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Condo Advice
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| 1dawoman |
I'm debating between 2 condos I like. Both are of equal square footage. One is about 5 years old and the other one will be supposedly finished Sept. 2010. I'm in no rush to move out as I live with parents who are letting me stay with them indefinitely.
Do I
a) buy the 5 year old property even though it costs a little more (higher maintenance fees) and may require a few renovations.
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b) go with the newer condo with lower maintenance fees and pick all my colours/finishings...
I am aware of possible risks in buying from a builder but I would like to make a little profit upon resale in 8 or 9 years...
Just wondering if anyone has had to decide between these two options before and might have some advice/suggestions for me. |
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| LKD |
| I think you've pretty much got your answer in your question |
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| ChemEnhanced |
| don't buy a condo |
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| Skipper |
| quote: | Originally posted by ChemEnhanced
don't buy a condo |
Agreed.
There is nothing about the fundamentals about the condo market that seem positive to me. There wasn't even that much of a correction this year....I think a massive correction is coming, and Toronto condo flippers will be a thing of the past. |
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| malek |
| quote: | Originally posted by ChemEnhanced
don't buy a condo |
exact. |
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| malek |
| quote: | Originally posted by 1dawoman
b) go with the newer condo with lower maintenance fees and pick all my colours/finishings...
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My two cents: from the experience of people around me, the condo fees are always artificially low to sell you the condo, actually it's the fee per sqf prescribed by local authority... which in reality is hardly enough to pay all the maintenance costs.
What happens, is that after a year or two, condo fees almost double to reflect the real maintenance costs.
With a new building, there's the surprise element because you don't have a history of things that went bad/things to come.
In an older building, you can request budget and cash reserve details from the current owner, and even go back a few years in the backlogs to see what the future of that building holds in term of problems and work to do (which relates to cost...) |
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| MarkT |
I could write a book on this...but that will wait until I get home tonight.
short answer...all things being equal (location, style, finishes, etc), I would go with the existing condo over a new one.
- mortgage rates remain near historical lows. secure a rate now for 5 years or roll the dice and see where rates are in Sept. '10 (likely later, and likely a fair bit later as there is typically an occupancy period with new construction condos prior to title to the unit being given to you which can range from a couple of weeks to over a year in bad cases).
- existing building will give you an indication on how well its been managed.
- no firm time of possession and ownership with a new build.
- deposit structure can be fairly aggressive on new builds...15-25% within a short period of time of signing the offer is not unusual. that may or may not matter to you.
more to follow. much of it will depend on your preferences and personal situation. btw...where are you looking? |
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| dEsidEL |
| quote: | Originally posted by MarkT
I could write a book on this...but that will wait until I get home tonight.
short answer...all things being equal (location, style, finishes, etc), I would go with the existing condo over a new one.
- mortgage rates remain near historical lows. secure a rate now for 5 years or roll the dice and see where rates are in Sept. '10 (likely later, and likely a fair bit later as there is typically an occupancy period with new construction condos prior to title to the unit being given to you which can range from a couple of weeks to over a year in bad cases).
- existing building will give you an indication on how well its been managed.
- no firm time of possession and ownership with a new build.
- deposit structure can be fairly aggressive on new builds...15-25% within a short period of time of signing the offer is not unusual. that may or may not matter to you.
more to follow. much of it will depend on your preferences and personal situation. btw...where are you looking? |
+1 and occupancy as well as registration may be delayed further typing up your money
i agree with most other ppl here in getting a house over a condo, that is if you have that option - unless of course you're truly after the lifestyle aspect of a highrise
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| 1dawoman |
| quote: | Originally posted by MarkT
more to follow. much of it will depend on your preferences and personal situation. btw...where are you looking? |
Lakeshore/Parklawn
| quote: | Originally posted by dEsidEL
i agree with most other ppl here in getting a house over a condo, that is if you have that option - unless of course you're truly after the lifestyle aspect of a highrise
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Obviously a house would be ideal but I'm going to be living alone and dont really need a whole house to myself...Im interested in being in a condo for a few years before getting married. |
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| mute79 |
| we went a 5 year old, simply because we wanted to be sure that weren't any inherent issues with the building right after it was built.. i've heard of horror stories with some of the new buildings, so wanted to make sure we didnt slide into one of those |
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| Jayx1 |
| quote: | Originally posted by ChemEnhanced
don't buy a condo |
+1 |
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| Jayx1 |
The thing about condos..
They subject YOUR ownership to the rules of others. You are under the mercy of the condo board. They decide your fees, they decide the rules on how you can use your own property and they decide on what gets fixed if anything. And YOU are the one that pays.
A real estate agent once gave me a piece of advice. "when you buy a condo you dont own the floors, the walls or the cielings. Just the air in between them".
Very true. |
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