For many first-time buyers entering the Real Estate market, the downtown condo has been a staple purchase. However, with record-low interest rates and longer amortizations, some buyers are looking to move out of the centre and start their home-owning lives in a house.
With the condo you don’t have the maintenance for the exterior of the building, but you have condo fees. On the flip side, in a house you’re not paying the condo fees, but you’re entirely responsible for the condition of not only the interior but the exterior of the home as well.
A lot of time the price, the payments, could be the same but when you break it down, condo versus home ownership, the biggest difference is going to be lifestyle.
It’s like a puzzle. We just have to put the best options for that client together because everybody is a little different.
That’s a key component whenever I work with first-time buyers, considering where they work, where their family lives, the places they’ll be travelling to frequently. That can have a direct correlation to the affordability of the property they’re looking for. If you have to pick up the expenses for a vehicle, vehicle maintenance, gas, travel, that suddenly takes all the savings you thought you had by living out of town versus living in town.
Clients opting for a condo are more likely to find a place in their chosen neighbourhood.
You need to know — or anticipate — where you’re going to be in five years. The rates are great for five years, but in five years’ time, you certainly want to still be able to afford that house.
For many clients, the hope is that in five years their equity, and hopefully their income, will have risen.
The first home is always a little stepping stone for first time Buyers. They’re not going to be in that 700-square-foot condo or that smaller property for 35 years.