Noise and other disruptions are possible due to living close to neighbors
• Major repairs, such as roof replacements and garage repairs can be expensive and disruptive

Disadvantages of owning a house in Toronto:

• Houses are more expensive:  average sale price of a semi-detached house in Toronto in 2013 is $480,325
• Homeowners are responsible for upkeep: cutting grass, cleaning snow, repairs, etc.
• You are responsible for all the bills, recycling and garbage removal
• Housing stock in Toronto tends to be older, therefore be prepared for unexpected repairs and upgrades

If you are still debating about whether to purchase a condo or a house, Toronto real estate agent  Davelle Morrison recommends getting into the real estate market early in life.  Purchase the property you can afford, and resell and upgrade to a larger home as your financial situation improves and career grows.