Condominiums offer an amenity-induced, and stable living experience, without weighing heavy on the pockets. A lot of families and people prefer to live in condos than traditional homes. However, before you take the plunge and start looking for Toronto condos for sale, it’s important to understand what you are getting into. If you are accustomed to single-family dwellings, condos are an entirely different story. Before you get down to signing a deal, here’s what you need to know about buying a Toronto Condo.
- How is the condo association being run?
Buying a condo is synonymous with signing a business agreement with everyone else who has a share in the project you are buying into. As you would with any other venture, inquire about its financial stability and learn how the place is being managed. Instead of letting your emotions get the better of you, stay on your toes and be extra careful.
- Can you show me the Association budget?
This is an important aspect that most condo owners overlook, but it is prudent to get a copy of the association’s budget. While associations are not likely to hand over a copy of the budget to a prospective buyer, the seller in his capacity as an owner, can ask for a copy and hand it over to the buyer.
- How are the cash reserves?
The older the building and the lower the cash reserves of the condo association, the higher the chances of the building owners getting hit with a special assessment at some point or another. 10% of the revenue of all condos should be set aside for capital expenditures and emergencies. Unfortunately, most Toronto condos for sale lack the indispensable reserves in their budget.
- Is the building insured?
Community’s insurance coverage is a key factor that most buyers tend to overlook due to a lack of knowledge in this regard. Most condo associations limit or altogether drop the insurance coverage to save up on finances. This leaves the investment of all the owners in a project, highly vulnerable. Before you finalize your purchase, ask the seller to give you a copy of the building’s master insurance policy and consult with your insurance agent to know if the coverage is sufficient. Insufficient insurance coverage can wreak havoc on your prospects for financing.
- What’s the management team like?
You’ll be better off interviewing the condo manager personally. In addition, your neighbors can best offer you the insights in management. A lousy manager can make your life a dreg. In some condos, residents make decisions together without the involvement of property managers. This translates into lower monthly fees than professionally managed communities. While self-management may sound like a catch to you, do you really want to manage a community with people who live next door.
- Will I need to move in the next five years?
Toronto condos for sale appreciate much slower as compared to single-family homes. With such a depreciation of the real estate market, prices won’t recover fast enough to help you strike a lucrative deal. While nobody can predict the future, make sure that you are a right fit for the community before you decide to buy a Toronto condo for sale.
- What are the Rules?
Does the community you are thinking of living in allow pets? Can you rent out your unit if a need arises? Will you be able to plant a bed of flowers if you so wish? Go over the community rules in details so that you know in advance that there are no rules that you can’t live with.