It doesn't have to be that complicated. Consider the following before you commit!
The first step to purchasing your dream condo is figuring out how much you'll be pre-approved for a loan. Depending on the lender, the mortgage (loan) you're eligible for can vary. You need to keep in mind that you should have a credit score of at least 600 and a down payment of at least 5% of the condo value before you're ready to purchase.
Maintenance fees are proportionate to the square footage of a unit and should be taken into consideration when calculating your monthly expenses. For example, your mortgage may cost $1,500 monthly however, maintenance fees of $700 will add to this expense.
Your maintenance fees cover amenities so be sure to get the most value for your dollar. You don't want to pay for a gym membership when your condo already has one!
If you don't currently own a car, this is no reason for you to be on the fence about buying a condo that doesn't have parking. Even if you're currently commuting, it's always good idea to have parking available for the resale value of your unit. Plus, if you end up buying a car in the future and your unit doesn't have parking, it can cost around $40,000 to acquire a parking spot.
A lot of units are marketed as 1 + den and you soon find out the den is a little indent in the wall, big enough to fit a shoe rack. Despite this, a 1+1, on average, sells for 30k more than a 1 bedroom. If you can afford it, always buy a 1+1.
The last thing you want to do is move into a condo that has 50% of their units rented out or even worse, belonging to Airbnb users. If you're going to spend half a million dollars, you deserve to know that the neighbours on your floor actually live there. The condition of a condo filled with owners compares to a condo filled with Tenants is night and day and drastically affects resale and the current value of your unit.
With homes in the GTA becoming increasingly expensive, the condo market is becoming a popular option. The reality is, a Seller listing their condo for $399,000 will likely be expecting $430,000 as the final sale price. As a rule of thumb, take a look at your pre-approved amount and search for a condo within a range of your current budget and $30,000 less than your budget.
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