Five Questions to Ask When Buying a Condo

Condo living is appreciated in today’s lifestyle. The key reason is that most folks that buy condos are young experts that are fresh in the workforce and want to settle down. Besides, those who want to get some passive income can also invest in a condo in Toronto. Whatever your reason for buying a condo, you must put some things into consideration. Research and ask the questions as presented below to avoid making big mistakes when shopping for a condo.

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Are there complaints about the location?

Condo developers can easily hide the shortfalls of the building, details in the rooms and the rowdy neighbors. Such things might seem minor and insignificant to others, but the ugly truth is that they will be among the things that will constantly bother you. Before parting with your notes to purchase an apartment, you have to unearth the concerns you must address before moving into your unit. During the process, you will discover whether the condo is ideal for your case or not without much struggle.

Is the management team friendly?

A huge fraction of condo buyers forget to survey the in-house team as they are not aware that its part of living in a condo. An excellent in-house team is available around the clock to check and maintain the property. And that is not all. Since they will be overseeing other condo policies as well as concern that might relate to your living you should work with trustworthy individuals.

Is there enough storage space?

When purchasing a condo unit, you have to think about the future. Eventually, you will get a partner and have kids. The truth is that your family will grow according to your living space. Thus its necessary to buy a condo with ample storage areas. The stuff that you got when you initially moved in might double in less than a year. If space is insufficient, you can request the realtor to allow you to include extra shelving units.

What are the monthly fees?

You must know exactly how much you will have to pay as maintenance fees before buying a condo. Condo living comes with countless benefits. However, the hidden costs can shock you in some cases. The charges will depend on the size of your unit, floor location, amenities offered, the developer’s nature to mention a few. Inquire more about the costs to sidestep nasty surprises in the end.

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Do the units come with insurance?

In most cases, after purchasing a condo, you get insured. Nonetheless, what does the insurance plan cover? Get a copy of the policy from the management team and if it was confusing you can request for assistance to comprehend it. The ideal policy with cover a larger scope. For instance, some packages go as far as covering all your household items.

Shopping for a condo in Toronto is a challenging task. However, if you ask yourself the questions as discussed earlier, you will land the best property for personal use or investment. Price, location and the mortgage rates aren’t the only things you need to put into contemplation. For more about purchasing a condo in Toronto check this link https://wellcondotoronto.ca/amenities-and-downtown-location/.

Top 5 Strategies For Canadian Real Estate Investors

There are many ways to invest in real estate. As with any investment, each decision comes with unique opportunities, risks, and ease of entry. If you are planning to buy properties in Toronto or any other city in Canada, this article introduces you to some investment approaches to use. The method chosen depends on your personal preferences and of course your purchasing power.

Buy and Hold

A good number of investors in Canada have used the “buy and holdcondo living investment strategy. Ideally, this strategy is mostly used when buying properties that are slightly under market and holding it in anticipation that they will appreciate. As you wait, you might have some tenants live there and help you meet the mortgage costs. This investment strategy is quite common due to its simplicity.

The Flip

The Flip is a popular strategy that is used in Canada and beyond. Ideally, this strategy involves buying a home at an incredibly low price, renovate it, and sell it at a better price. However, the returns offered by this strategy depend on the expertise of the renovator. If by any chance you know someone who does a good job, the rewards can be satisfying.

The Hybrid Strategy

This investment strategy is essentially a combination of the “buy and hold” and the flip. It all starts by finding a property that is reasonably undervalued, renovating it, and holding it for the long term. If the market process seems promising enough in future, the investor then proceeds and sells it at a better price. Investors using this strategy often rely on multiple financing options as the payoffs are not immediate.

Joint Venture

buying a homeFor those that are not comfortable buying a home or property in their home, a joint venture can help you with this. Ideally, this refers to a partnership with someone that shares the same investment goals. For this investment, it is imperative to have an agreement first to avoid disagreements and provide ways of solving any issue in future.

Rent to Own

Another investment strategy that is slowly gaining popularity in Canada is the rent to own. As such, after buying property, the investor looks for a future owner. These are often people with the desire to own a home but do not have the finances to achieve this dream at least in the short term. As such, investors using this strategy often propose an agreement that will see them purchase the home in future.

Investment Tips for International Investors In Canada

Canadian real estate is open to both Canadian residents and internationals. Ideally, you can never say that anyone has the upper hand here. You will be surprised to have Canadian nationals who have made their fortunes abroad being treated as international investors when it comes to real estate. Nevertheless, Canada welcomes investors from all countries. Besides the 15% tax levied on the purchase price, there are no significant restrictions on what you can buy and the amounts you can spend here.

Financing

buying a home

Most lenders are also willing to finance home purchasing for non-residents. However, when it comes to financing, the rules do not change much either only that you will be required to make a more substantial down payment compared to the one paid by a Canadian. Most lenders have to verify your source of income and at the same time your creditworthiness.

Taxes

Like with any investment, it is imperative to be prepared for taxes. Non-Canadian citizens are expected to pay at least 15% in closing taxes especially when buying properties around major cities like Toronto. You might be surprised to realize that both international investors are subject to the same land transfer taxes in an area like Toronto. You should also be prepared for tax implication when selling a property.

Insurance

Nonresidents often have some challenges in obtaining insurance policies. This complicates the buying process considering that most lenders are often reluctant to offer a mortgage without insurance. Thus, if you are planning to invest in Toronto or anywhere in Canada, make sure to get an insurance quote before making a purchase.

Work With a Realtor

The services of a realtor are essential when it comes to finding the best real estate deals. If you are not conversant with the rules and nature of the Canadian real estate market, it is imperative to walk with someone who understands the intricacies of this market. If you need to do this while overseas, you need a realtor who is known to help absentee clients find the right deals.

Make an Offer

housing unitsThe last step to take when buying property involves making an offer. You can do this while still abroad thanks to technological advances that make signing documents and sending them via online platforms a breeze. At times, you might be required to sign the mortgage documents or avoid these altogether with the power of attorney.

The tips shared above confirm that investing in Canada is not as easy as it seems. With the right finances, you also need a decent real estate agent, and you are good to go.