Condos have become a popular form of ownership especially among first time home buyers. Not only do condos tend to be the most affordable option for home ownership in central Toronto but they also offer a low maintenance lifestyle.
What is a condo anyways and what should be considered when purchasing one?
The term condo truly refers to a kind of ownership and not the style of building as many people think. This kind of ownership allows the owner to own a specific unit in a building in addition as owning a proportion of the shared character, such as the lobby, hallways, gym, as a hobby facility etc.
Condos offer home owners many advantages over a free keep up character, such as affordability and a low maintenance lifestyle. A monthly fee, known as a maintenance fee is paid to the condo corporation each month to cover building costs such as ground maintenance and sometimes your unit utility bills. Each month a portion of this maintenance fee is contributed to the condo’s save fund. A save fund is set aside to pay for any large repairs that may need addressing in the future, such as fixing the roof or pool.
Deciding to buy a condo, especially for a first time buyer can be a stressful and unfamiliar course of action. Let’s take a look at what you should consider when purchasing a condo unit.
1) Price – How much can you provide and what is included in the price of the unit? Are utilities additional? Does the unit come with a parking identify or a locker and if so is there an additional cost to them?
2) Down Payment – Consider how much you can provide to put down. Anything less than 20% of the buy price must get mortgage insurance. The larger your down payment, the less interest you pay over the life of your mortgage. 3) Location – is the location in a functional location for your lifestyle? Is it near your place of employment, the gym, public transit, shops, highway etc?
4) Suite and Floor plan- Is the layout functional and will it be easy to position your furniture? Where on the floor is it located? Next to a noisy garbage shoot or across from high traffic elevators?
5) shared Areas and Building amenities- Does the building have the amenities you are looking for such as a gym, a recreation room, guest suites, a pool etc?
6) Future value – Is the building and location a good investment? Is the area up and coming?
7) save Fund and Condo Corporation – Your lawyer will review the position certificate to see if there is any upcoming cost or increase in maintenance fees scheduled.
Condos are a great different to freehold living if you are looking for affordable and functional living. When searching for your perfect condo takes the above into consideration. Happy condo hunting.