Millennial, retirees, existing homeowners and investors; more and more people are investing in Condos today. In comparison to Generation X or babyboomers; Millennial or Generation Z (as they are sometimes referred to), have a different value system. Short commutes, cost efficiency, walk-ability and access to amenities over large homes in the suburbs are more critical to choice of residence (and what makes them prefer condos over other property types) that ever before.
Some other benefits which has made Condo investment popular amongst those living in large homes are equity and tax benefits, lucrative monthly rentals, premium resale price, better purchase price than single family homes and self governed rules for homeowners. Hence Investing in a condo can be greatly beneficial. This investment can yield tremendous returns but there are factors which result in a good outcome.
Decisions to be taken before committing your money for Condo Investment
1. Sharpen your finances- To ensure that banks are willing to lend you desired loan amount its essential to maintain an upkeep of your financial health. Equitable relationship between income, expenses and credit history is most important to obtain a pre- approval to Mortgage which is generally valid for 90 days.
2. Decide on location and property- Creating a choice list is the next step. It’s important to do homework on Toronto’s condos and determine the probable choices which are closest to your wish list. You need to answer questions like the number of bedrooms, kind of building, location, neighborhood etc to make this list. Additionally, it's crucial to work out proximity to amenities such as transportation bubs, schools, department stores etc.
3. Understand the Types of Condos. Condominium buyers have three choices: a new condo, a resale condo, or a conversion condo. New condos are bought directly from the developer, resale condos are bought from the current owner, and conversion condos are renovated for residential use. Its is good to have a knowledge and information on the structure, facilities and amenities offered by condo developers before initiating the hunt for real estate agents.
4. Developing knowledge on various real estate agents and legal teams - As house hunting can be a lengthy and time consuming exercise its critical to have people from the trade understand and support your need. This way you will reduce the risk of making a bad decision and regret later .
5. Assess building condition- Its important that once you have found a Toronto Condo you visit the facility with home inspector who is able to provide you a detailed report on the building .This will save you a whole lot of headache and time in case of issues.
6. Know your Developer and Builder - Before taking the final decision and putting in your dollar its most critical to research the developer. Past work history and deliveries, construction quality, meeting of deadlines, management of Condos etc is all important to have information.
7. Read between the lines- In order to make the comparison between fees structure, deposits and financing it's great to have an analysis between different options. As Toronto condos operate under a different structure than houses and apartments, one has to not only pay the upfront price of your condo but also the ongoing fees for the use and management of the common property.