Why the Condo Market is the Number One Market For First-Time HomebuyersJune 1, 2021
If you are a first-time homebuyer, have you considered buying a condominium instead of a house? As housing prices continue to rise for some individuals, investing in a condo might make more sense. It is expensive to purchase a house and maintain it, so being a first-time homeowner is no easy feat. Getting into the condo market is an attractive alternative for people who want to own a property without taking on additional responsibilities and incurring costly expenses.
Ultimately, the condo market is a great entry point for first-time homebuyers because it provides flexibility and affordability. This blog post examines why the condo market is the number one market for first-time homebuyers.
It’s easier to buy, rent, and sell a condo than a house.
One of the advantages of having a condo is that it gives you some different options. You can live in it for as long as necessary, rent out your unit temporarily, or put your condo on the market down the line. Purchasing any real estate property can be a risk. Buying a house is riskier as it’s more expensive than a condo. In general, buying, renting, or selling a condo is easier than a house.
If you are unsure about what kind of property you want to buy, you can rent first and live somewhere for the time being. After a few months or years, you can decide whether owning a property is the right fit for your current lifestyle. It is common for condo owners to sell their current unit and purchase another condominium or buy a house.
All in all, the condo market gives first-time homebuyers more choices, so it’s worth looking at some condominiums in the area you want to live in. Depending on your circumstances, you may feel more comfortable buying, renting, or selling a condominium rather than a house.
You can find a condo in a neighbourhood you love.
With thousands of condominiums in the Greater Toronto Area, you can live almost anywhere. Don’t hesitate to shop around and find a condo in the right location for you. Even though there are many condominiums in downtown Toronto, more developers are building new suburban areas. If you want to live in the suburbs, you can check out Scarborough, Oakville, Burlington, Ajax, Newmarket, and others.
When shopping for a condo, take into account the transit score to get an idea of the public transit options and the walk score to know the walkability of any given location. It comes as no surprise that the transit and walk score for a condo in the core of Toronto would likely be higher than one in the suburbs.
Buying a condo is more affordable than purchasing a house.
Unfortunately, the cost of an average home in Toronto is unattainable for some individuals and even families. Real estate experts believe that housing prices in the GTA will remain the same and even go up more in the years to come. For that reason, many first-time buyers are turning to the condo market instead of the housing market.
Something else to keep in mind is the maintenance cost of being a homeowner versus a condo owner. The purchase price for a condo is typically less high than a house, but the cost to maintain a condo is often cheaper.
First-time home buyers should anticipate that house maintenance and repairs are expensive. They have to mow the lawn in the summer and shovel the sidewalks in the winter or pay someone to take care of household tasks. Common home repairs include the water heater, HVAC system, and sewer line.
Homeowners have to pay for most repairs out of pocket. When you buy a condo, you pay monthly fees that cover the maintenance and upkeep of the building. As a condo owner, you’ll be charged a maintenance fee every month, so you don’t have to worry about setting aside money for major repairs.
You become part of a vibrant community of residents living in your condo building.
As a homeowner, you don’t have as many opportunities to socialize with your neighbours. When you buy a house, you’re living with family members or people you know. So if you enjoy being part of a community and making new friends, you may enjoy living in a condo more.
When you live in a condo, you’re surrounded by people living in units near yours. This makes it more convenient to connect with like-minded individuals who may have similar backgrounds and interests as you. Some condominiums even host events so you can socialize with others.
Should first time home buyers purchase a house or a condo?
For all of the reasons listed above and others, first-time homebuyers shouldn’t just limit themselves to the housing market. It is also a good idea to look into the condo market. After all, buying a condominium offers flexibility and affordability.
A condo might be right for you if you want to own a property but not be responsible for maintaining and repairing a house. Owning a condo affords you more freedom and convenience without the extra expenses of being a homeowner. Depending on your needs, you can buy a condo with various amenities such as a pool, gym, parking, concierge, etc. It makes sense then that the more amenities a condo comes up with, the higher the maintenance fee you can expect to pay.
There are many factors to take into account when you are trying to purchase any property. If you are purchasing real estate for the first time, you can speak to a builder-approved platinum broker to learn more about buying a condo in the Greater Toronto Area. Feel free to get in touch with Sunny Sharma by calling 416-566-2850 or Kathleen Xie by calling 416-587-8381.