Have you been thinking about selling your condo? Before you call a realtor and list your condo there are some things that you need to take into consideration. Is now a good time to sell or should you hang on a little longer. Let’s look at what selling your condo will mean and whether now is the right time. Rising house prices in Toronto mean you can probably get a good return but you also have to consider whether it will be enough to put down on another home.
If you have had your condo for four or five years or longer then it may be a good time to sell. Prices have risen significantly in the past few years and according to condos.ca the average price of an 800 square foot condo has gone up by almost $80,000 over the past two years and if you bought back in 2012 you could be looking at $130,000 return on your investment. But is now the right time to sell or should you hold out another year to get a better return?
To Sell or To Wait
Yes, it is a good time to sell. Taking the equity out of your condo and investing that in a new property gives you the opportunity to continue to grow the equity even further. There are plenty of condo owners who are sitting on the fence because they expect the prices to climb even higher. You also need to remember that housing prices across the board are climbing and you could actually be losing an opportunity.
Price corrections happen in every market including Toronto’s and yes there is a certain degree of concern that rising prices are leading to a bubble or a correction. Drastic market changes can be unpredictable to say the least. When there is high growth it can help make the price corrections a little easier to bear. It is likely that a price correction won’t wipe out your return. Even in the middle of a correction you will still get back more than you paid initially.
Don’t feel pressured to sell your condo. While it might be a good time to get a great price it doesn’t mean it is the right time for you. If this is something that has been on your mind or you want to retire out of the city then you should definitely get on the phone to your realtor and list today.
There is a lot to be said for condo living, it is simple and convenient. You never have to worry about shoveling snow in winter or mowing the lawn in the summer. Your building has a fitness center so no more expensive gym memberships, there is a pool and sauna you can use whenever you like and the Toronto nightlife is right on your doorstop. There is a cost to all of this luxury and convenience and you need to be aware of the fees.
What are Condo Fees?
Essentially condo fees cover the costs of managing the complex along with the maintenance costs. Your condo fees will pay for things like landscaping, snow removal and cleaning. They will also cover any repairs that need to be done to the building. In many cases repairs needed to the inside of the condo are your responsibility, clogged toilets are your problem but needing a new roof is not.
How Much Are Condo Fees?
Condos fees can vary a great deal. Generally the close you are to downtown the higher they will be, there are exceptions to this rule. Also the more amenities that are in the building the more you can expect to pay. If you have fitness facilities, pools, business area and onsite restaurants or spas then you can expect to pay far more. Don’t expect to pay less than $300 per month in fees and finding a place that low won’t be easy. Luxury buildings will charge per square foot, for example One Bloor charges $.50 per square foot each and every month. That means for a 1,500 square foot condo you are looking at $750 a month plus you will pay for parking on top of that.
What Happens if You Don’t Pay?
Not paying your condo fees is not an option. The management company can and will take legal action against you in the event that your condo fees end up in arrears. They can put a lien on your property and you may find yourself in court. You won’t be able to sell your property until the fees are paid. Never fall behind in your condo fees it will cost you in the long run.
Before you buy into a condo you should also make sure the management company has the finances in order. If the reserves are too low and something happens you can get stuck with a bill you didn’t expect. Condo fees are a trade-off for hassle free living.
Toronto is Canada’s largest and most vibrant city, there are plenty of things to see and do in Toronto. If you are looking to move to Toronto and set down roots then finding a place to call home is your first step. If you are already living in Toronto then you know the housing market here can be a little different than the rest of Canada or even the rest of Ontario. You have a pretty big selection of condos on the market and many of the single family homes go back to the Victorian era.
There is a huge range of prices in the Toronto market with condos being on the lower end and standalone home taking the higher end and townhouses coming somewhere in between. Single family homes in Toronto are few and far between and you can expect to pay well over $1,000, 000 for one depending on the area. Even the less expensive parts of the city are out of range for the average family.
Condos are the easiest path to home-ownership in Toronto, the prices are significantly lower than a single family home and when it comes to Toronto there are far more condos for sale. Condos can range a great deal in size from the smaller 500 square foot one bedroom bachelor pad to the much larger two and three bedroom units. There are condo buildings all over the city so you can choose between downtown living or further out into the suburbs. High rise buildings down on Queen’s Quay aren’t going to come cheap.
Townhomes offer the happy medium between condo living and a single family home. They are more affordable and often the first choice for first time home buyers. If you head out to the suburbs you will see tons of areas being developed and many of them are building townhomes. Townhomes are all over the GTA so you have your choice of neighborhoods to choose from. If you want to go further out along the GO line there are a plethora of choices and price points. Townhouses offer enough space for families but are still well within the affordable range.
The real estate market in Toronto has definitely gone through its ups and downs in the last couple of years. While prices hit an all-time high back in 2017 the market has since stabilized. Work with a realtor who understands Toronto real estate to help you make the most out of your budget. Neighborhoods in Toronto can be vastly different and you have lots to choose from in this vibrant city.