First time buyer (condo)... looking for tips/advice

[KennyX]

Hi all,

Looking to purchase a condo pretty soon in the downtown Toronto area. While it doesnt have to be in the downtown core, -I would like to have something close by (has to be TTC accessible).

That being said I have a few questions:

1) Do you recommend getting a real estate agent? (if so how much do they cost?) And what about lawyers? (how much do they cost?)

2) In terms of mortgages, how much can you realistically get if youre willing to put down about $60-$80k and have an annual income of around $65-$75K... (Single income no kids and no debt)

3) I know this is a more personal question which I can only decide, -but how do you guys (for those that have or have had condos) decide how much square feet you need? (especially for those that are single)

4) Would it be realistic to find either a resale or in-construction condo that is priced between $250-$275k that offers 1bed + 1 den that's around 800sq feet in the Toronto area? (or am I dreaming?)

[ccubed]

I previosuly owned a condo - loved it - was single in about your situation.. Here are my thoughts from my personal experiences..


1) Do you recommend getting a real estate agent? (if so how much do they cost?) And what about lawyers? (how much do they cost?)

Yes. The good thing about a ghood agent is that you can give them the parameters that you are looking for and they will do all the work for you. If, in your search with them, you hit a building you particularly like, you can ask them to concentrate on that building alone. If you want a new place, realtors often get advance notice of new condo sales.


2) In terms of mortgages, how much can you realistically get if youre willing to put down about $60-$80k and have an annual income of around $65-$75K... (Single income no kids and no debt)

Several banks have online mortgage calculators - suggest you give one of those a whirl (I know for sure that TD has one). You can alter your parameters and see exactly what works for you. The variable in the equation that you have not considered (at least in your post) is the interest rate, variable versus fixed mortgage, and amortization period.


3) I know this is a more personal question which I can only decide, -but how do you guys (for those that have or have had condos) decide how much square feet you need? (especially for those that are single)

I had a two bedroom 1000 sq ft w a balcony. I came from a house so I wanted a balcony so I could step outside at my leisure - that was a personal preference. For a single professional, a one bed pus den is more than sufficient. Don't limit yourself to square footage - see the place - you would be amazed at how big 600 sq. ft. can look - and how small 1000 sq. ft. can look, depending on the layout. Don't limit yourself to a square footage - instead limit yourself to at least a 1 bed plus den or 2 bed.


4) Would it be realistic to find either a resale or in-construction condo that is priced between $250-$275k that offers 1bed + 1 den that's around 800sq feet in the Toronto area? (or am I dreaming?)[/QUOTE]

My personal recommendation would be to go for a re-sale if you can. This is for several reasons.

a) once built and occupied, the price of the units fluctuate less - you don't have a buying frenzy that drives up the prices by 10, 20 30 or even 50% overnight.

b) if you get a condo that is 2-5 years old, then things like maintenance fees have levelled off. In my esperience, estimated maintenance fees for a new condo are far too low.. the reality is that they are often higher once built and fully occupied - but you don't know by how much so you can't properly budget. Last thing you want is to move into a new condo with fees of $250 a month only to have them jump to $300 a month after a year. $50 may not seem like a lot, but in the big scheme of home ownership, it is!

c) resale condos don't have any 'additional costs'. I am referring to things like extra charges for lockers or parking.. some condos will charge extra for these when new, but you find that those additional costs are merged into a resale unit.. same goes especially for floor premiums.. a new condo may levy a 1K or 2K or even more additional cost per floor the higher you go - but in resales that amount is lost - that is you pay the same for the same unit on the 10th floor as you do for one the 15th.. some exceptions apply like penthouse units, but generally that exta cost for each additio0nal floor is absent in resale condos

Hope this helps...

P.S. I was on the board of directrors for our condo for 5 years so I am speaking with a bit of experience on this subject.

Best of luck!