Things to consider doing before you buy your condo:
You may be familiar with the benefits of living in a condo: there’s less maintenance to have to worry about, security, amenities, it’s usually affordable and within good proximity to essentials like transit, retail, groceries and in certain areas lots of work options. If you’ve decided a condo is right for you, there are a number of factors that will help you narrow down the options. One area that can be overlooked is condo insurance, which is a mistake.
Purchasing your condo, are you ready?
Here’s a checklist of what to do ahead of time so that you have everything you need for when you purchase your condo:
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Check your credit score: A good credit score can range from 700-749.
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See what costs you can afford: Are you hoping for a very convenient neighbourhood within close proximity to everything you need or situated right downtown? That convenience is likely to come at a cost. So start looking online to see what neighbourhoods you like and the price ranges in those areas.
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Secure a mortgage pre-approval: Your credit will also impact your ability to secure a mortgage pre-approval. This will allow you to show up ready to purchase your condo with the comfort of knowing your mortgage will be all set.
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Find the right real estate agent: Get referrals from your network of peers and conduct research to find the most suitable and competent person to help you out. Also, look at their fees and what they offer as every agent is different.
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Determine legal and appraisal fees: Legal fees can vary between $1,000 to $2,500 according to Canadian Real Estate Magazine but will depend on your lawyer. You should also have your lawyer review the Status Certificate of the condo, as this will be important for the financials of the building.
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Organize home inspection: The process involves hiring a certified home inspector to assess the health of a condo unit. They will come to the property and investigate to see if there are any problems that need addressing.
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Setup moving services: Look for movers with experience moving into condos and who have experience with moving to whatever type of condo you’re looking at, from low-rise buildings to high-rise buildings, duplexes, lofts, and more.
What about the costs of a condo?
There are some costs that you will have with every condo and some hidden ones that you won’t want to forget:
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Repair and maintenance costs, building fees, shared costs (Reviewing the Status Certificate is key here so you know what is covered by the reserve and what each homeowner would have to contribute should there be a need for new windows etc)
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According to Ratehub.ca: In Toronto, the average maintenance fees you can expect is about $0.50-1.00 per square foot, but these numbers will vary from Manitoba to Yukon
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Determining factors of the cost will include: location, building size, age of the building, and building amenities (ie parking spot, swimming pool, movie theatre, gym etc)
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Insurance! Always good to get a quote before you buy so you can but this cost in your budget.
Things you should consider when preparing to buy a condo:
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The size and location and if it includes a parking spot.
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When did the maintenance fees last go up - so you can plan for increases in your budget the longer you live there.
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Proximity to work, transit, community services, grocery stores, schools etc.
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Storage, is this included or is it extra?
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The resale value of the condo (i.e. Renovations, making modifications) know the rules and regulations of the condo (i.e. if you’re allowed pets, what modifications you can make to your unit as some buildings have more strict rules around renovating.)
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Condo association fees, amenities, extra parking fees, security fees so you can look at your all-in budget before you buy.
Seek advice!
When looking for the right condo for the right price, it'll only help to get help from advisors who can help you along every step of the way. A mortgage advisor, insurance advisor, and real estate agent, a lawyer they can help find you exactly what you’re looking for in a new home.
