Condominiums are becoming a regular type of apartment owned majorly by people buying homes for the first time. Condos provide a low maintenance value and they tend to be the most affordable option for buying homes in central Toronto.
To move forward in this article, lets us first define what a condo is and what to consider before buying one.
The world condo is used to refer to a kind of ownership and not necessarily the style of building as most people erroneously think. This kind of ownership allows an individual to buy a particular unit in the building and can also own a share of a shared property such as the gym, hallways, recreational facility, lobby, etc.
Condominiums offer many advantages to home owners over a free hold property, such a low maintenance lifestyle and affordability. A maintenance fee is paid monthly to the condo corporation to take care of building costs like ground maintenance and sometimes utility bills or each unit. A part of this maintenance fee is contributed each month to the reserve fund of the condo. A reserve fund is kept to take care up expenses due to large repairs that may arise in the future, like fixing the pool or roof.
Choosing to buy a condo can be an unfamiliar and therefore stressful process especially for first time buyers. You also need to put into consideration the nature of condo insurance in Toronto. Let us consider what you need to look at when buying a condo unit.
- Pricing: What is the size of your budget and what does the price of the unit cover? Are utilities extra expenses? Does the unit have a locker or parking spot? If yes, will there be extra pricing for them?
- Down Payment: You need to know how much you can afford to make as down payment. Any amount less than 20% of the cost price must have mortgage insurance cover with a cheap insurance quote from an insurance company such as Shop Insurance Canada. The greater your down payment, the lesser will be the interest you will pay over the life of your mortgage.
- Location: Will your lifestyle be suitable for the location of the condo? Is it close to your place of work, public transit, the gym, highway, shops, etc?
- Floor plan and Suite: How practical is the layout and will it be easy for you to arrange your furniture? On which floor is it located? Across from high traffic elevators or next to a noisy garbage?
- Future value: Is the area up and coming? Is the location and building a good investment?
- Building amenities and Common Areas: Does the condo have amenities such as guest suites, recreation room, pool, gym, etc?
- Condo Corporation and Reserve fund: You need a lawyer to review the status certificate to determine if there are any scheduled increases in maintenance fees or upcoming cost.
If you seek convenient and affordable living, condos are a great alternative to freehold living. Take the above into consideration when you are searching for a perfect condo.
For any of your condo or auto insurance need, please feel free to visit us in person:
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