Canadians Love Condos
By on Aug 10, 2010
TD Canada Trust's 4th Condo Poll has revealed interesting information about the relationship between Canadians and new condos. Surveying Canadians from coast to coast who indicated that they would be interested in buying a new condo, the poll indicates that we appreciate new condominiums for the lifestyle they offer as much as for their affordability and investment potential.
"Canadians continue to see the value in purchasing a new condo, whether it is a place to call home for themselves or for their children," says Chris Wisniewski, Associate Vice President, Real Estate and Secured Lending, TD Canada Trust. "Affordability and stable monthly expenses can make new condos very attractive for both first-time buyers and investors."
The poll revealed that the low maintenance needs compared to homes is the biggest motivation for Canadians to buy a new condo (36%). Affordability comes in second as the most popular reason for condo purchases nationally (24%).
Interestingly, in Vancouver, affordability is the primary reason for new condo purchases (45%, up from 35% in 2009), more than double the city's second place reason to purchase a new condo: lower maintenance (21%). This is a different story in Halifax since affordability is not a major reason to purchase a new condo, with only 5% saying price is the deciding factor.
While Canadians appreciate the affordability of new condos, 60% of those who would consider purchasing or already own a condo say that their plans wouldn't be impacted or that they would still purchase a condo even if they had more money. That figure is highest in Halifax (79%). Additionally, one-third of Canadians considering a new condo would raise a family in one (36%). Only 40% would buy a house instead of a condo if they had more money.
Thirty-seven per cent of Canadians surveyed would consider investing in a new condo that is not their primary residence, up from 33% in 2009. In 2009, 44% of Canadians viewed market conditions for buying a new condo as better than the year before. In 2010, 43% believe conditions are the same as 2009 and 29% say they are better. Nonetheless, the number who would consider purchasing a new condo as an asset to sell when condo prices increase, has dropped from 27% in 2009 to 19% in 2010.
For the fourth year in a row, the majority of Canadians (81%) say they would spend less than $400,000 for a two bedroom condo. In terms of condo fees, only 17% of respondents would be willing to pay more than $400 per month.
Interested in buying a condo? Maybe your parents will help -- 10% of respondents would contemplate buying a condo for their adult children.
