Location is the most important factor when you are purchasing a condo. The view you see out your windows is very important, so do your research and find out about any future development plans in the area. Sometimes units go up for sale at a great price because the owners become aware of a future condo project that will block the view and all the natural light. Although you won’t own your condo forever, it is important to think about resale plans in the future. At times, a neighborhood may be trendy and popular, but don’t heavily rely on that. Demographics are more important; you want to be close to public transit, a hospital, grocery stores, parks and good schools.
Condo fees are used to pay for heat and electricity in the common areas of the building. Besides heat and electricity the building needs to be managed, the other expenses are included: Snow removal, landscaping, cleaning hallways, elevator maintenance and building insurance.
Condo fees play an important role in pushing buyers away because it’s an additional monthly cost that could become a bad investment over time. On the other hand, condos are worth it because even single family house owners pay maintenance costs without getting the services in condos.
Over time the maintenance fee will increase in condominiums. There is always a benefit to buying a condominium with a lower maintenance fee.
If you are thinking of buying a condo as an investment, it’s better to buy 0-5 years old, because this range has the lowest maintenance fee, then, you can save money over the time, Moreover, you can sell it before it’s getting older. By this way you can enjoy living in a new condominium, paying less maintenance fee and also the value of your property will be increased over the time.
A status certificate is a document provided by the condominium corporation to buyers of resale condos that provides a summary of the unit as at the date that the certificate is issued. If the building is serviced by a property management company, it is prepared by the property manager. The certificate must be given to the prospective buyer within 10 days of the date of the request,
A status certificate contains relevant information about the individual condominium unit. Among other things, the certificate would indicate if the current unit owner is in default of paying the monthly common expenses, if an increase in the common expenses has been declared by the condominium board, and the amount in the reserve fund.
Information that needs to be included in the certificate is specified in the Act. For example, the status certificate should contain:
- the names and addresses of directors and officers of the corporation,
- information regarding common expenses for the unit,
- any special assessments that may have been charged by the condominium board,
- management contract,
- insurance,
- minutes of the last general meeting,
- copies of the condominium declaration, by-laws and rules,
- a current budget for the condominium corporation, and
- a copy of the most recent reserve fund study. The study should state the amount in the reserve fund, within 90 days of the date of the status certificate, and any plans to increase the reserve fund.
The higher you buy, the more it will cost, and it will sell for a higher price when you’re ready to sell. You will have a better view on a higher floor. If you’re buying for investment purposes, chances are you could charge more rent for a higher floor, and in some cases, if the view is really amazing, you will be involved in a bidding war for your rental. Higher floors also have less street noise pollution.
Common expense fees will also vary based on what floor you live on. The developer is free to set and choose what percentage of a common expense they want to charge each unit, and typically, those on the higher levels pay more.
In general, an end unit or a top-floor unit is more attractive. The rule of thumb to follow for choosing which floor to buy on relates to the view. If you can buy a unit whose view will never be obstructed by future construction (i.e. right against the water, overlooking a heritage building, next to a park), then it’s worth buying high.
Condo amenities may be one of your key requirements, but be very careful about what you wish for because this can extremely drive up your monthly maintenance fees. If you’re not a swimmer and you get into a condo with a swimming pool, be prepared to see spike increases in monthly maintenance fees as your condo ages.
Having too few elevators or slow elevators might result in long waiting times, especially during prime times, such as early mornings and evenings. If you are planning to get a condo, one of the items to check is how well elevators deal with the volume of people living in the building. Taking an elevator to the higher floors will give you an idea of the elevators’ speed. Checking out elevators during different times of the day will give you an idea of what is waiting for you once you live there.
That is a typical feature that condo buyers do not look at from the very beginning, but they appreciate it later when seeing the utility bills. Energy-efficient condo features can include: superior isolation preventing warmth escaping in cold winter and preserving cool temperatures in the summer, energy efficient lighting (e.g. LED light bulbs) and equipment (e.g. energy efficient heaters), time sensors on lights and even the use of solar panels.