May 10, 2011
A TD Canada Trust Condo Poll released this morning shows that the majority of people buying condos are first time homebuyers. Affordability seems to be the key here. 62 percent of people under-35-years-old (versus 46 percent for other ages) says that affordability of condos is their biggest attraction. TD posits that youngsters are increasingly seeing condos as a stepping stone towards eventually owning a house.
Farhaneh Haque, a mortgage specialist at TD Canada Trust, says that first time homebuyers should ensure that buying a condo with a mind to move on shortly thereafter is right for them. “Before making the decision to buy a condo and own it for only a few short years, calculate the costs that you will incur, such as condo fees, parking fees and moving expenses and work this into your budget, says Haque. “Depending on how soon you plan to move, these costs could outweigh the equity you’ll build and receive from the eventual sale of your condo.” (Hey, sounds like a site like BuzzBuzzHome could be essential in helping prospective condo-owners do their homework – how convenient!)
Baby boomers, of course, are interested in condo-ownership for different reason than younger Canadians. “Those over 50 are attracted to condos because they fit into their plans to downsize their home,” reports the poll. “Not surprisingly, when those over 50 move into a condo, 31% don’t plan to move again.”
When asked about features in a condominium, fees where overwhelmingly (95 percent) the chief concern listed by respondents. 80 percent of respondents were not willing to pay more than $400 per month in fees. “Other important features,” states the poll, “were good building security and attractive interior design features (both 92%). Those over 50 are more likely to say attractive exterior design is an important consideration (88%), whereas younger respondents were more concerned about being close to public transit (85%) and near theatres, restaurants and shopping (85%).”
No surprises there!