Trying to decide between a freehold house and a strata condo or townhome in Victoria? The choice shapes your daily life, your budget, and your long-term plans. In a market with everything from heritage homes in Oak Bay to sleek downtown condos, it’s normal to feel unsure. In this guide, you’ll learn the key differences, what costs to expect, how bylaws and insurance work, and the due diligence that protects you. Let’s dive in.
Freehold vs strata: what you own
Freehold (also called fee simple) means you own the land and the home on it. You control the whole property subject to zoning, covenants, and other laws. You handle all maintenance, insurance, and taxes.
Strata (condominium) ownership divides a property into individual units and common property. You own your unit and share ownership of common areas like the roof, hallways, and amenities through the strata corporation. The corporation operates under the Strata Property Act, which sets rules for governance, bylaws, records, meetings, and insurance. The Government of BC also provides practical guidance on strata housing and ownership basics.
Monthly costs: fees vs maintenance
Strata fees fund building insurance for common property, routine upkeep, utilities the building covers, management, amenities, and the long-term reserve (depreciation) fund. Fees vary by building age, size, amenities, and what utilities are included. Older buildings with limited reserves or high amenities often have higher fees.
Freehold homes do not have strata fees, but you pay directly for all maintenance, landscaping, repairs, insurance for the full structure and contents, and utilities. Costs vary by lot size, home age, and condition. You control the timing and scope of work, but surprises can be larger.
Big-ticket items: reserves and special levies
Strata corporations maintain a reserve fund informed by a depreciation report to plan for major repairs like roofs, cladding, piping, and elevators. If the reserve fund is short, owners can be charged a special levy to pay for work. Levies can be significant and may affect your finances.
As a buyer, review the depreciation report, current reserve fund balance, and any recent or approved levies. The province’s page on buying into a strata explains what to look for and how to read the key documents.
Insurance: who covers what
In a strata, the corporation insures the building structure and common property. You carry a strata-lot policy for your unit’s interior improvements, contents, and liability. Many strata bylaws allow the corporation to pass certain deductibles to the owner responsible for the damage. Ask for the building’s insurance certificate and deductible schedule and have your insurance advisor match coverage.
Freehold owners carry a comprehensive homeowner’s policy that covers the full structure, outbuildings, contents, and liability. Either way, verify coverage details before you remove conditions.
Bylaws, rules, and lifestyle fit
Strata bylaws and rules can shape your day-to-day. They may address pets, rentals, noise, parking, renovations, and how you use common areas. You must follow both the strata bylaws and municipal rules. In the City of Victoria and other CRD municipalities, short-term rentals and licensing are regulated. Always confirm municipal requirements as well as building bylaws.
If you value low-maintenance living, a strata can be a great match. If you want maximum control for renovations, a home-based business, or outdoor space, freehold may fit better, subject to zoning.
How strata governance works
A strata corporation is created under the Strata Property Act. Owners elect a council to manage day-to-day operations. Major decisions occur at the annual general meeting or by special resolution, following statutory voting thresholds.
For disputes, BC provides accessible pathways. Many strata issues can be addressed through the Civil Resolution Tribunal process described in the province’s page on resolving strata disputes.
Financing and resale considerations
Lenders and mortgage insurers review strata health before approving financing. Buildings with weak reserves, major levies, or high rental concentrations can face added scrutiny. New construction may involve GST and warranty considerations. For background on condo financing and ownership, see CMHC’s consumer guide to condominiums.
If you are exploring a new strata, confirm new home warranty coverage and consumer protections. The regulator provides consumer information on home warranty insurance in BC. Freehold new builds may also involve GST and warranty coverage; seek professional advice before committing.
Due diligence checklist for Victoria buyers
Use this list to compare options confidently and protect your investment.
For all properties
- Title search and documents for covenants, easements, and rights of way.
- Recent property tax assessments and utility arrangements.
- Home inspection focused on structure, systems, and moisture.
- Permit history with the municipality to verify past work.
Strata-specific documents
- Form B (Information Certificate) and, if applicable, Form F details.
- Registered bylaws and rules covering pets, rentals, renovations, and use.
- Minutes from council meetings and the last 12 to 24 months of AGMs.
- Current budget and financials, including reserve fund balance.
- Depreciation report and any engineering assessments.
- Building insurance certificate and deductible amounts, plus bylaws on deductible responsibility.
- Status of any special levies and any active or pending legal claims.
- Parking and storage allocations and rules.
For help understanding these items, start with the Government of BC’s guide to buying a strata.
Freehold-specific checks
- Age and condition of roof, foundation, plumbing, electrical, and HVAC.
- Drainage, slope, and any signs of water ingress.
- Shared driveway or access agreements and any private covenants.
Local and municipal checks (CRD)
- Zoning and rules for short-term rentals, secondary suites, and licensing.
- Permit history, occupancy, and final inspections.
- Utility and sewer connection records where available.
Which is right for you?
Choose strata if you want a lower-maintenance lifestyle with shared costs, amenities, and a community feel. This can be a fit if you prefer to spend weekends on Dallas Road rather than mowing the lawn.
Choose freehold if you value control and outdoor space. If you envision a garden in Fairfield, a workshop in Saanich, or future flexibility for a suite, freehold can be the better fit, subject to zoning and permits.
Pro tips to avoid surprises
- Read the bylaws and rules line by line before you write an offer.
- Compare the depreciation report’s recommendations to the reserve fund balance.
- Scan minutes for repeated issues, disputes, or upcoming projects.
- Confirm the strata’s insurance coverage and deductible pass-through rules.
- Build a contingency for special levies or unexpected repairs into your budget.
- On freehold homes, get quotes for near-term work like roof or perimeter drains.
- Verify permits on past renovations and ensure final inspections were completed.
How we help in Greater Victoria
You deserve clear guidance, not guesswork. Our team pairs hyperlocal insight from Oak Bay Village with a curated network of inspectors, legal, mortgage, and insurance partners to make the process smooth. Whether you are eyeing a downtown condo or a character home near the ocean, we help you weigh costs, bylaws, risk, and lifestyle so your choice feels right from day one.
If you are comparing freehold versus strata and want a calm, expert sounding board, connect with Coastal Living Collective, Victoria BC. We are here to help you move with confidence.
FAQs
What is the legal difference between freehold and strata in BC?
- Freehold gives you ownership of the land and building, while strata gives you title to your unit plus shared ownership of common property under the Strata Property Act.
What do strata fees typically cover in Victoria condos?
- Strata fees usually fund building insurance for common property, routine maintenance, some utilities, management, amenities, and reserve fund contributions; exact inclusions vary by building.
What is a depreciation report and why does it matter?
- It is a planning report that outlines major building components, timelines, and costs for repair or replacement; you compare it to the reserve fund to gauge risk of future special levies.
Can I rent out my strata unit in Victoria?
- Rental rules depend on your strata’s bylaws and municipal regulations; read the bylaws and check local rules before relying on rental income.
What insurance do I need as a strata owner?
- The building’s policy covers common property and structure; you need a strata-lot policy for interior improvements, contents, and liability, and to address any deductible responsibility.
How do special levies work in BC stratas?
- If reserve funds are insufficient for planned work, owners may be charged a levy approved by the required vote; amounts and timing are set by the strata and outlined in meeting minutes.
Do freehold houses always cost less per month than condos?
- Not always; freehold has no strata fees, but maintenance and repairs can be higher and less predictable, while strata fees are steady but can rise or be supplemented by levies.
