If you are like most, you don’t really know the difference between co-ops and condos. Many times, a condo can be part of a co-op, but a co-op can be more than just a condo; for example, apartments and even homes can be part of a co-op.
A co-op is something that you rent and own shares in, but you don’t own the unit itself. You can own many shares in a co-op building and you will generally still pay maintenance fees, along with rent payments. These are generally less expensive than regular condominiums and sometimes the fees for maintenance are tax deductible.
Many people who consider mid town condos in Toronto want these for subletting, especially if it is a vacation spot. One potential problem with co-op agreements is that the person subletting will need to be approved by the Board of Directors. This is also true of prospective purchasers when you are ready to sell, if that is one of your options in the contract.
Monthly maintenance fees are usually higher for a co-op agreement, as well because they include the cost of the mortgage.
Mid town condos in Toronto are generally apartments that you own. These are considered real properties, unlike co-ops and it is almost like buying a house. When you purchase a condo, you will own the unit and will have taxes and its own deed.
You will not have to deal with the Board of Directors when you own a condo, though you will need to follow the rules outlined for the building.
You are also able to sublet your condo when you want, which can give you a lot of flexibility.
Mid town condos in Toronto are generally more expensive than other condos, because they are considered more upscale. However, they are usually less expensive than any condos in the downtown region. Condos in general are more expensive than co-ops in any area of town.
Maintenance fees in a condo are generally lower because you do not have a personal mortgage on the condo. However, these fees are not tax deductible.
There are generally more condo co-ops than those that can be bought outright, which may make it more difficult to find a condo to purchase
