Moving from a Toronto condo to a house is very exciting! Condo sellers have a lot to look forward to when moving up the property ladder to a freehold home. It not only can be a great lifestyle change for people, but it’s also a powerful investment tool to help develop long-term wealth. There are several important factors to consider when moving from your condo into a new house.
Buy Or Sell First?
This is the great question that delicately balances subjective and objective weighting. Some condo sellers want to know how much money they have from selling their condos before purchasing a home. While others want to know that they have the house they most want, then deal with the sale of their condo, allowing the cards fall where they land – i.e., the sale price is what it is, and they will deal with the financing accordingly – here are six mistakes to avoid when selling a condo.
Note, every time we work with condo sellers looking to buy a home, we ensure that that financing is in place before the house search begins while also keeping our sellers fully aware of what their condo market is worth every step of the way. This ensures a much less stressful house buy and condo sale for our clients. Tips to get the best price on a home.
Best Time To Buy A House In Toronto
Timing
Timing is everything when buying and selling in Toronto. Deciding when you put your condo on the market is important. Know when it is a good time to sell is also a big factor. That being said, you cannot choose when the right house comes to market. It would be best if you were ready to strike quickly in this ever-strong Toronto real estate market. Having your ducks in a row from the outset is an integral key to success.
Houses Cost More
A starter home in Toronto is approximately twice as much as a starter condo in Tornoont. That’s quite a lot of money. To our earlier point, this does pose a great opportunity to develop your wealth in time should you take the next step on the property ladder.
Insurance will cost more due to space, liability and the inability to leverage insurance risk expose with the condo corporation’s coverage of the condo building envelope. Also, note that your heating and cooling bills will be high with more space for temperature control.
No more monthly maintenance fees! You will need to be pro-active and reactive when an issue comes about with the roof, exterior and interior and upgrades. Delaying capital cost improvements can make things more daunting in the future. Set aside an annual budget for repairs and improvements to your house. We used to say 1% of the value of your home on an annual basis. Nowadays, it’s more like 0.5% of the value of your home. There will be some years that you won’t need to spend any money on property upkeep, while in other years, you may need to spend a couple of years’ worth of your budget. Being financially prepared with a rainy day fund is a great move!
Additional Space
The average condo in Toronto is 550 square feet. There is no doubt that some exclusive King West, Summerhill, and Yorkville condos can be larger than a sprawling 3000 square feet. That being said, that is is rarer. Moving from a condo to a house will involve the ability to use a lot more space. You will likely require more furniture, wall hangings, lights, etc. Also, condo size furniture may not quite fit the space as well in a house. It is worth noting that you do not need to stress too much over this, as there is no rush. We regularly suggest that clients move into their new house first, then decide what furniture would make the most sense in time (it’s also easier on the wallet!)
Best Neighbourhoods To Raise A Family
Parking
No longer will you be restricted to a single parking space with a condo (or if a newer condo building, perhaps you didn’t own a parking space)! When buying a house, you will have options for two car parking, private drive, garage, laneway parking, street parking, and front pad parking. Yes, a house with parking does cost park, a garage costs more than private parking. Your friends and family can now celebrate as there are now countless options for your visitors as you now have unlimited visitor parking!
If your house does not have private parking, you can celebrate that the City of Toronto street parking is still incredibly cheap. You don’t need to pay the additional 10% of a home’s value to get parking (yes, that’s roughly what a house with parking is worth compared to a neighbourhood with no private parking) when you can pay a few hundred dollars a year for street parking.
Goodbye, Condo Rules & Regs!
When you purchase a house, you will no longer need to fret about condo rules and regulations. Not only have you said goodbye to condo maintenance fees, but you also no longer have to worry about pet restrictions, special assessment fees, noise transference from one condo to another, elevator small chat (though that can be quite enjoyable from time to time!)
We are always here to help with small and larger real estate decisions along the way. We offer to advise our clients at each step of the process, even after they have moved in. We pride ourselves on professionalism, honesty and long-term relationships. Contact us at any time. We’re always happy to help. We’re nice people to deal with, we promise!
