There’s no denying it, buying a condo comes with many compelling benefits.
Not only are they a more affordable option than houses across the GTA, but they are also in some of the most central locations close to all sorts of daily amenities and facilities for work, live, play and grow. The newer condo buildings are furnished with luxurious hotel-like amenities, modern and contemporary interior design and finishes and offer a very low maintenance lifestyle for young professionals and families alike.
Even with all these benefits, condo living is not for everyone. It is a lifestyle choice and is a major commitment. This is why it is important to think carefully about condo living, stack up the pros and cons and have a good understanding of the “condo experience” before you sign on the dotted lines.
We’ve put together a list of 8 things to consider for anyone thinking of purchasing a condominium in 2021 and beyond.
A major consideration in real estate ownership is your current and future financial situation.
Given the recent rapid price acceleration growth in Toronto real estate prices in 2020-2021, it is becoming increasingly more difficult for most people specifically for First-Time Homebuyers to afford their dream homes.
According to TRREB’s October 2021 report, the average selling price for all GTA homes combined rose by 19.3% year-over-year to $1,155,345. The low-rise market continued to drive price growth in October, but the annual price growth for condominium apartments was 13% year-over-year to $703,698. These high housing prices make condos the more affordable home ownership option. Number of condos sold in October 2021 were 28.9% higher year-over-year.
When acquiring land to build condo buildings, builders spend a lot of time in choosing the right location one that is attractive and beneficial for over 300 future residents of First-Time Homebuyers, downsizers, Investors, tenants.
These locations are usually close to transit – subway lines, bus routes and highway access. They are also usually close to daily amenities and facilities that are easily accessible by foot – groceries, banks, coffee shops and majority of these buildings have retail at the bottom that may include but not limited to cafes, convenience stores, dry cleaners and more.
Remember, excellent locations close to strong transit networks, proximity to daily amenities, and high walk scores also hold the best resale value in the longer term. This is especially critical for condo investors who may want to rent their condo and want to attract the right type of tenant.
A general rule of thumb, we here are Toronto Condo Investment follow as we work with our investor clients is find a location that makes is attractive and easier to live, work, play and grow.
So what is the next great location to invest in? Follow the smart money, we say! With a strong industry and builder network, we have a great pulse on the market and know which pockets the builders are acquiring land and investing their money. Here’s a pro tip: when you see builders investing in an area, you know that area is poised for growth so go ahead and follow the smart money with confidence!
Condo buildings are smaller communities within with over 300 units in most towers you have many neighbours that you share the building’s common elements with that include the front lobby, elevator, kids play area, terraces, BBQs and much more.
For friends and clients who have lived with younger children in condos they have really enjoyed this immediate sense of communities. Most have hosted private children’s programming in the party room such as music or gym classes or group swim lessons in the building’s pool.
The pandemic added a layer of stress and concern with community living. During the lockdown condo building amenities were shutdown, only one family at a time was able to take the elevator. As the lockdown restrictions were lifted, condo buildings employed new sanitary measures to keep their common spaces clean, safe and usable.
Sharing spaces is not for everyone. So think about how close would you want to be with your neighbour(s) or how often would you like to run into them?
Most new condo buildings have the modern hotel-like enviable amenities. These include but are not limited to state-of-the-art fitness centres with the latest equipment, yoga studios, juice bars, indoor and outdoor kids play areas, co-working areas, outdoor terraces with BBQs, party rooms and lounges, library, pools, dog washing stations and more.
These amenities offer unique lifestyles for residents: to have a gym and a kids play area a short elevator ride away is of tremendous value for convenience and lifestyle saving on both time and money. Over the years the demographic of downtown residents have changed and their preferences evolved with a strong desire to live, work, play and grow within their downtown neighbourhoods and builders are listening and including relevant amenities to cater to all lifestyles.
Given the current pandemic, builders and designers are taking learnings from these experiences to design amenities that are of more importance to people in the future. One of the most popular amenities these days that is becoming more common in buildings is the co-working lounges and spaces with seating and wifi. With the office work model evolving to more work-from-home, remote work or the hybrid work model, builders are offering residents spaces within the building to use as their home offices. As most condo sizes are smaller, residents can use these spaces as their home offices and work with their neighbours assimilating a co-working office environment.
Builders are always looking to innovate and we’re seeing innovation within the suites with Smart home technology that makes everyday living simpler. Tridel has been the leader in implementing Smart home technology offering hands-free entry and efficient parcel delivery. Features that allow you to set the alarm from your wall pad or smartphone and if activated, both you and the front desk will be notified.
Like If the decision is between a condo or a house, you may have to consider some serious trade-offs. Choosing one over the other has significant lifestyle considerations. We’ve listed a couple here:
Space: If you’re downsizing, the smaller size of condos in the city today may come to you as a big shock and not mention the price tag attached to those. You would have to understand the value you get in downsizing to appreciate the move: a maintenance-free lifestyle – there is no backyard to maintain, no driveway to shovel, in most cases you do not need an additional gym membership – these conveniences allow you to focus on what’s more important experiences and perhaps travel rather than spending time maintaining the house.
Storage: If you’re coming from a house or looking into a house and you have a lot of “stuff” storage space would be a major consideration. Most condos do have storage lockers to purchase or rent from other residents or storage. However, if you have a significant amount of belongings that you may need to consider outside storage rental facilities.
Parking: If you have two cars, you may not be able to purchase another parking spot from the builder. In that case, you would have to look into renting a spot from another resident and those may be hard to find. Not every condo building has visitors parking or free visitors parking – to be considered if you have frequent visitors. However, we are finding less number of people owning cars as car share services or Uber and Lyft become more popular, more economical with less carbon footprint and a more convenient way of getting around the city without having to worry about finding and paying for parking.
Buying a condo means no more landscaping, shovelling, raking leaves, or cleaning the garage! All the usual maintenance tasks will be handled on your behalf.
What does that mean for you?
You’ll have more time to appreciate your new home, spend time with loved ones, and invest in your favourite activities as opposed to using your evenings and weekends to do take care of maintenance work in and around the house – imagine the freedom! What will you do with all your free time?
Every condo building has a Condo Corporation governed by the condo board which is comprised of suite owners. The condo corporation decides in rules and regulations for all suite owners and works on governing those.
When looking into purchase a condo, it is advisable to look into these rules. Some condo buildings may not allow pets, or have restrictions on the number and/or size of pets allowed. Others may forbid commercial businesses to operate from the condo. Some may not have a front desk and thus no one to receive your deliveries or no space to store those for you to pick up from.
Whatever the case might be, as an owner you’re expected to follow the rules.
If you’re buying a condo property for investment purposes to rent out through AirBnb short term rentals, it is advisable to check into the condo by-laws before you make the purchase. And increasing number of condo buildings under pressure from residents are implementing stricter no short-term rental policies. You will not be able to lease your condo for short-term rentals in these buildings. Also its important to keep in mind that the building may allow short-term rentals today, but rules on these can change at any time.
It is worth verifying short term rentals for other reasons as well. As a resident for reasons of security, noise, or other, you might not want to live in a building or next to a condo where guests rotate all the time for example.
Buying a condo is a big decision for both investment purposes or to live in. It is a lifestyle choice. Hopefully this blog post helped you think through some important considerations.
Wherever you are on your condo buying journey, we would be happy to chat with you and help you navigate the world of Toronto Real Estate.
