There are different types of entities when it comes to multi-unit dwellings. Condominiums are the most common, and can include apartments and townhouses.
But there are other types such as Co-ops and Co-ownership units. The benefits of each type differ. Educate yourself to discover which is the right type of property for you.
Condo: Just like buying a freehold property, you get a deed to your unit and financing through any lender with a low minimum downpayment to an approved buyer.
Benefits: -Easy to finance for you and when you re-sell.
-Most common, simplest to explain entity.
-Often are more modern and offer more amenities.
Co-op: Down payment sometimes as high as 30% with the interest rate typically .5% higher that posted bank rates.
The co-op corporation owns the entire building and land, you get shares in that corporation and pay part of the bulk property taxes on the building. You receive certificates, not a deed. Buyers receive an occupancy agreement and have exclusive use of their suite. Buyers must be approved by the board of directors when purchasing.
Benefits: -You generally get more space and charm for your money.
-Usually lower monthly maintenance fees and lower taxes.
-Often located in prime neighbourhoods like Rosedale and Forest Hill.
Negatives: -Generally less facilities like a concierge.
-Generally older buildings that may have no central air conditioning.
-Increased liability as other owners are responsible if
another owner is in default.
-Harder to finance for you and when you re-sell.
Co-ownership: Down payment sometimes as high as 30% with the interest rate typically .5% higher that posted bank rates. You buy a percentage interest in the entire land and building. You receive a deed to the property and take title along with all the other owners as tenants-in common. You must be approved by the board of directors.
Benefits: Same as co-ops.
Negatives: Same as co-ops.