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<\/a>Photo:\u00a0Blue Elephant Realty mls# C4393871<\/em><\/p>\nYou\u2019ve worked hard to save money and you\u2019re finally ready to pull the trigger on buying your first home. As a first-time buyer in Toronto, do you buy a house or a condo? There are many things to factor into the equation, from lifestyle to financials. We help weigh the pros and cons of buying a Toronto house versus condo so you can set your expectations and feel well-informed as you prepare to buy your first home.<\/p>\n
EVALUATE YOUR LIFESTYLE<\/strong><\/p>\n LOCATION<\/p>\n Your lifestyle will be a huge factor to consider when deciding what property is best for your first home. Let\u2019s start with location.<\/p>\n As a first-time buyer, let\u2019s presume your max budget is $750,000. In Toronto, you\u2019re generally restricted to neighbourhoods like East York and St. Clair West Village to find a house for under $750,000. For a more in-depth look at home prices, read The Cost to Buy a Semi-Detached Home in Toronto by Neighbourhood<\/a>.<\/p>\n Comparatively, when buying a condo you have far more choice across the city within the same budget. Whether you\u2019re after something in the downtown core or a more laid back neighbourhood, buying a condo will give you more to choose from and less to compromise on.<\/p>\n Recap: If you want a house, you\u2019ll need to be flexible on location.<\/p>\n MAINTENANCE<\/p>\n If you\u2019re seeking a low-maintenance life, condos are your best bet. While condos require you to pay monthly maintenance fees<\/a>, you can ditch your winter shovel along with any concerns about whether or not your roof is still in good standing. All you need to worry about is the few hundred square feet you call your own.<\/p>\n If you\u2019re thinking you\u2019d rather DIY than pay monthly maintenance fees, think again. Toronto homeowners should expect to put at least 5% of their monthly mortgage into an Oh Sh*t Fund<\/a>. With most houses in Toronto being 50+ years old, it\u2019s important to have an emergency fund for things like routine maintenance and larger repairs \u2014 like a leaky roof or malfunctioning furnace \u2014 is a must.<\/p>\n Recap: Both houses and condos come with \u201cmaintenance\u201d fees.<\/p>\n CONVENIENCE VS. SPACE<\/strong><\/p>\n Living in a condo means you have access to amenities. These will vary per property but can translate to monthly savings. Save on a costly gym membership and even gas on trips to the grocery store. Many condos will have a grocery store attached to the building or within walking distance.<\/p>\n The convenience of condo living may be substituted for extra living space. You\u2019re more likely to get a bit more living space and outdoor space when buying a house. You can still find condos with large square footage and terraces, but they will cost you more.<\/p>\n Recap: Know your priorities \u2014 convenience or space.<\/p>\n SETTING EXPECTATIONS<\/strong><\/p>\n While condos are plentiful, they\u2019re also the more affordable option among first-time buyers which means you\u2019ll likely be competing with other buyers. Based on 29 condos that sold in downtown Toronto in the past three weeks, the average sale-to-list price was 103%. Translation: expect most condos to sell for over their list price.<\/p>\n Search Toronto condos under $750K here to see what you can afford.<\/a><\/p>\n As we mentioned earlier, finding a house within your budget will limit you to certain areas. You\u2019ll be hard pressed to find a house in Toronto under $750,000 that won\u2019t require renovations. If a move-in ready house does hit the market within your budget you can expect the competition to be fierce.<\/p>\n Search Toronto homes under $750K here to see what you can afford.<\/a><\/p>\n In the last 30 days, only six houses have sold under $750,000 in Toronto, many of which needed major renovations or complete overhauls.<\/p>\n Recap: Competition is high for first-time buyers so expect to lose a few times before you win.<\/p>\n HOW DO HOUSES VS. CONDOS COMPARE FINANCIALLY<\/strong><\/p>\n Let\u2019s compare the monthly expenses for two recent sales, both with similar list prices and rooms. This detached home is relatively move-in ready but you would need to budget $15,000 – $20,000 in upgrades and renovations.<\/p>\n Condo: 140 Bathurst St PH09 | 2 bed | 1 bath | parking Detached House: 16 Cassels Ave | 2 bed | 1 bath | parking If you\u2019re debating between a home or condo you can run the numbers with this mortgage calculator<\/a>. Be sure to check \u201cI am a first-time home buyer\u201d to calculate your Land Transfer Tax rebate and click here to see if you meet the first-time buyer requirements for the rebate.<\/a><\/p>\n LONG TERM OUTLOOK<\/strong><\/p>\n When buying your first home, you need to consider your long-term goals. If you\u2019re buying for equity gains<\/a> in hopes of reselling in a few years, it\u2019s important to have your real estate agent advise you on projected market value.<\/p>\n Where you buy and what you buy will dictate how much equity your property will likely earn. For instance, looking at our above comparable, condo prices in downtown Toronto (C01) rose 11% in 2018 while prices for detached homes in the Beaches (E02) dropped 1.5%.<\/p>\n<\/a>Photo:\u00a0Vanessa Diab<\/em><\/p>\n<\/a>Photo:\u00a0Andreas Simone<\/em><\/p>\n
\nNeighbourhood: Downtown Toronto
\nList Price: $659,000
\nSale Price: $692,000<\/p>\n
\nNeighbourhood: The Beaches
\nList Price: $659,900
\nSale Price: $680,000<\/p>\n<\/a><\/p>\n