Buying a condominium is a different experience from buying a house, but it can be just as exciting. It is easy to see why so many Torontonians are moving into condos. They are reasonably-sized, affordable homes in the middle of attractive locations. Condos can also be a great investment opportunity if you can get a low mortgage rate. However, there are some important things that you must do before purchasing a condo.
- Budget for fees. There are extra fees that you’ll need to be prepared to pay when you buy a condo. These include occupancy fees, which are charged to you between the time you take ownership of the condo and the time you move in. Occupancy fees do not go towards your mortgage. Condo owners also pay monthly condo fees that cover building repairs and maintenance.
- Know your neighbourhood. Toronto is a vibrant city and each neighbourhood has its own personality. Before you decide on your condo, get to know the neighbourhood to see if it is a fit. You’ll also want to know where your closest amenities are, such as a grocery store, transit stop, and so on.
- Be flexible. It is unlikely that you’ll find a condo that has everything you are looking for, so it is important to be flexible. Consider the things on your list that you can live without and those that you can’t. Also, set a budget that you are comfortable with and stick with it. Homeownership can be expensive, and you will need to be sure you can afford the one you buy.
- Find out about the developer. Do a little research to find out about the developer that built the condo building you are thinking of moving into. Are they reputable? Has the company built other condos in Toronto? Does the developer have a lot of debt? Even if you fall in love with the building and neighbourhood, it is best to steer clear of developers that don’t have a good reputation.
- Consider the market value. If the condo you are buying was pre-owned, try to find out how much it increased or decreased in value. What did it sell for previously? This can give you a good gauge to know if the condo will retain or grow in market value. While real estate trends can always change, it is important to have an idea before you buy.
- Research future developments. Look into development plans around your condo building. Some of these developments can have an impact on your decision to buy. For example, if a new high rise is planned nearby, it might have a negative impact on your property value.
- Understand the extras. Be clear on what is included in the price of the condo. Does it come with a parking spot? What about a storage locker? What kind of amenities are in the building? Is there a gym, a games room, or a pool?
Condos can be a great home option and an excellent investment opportunity. Just do some research first and ask the right questions to find out if it is right for you. If you are interested in learning more about buying condos in Toronto, call Northwood Mortgage™ at 888-492-3690 or contact us here.