BUYING A CONDO? HERE'S WHAT YOU SHOULD KNOW
Buying a condo is an excellent opportunity to enjoy the perks of homeownership without the responsibilities that come with maintaining a freehold home.
However, there are a few things you should check before signing on the dotted line:
When you own a freehold home, the only rules on pets are the ones imposed by the city. In a condo, there may be weight or breed restrictions (or even a pet ban altogether).
Not all condo fees are created equal! Some only cover the basics (like building insurance and maintenance of common areas), but others can include your utilities and an extensive list of amenities! Always confirm exactly what the monthly fee includes.
You should always have a real estate lawyer look over the condominium’s status certificate. This document will outline whether there is a healthy reserve fund (funds set aside to cover the costs of significant repairs of common areas), which is the key to avoiding any future special assessments (levies imposed on condo owners for under-funded repairs).
Sometimes, mortgage rates for condos can be higher than loans to purchase freehold homes. This is because the condition of the building and the condominium’s finances are taken into consideration, in addition to your income and credit profile.
Many condos forbid rentals shorter than six months, as that would fall within the hotel guidelines. If you’re looking for AirBnB, you may want to consider another investment!
At the end of the day, if you’re looking for a maintenance-free lifestyle a condo could be the perfect option for you.
If you have questions about purchasing a condo, let’s chat!
Claire has a keen interest in investment properties and looks forward to continuing to help her clients build their real estate investment portfolios.
