THE ULTIMATE GUIDE TO BUYING A CONDO: WHAT TO LOOK FOR AND KEY CONCERNS

November 26, 2024

Buying a condo is an exciting step, but it’s essential to go beyond aesthetics and thoroughly evaluate the property and its overall management. Whether you’re a first-time buyer or a seasoned investor, this guide will help you identify the main concerns and ensure a wise purchase.

1. FINANCIAL HEALTH OF THE CONDO CORPORATION

  • Concern: Poorly managed finances can lead to higher maintenance fees or special assessments.
  • What to Look For:
    • Review the status certificate for reserve fund details, fee increases, and lawsuits.
    • Confirm there are no major repair projects planned that might increase fees.

2. MAINTENANCE FEES

  • Concern: High or increasing fees can strain your budget.
  • What to Look For:
    • Understand what’s included (utilities, amenities, etc.).
    • Check historical trends for fee increases and compare with similar condos.

3. RESERVE FUND

  • Concern: Insufficient reserves can result in unexpected special assessments.
  • What to Look For:
    • Ensure the fund is well-managed and can cover future repairs.
    • Have a lawyer review the status certificate.

4. LOCATION AND NEIGHBORHOOD

  • Concern: Location affects property value and lifestyle quality.
  • What to Look For:
    • Proximity to transit, schools, parks, and shopping.
    • Safety and future developments in the area.

5. BUILDING QUALITY AND AGE

  • Concern: Older buildings may need repairs; newer ones might have defects.
  • What to Look For:
    • Inspect the unit for wear and tear.
    • Research the developer’s reputation and past issues like leaks or insulation problems.

6. RULES AND RESTRICTIONS

  • Concern: Restrictions may limit your lifestyle or investment plans.
  • What to Look For:
    • Pet policies, short-term rental rules, and renovation restrictions.
    • Verify if rentals are allowed if purchasing for investment.

7. AMENITIES

  • Concern: Amenities drive fees but may not add value.
  • What to Look For:
    • Assess the condition of pools, gyms, or common areas.
    • Determine if the amenities align with your needs.

8. PARKING AND LOCKER

  • Concern: Lack of parking or storage can be inconvenient.
  • What to Look For:
    • Confirm parking and locker ownership or use.
    • Check accessibility and proximity.

9. NOISE LEVELS

  • Concern: Noise can impact your comfort.
  • What to Look For:
    • Check soundproofing between units.
    • Visit the property at different times to gauge noise levels.

10. PROPERTY MANAGEMENT

  • Concern: Poor management can lead to neglected maintenance.
  • What to Look For:
    • Research the management company’s reputation.
    • Speak with current residents about their experiences.

11. UNIT-SPECIFIC FEATURES

  • Concern: Certain features may not meet your needs or affect resale value.
  • What to Look For:
    • Natural light, layout, and storage.
    • The condition of appliances and fixtures.

12. FUTURE DEVELOPMENTS

  • Concern: Nearby construction might block views or increase traffic.
  • What to Look For:
    • Research planned developments and zoning changes in the area.

13. INVESTMENT POTENTIAL

  • Concern: Poor ROI can affect long-term financial goals.
  • What to Look For:
    • Historical price trends and rental demand in the building.
    • Compare with similar properties in the area.

14. INSURANCE

  • Concern: Unexpected costs or insufficient coverage.
  • What to Look For:
    • Ensure the condo corporation covers common areas.
    • Get personal insurance for unit contents and liability.

15. LEGAL ISSUES

  • Concern: Legal disputes could pose risks.
  • What to Look For:
    • Review the status certificate for ongoing or past legal issues.

FINAL THOUGHTS

Buying a condo is a significant investment, and careful evaluation of the property, building, and management is essential. By addressing these concerns, you can make an informed decision and enjoy a stress-free condo ownership experience.