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Condos: What You Need To Know Before Buying One?

Are you preparing to purchase your first family home in Ontario, Canada? The prices of single-family homes have skyrocketed lately and according to the latest reports, the average home price is now $835,090. This could exceed your financial limitations and that’s why you might want to explore a more cost-friendly choice. A condo can be a great alternative to a typical home. A condo is a single unit, owned by an individual, that’s part of a larger, shared complex. Here’s everything that you need to know before committing to the purchase of a property like this in Ontario, Canada.

Affordability

The first point to consider is the cost of purchasing a property like this in the condo real estate market. On average, a condo in Ontario, Canada will cost about 50% less than the asking price of a single-family home. As such, you can make a huge saving by opting for this investment. However, you do need to be aware of the additional costs that can come from owning a condo.

Condo Finances

When researching new condominium listings in Ontario, you should always request that the condo management team provides information on finances. This includes:

  • Condo fees
  • The reserve fund
  • Special assessments

Condo fees are monthly costs that you will need to pay to cover everything from maintenance to security. While these contribute to a building’s insurance, you will also need to arrange condo insurance if you need a mortgage.

You also need to think about the reserve fund. The best management firms will set aside a month of the condo fees to pay for any significant repairs. Ideally, you should choose a condo with a high reserve fund. This means it is unlikely that management will need to raise fees to cover additional expenses.

Finally, there are special assessments. These may need to be paid occasionally on top of monthly fees.

Choose A Condo With Your Wanted Amenities

Condos can include a range of different amenities that can improve your lifestyle such as:

  • Gyms
  • Pools
  • Play areas
  • Parking

Regardless of whether you use these facilities or not, you will still need to contribute to their maintenance. As such, you should only choose a condo in Ontario, Canada which has the amenities that you are interested in using. That way, you can save on your monthly fee and ensure that you are getting the best value.

Research The Property Management Firm

The main difference between buying a single-family home and aside from the lower price is that a condo comes with a property management team. You need to research the firm behind the condo and make sure they have good reviews. A bad property management firm will mean delays in maintenance requests, and hidden costs and it could even mean that the value of your condo decreases.

Find Out The Condo Board Rules

You should always check the rules that all condo owners in the complex will be expected to abide by. This can include rules relating to subletting, parking, behavior, and Airbnb rental options. You need to make sure that you are comfortable with the rules in place.

We hope this helps you understand some of the things that you need to know before purchasing a condo in Ontario, Canada. The key here is to research the complex as well as the management team responsible for running it.

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