Purchasing a condo is quite different than buying a freehold home. There are many different factors you must consider.
First off, what exactly is a condo? A condominium is a shared space or community with separately owned units or townhouses within.The unit is registered in your name and you share ownership of the common elements and assets of the building and community.
Here are some condo buyer tips to consider before purchasing:
The condo lifestyle is quite different in comparison to living in a freehold.
Therefore, you must decide whether a condo fits your lifestyle. If you are a free spirit that likes the idea of no maintenance and the ability to get up & leave while also benefiting from the community feel, then a condo may be for you. If you enjoy your privacy, want total control over your home and don’t mind the additional maintenance then a freehold home may be for you.
Condos can be a great way to break into the Guelph real estate market! Learn more in the posts below:
- The Ultimate Guide for First-Time Buyers in Guelph
- Is it Time to Leave the Guelph Rental Market Behind?
- What’s the Fastest Path From Broke Student to Homeowner?
There can be extra fees involved.
Although condos can be significantly cheaper than single family homes they also tend to be more difficult to finance. Your lender will have to take into consideration the reserves and arrearages of the building, any red flags in the condo documents, and the percentage of owner occupied units. You will also have to factor the condo fees on top of the purchase price.
Speaking of fees, you will need to find out how much the monthly condo fees are & what they include. These fees can range drastically, therefore it is very important you take this into consideration. Here are some things that may be included in the fees:
- Building Insurance – Insurance that covers cost of repairing damage to the physical building caused by fires, floods etc
- Common Elements – goes towards maintaining the common elements (parking, hallways, lobby, party room, elevator, pools, etc.)
- Exterior Maintenance – can go towards maintenance exterior features such as fences, pools, landscaping, windows, roof, etc.
- Parking – Meaning you are not paying an additional fee for parking.
- Property Management Fees – Paying the employees/contractors that maintain the building & the grounds
In some cases the fees will include heat, water, hydro, air conditioning etc.
What type of amenities does the building offer?
Check to see if your building offers parking. If so, is it underground or pad parking? Do you have the ability to purchase or rent an additional spot if you choose? Also, you should see if it comes with a storage locker.
Some buildings are loaded with amenities such as party rooms, gyms, pools, saunas, pet spas, rooftop patios & more. Usually the more amenities, the higher the fees.
Review the condo rules and regulations thoroughly.
Better yet, get your real estate lawyer to look it over. Some of the things to look over:
- Rule about pets – Some restrict based on the type of pet, weight or the ability for them to be carried in the common areas.
- Ability to rent – Some buildings prohibit renting which is important to know if you would like the flexibility to travel or if you would like to use it as an investment property in the future.
- Check that there is a healthy reserve fund & that there are no special assessments – if they run out of money in the reserve funds and major expenses come up such as redoing all the windows. Then all the owners have to pitch in to cover the cost. This can sometime be a substantial amount of money
- Work orders against the unit you are purchasing – For example, if the previous owner did a modification to the unit without permission the condo board may ask them or remove it themselves at the previous owner’s expense. If this was not settled, you could be on the hook for it.
What is the demographic of people living there?
Is the building geared towards University Students, Young Professionals or Seniors? Is it mainly renters or owners? The demographics of the building may mean different amenities, rules and community vibe.
For even more resources on buying a home or condo, check out these related posts below:
- 10 Things To Consider When Buying a Home
- What is the Importance of a Final Walk-Through?
- New Build Vs Resale Home: What’s Better in Today’s Market?
Building insurance doesn’t cover your personal items or condo improvements.
For example: You spend $80,000 completely gutting the kitchen and bathrooms in the condo and a while later the condo burns down.
They will pay to restore it back to how it was originally–without any of your upgrades. You are now out $80,000 + the cost of all your personal possessions. You will want to purchase condominium insurance which includes content and improvements
Do you have more questions about Guelph real estate or the Tri-Cities? Contact The GoWylde Team at info@gowylde.ca or call 519-826-7109 today.
Looking To Buy A Condo In Guelph Or The Surrounding Area? Browse Our Condo Database
