Owning a property in Canada is a dream of many people. If you have already made this important decision, the next step is finding the right property for you. You can start by buying a condo since detached homes are already quite expensive, and this might strain you financially for a start. Canada is well known for its rapid growth, and thus you can live in the unit or use it for commercial purposes. Either way, there are things you need to put into consideration to ensure that you make the right investment decision. Here are tips for buying condos in Canada to guide you through the property ownership journey.
Location is the first thing you must consider before buying the condo. If you are purchasing the condo for commercial purposes, then you need to ensure that the area is prospering from a commercial perspective. Location contributes a lot to the rental value and appreciation rate. Locations with few businesses have the most affordable units, but they are not suitable for investment.
Condo units have shared amenities such as gym, park area, swimming pool, etc. Maintenance costs of these amenities are jointly paid by condo owners; thus, you need to ensure that the amenities are relevant to you to avoid paying for amenities you or your tenants are likely never to use.
When buying a condo, check if it comes with a home warranty. A home warranty ensures that the building is constructed properly, and it meets all legal regulations. You should also check what is covered by the warranty and for how long. An excellent condo should have a coverage of at least five years since the completion date. Call the insurance company to ensure that the policy is valid. If you are buying a condo in the resale market, it may not have a home warranty as the period might have lapsed. In such a case, you need to weigh your options and decide how important a home warranty is to you.
Resale Versus New Building
Resale condos can save you money as you can move or rent it out right after buying it. Thus, you start getting rental income or save on our rental expenses sooner. The downside is that resale condos may require renovations meaning that you need to spend more money.
On the other hand, new build condos are good for a long term investment. They usually allow you to make small installments and you own a new unit that will have a higher resale value. However, most new condos are sold while construction is ongoing; thus, you may not move in or rent it out right away. Weigh the two options and consider which option is more profitable for you.
Familiarize Yourself with the Neighborhood
Buying a condo will, in most cases, mean that you are purchasing a unit which is a part of a larger property. This means you might have to put up with the kind of people you would like to avoid. Thus, it is essential that you first introduce yourself and familiarize yourself with the neighbors you are likely to have before making the buy decision.
Buying a condo in Canada is a big investment decision. With these tips, you will make the right decision.