March 9, 2015
Home ownership is a big deal and can be a bit overwhelming your first time around. As the millennials begin to dip their toes into the real estate market for the first time, they are can be faced with numerous obstacles. The Toronto housing market is, and has been, steaming hot for some time now. That’s why condominiums are a great, manageable way to enter into the realm of home ownership. Here are some things to consider before investing in a condominium.
Buying New vs. Resale
Second to deciding on what your ideal locations may be, you should weigh out whether you would prefer a re-sale condo, or a newly built one. There are benefits and drawbacks for both to consider. Here are just a few:
Benefits of buying a new condominium:
Disadvantages of buying a new condominium:
Benefits of buying a resale condominium:
Disadvantages of buying a resale condominium:
Whether a condo is new or old, all condominiums require that you pay a maintenance fee. This is a monthly expense that goes to the maintenance, repairs and upkeep of the building. Fees range widely between buildings and may fluctuate over time. When looking into a condo, compare the condo fees with other buildings with similar amenities, age and size. When seeing the monthly cost, you may decide having a pool on sauna is not that important to you after all.
When looking into condo fees for a newly built condo, keep in mind that increases may occur in the second to third year of ownership. The developer will estimate what the appropriate condo fees will be, but this number can drastically change based on the board elected to manage the building. One of the biggest complaints of people living in condominiums is that they disagree with how the condo fee revenue is being spent, so be sure to participate or even run to be a part of the board in order to have a say in how your investment is being managed.
Know What You Can Really Afford
Speak to a mortgage broker to determine what kind of mortgage will best suite you and to see how much of a mortgage you can comfortably afford. One of the biggest mistakes first-time buyers make, is going in over their heads. When considering your down payment and mortgage for a new condo, don’t forget to factor in any additional costs like:
Resale condominiums also have additional, and sometimes unexpected, costs like:
If you’re in the market for your first condo and have any questions or concerns about mortgages, contact us!
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