Things To Be Aware Of When Buying A Condo
King's Blue Model Suite Click here to visit the website
Don't Be Fooled By The Model Suite
Often when buying a condo from a floor plan, the builder will a have a beautifully designed and decorated model suite for you to preview before you decide to purchase. Often these model suites are so beautifully designed they are like a 'must-have' masterpiece. Let's be realistic, it is important to be aware when buying a condo, it is unlikely any suite you are going to buy will be like the example above and come with trendy wall panels. Right? Some might but those will come at a premium price. It is also important to note the model suite is a replication of one of the most expensive model suites or a modified version of the largest suite they offer which won't apply to the majority of units available.
To be fair to the builder, in my opinion stunning model suites are merely part of a brilliant marketing strategy. After all, the model suite gives the buyer a sneak peak into what it will feel like when you have the money and can afford to purchase the most expensive unit in this building. And that is what the average buyer should keep in mind.
On the upside, that isn't to suggest you cannot create a cool version of your own unit and implement some of the ideas you saw in the model suite. I'll save that for a another blog post.
Urban Toronto Floor Plan, click here to view the site.
Pay Attention To Where Your Condo Is Located In Relation To The Rest Of The Floor
Novice condo purchasers sometimes become so enamored with the model suite and unit they are purchasing they forget to consider their unit in relation to the other building structures and utilities. Therefore, it is important to be aware when buying a condo where your unit is located on the floor.
The Elevator
Having your condo across from or next to the elevator can become very annoying if you plan to live in the unit and can be seen as undesirable when time to resell your unit. You don't know who the other unit owners are on your floor or their comings and goings. You could find yourself awake all night listening to the opening and closing of the elevators or people loudly talking, laughing, or drunk stumbling on the floor with their friends at 2/3 in the morning, etc. If you're a light sleeper this will drive you crazy.
The Garbage Shute
You should also pay attention to the proximity of your unit to the garbage shute. Not only are the garbage shoots noisy as the door or the trap can clatter when it is open and closed but they can also get smelly if they are not being closed properly when another unit occupant has tried to over stuff the shute.
The Stairwell
Proximity to the stairwell can be a plus or minus. Being next to an emergency exit can be ideal if the elevator isn't working or if you live on the lower floors and prefer to take the stairs, but it is important to be aware it is a traffic source and depending on the floor you're on can become a noisy traffic source if your unit is on lower floors.
The Location Of Your Building Can Affect Your Resale Value
Where your building and thus the direction your balcony faces can have a huge impact on not only your health and wellness but also your wealth.
Hydro Wires Or Cell Towers
If your balcony is located next to hydro wires or cell phone towers you may not have considered this when you purchased your unit. Some people are hypersensitive to electromagnetic energy and for these individuals this can be quite debilitating. The World Health Organization has been documenting the increase in Electromagnetic Field Sources and has disputed the evidence there is any truth to the condition through controlled studies, but at the end of the day your value comes down to public perception. If enough people believe there is evidence to suggest someone can develop hypersensitivity or an intolerance to electromagnetic energy with repeated exposure and close proximity to cell towers or hydro wires this will reduce your resale value.
You may have thought at the time you purchased your unit you were getting a small discount on your unit which at the time seemed great. These cell phone towers may not have been in existence when you first purchased but chances are you can find these plans at the city.
If you underestimated these facts then know this, when you go to resell your unit those hydro wires or cell phone towers will be very real, very visible and very unavoidable to any potential buyer who comes to view your unit. It is important to be aware of the negative stigma associated with exterior structures like hydro wires or even train tracks when buying a condo pre-construction.
Trains
Another exterior element to be aware of are train tracks. Although there are those aspiring engineers that will spend hours watching trains, for many people they are loud: clacking and clanking and vibrating which is another negative stigma when purchasing a home. Living next to a train track will take some adjustment if you are a light or medium sleeper. You may eventually become de-sensitized to the vibration and loud banging as the train goes by in the night but many do not.
When someone is looking to purchase a home, these exterior features have a negative impact on house values which doesn't exclude condos. Whether your facing hydro wires, train tracks or an industrial site, when you purchase from a floor plan all these entities rarely seem as costly when your buying a condo pre-construction, just remember rarely will a builder compensate you for the true loss of value when you try to resell it.
Floor Plans Without Measurements Can be Deceiving
Something to be aware of when buying a condo unit is the floor plan can be deceiving, especially when the individual spaces have not been defined with measurements. At a first glance this condo looks generous. The study appears to have an over-sized desk with ample space. Right? The bedroom has a queen-size bed or is it a double with 2 (very small) end tables? Look at the kitchen, you can fit an eat-in table for 4, right? Did I say it looked spacious? Take a closer look at the counter space. The cook top has only 2 elements, unlikely an oven, are you planning to cook anything beyond a can of soup? To the left of the 2 element cook top is a fridge and to the right is a sink. There is barely enough counter space to open a can of soup much less store food. Is there enough drawer space for cutlery? Did you want to use a microwave? Perhaps you could use it on the dinner table.
Depending on the room size you may not be able to fit a full size sofa. Your +1 room may be the size of a closet OR the size of a second bedroom. Often it is hard conceptualize the true dimensions when you receive an overall square footage without defined room measurements.
Keep in mind there may be other structures in the unit that may also not be to scale on your floor plan. For example, you may have a structural pillar in the middle of your living room which, depending on your condo size, could take up a large portion of your living space. It is important to note the structural pillar of a condominium building is very large especially when your dealing with small spaces. In small spaces having a structural pillar can make a huge difference to the functionality of a unit.
Be Aware Of How Your Condominium Fees Are Being Calculated
Understanding all your costs when you take possession is often underestimated when you're buying a condo pre-construction. It is important to know your condominium fees when purchasing a condo. Your condo fees are your share along with the other unit owners to pay for the costs to maintain the building. These fees will pay for security, daily building maintenance, window cleaning etc. A portion of this fee will also be added to the reserve fund which has been originally set up by the builder. The reserve fund is for any major repairs or replacement of the building.
A developer’s initial budget must include an annual contribution to the reserve fund that is based upon calculations of the estimated long-term repair and replacement costs and life expectancies of the common elements and assets of the corporation. The contribution must be the greater of the calculated amount or 10 percent of the other common expenses (i.e., other than contributions to the reserve fund) until such time as a reserve fund study has been carried out.
Because a condominium’s first reserve fund study may not be completed until towards the end of the condominium’s first year, a deficit (relating to the required reserve fund contributions) may not occur until the second year. Consequently, the builder won’t necessarily be held accountable for any inaccuracies in predicted contributions to the reserve fund (after the corporation’s first year). To read more on Condominium Act click here.
It is important to consider your affordability. After the reassessment you may find your condominium fees will increase. If you were at the upper end of your budget when you purchase the unit, you may find an increase in condo fees cost prohibitive and leave you living beyond your means.
If you're thinking of purchasing a condo or would like more information, contact me below.
About The Author
Rachel Craggy has a license in real estate and has been working in the real estate industry for the last 10 years. Successfully flipping houses since 2015, Rachel has education in interior design and real estate staging, was the owner of a success home staging company in Toronto and has worked with many home owners to help them achieve their real estate dreams