A Toronto Condo Can Be A Great Option - But Is It For You?
May 28th, 2007If you’re in the market to buy a home and are looking for fewer maintenance requirements, or perhaps a typical single-family home isn’t in your budget, then you may want to consider a Toronto condo.
By definition, when you buy a condo, you’re buying all the space contained within the walls. The condo unit may be in the form of a townhouse or a high-rise apartment suite. The exterior of the building, the landscaping, surrounding roads and driveways, and common areas are all owned by the condo corporation, a group made up of all unit owners.
There are many things you’ll want to consider, many pros and cons to think about as you ponder whether a condo in Toronto is right for you. You’ll want to keep the following things in mind:
• Your needs: Toronto condos range from bachelor and one-bedroom sizes up to two or three bedrooms and often have little storage space inside them. Some buildings do offer separate lockers, but they don’t all come with one. You’ll also want to think about whether there are enough bathrooms, particularly if you have children on the verge of adolescence who will likely be spending more time in the bathroom getting ready for school. Consider future space requirements as your household evolves.
• The neighborhood: Just like any other home you might consider, you’ll want to examine the neighborhood. Can you (or do you want to) commute? How are the schools? Is shopping nearby? There are condos in all Toronto neighbourhoods stretching from Whitby/Ajax/Pickering in the east all the way to Mississauga/Oakville in the west and everywhere in between.
• Market demand: Ask your real estate agent to check out the sales history of the units in the corporation. Is there demand? Are the properties appreciating? How do the units at one complex compare with like properties?
• Outdoor space: Some Toronto condos have a community pool, barbecue area, and common health club or exercise facilities. On the other hand, many condos have extremely small patios and balconies, which might not be a good fit for someone who enjoys entertaining guests outside, has pets, or has children who need more play space.
• Pets: Many corporations have rules about pets. Some don’t allow pets; others impose limitations on the size of the pet.
• Security: Some condos have 24-hour on-site security and others have just a buzzer panel at the front door of a high-rise. Others have nothing - anyone can walk onto the townhouse complex from the street. Do you care? What’s important for you?
• Condo fees: You’ll want to ask about the condo fees and whether increases are planned. These fees may pay for general maintenance of the buildings, insurance, landscape and grounds upkeep, pool maintenance, security, and various administrative costs.
• Reserve funds: Does the corporation collect money each month to pay for big repairs and improvements? Is the reserve fund adequate? Are any “special assessments” planned?
• Amenities: Does the property come with amenities such as pools, tennis courts, health clubs, etc? Does the condo corporation own these facilities or are they shared with another condo building? Are there additional costs to use on-site facilities?
• Parking: In many areas parking is a major issue. How many spaces per unit (or do you even have a space)? Do you pay extra if you have more vehicles or can you rent additional spaces? Is parking space owned or exclusive use? Etc?
• Maintenance: Most of the exterior maintenance, including roofing and painting, is typically included in the cost of the corporation fees. But you’ll also want to look closely at what you can and can’t do. Some condo townhouse complexes won’t allow you to plant your own shrubs or plants outside your front door, or accent the trim of your door in a new color.
• Insurance: The condo corporation typically covers the insurance for the grounds and building exterior. However, condo owners are generally responsible for insuring their personal belongings and any upgrades the unit has had above what’s called the ‘builder’s standard’.
• The corporation’s past: Each condo holds regular board meetings in which financial, maintenance, and legal issues are discussed and acted upon. Review the minutes from the meetings over the past year or so to see if there have been any issues of contention or re-occurring problems that don’t seem to be cured (leaky roofs, break-ins, etc.).
• Paperwork: Be sure to check the condo document called the Status Certificate. It includes information such as the declaration, rules, and bylaws, budget and financial statements and gives you an ‘at-the-moment’ financial snapshot of the corporation.
• Governance: A condo association is a form of government and there are more rules and standards than with a stand-alone house. If you really want to play loud music every night till 2 AM and paint the front door orange, a semi or detached home may be a better option.
• Specific needs: Ask about the issues that are important to you. Can you have a pet? What about a home office? Can you grow vegetables in the back? As you finish weighing the pros and cons, you may want to cap off your deliberations by asking yourself how much your lifestyle and household may change over the next five or so years. Will you need more space than the condo offers? Can you buy now and rent later? As an alternative, what about a smaller house a little further from downtown?
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