Condominiums - Are They Really An Affordable Luxury?
Since the beginning of this year, the Canadian real estate market is going from strength to strength. From the over a million dollar segment to the ultra-luxury over $4 million bandwidth, all the segments and housing types have been witnessing an affable jump in their sales.
In GTA alone, the sale of single-family and attached homes and condos rose 29%, 45%, and 13% from last year. This coalesced into a 53% jump in the over $1 million sales since last year. The luxury segment of over $4 million sales saw an exhilarating increase of 75% from last year as well.
Comparing Condo And House Prices In Canada–
A genuine cost comparison considers the number of a condo’s association fees upfront and adds that the total cost of the house or condo. As an example, an association fee of $250 monthly resembles an extra $50,000 on a 30-year mortgage with a 4.5% rate of interest. That more $50,000, with those terms, would add more $253.34 to a mortgage fee payment. Such fees are essential to calculate when establishing your budget for a home. During this example, if you’ll be able to afford the payments on a $300,000 mortgage, you wish to scale back your budget by $50,000 to afford the monthly association dues. This much depends on the amenities that condo association covers, however. If your fee pays for vital services like water and pick up, or for amenities like an on-site health spa, you would possibly be saving money in areas that might be separate monthly expenses were you to shop for a house.
Condos V/s House
- Provided more security and safety.
- Provided more privacy.
- Provided concierge services.
- Large space for lawn, garage or etc.
- Provided luxury features.
- And fewer restrictions.
- Condos fees.
- Fewer amenities.
- Close proximity to neighbours.
- Need more maintenance.
The Toronto Skyline -
It is predicted that by 2041, GTA would be home to 2.8 million people. The arrival of international immigrants, thriving economy, and innumerable job opportunities have chartered the city as the central hub. This has led to an increase in the cost of the city’s real estate by 57% in the last 5 years and 131% in the last 10 years. The houses in the GTA on an average cost about $788,335. But the condos cost only about $530,000 and an apartment condo just a little less than $500,000.
Toronto has the highest number of condo construction in North America. As of now, there are an astonishing 1,300 condominium towers exclusively in the area and about 25,000 units around the city, especially in Scarborough and Etobicoke.
Condos: The Reality -
Condos are private residential units within multiunit buildings, projects, or communities. Residences often share walls like apartment units, but they can also be semidetached, like townhouses, or maybe fully detached. The residences frequently share common areas, facilities, and amenities, both external (yards, swimming pools) and internal (laundry rooms, garages).
Condominium associations play a big role in the lives of most condo owners. An association, travel by a board of directors, maintains the common areas, services, and amenities and is cherish a locality HOA (homeowners association). Condo owners pay regular monthly fees to their local associations.
Condos are an ideal home for a single-family. You get the space and the convenience and benefits of living in an apartment building.
The cost is also within the means of a first-time buyer. In 13 out of 35 Toronto neighbourhoods, the condos sale price is averaged at $450,000, making it an ideal purchase for a middle-income person.
Though these areas, mostly the North West and North East corners of the city, are a little further away from an urban shopping district and transit stops, condos in these locations are more affordable.
For example, in Scarborough West Hill, a condo can be purchased for approximately $325,223.
In other words, a person just needs to save on his 7.7 months of rent in the area to accumulate the down payment for the condo!
It is the distance from the job centers that are making these parts of the city more affordable.
Pros Of Owning A Condo –
Several lifestyle-related advantages include owning a condo.
- State-of-the-art features – If you’ve got your heart assail granite counters, stainless appliances, and an open plan, newer condos often boast such amenities. Luxurious facilities, features, and grounds: Spas, barbecue areas, clubhouses, tennis courts, jogging trails, and recreation rooms are among the amenities condos offer residents.
- Security – additionally, to having neighbours reachable, complexes often are gated or staffed with security guards.
- Concierge services – Many condo complexes have doormen and desk people, together with the custodial staff.
- Less maintenance and upkeep – No mowing lawns, raking leaves or replacing broken windows. You are generally responsible just for your interior.
Cons Of Owning A Condo -
The downsides to condos are things often characteristic of apartment life or communal living.
- Too near your neighbours – Sounds can pass through adjoining walls.
- Rising condo fee – If the building is older, it could require more reserves to procure roofing, plumbing, and exterior maintenance, which tends to mean higher fees and sometimes special assessments.
- The Big Brother aspect – Conforming to association rules is not for everybody. As an example, rules might restrict the amount and kinds of pets you will be able to have or where you will be able to smoke.
- Less spacious – The interiors of upscale condos certainly will be similar to many homes, but outdoor space typically is proscribed due to the density of the community. You likely will not have room for a non-public garden or a non-public driveway where you will be able to wash your car.