Condominiums or commonly termed as Condos are at the center of Canada’s housing market, especially in major cities. If you are considering buying a condo, there are several things to consider before making a decision along with knowing the best mortgage rates to make a good choice.
While some Canadians view condo living as an option for the elderly or young professionals, there are many advantages that condo owners enjoy. For example, you pay to own as opposed to a renter who pays to rent. I presume that is why a place like Toronto has more condos coming up than anywhere else in the country. If you find doing repairs, maintenance and weeding the garden too tasking, then a condo may be a better fit for you. Someone else handles all the maintenance works for you.
There are many other benefits including living in a warm social setting, living in a metropolitan area, you are a walk or short transit away from work. Buying a condo may be your first step toward home ownership. Condo owners also have the freedom to rent their unit out, making it possible to use the rent income towards paying the mortgage and maintenance fees and at the same time maintain ownership of property.
It would be important to keep in mind, that a condo is communal. Yes, you would be the unit owner, but at the same time, you are also part of a bigger community. This setting requires that you co-own almost all the common components of the property. In case you are a first-time condo buyer, you may need to go through an annual increase in maintenance fees. The condo corporation has to increase fees when expenses or inflation goes up usually to maintain the corporation.
If your condo was a new construction purchase, the second year of your stay is likely to bring a few surprise increments, mainly because fees for year one are based on the developer’s estimate. You should be prepared for such unforeseen increments in your monthly maintenance fees. Other responsibilities would include maintaining the unit, paying for all common elements even if you do not use all of them.
Finding the Best Mortgage Rates in Canada
Find the Best Mortgage Rates for your next condo purchase here on CompareMyRates.ca
In view of these facts, here are a few tips to remember when buying a condo for you, family or investment.
- Check the breakdown of tenancy fees
- Look for a condo that generates good cash flow
- Remember that upscale amenities usually cost more
- Find out whether the condo is mainly occupied by renters or owners
- Hire people to help in the acquisition and management for example lawyer, appraiser and so on
- Check the size of the condo corporation’s reserve fund
It does not matter whether you are an investor or first-time buyer. Considering these facts and tips will help you get the best value from a condo purchase in Canada. Check our Canada mortgage calculator to help you make a better decision.