Is Owning a Condo or a Garden Suite a Better Financial Option in Toronto and Vancouver?

Purchasing real estate involves more than just the mortgage costs; there are also monthly maintenance fees which, in the case of a condo, can amount to hundreds of thousands of dollars over 30 years.

By choosing a Garden Suite, you avoid Condo Fees, which in some condominiums can be as high as $1,500 per month. Let’s explore why the Garden Suite is a smart financial choice.

1. What’s Included in the Price: Garden Suite vs. Condo

• Garden Suite (612 sq. ft.)
  • ✅ Up to 3 bedrooms
  • ✅ Own washer and dryer
  • ✅ Private entrance, yard, and parking
  • ✅ No restrictions on renovation or rental
  • ✅ No Condo Fees – save up to $9,000 per year
• Condo (1 bedroom, 612 sq. ft.)
  • ⚠️ Usually only 1 bedroom (rarely 2 bedrooms)
  • ⚠️ Shared laundry or paid laundry service
  • ⚠️ Shared entrance, no yard or parking
  • ⚠️ Restrictions on renovation, rental, and living arrangements
  • ⚠️ Condo Fees: from $750 to $1,500 per month – just for the right to own!

Conclusion: In a Garden Suite, for the same size, you get up to 3 bedrooms instead of 1, complete control over the property, and no hidden fees.

2. Purchase Cost: Initial Expenses

Type of Property	Average Cost in Toronto	Average Cost in Vancouver
Garden Suite  612 sq.ft.	$400,000	$400,000
Condo (1 bedroom)	$671,333	$770,700

Conclusion: The Garden Suite is cheaper than a condo by $271,000 – $370,000, which reduces mortgage payments and lowers monthly expenses.

3. Condo Fees: How Much Will You Actually Pay?

Garden Suite
Payments to the management company: $0 per month, $0 over 30 years

Condo (1 bedroom)

Toronto

• Minimum Condo Fees:
  • $750 per month → $9,000 per year → $270,000 over 30 years
• Maximum Condo Fees:
  • $1,200 per month → $14,400 per year → $432,000 over 30 years

Vancouver

• Minimum Condo Fees:
  • $850 per month → $10,200 per year → $306,000 over 30 years
• Maximum Condo Fees:
  • $1,500 per month → $18,000 per year → $540,000 over 30 years

Conclusion:
By buying a Garden Suite, you can save between $270,000 and $540,000 over 30 years just on Condo Fees!

4. Mortgage Payments (30 Years, 5%)

Type of Property	Monthly Payment (Toronto)	Monthly Payment (Vancouver)
Garden Suite ($400,000)	$2,146	$2,146
Condo (1 bedroom)	$3,607	$4,136

Conclusion:
The Garden Suite is at least $1,461 – $1,990 cheaper per month than a condo.

5. Total Monthly Expenses (Mortgage + Condo Fees)

Type of Property	Toronto (Mortgage + Condo Fees)	Vancouver (Mortgage + Condo Fees)
Garden Suite	$2,146	$2,146
Condo (1 bedroom)	$4,357 – $4,807	$4,986 – $5,636

Savings with the Garden Suite:

• In Toronto: $2,211 – $2,661 per month
• In Vancouver: $2,840 – $3,490 per month

How Much Does This Add Up Over 30 Years?

City	Minimum Savings Over 30 Years	Maximum Savings Over 30 Years
Toronto	$697,738	$1,052,994
Vancouver	$925,771	$1,353,027

Conclusion:
Choosing the Garden Suite allows you to save between $697,000 and $1,353,000 over 30 years!

6. Additional Benefits of the Garden Suite

✅ 1. Full Control Over the Property

The Garden Suite is a separate house, with no management company and no restrictions on renovations, rentals, or living rules that condos enforce.

✅ 2. Rental Opportunities

The Garden Suite can be rented out to generate income for your mortgage payments.

• Average Rent for 1-Bedroom in Toronto: $2,500 – $3,200 per month
• Average Rent for 1-Bedroom in Vancouver: $2,800 – $3,500 per month

In fact, the rental income can cover the mortgage for the Garden Suite!

✅ 3. No Hidden Expenses

In condominiums, Condo Fees can increase every year. In the Garden Suite, there are no such payments.

7. Conclusion: Which is More Cost-Effective?

• The Garden Suite is a standalone house at half the price of a condo.
• No Condo Fees – savings of $750 – $1,500 per month.
• Total savings over 30 years – from $697,000 to $1,353,000.
• The Garden Suite can be rented out, while condo payments are purely an expense.

The choice is clear: the Garden Suite is more financially beneficial than purchasing a condo!