When selecting a condo to purchase, there are some key factors you need to consider in your selection. This is Part II of a two part article. Click here to read Part I
When selecting a condo to purchase, there are some key factors you need to consider in your selection. Certain factors may be more or less important, depending on whether you are buying a condo as a principal residence, or for recreational use, or as a real estate investment. Here are some of the most common criteria to consider. When buying a condo, you are also putting your mind to the attractive resale features in the future.
Management
Enquire as to whether the condo building is being operated by a professional management company, operated by a resident manager, or is self-managed. Ideally, you should check out the condominium unit or property that you are interested in at three different times before you decide to purchase: during the day, in the evening, and on a weekend. That should give you a better profile of noise factors, children, or parties, and the effectiveness of the management control.
Property Taxes
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 increases and why.
Rental Situation in Area
Look for an area that enjoys a high rental demand, if you are 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. 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
