In case you haven’t heard, the Toronto condo market is hot, hot, hot. In the last quarter of 2019, according to TREB, there were 3822 sales, $2,523,970,256 in total volume, and an average price of $660,379. The appetite for condos is spreading beyond the major cities to the rest of Canada, too. Convenience, in- house amenities, and affordability are all big factors swaying more and more buyers from houses to condos.
This week I want to talk a little about some factors that are important to consider when purchasing a condo. Although some will be relevant to investors as well, let’s talk about buyers who will be end users. This means buyers who plan on living in the unit and will be impacted daily by the all the quirks and quarks.
Let’s assume you’ve already considered the usuals like condo fees, amenities, price point, location, financials for the building (which you and your lawyer can review in the status certificate), etc. Once these basics are satisfied, here are a few other factors that will affect your quality of life and your satisfaction with your purchase.
1. The Builder – A builder’s reputation, track record, and financials should be top of mind. This is especially relevant for pre-construction so that you have assurance that the condo will be built and you won’t lose your deposit. It’s also important in resale condos. The quality and design of the building will impact not only your day-to-day, but your resale value down the road. Beware of the builders who have compromised on quality in the quest for profits.
2. The Property Management Company – These are the people who you’ll be dealing with if anything goes wrong. This means either in your particular unit or in the building as a whole. Now to be honest, very few property management companies have stellar reputations. However, being able to get someone on the phone and deal with issues quickly makes a huge difference. No one wants to leave five unanswered voicemails when you have a leak in your unit. And what’s the point in stellar amenities in your building if the management company doesn’t make sure they are open and functioning?
3. Sound Proofing – The materials used and construction method will be the difference between a sound sleep and being kept up all night by your neighbour’s late night marital discord. This is relevant for the walls and floors, but also the exterior material to protect you from outside noise. If there’s a lot of poorly constructed glass and you’re on a busy street, you may be surprised at constant volume.
4. Demographic In The Building – This can be everything from how friendly people are, average age of occupant, percentage of renters vs owners, number of three-bedroom vs one-bedroom units, type of community spaces, and the list goes on and on. If you’re someone who doesn’t want to be particularly close with your neighbours, you’ll have a different perspective than someone who is hoping to have a sense of community. Take some time to consider what fits for you now and a few years down the road. If you’re hoping for a quiet and clean vibe, then a building that has a lot of 20-something renters is not ideal.
5. Short-Term Rental Policy – The city’s new regulations will likely shift the landscape of how these operate in our fair city. However, if there’s money to be made, there will likely always be those who will persevere. The status certificate will have the condo corporation’s rules and regulations on rentals. If a building prohibits short-term rentals there may be hefty fees for anyone trying to skirt the rules. For the buildings that do allow it free and clear, Airbnbs can have an impact on the permanent residents. Depending on the building, it can feel like a transient hotel and issues may arise with disrespectful guests and hosts. Buildings that allow it may be more lucrative to investors, but are generally not preferred by owners.
6. Additional Parking – Whether you need a space or not, if you can afford to buy one it’s ideal for your resale. Also consider how many additional spots are available for rent and for visitor parking in the building. It can be major deterrent for certain buyers if there isn’t anywhere for themselves or guests to park. Depending on the area and the building spaces can be highly coveted, so it is better to have a little wiggle room.
7. Pet Rules – Pet-friendly buildings can be a delight when everyone is respectful. When the residents aren’t on their best behaviour, things can get messy and crowded. You’ll find pet info in the status certificate rules and regulations which usually limits the number, size, and type of pets permitted. Spend a bit of time in the lobby and out front to see how big of an impact the pets are having on the ambiance of the building.
Just a little food for thought when contemplating a condo purchase. There’s no arguing that whether you’re a first time home buyer looking to break into this crazy market or a recent retiree needing to smart size and everything in-between, condos can be an excellent option. Take the time to find the right fit for you. Check out more pointers to make you a more savvy purchaser here.
