Compare the costs of taxes in the area that you are considering with those of other areas equally attractive to you. Different municipalities have different tax rates and there could be a considerable cost saving or expense. Also enquire as to whether there is any anticipated tax increase and why.
Rental Situation in Area
Look for an area that enjoys a high rental demand, if you considering a condominium purchase as a revenue property. You want to minimize the risk of having a vacancy. Check with your realtor and various ongoing surveys to obtain average house and condominium rentals in the area. For example, many real estate companies and CMHC have free surveys on a quarterly or monthly basis, giving average rental prices in specific areas for specific types of properties. Refer to the Appendix under Helpful Websites for contact information. You don’t want too high a number of rental houses or condos, as that will increase competition and possibly reduce the overall desirability of the neighbourhood.
Local Restrictions and Opportunities
Check to see what restrictions on use and other matters may exist. For example, is there a community plan? What type of bylaw zoning is there, and is it changing? Is there a rezoning potential for higher or different use? Is there a land use contract? What about non-conforming use of older or revenue buildings?
Image of Area
What image does the media or the public in general have about a certain area? Is it positive or negative, and why? The perception of people as to the image of the area may have an influencing effect on rental or purchase decisions.
Stage of Development
A community will typically go through a series of stages, phases, and plateaus over time. For example, the normal stages are development (growth), stabilization (maturing, plateau), conversions (from apartment to condos), improvements of existing properties, decline of improvements (deterioration), and redevelopment (tearing down of older buildings and new construction, more efficient use of space).
Economic Climate
This is a major factor to consider. What is stimulating the economy, and why is the community appealing to renters and home buyers? Are developments such as shopping centres, house and condo construction, office buildings, franchise outlets, and other commercial activity on the rise? Are the subways or other new public transportation plans proximate to the area in the making? Is the provincial or federal government going to construct or move offices to the community? Or is a major single industry employer the main cause of economic activity in the area? In the latter case, you can appreciate the risk involved if the industry or main employer has financial problems or decides to close down or move away. Conversely, in many major centres, the commercial rent in downtown areas is high, and the commuting time and/or downtown residential rents or house prices inhibit employee retention. For this reason, many companies are moving their operations to suburbs where the commuting, rent, and cost of land is cheaper, and finding employees who appreciate lower housing costs is easier.
Population Trends
Look for the trends in the community you are considering. Are people moving in or out, and why? What is the average age? Type of employment? Income level? Family size? Many of these demographic statistics can be obtained from Statistics Canada or from your provincial or municipal government. If the population is increasing, it will generally create more demand for rental and resale housing. Conversely, if it is decreasing, the opposite will occur. If the population is of an older age group, people may prefer downsizing to condominiums rather than buying smaller houses. There are many variables to consider.
Transportation
