When buying a resale condo, there are unique considerations to remember to ensure that your investment is sound and the living space meets your requirements. Here are some key factors to consider:
Things to consider when buying a condo
Location and Neighborhood
The condo’s location can significantly impact its value and your quality of life. Consider proximity to work, schools, public transportation, amenities such as shops, restaurants, and parks, and the overall safety and appeal of the neighbourhood.
Location of the unit within the building
At first, you may think all units within a building are the same, but many factors may make them more desirable to you and less to others. People with mobility issues may value being close to the elevator or garbage shoot. Meanwhile, another person sees that proximity as potentially being louder. Another critical consideration is unit exposure. South to Southwest is generally more sought out because it allows for more sunlight throughout the day.
Condition and Age of the Property
When considering buying a condo, the condo units and the building’s condition are also important. Older buildings might have more character but could require more maintenance. Check for any signs of significant issues, such as water damage, structural problems, or outdated electrical and plumbing systems. Major unplanned repairs often call for all owners to contribute to the cost of fixing them; this can be either a lump sum or an additional payment on top of your condo fees. When this happens, it is called a special assessment.
Understand the Condo Fees and Rules & Regulations
Understand the monthly Condo fees and what they cover, such as maintenance, utilities, and amenities. High fees can significantly affect your budget. Also, review the condo rules and regulations to ensure they align with your lifestyle. There will be Rules regarding Pets –such as weight, quantity, breed restrictions– outdoor cooking, and rental restrictions, among many other things.
Amenities and Services
Evaluate the amenities the condo building offers, such as a swimming pool, gym, security services, parking facilities, etc. Consider whether you will use these amenities and if they justify any associated costs because you will be paying for them if you use them or not.
Financial Health the Condo Corporation
Most offers to purchase will have a Status Certificate Review included. This certificate is typically paid for by the seller and provided to your real estate agent. They’ll forward you a copy for your lawyer to review. It provides insight into the Condo Corporation’s financial reserves and upcoming assessments. A well-managed association should have sufficient reserves for maintenance and emergencies.
With careful consideration of these various factors, your next condo purchase can offer you years of enjoyment while also being an excellent investment opportunity.
BONUS TIP: Buying a resale condo avoids uncertainties and risks associated with buying pre-construction condos, like this example where a builder did something unbelievable!
