Condo Pro: Apples, Apples and Your Condo Decision

By Barbara Lawlor

New condominium shoppers who live in the Greater Toronto Area (GTA) have an incredible amount of choice relative to other areas in the world. With Toronto ranked as the fourth largest city in North America, this is great news, especially for those who appreciate the wisdom of comparison shopping. Getting the most for your condominium dollar is, of course, one of your main goals. With all the available choices, it is important to keep the parameters of your search within their proper context and compare fairly.

Let’s start with the overall condominium picture and whether now is a good time to buy. There is no doubt that 2011 was a stellar year when it came to sales. In a cyclical business like real estate, there will be occasional peaks like that. Comparing the next year’s figures to it is not really fair, and the media have focused on a lot of doom and gloom with that approach. Realistically speaking, 2012 featured a total number of new home sales that was the second-lowest since 2000. Within that context, however, sales of high-rise condominiums amounted to 18,755 – the fourth-highest total since 2000! However you slice that pie, 18,755 is a lot of condominiums. And in January this year, condominium sales still outdid low-rise sales for the GTA.

The point is, condos offer more attainable price points, as well as a carefree lifestyle, and they are still in demand. This trend is likely to continue for some time, as low-rise land available for development becomes scarcer. The opportunity to get into condominium ownership now, while mortgage interest rates are still incredibly low, is phenomenal. Do some research on the condo situation globally, and you will also find that prices in the GTA are incredibly reasonable by world standards. It’s a case of comparing apples to apples.

So, on to your search. At Baker Real Estate, we notice that people sometimes get caught up in the price-per-square-foot trap. Yes, the amount of space in a condo suite is important, but square footage is only one factor in determining livability. Layout is equally, if not more, critical in determining how well a design will accommodate your lifestyle. Even today’s compact suites are so well designed, that they live more like houses than apartments. Compare apples and apples: look at the usable space in reference to that in your current residence. You may be surprised that a lower number of square feet can offer as much, or even more, usable space.

What about maintenance fees, which are one of the most misunderstood elements of condominium living? Maintenance fees enable the prime benefit of condo living – having wonderful building exteriors and landscaping and interior amenities that are kept up for you. Compare apples and apples: what would it cost to have all these niceties in a low-rise home and hire people to handle maintenance and repairs for you?  

How about features and finishes? Certainly, you will find our builders and developers offering a higher level of standards than ever before. When you shop, pay attention to what these standards are among the various buildings, and whether you will need to upgrade to achieve the surroundings you want.

The point is to make sure your final decision is the right one for you. Place everything into the context of your lifestyle and what you need out of your new home. Compare locations according to access to amenities, how long your work commute will be, and whether the areas are established or evolving and are likely to increase in desirability over time. Compare elevations by what architectural styles appeal to you. Compare amenities as to which you will use and those that will help to increase the resale value of your suite.

This is all really a case of paying careful attention and keeping track of what is offered where.  A little “homework” in the beginning can make all the difference in making the perfect condominium choice for you!

 

Barbara Lawlor is president of Baker Real Estate Incorporated and an in-demand columnist and speaker. A member of the Baker team since 1993, she oversees the marketing and sales of condominium developments in the GTA and overseas. Keep current with The Baker Blog at blog.bakerrealestate.com