Today’s market is full of significant new condo developments. Finding your new home can be a challenge. With so many condos for sale, you may feel confused and overwhelmed. There are many ways to buy a condo. The easiest way is to buy as a fixed-term owner. This means you will buy a condo for a specific period. Once you sign the contract, you will own the condo outright and have no further obligations.
You may also choose to buy a condominium. This is a unit that is part of a building managed as a real estate investment trust (REIT). This means other owners of the own building share in the building, and the condo is just one of the many units owned by the trust.
If you’re thinking about selling your home and buying a new one, you may want to look into buying a new condo instead.
Understand the Different Types of Condos
There are many different types of condos. Here are some of the most common types of condos:
Attached: Attached condos usually have one or two private building entries. They may or may not share a common wall with an adjacent unit.
Detached: A detached condo has its entryway, patio, or yard. However, it does not have direct access to the building.
Townhouse: A townhouse is two or more single-family homes combined into one property. The condos in a townhouse are usually arranged either vertically or horizontally.
In-Law: An in-law condo is one where one residence shares a wall with another unit. This is most often seen in duplexes or triplexes.
Know the Costs of Owning a Condo
Owning a condo is not cheap. One study found that the median price of a new condo in 2016 was $474,500. However, you can do a few things to understand better the costs associated with owning a condo. Here are a few things to think about:
The monthly mortgage for a condo will vary depending on several factors, including your financial situation, the type of condo you are buying, and your local real estate market.
You will likely pay taxes on a condo. The assessed value of the condo is added to your personal property tax bill. Depending on your province, you may also be required to pay HST (Harmonized Sales Tax) on this added value.
You will also likely have maintenance fees and condo insurance. These are optional but are required for you to own your condo. If you choose to leave them out, you can expect a higher rate of appraisal tax.
Get an Appraisal for Your New Condo
You will eventually need to get an appraisal of the best new condo launches. You should contact your appraisal as soon as possible after closing the property. You will need the appraisal to apply for mortgage financing. There are a few reasons why you need an appraisal. Here are a few of them:
You will need to show the lender that you have the funds to pay for the home. This is done through an appraisal.
The mortgage company or bank may also require you to get an appraisal if you are taking a mortgage out and putting down cash for the home.
It is also essential to get an appraisal if you purchase a second home and use the equity built up in your primary residence to fund the purchase.
