Investing in a condo can be a smart financial decision as they often have lower prices compared with single-family or multifamily homes in a given market. However, like any market, their price depends upon the market forces of supply and demand. There are many variables to take into account before investing in your dream condo. Some of the variables are outside our control like the present and potential future market condition, property legislation of a particular state, and future returns. However, there are certain steps you can take to predict these variables.
Since condos are fast becoming a smart investment in real estate, you should be able to hit upon the right places. If you are looking for a condo in Toronto, go to this listing to find your ideal condo to invest in. To help you, here is our five point guide, before you invest in a condo:
1. STATE OF FINANCES
Now before investing in anything huge, we normally have to examine our current financial state. Here we have listed a simple 5 self questionnaire you need to consider before deciding to invest:
- Have real estate prices gone up or down?
- How much can you afford?
- What will be the maintenance costs?
- What about downpayment?
- How much are the taxes?
Once you have this, you can opt for a pre-constructed condo or an already constructed condo. Depending upon the condo of your choice you have to make a certain percentage of down payments.
2. LOCATION
One of the key features to look into while investing in any real estate is location. It is the one thing about a property that cannot be altered. The location also affects your resale value. That being said one smart move here is to examine the future potential development in the area. Depending upon your needs and requirements you can opt for a condo that is located outside the busy traffic if you want a private silent space or near a booming vibrant area where you can commute easily between your home and workplace.
- Take away guidelines for individuals:
- avoid bad layout
- avoid congested building structure
- avoid dodgy builders
- avoid rough neighbourhood
3. CONTACT A REAL ESTATE BROKER
You rarely find the condo of your dreams in a single search. Going through all the properties can be time-consuming, not to mention it stops your other works. Therefore, investing in a real estate broker can be a smart decision. Experienced real estate agents will shortlist properties for you based on your wish list. They have in-depth knowledge about the market, like interest rate and potential future turn around. Real estate brokers have trained eyes that can spot potential cracks and damages, alerting you to move to the next one.
4. CAREFULLY EXAMINE HOMEOWNER ASSOCIATION RULES AND FEES
When you buy property in a development, you agree to be a member of the homeowners’ or condominium association (HOA), which runs the development. Under HOA you agree to certain terms and conditions
known as covenants, conditions and restrictions (CC&Rs). These are legal documents and are binding legally. Pay special considerations to HOA fees and rules before making any decisions. HOA fees can add up and become a headache for new owners.
5. TYPES OF AMENITIES AVAILABLE
Different condos provide different amenities. Depending on the type of weather conditions and geography, your amenities requirements can change for example having a swimming pool. Some basic fundamental requirements are common and should be there:
- 24 hours Parking space
- extra storage space
- gym or fitness centre
- pet-friendly residents
- green park in close proximity
- eco-friendly and energy-efficient buildings
Additional Smart Moves
There are certain things that your real estate broker cannot inform. As a potential buyer, it is your responsibility to ensure that your investment is worth it. Here are some basic steps you can undertake:
- scheduling inspection more than once
- visiting during rush hours to check the traffic
- getting to know the neighbors
- scanning for the past crime rate in the area
- checking the security of the building
- getting landlord insurance in case you decide to rent it
You might wonder if it is a good investment decision to invest in a condo. Well, the answer might differ individually, and it mostly depends on your goals and financial circumstances. There is an increasing demand for condos in metro cities and it is quickly becoming a trend in semi-urban areas due to the rise in gentrification. Therefore investing in a condo, given the above guidelines are diligently followed, can definitely be rewarding in future.
