Is buying a condo better than renting an apartment? “Rent vs. buy” is a question many long-time renters ask themselves. The answer will depend on your priorities, your life goals, and your financial situation. While purchasing a unit can be a highly rewarding experience, it’s not a decision that first-time buyers should make lightly. Here are a few things to consider if you’re thinking of taking the plunge.
The benefits of owning a condo
Let’s start with the basics: why buy a condo? One of the biggest reasons is that it’s an investment.
Whether you’re planning to live in your unit or rent it out, the right property can provide a nice chunk of change when it comes time to sell. Generally speaking, a unit in a desirable neighbourhood (like Mimico or the Kingsway) is more likely to grow in value over time. Top-notch features and amenities can also have a major positive impact on how much a property is worth. If you’re planning to rent to a tenant, a condo with these qualities can help ensure a higher return on investment.
For those who plan to live in their unit, ownership offers a whole host of benefits you won’t get from renting. For one, it provides the opportunity to make your living space completely your own. From replacing the carpet to performing minor renovations, you have more freedom to change a home once it’s officially yours.
A condo also offers a more secure living arrangement than an apartment. When you’re renting, your tenancy can be terminated for a number of reasons. As just one example, your landlord can end your lease in order to have a family member move into your unit. In contrast, ownership offers greater security—and greater peace of mind.
Last but not least, condo living offers both the benefits of homeownership and a low-maintenance lifestyle. Owning a house means having to get your roof fixed if it leaks and shoveling your walkway when the snow piles up. A condo provides many of the pros of owning a house—without the ongoing hassle of repairs and maintenance.
Questions to answer before you buy
Still unsure whether buying a condo is better than renting? There’s no shortage of reasons to purchase a unit, but you should be sure that the timing is right.
First off, how long are you planning to live in the area? It’s true that you can always sell your condo if you decide to move. But if there’s a strong possibility that you’re going to relocate soon, you should factor that into your decision.
Are you ready to take on the responsibilities of condo ownership? This consideration is particularly important if you’re planning on becoming a landlord. Think carefully about whether you’re prepared to deal with repairs, maintenance, and potential tenant issues.
If you’re still interested in buying a unit, it’s time to run the numbers and figure out what you can afford. Are you in a good financial position to pay a mortgage, ongoing condo fees, and the other costs associated with ownership? If so, a real estate agent can help you find properties that meet your criteria—and your budget.
Taking the first steps
If you’ve determined that buying a condo is right for you, congratulations! There are few things as exciting as holding the keys to your very first property. But before you make your purchase, there are several steps you should take to set yourself up for success.
Be sure to get pre-approved for a mortgage. When you obtain pre-approval, it means a lender has looked at your financial situation and agreed to provide you with a certain amount in financing. This step shows sellers you’re a serious buyer, and it can help you come up with an appropriate price range for your search.
You should also consider creating criterion for your condo hunt, which will make the process smoother and less stressful. Narrow down your neighbourhoods of interest, and write up a list of must-have features and amenities.
Most importantly, remember that an experienced real estate agent can help you at every step of the buying process. Look for a neighbourhood expert with a track record of success. And don’t forget that you can interview agents to find a professional who you’re truly comfortable with.
Buying your first condo may seem like an overwhelming experience. But with the right guidance and a bit of preparation, you can simplify the process to find a unit that meets your needs!
Looking to buy a condo in Etobicoke? We have the local market expertise to help you through the buying process. Get in touch, and we’ll set up a no-pressure meeting to discuss what you’re looking for!
