Buying a new condo is exciting, especially if you’re a first-time buyer. Finally, you’re moving out of your parents’ home and starting your life! However, no matter how eager you are to buy a condo, rushing into the process without doing all the necessary research can lead to several problems down the road. It’s crucial that you take your time, ask questions and listen to advice before settling down and purchasing a condo.
Here are some of the biggest traps you should avoid when buying a condo.
Research the developers experience
Nowadays, the condo industry is booming and the market is attracting several amateurs trying to make some fast money. Although a condo might look good on paper, it doesn’t mean that it is good. Some condos are very low quality and built by developers with a poor project management team. Don’t forget to investigate the developer before purchasing a condo. Invest in a developer who’s made an exceptional name for themselves.
Buying without a plan
As one of the biggest transactions of your life, I’m sure you can acknowledge the fact that buying a condo is a serious investment. Make a plan, don’t buy without a motive. Don’t rush the process of buying, ensure that you’ve looked at every option before making a final decision. Ask yourself these questions: Am I a passive investor? Will I manage the property myself? Do I know about capital gains taxes? Devise a detailed plan.
You didn’t get pre-approval
You should not begin looking for a condo unless you’re pre-approved to take on a mortgage. Ensure that you talk to a mortgage broker and get pre-approved. It’s better to know what you can afford ahead of time, rather than falling in love with a space you can’t afford.
Research condo rules and fees
You may have found a condo that seems perfect for you, but don’t just go ahead and buy it yet. A common mistake people make before buying a condo is forgetting to research its rules and fees. Imagine you sign the papers for a condo and later on find out that they have a strict rule regarding pets. This might change your mind and make you regret your decision. If you don’t research the rules and regulations of the condo, imagine how much trouble you will face down the road.
Trouble with the city’s planning department
Find out whether or not the developer is having troubles with the city’s planning department. If they are, it’s usually for a good reason. They may resolve their issues; however, it could extend the time it takes to develop the building. In more aggressive cases, the project has been unfinished and people have lost their entire deposit because of it. Beware so that this doesn’t happen to you.
Have you noticed that the developer is pushing Realtor commissions higher with exclusive incentives? If so, then ask yourself why that’s happening. Sometimes, sales are so slow that developers will do what they can to attract realtors and buyers. A condo should sell itself, and if it doesn’t, then you should recognize this as a red flag.
Are you looking for a new condo? If so, then purchase one from a state-of-the-art development in Vaughan. With reputable developers, quality features and finishes and a flourishing community, where can you go wrong? Contact Vondos today to learn more.