Ultimately, this is a personal decision. However, if economics and investments are considered, buying serves a far greater good.
The Status Certificate is a document that provides basic and essential information concerning the financial status of a unit and of the condo corporation. A status certificate answers questions such as; “How much is in the reserve fund and is it sufficient for the immediate future? What did the engineering report say? How many units are rented in this building? Is there a claim against the current unit owner?”
In a Conventional Mortgage, you have to pay at least 20% of the purchase price as a downpayment. However, you can buy a home with as little as 5% down. Anything less than 20% of the purchase price for a down payment is considered a High-ratio mortgage. High-ratio mortgages need mortgage loan insurance which protects the lender against mortgage default. Mortgage Insurance can be provided by a few different companies such as CMHC, Canada Guaranty and Genworth. Mortgage Insurance Premium fees are determined by the percentage of your mortgage and can vary from 0.5% to 5.65%.
Condo maintenance fee is a monthly fee paid for the operation of the building. Although they vary from building to building, they are important for the operation of the building.
Closing is achieved when the full payment of purchase is made and the title is transferred. However, buyers should understand closing cost. Ideally, you should budget 1.5%-3% of the purchase price for Closing costs. Closing costs are made up of a number of different expenses/adjustments and below we’ve listed a few common ones.
Real Estate experts say Toronto doesn’t have enough condos to house the projected growth. Just think of that fact! Housing in Toronto would never go out of demand as hundreds of thousands move into the city every year. Now that is a good reason to invest in Toronto. When you talk long term value, you’d never go wrong investing in Condos in Toronto.
Unlike single homes, you are not responsible for the exterior maintenance of your condo. You don’t have to reply on tenants to ensure your lawns are regularly mowed. That takes a lot of burden off from investors and retirees and that is another reason to invest in Condos.
If you love pleasure, condos can be your vacation home as you say goodbbye to hotel rents and certain tax.