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When it comes to investing in Toronto real estate, one of the big decisions you’ll need to make is whether to invest in a condominium or house. Below, we look at the pros and cons of each type of real estate investment.

Investing in a Condo

Pros

Cons

  • Less expensive to buy – the average price of a condo is lower than the average price of a house in the GTA
  • Low maintenance – With the condo board responsible for most of the building’s mechanical systems and the ongoing maintenance of things like window cleaning and snow removal, owning a condo as an investor is relatively easy. 
  • More predictable repairs and maintenance costs – With a condo, the board performs regular studies about what needs to be fixed and costs are planned for and shared among residents.
  • Cheaper property management fees – If you decide to hire a property manager, it’s less expensive in a condo than in a house. In Toronto, we often see property management costs of 6-8% for condos, and 10-12% for houses. 
  • Rentability – With most Toronto condos located in prime neighbourhoods, it can be easier to find a tenant. Close proximity to transit, services and jobs are key decision factors for tenants. Condo amenities like gyms and pools can be very attractive to tenants too. 
  • Condo rules and restrictions – Condo board rules may limit if and how you can rent your property – for example, they may require leases of 12 months or more.
  • Maintenance Fees – Condo fees can range anywhere from $0.60-$1.00 per square foot, so if you decide to invest in a larger unit, condo maintenance fees can get expensive fast
  • Special assessments and condo fee increases – Investing in a condo isn’t risk-free, and legal, structural or financial problems in the building can have serious consequences on the owners. Whether they deal with building issues via one-time special assessments or higher-than-average condo fee increases, it can throw off your math.

Related: Understanding Condo Maintenance Fees

Related: How to Buy a Condo

Investing in a House

Pros

  • Higher property appreciation – Houses in Toronto have traditionally shown greater value gains faster than condos, so if one of your investment goals is property appreciation, you’ll want to carefully consider a house.
  • More improvement opportunities – If one of the ways you want to increase your investment ROI is through renovations, a house can provide more options, whether that’s adding bathrooms, finishing the basement, adding an extension or topping up.
  • Control – Owning a house instead of a condo means you aren’t subject to the condo board’s rules or decisions and are the captain of the ship.

Cons

  • Higher cost to buy – It’s generally more expensive to buy a house than a condo, so buying a house means a bigger downpayment and higher ongoing mortgage costs
  • Higher ongoing costs, from garbage, water and utility costs to insurance. 
  • Repairs in a house are harder to predict and can get expensive fast – whether that’s replacing a roof, getting new water drains, dealing with a flooded basement or calling in a plumber or electrician.
  • Ongoing maintenance for a house can be onerous, from managing pest control, furnace and air conditioner maintenance, window washing, snow removal, gardens and more.  House maintenance isn’t just about money – it takes time too. 

Related: How Much Does it Cost to Own a House in Toronto? 


If you’re looking to buy a real estate investment in Toronto, it’s important to carefully consider the pros and cons of buying a condo vs. a house. Remember your investment goals, risk tolerance and how much time and money you’re prepared to dedicate to the property.

Related: Complete Toronto Investor Guide

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