There are CSG Renovation offering a range of benefits for buyers. They’re simple and convenient, as so much is managed on your behalf by the condo’s management company. That means minimal maintenance and maximum enjoyment. But, to get the most from a condo, you have to buy at the right time.
Is now that time? This guide explores whether or not it’s a good time to invest in a condo renovation in Toronto.
The State of the Market
Before deciding whether or not to buy a condo, it’s worth considering the market at the moment. Is it a buyer’s market or a seller’s? In other words, are market conditions at the moment more favorable for those investing in condos or those getting rid of them?
Well, according to the latest Toronto stats, it’s more of a buyer’s market than a seller’s, as there are quite a lot of condos up for sale compared to the amount being sold. That means that properties are sitting on the market longer, opening room for price drops and negotiations.
Indeed, a lot of units end up selling for less than the initial asking price right now, making this a prime time to consider investing in your own condo.
However, it’s one thing to say that we’re in a buyer’s market, but it’s quite another thing to suggest that this is the exact right time for you, in particular, to make a purchase. It all depends on your specific financial situation—naturally, some people are in a better place than others and will find it easier to invest as a result.
Don’t forget, it’s not just the cost of the property itself, but also:
- Mortgage payments
- Maintenance fees
- Property taxes
- Upkeep
- Utility
You have to assess if you can cover all those costs to see if it’s the right time for you or not.
Getting a Mortgage
The vast majority of condo buyers won’t necessarily have enough funds in the bank to buy outright and will instead seek a mortgage. According to experts, it’s best to get yourself pre-approved for a mortgage before you even start viewing condos or making any offers.
Once you’re pre-approved, there’s far less to worry about. But, if you have any trouble getting approved, you may find it much harder to obtain your condo in the long run. So, sort out your finances first of all to save time and hassle.
Levels of Competition
Competition-wise, there’s always a certain level of demand for condos. Even in this buyer’s market, you may be going up against other buyers for the same property, especially those in prime locations and around the $400 to $600k value range.
You can’t avoid competition, but you can do things to push the odds in your favor. For example, try bidding during the peak holiday periods—summer and winter—when more buyers are away and not looking at condos.
Additionally, to avoid competition, the golden rule is to make your offer sooner rather than later. The faster you can put an offer in after a condo hits the market, the more chance you’ve got of securing it at the price you want rather than ending up in a bidding war.
What You Need to Know
Finally, here is a quick list of all the extra things that buyers and interested parties need to know before considering a condo purchase in Toronto:
- Status Certificate: If you want to secure financing for your condo, you’ll need to review a status certificate first. It lets you know the financial status of the unit and the corporation behind it. It lets you know if the company has the funds needed for maintenance and so on, so it’s a good sign of the health and quality of a condo. If there are any red flags on the certificate, it might be harder for you to get a mortgage.
- Rates Are High: These are unprecedented times in terms of high interest rates. That means sellers may be at risk if they wait too long to sell, which is good news for buyers, as sellers should be more eager to sell sooner rather than later. It also gives you more spending power and options in the condos you buy, but you need to be aware of what you’ll have to pay back.
- Rental Comparisons: Compared to renting, buying a condo right now is generally the better value choice. You get more value overall, and with every year that passes, you build equity in your property. However, it’s often best to run your personal numbers through the calculator and seek pro financial advice to be sure you’re making the right call.
Conclusion
Overall, the answer’s clear: now is a terrific time to invest in a Toronto condo. But first, you have to make sure you’ve got your finances in order and know what you’re looking for. If you can do that and get the timing of your offer right, you should be able to secure the perfect property at just the right price.