When Where And Why Should I Buy A New Condo?

Many people decide to move primarily because they have “outgrown” their current residence. The addition of children definitely will alter most people’s lifestyle and home life. Buying a home is a big decision but it need not be stressful if you plan it out before hand. And now is probably the best time to buy (or sell) a home in Canada because the interest rates are currently very appealing. If you have decided on purchasing a condominium there are some considerations to be aware of, particularly if you will be a first time condo owner.

HOA fees or condo maintenance fees
When you purchase a condo it is usually an apartment or townhouse that has been converted into a condominium. They charge fees that generally include any maintenance cost such as landscaping or pool upkeep and cleaning. The Home Owner’s Association or HOA fees represent the cost of maintaining the complex grounds and usually include snow removal, security, elevators, and trash pickup. Some even cover cost of your water or sewer. Owners of the complex will charge a monthly fee, anywhere from $75 on up (depending on the amenities) and hold some as a contingency in case of major repairs such as roofing or paving the parking lot. You are basically one step above renting an apartment and dependant upon your landlord for maintenance and repairs.

Buying your new condo means getting a mortgage
Whether you are buying your first ever condo or you are moving up to a newer or a larger one expect to need to qualify for a new mortgage. Buying a home is not like buying a car. Some car loans can be “taken over” by a new party who assumes the loan of the previous owner. Not so with home ownership. Mortgages are long term commitments involving many years of monthly payments, paying thousands in interest, plus taxes and insurance. It’s a big commitment but well worth it to be a “home owner”. Condo living can mean the best of both worlds when you have a pool you don’t have to maintain, a party room someone else will clean up after, maybe even an exercise room that you don’t have to take out a second mortgage to furnish with all the latest equipment. That is what the condo fees or HOA fees are all about. For those who don’t want to mow their own grass or shovel the snow in winter being a condo owner has much to appreciate.

There goes the neighborhood
The neighborhood in which your condo sits is an important factor especially if you have kids that will attend school locally. The school district should be examined as well as the surrounding neighborhood. If you live in a run down neighborhood it may be difficult to sell your condo later on. Expect to get to know your neighbors because condo life is all about togetherness due to the fact you and the people next door are so close in proximity.

Condo rules enforced by the Condominium Property Act
This act tells the board of directors at your condo how they must uphold the rules of their condo, how that contingency account is to be handled, and how to spend the money they accumulate from the condo owners. An Estoppel Certificate should be provided when you purchase your condo which details how your HOA fees are to be assessed and even which parking spot is yours. Altogether living in your own condominium can be a stress free and maintenance free way of life.