A condominium is a type of ownership. The owner has title to a single unit in a particular building, as well as a share in the common elements (i.e. elevators, hallways, common areas). With a condo you own (and are responsible for) the interior area of your unit. The upkeep of the building is always handled by the condo association, which is supported by monthly maintenance fees collected from owners.
New or Re-sale Condo?
Once you've made the decision to buy a condo, the first question you should ask yourself is whether or not you should buy a new condo or a resale condo.There are advantages and disadvantages to buying both and as such here are some of the characteristics that may help you narrow down your choice.
New Condo Benefits
- You can choose from available sizes, layouts and exposure directly from the builder.
- You will be able to upgrade or choose certain items such as flooring, kitchen cabinetry, appliances, plumbing and electrical fixtures.
- The latest building code, and standards do apply. A builder warranty (Tarion) is typically available in Ontario when you buy. This can be important if deficiency is found when you take possession.
- You may be able to assign your condo agreement to another buyer during the construction phase (more on this topic below).
Resale Condo Benefits
- Common areas and building facilities are completed and can be used by its occupants.
- You can occupy the condo unit typically 30-90 days from now.
- It may have upgrades or features such as a parking spot or locker.
- There is no HST on the purchase of the condo.
New Condo Drawbacks
- Condo amenities may not be ready for 6 to 12 months until after you take possession.
- There may be construction noise once you move in.
- Possession of your condo may be 3-5 years away.
- The HST applies to new condos. However, there is a rebate on condos, which cost less than $400,000 and are owner occupied. There are rebates that also apply on purchases greater than $400,000, however the tax is graduated and is only partially rebated.
Resale Condo Drawbacks
- Maintenance fees may be higher than on comparable new units.
- The condo status certificate may reveal upcoming building upgrades or special assessments.
- You may need to redecorate the unit, or replace appliances.
What is a Loft style condo unit?
There are basically two kinds of Lofts in Toronto. The first kind is a loft conversion, where the original structure was a warehouse or factory that has been converted into residential condominium units (such as the Candy Factory Lofts). The second kind, which is becoming more popular downtown is the loft style unit, which is a newly constructed building inspired by the original factories in downtown Toronto.
What is a Cooperative (Co-op)?
Cooperatives (or co-ops) are like condominiums, except instead of owning the unit, you own a percentage of shares in the building. As with condo ownership, maintenance and repairs of the building are paid through the collection of monthly fees. As a co-op owner, you are subject to the rules and regulations of the co-op board. One downside to co-op living is that if you decide to sell your shares (and move out), the co-op board has the right to refuse your potential buyer.
What is an Assignment sale in new condos?
An assignment sale in new condos is when the original buyer has the right to transfer or assign the condo purchase contract to a new third party buyer before occupancy. This happens when the city of Toronto has not given the permission for occupancy yet and thus, the condo cannot be a sold using conventional methods (and thus the contract must be assigned in order to sell the condo unit). After occupancy, the condo unit can be sold and is classified then as a resale condo.
Thanks for all the info Alex, now how do I find a new condo or loft in Toronto?
Many new condos and lofts are available for sale in every price bracket available!
For VIP access to new condos and lofts - before they are available to the public - Be sure to call me today at 416-710-8500 for front of the line access!
Interested in re-sale Condos and Lofts?
Check out my comprehensive MLS Google Search Tool for new listings today.
As always, please do call me at 416-710-8500 to request your private viewing of these condos for sale today.