A Guide to Buying a Condo in Toronto

| Buying

When the condo market is down, it impacts buyers and sellers in different ways. In this two-part series, we’ll help you navigate the condo market, sharing the best approach from both perspectives.

In Part 1, we look at buyer opportunities and what buyers need to know.

Toronto Condos: The Opportunity

With condo prices and interest rates down, we’re seeing ample opportunity for both first-time buyers and real estate investors. First-time buyers can find a great home with ample inventory that gives them plenty of negotiating power. Investors can leverage lower prices and high rental rates to cover their expenses, build equity, and sell when inventory drops and prices rise.

Condo Specific Considerations

In hand with the general appeal of the unit, there are a lot more factors impacting your decision to buy, including:

  • Building amenities such as a pool, gym, parking, or rooftop patio
  • Common areas of the building such as the halls, elevators, and lobby
  • The financial health of the condo corporation
  • Common element fees (CEF)
  • Condo corporation bylaws
  • The condo community vibe

These things are très importantes because they impact your expenses and lifestyle.

Thinking about buying something that’s not a condo? Check these posts out instead:

What Buyers Should Look For When Condo Shopping

Here’s a breakdown of what you should consider when condo shopping.

The Unit

Viewing a condo is no different than viewing any other home type. You want to check in the closets, open drawers, look under the sink and inspect the appliances. There’s also the feel of the space: do the sniff test, make sure the room temperature is comfortable, and listen for noises. What about cosmetic details like kitchen counters, flooring, and weird decorative touches like wonky wallpaper and funky built-ins?

Make sure the layout is functional and accommodates your lifestyle. For example:

  • Is there a balcony or patio?
  • Is there enough space for seating or a dining table if you entertain often?
  • Do you work from home and need a place for a desk and computer?
  • Is there a washer/dryer in the unit?
  • Does anything disrupt the flow or functionality like a weird pillar, or a poorly placed kitchen island?
  • Is the bedroom(s) big enough for a king- or queen-sized bed?
  • And of course, how’s the storage?
  • The Unit Location

The floor number, nearby building features, and unit direction can also impact your decision. Ask yourself some questions, such as:

  • Will you get too much sun (or not enough)?
  • Will a higher floor be a pain if the elevators are out of service?
  • Is it close to the garbage chute where smells might be a problem?
  • Are there potential noise issues such as being close to the gym or elevators?

Thinking about buying a loft? Check out the trendiest lofts in Toronto with this post right here.

The Building

Along with the neighbourhood amenities such as transportation, schools, grocery stores, and parks, you also want to pay attention to the following building-specific details:

  • Age: Older buildings tend to have more issues such as failing infrastructure, poor energy efficiency, higher common element fees, outdated amenities, etc.
  • Security: Is there a concierge? Do all entry points require a pass key? Are the halls well lit?
  • Parking: Is a parking space included with the unit? What’s the visitor parking situation?
  • Services: How’s your cell phone reception? What internet provider do they use? Is the connection reliable? What service fees are included in the CEFs?
  • Common area: What’s the condition of the halls, carpets, lobby cleanliness, elevators, etc.? How long did you wait for the elevator?
  • Reputation/rating: Is there a history of crimes, partying/disruptions in or near the building? What’s the condo rating?
  • Amenities (if any): How do the amenities suit your lifestyle and impact your CEFs?
  • Community vibe: What is the percentage of owners versus renters? Are there lots of students, young professionals, seniors, or families?

Buying a home is an exciting venture! Do you have more questions about buying a home in Toronto? Here are a few more posts you might find interesting:

Condo Corporation/Financials

Status certificates (SC) provide a detailed overview of the budget, insurance, outstanding/ ongoing litigations/judgements as well as:

  • Common element fees: The SC covers CEF info including the amount, frequency of increases, proportion, and outstanding payments for the unit. Older buildings tend to have higher fees, while newer buildings start increasing fees around the two-to-five-year mark.
  • Reserve fund: CEFs include contributions to the “reserve fund” which covers future expenditures such as major repairs, replacements, and common area renovations. The SC includes the most recent reserve fund study and reserve fund health.
  • Special assessments: The SC details special assessments which occur when the reserve fund is underfunded. Unit owners share additional costs, which can total tens of thousands of dollars depending on the project and reserve fund shortfall.
  • Condo declaration: The condo corporation’s declaration includes by-laws and rules that can have a negative impact on your life from pet and smoking restrictions to window treatment colours and elevator policies to amenity use.

If you’re thinking about buying a condo in Toronto, start your search the right way by working with the best Toronto real estate team for your unique needs. The Christine Cowern Team is here to help! Give us a call at 416.291.7372 or email hello@christinecowern.com.