Tag Archives: retirement
by Denise Lash
In the same way a chameleon changes colour to suit its surroundings, a well-thought-out condo purchase will adapt to its owner’s changing circumstances. A realistic assessment of your needs, a modest amount of investigation and planning, and a bit of luck are all that are required to make your condo a multi-purpose living space and a sound investment for years to come.
My friend’s son recently started university in Toronto. Faced with the realization that his rent was going to form a substantial part of his bill, she bought a two-bedroom condominium for him. The “rent” he pays is just enough to cover the mortgage and monthly common expenses, but is still below market rates. He can put his savings towards other expenses and she can use the rent to pay down the condo, effectively keeping the money in the family. As her other children graduate and enter the workforce, the condo may see double duty as an affordable first home for them.
The choice of the unit was made with an eye to her own future. She hopes to travel in her retirement and the condo will give her the security and peace of mind to remain absent for extended periods. My friend is also realistic. She loves her current home, but knows there will come a time when it will be too much for her to handle. At that point, with the nest empty, she can downsize into the condo. In the years in between, she plans to rent the condo and use that income to pay down the mortgage.
What factors should you look for if you’re considering this strategy? First, since you’re in for the long haul, look for a unit built by a reputable developer. Speak to other owners and search the Internet. And don’t overlook the obvious: examine the construction materials and finishings in the unit. You don’t have to be an expert to recognize quality at this level.
Next, look for an active board of directors and management. Are the grounds and common facilities maintained? Is the parking garage in disrepair? Regular and attentive maintenance can prevent owners from being faced with potentially crippling special assessments to carry out major structural repairs down the road. Consult with your lawyer or agent to ensure that the condo’s rules and regulations will be appropriate for your needs.
You also require a building that will suit your needs and those of your children over time. If you plan to live in the unit in your retirement, you may place a premium on a building that offers guest suites and has adequate guest parking. Is having handicap access likely to be an issue for you in the future? You may also want to have 24-hour security and indoor parking.
Another factor you need to consider is location. If the condo is going to serve as student housing for your children, proximity to the college or university is important. Try to get a sense of the local community. Is the character of the area likely to remain the same or is it changing? If you are counting on an unobstructed view from your balcony, avoid purchasing in a building where other properties in the immediate vicinity are likely to be developed.
Of course, life doesn’t always go according to plan, so be realistic about whether you want the financial commitment of a second home. You also have to be prepared to take on the time-consuming duties of a landlordâ€”or pay someone else to perform that role for you. But a condo can offer many years of varied use to all members of your family.
Denise Lash is a condominium lawyer at Miller Thomson LLP and host of the television show MondoCondo.
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