Affording a home in Toronto, Canada’s second most expensive housing market, was tough. With home prices skyrocketing, many first-time homebuyers start out as condo buyers before eventually upsizing to a house. Despite being single, with a sizable down payment of $170,000, I had the luxury of choosing between a house and condo.

Here are some factors to consider when choosing between a house and condo.

Houses

A house offers a lot more freedom. Unlike condos, houses don’t come with many restrictions – you’re free to decorate your home as you see fit. A house also comes with a yard – perfect for raising a family or entertaining. A house is generally considered a better long-term investment than a condo. With a house, it’s a lot easier to subsidize your mortgage by renting out part of your property to tenants.

Houses come with some drawbacks. A yard means you’ll have to mow the lawn and shovel snow. A house comes with a lot of expenses, including utilities, home insurance, and property tax. You’ll also have to spend more on home maintenance and repairs. A good rule of thumb is to set aside 3% to 5% of the value of your home each year. For example, my house is worth $425,000, so I budget up to $21,250 on maintenance and repairs.

Condos

A condo is the perfect way to get your foot in the door and invest in real estate. Condos are traditionally more affordable than houses. You’ll be less likely to find yourself “house poor,” since you’ll have a smaller mortgage. With a condo, you won’t have to worry about outdoor maintenance, as your condo fees cover that. Condo fees make budgeting a lot easier since you’ll know what they are ahead of time. Moving from an apartment to a condo is less of an adjustment than moving to a house.

When you own a condo it’s more difficult to subsidize your mortgage. Unlike a house, you’re not able to rent out part of your place to tenants. In fact, many condos have restrictions on subleasing your unit. You can get roommates, but you’ll have to find roommates you’re comfortable sharing your personal space with. Condos don’t come with the same freedom as houses; there are often restrictions on everything from decorations to pets. Your condo fees could also skyrocket to pay for costly repairs and amenities.

Why a House was the Right Choice for Me

Although my lifestyle is better suited for a condo, I chose a house instead. The main reason is I believe a house is a better long-term investment. I’m also not a big fan of condo fees. My goal is be mortgage-free by age 31 – with a house I’m able to achieve this by renting out the main floor. You should look at the pros and cons of each type before making your final decision.

Do you prefer houses or condos and why?

Sean Cooper is the bestselling author of the book, Burn Your Mortgage: The Simple, Powerful Path to Financial Freedom for Canadians, available now on Amazon and at Chapters, Indigo and major bookstores, and as an Audiobook on Amazon, Audible and iTunes.