Condos are the more substantial part of new homes under construction in Toronto recently. Although the real estate market slightly declined in the second half of 2017, the prices of condos remained stable with about 20% increase. Until now, condos have remained the choice of most homebuyers in Toronto with the reality of being able to own a house despite the expensive market. If you are planning to buy a condo in Toronto, here are the buying tips in 2018.
1.) Buy a New Build or Resale?
A long time ago, buying a pre-construction condo used to be cheaper than an existing condo, even when they are in the same neighborhood. The reason is that developers gave discounts to the buyers for allowing their money to sit until the construction was completed.
However, the prices of pre-construction condos are higher or equal to the costs of existing condos, which makes more financial sense to buy an existing condo that you can own and put to use instantly. You can either live or rent out an existing condo as soon as the contract is completed. On average, a one-bedroom condo’s monthly rent is more than $2,000.
New builds are good if you want a never-lived-in unit with your choice of colours and finishes. They are also generally smaller than most resale units and more expensive for a comparable sized unit. One thing to keep in mind when buying new build is the occupancy period. This is the period when the unit is complete but pending title registry. During this time, you need to pay the build for occupancy while waiting for title registry. This occupancy amount does not go toward your mortgage amount as the unit is not registered under your name yet.
Also discuss with your lawyer during the 10 days “cooling off” period to negotiate , free assignment and cap levies. These levies involve Childcare, fire facilities, roads, sewers and more.
2.) Common Amenities
Most condos built recently are part of large developments comprising several condo buildings with shared amenities. This is a cost-effective way for condo owners to use facilities and share the cost with other owners and that makes the utility bills cheaper. Also, the shared amenities are well-maintained due to several people using them.
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3. Older Versus New Buildings
If you are searching for a condo that has a larger space, the older building is likely your best choice because older buildings that are at least ten years old have larger floor plans than new buildings and they have relatively lower prices per square foot.
However, the older buildings are outdated regarding aesthetics, which can be upgraded to your taste by installing tiles, flooring, and appliances; yet, the prices of condos with the cost of renovation will be lower than the cost of most new buildings.
4. More Value with Large Dens
These days, people are making extra money by converting a large den into an additional bedroom and renting it out. All that is required is installing a wall and door, which can be completed with a low budget.
Therefore, if you want to buy a condo in Toronto, consider a condo with a large den you can convert into an extra bedroom. Make sure to inquire with the condo management to get approval before making any changes.