Home Ownership: The Pros & Cons of Condo Living
In Spring of 2021, I recall sharing a blog topic; Is home ownership in Metro Vancouver still a reality for young buyers? Back then, a RBC survey showed that 62% of the potential buyers responded by saying that they are being priced out of the home ownership for the foreseeable future. Fast forward to 2022 and the question has come up once again. With home prices in Metro Vancouver and Fraser Valley spiking upwards in recent months, the affordability for some young buyers has surely become a challenge. Not only that, many housing market experts are forecasting a modest price increase across Canada this year. For now, mortgage rates and the cost to borrow remains at very low level which still allows a buyer to get into the market with an affordable mortgage payment in many cases. The banks are expected to introduce interest rate increases over the course of 2022 and for a young buyer that has a goal of home ownership, I encourage them to take action while the low interest rates are still here to enjoy.
Now could be a very smart time to lock in a pre-approved mortgage rate and start shopping for their next home to own. If the cost to purchase a detached home is too high or out of the question for a younger buyer, they may want to consider starting with a condominium for starters. By owning a condo, a young buyer gets to enjoy the rewarding feeling of home ownership and has a chance to build a real estate asset with the potential for equity growth. Let’s look at some quick PROS & CONS of condo ownership in the next section.
Pros of Condominium Ownership
· Fewer maintenance and repair responsibilities compared to a detached property. No lawn and less yardwork!
· Access to lifestyle amenities, such as a fitness centre or swimming pool, which you otherwise might not be able to afford with a detached home
· Enhanced security features (community) and beautiful views in some condominium units
· Lower furnishing costs compared to a house - not as much furniture is needed to fill up the space
· Having a say in the running of the condominium corporation. A condo owner has voting rights and can be elected to the Board of Directors.
Cons of Condominium Ownership
· Monthly maintenance or strata fees
· Possibility of special assessment charges for unexpected building repairs
· Potentially paying for amenities that you may rarely use
· Less privacy in some condominium units and noise from neighbours
· Possible restrictions on items such as parking, pets, smoking and even the style or colour of things like window coverings or other furnishings.
Now, these are just some quick highlights to consider when evaluating home ownership options in 2022. I encourage visiting some of the new condo projects across Metro Vancouver built recently. These new developments are offering a plethora of amenities and many have created a community within the development to include shops, restaurants, green spaces and more. Perhaps the new era of condo living may impress and offer a new way to become a home owner this year! Feel free to connect with me at anytime for more tips or to build your own personalized mortgage plan.
All the best,
Sukh Sangha