Ottawa Real Estate Guide: Choosing Between a Condo and Freehold Property in 2024

Nov 14

When it comes to buying a home in Ottawa, one of the most common questions buyers face is whether to go for a condo or a freehold property. Each option has its perks and potential challenges, so understanding the key differences can help make the decision easier. Below, we break down the pros and cons of each property type to guide you in your real estate journey, thanks to insights from Meagan Milloy, realtor at New Purveyors.

The Case for Condos

Low-Maintenance Living Condos are ideal for those who prefer a more hands-off approach to homeownership. With condo living, much of the external upkeep—like gardening, snow removal, and grass cutting—is managed by the building’s maintenance team. This is a great option if you don’t want to worry about outdoor chores, especially during Ottawa’s snowy winters.

Monthly Condo Fees While condos come with monthly fees, these payments often cover some utilities, building insurance, and access to common areas like fitness centres or pools. Condo fees can vary, and while they are an extra cost, they offer convenience and access to amenities that might otherwise be more expensive to maintain on your own.

Board of Directors and Shared Spaces Most condos in Ottawa are managed by a board of directors, which enforces rules and oversees the building's budget and maintenance. As a condo owner, you’ll own your individual unit but share common elements with other residents, including hallways, lobbies, and amenities.

The Reserve Fund and Special Assessments Monthly fees also contribute to a reserve fund, a savings pool for maintaining and repairing shared areas. This fund helps cover the cost of unexpected repairs and general upkeep. However, if the fund isn’t sufficient, the condo board may issue a “special assessment,” requiring unit owners to pitch in to cover costs. Before purchasing a condo, it’s essential to have your lawyer review the status certificate to ensure the building is in good financial health and avoid any costly surprises.

Expect Gradual Fee Increases It’s worth noting that condo fees often increase over time to keep the reserve fund replenished. This helps prepare the building for major repairs down the road but is a factor to consider if you’re budgeting for a condo purchase.

The Case for Freehold Properties

Complete Ownership and Independence With a freehold property, you own your home and the land it sits on without monthly condo fees. This means that you have the freedom to renovate or decorate without seeking approval from a board of directors. Want to paint your front door a bold colour or build a backyard deck? With a freehold, those decisions are entirely yours (keep in mind you may need permits for larger projects).

More Maintenance, But Full Control While freehold homes offer more freedom, they also come with increased responsibility. Tasks like snow removal, lawn care, and roof repairs fall solely on you as the homeowner. This adds some workload but offers complete control over your property’s appearance and maintenance schedule.

Plan for Big-Ticket Repairs Homeowners should consider setting aside savings for unexpected repairs. Large projects, like roof replacements or driveway repaving, can be costly, so having a financial buffer for these “big ticket” items is a wise idea.

No Condo Board or Shared Responsibilities Unlike condos, freehold properties aren’t managed by a board, so you don’t have to worry about communal decision-making or shared financial responsibilities. This offers a greater sense of independence for those who prefer full ownership and decision-making power.

Which is Right for You in 2024?

Your decision between a condo and a freehold property ultimately depends on your lifestyle, budget, and maintenance preferences. Here’s a quick summary to help:

Condos: Ideal for those seeking a low-maintenance lifestyle, with access to amenities and shared responsibilities through condo fees.
Freehold Properties: Perfect for homeowners wanting independence, freedom to customize, and full control over their property, though it comes with additional maintenance duties.

Buying a home in Ottawa is an exciting milestone, and both condos and freehold properties have their unique benefits. If you’re still deciding or need further guidance, reach out to Meagan Milloy at New Purveyors—she’s ready to help you find the property that fits your needs best!

Disclaimer: Always consult a real estate lawyer to review any documents, especially for condos, to fully understand your rights, responsibilities, and any potential financial commitments.