Purchasing a home is incredibly exciting. After spending so many years renting and finally obtaining the pre-approval for a home loan, you have begun the search for the perfect condo. However, there are quite a few things to consider before taking the plunge, as well as some tips for getting the most out of your purchase.

Intent of Purchase

The first thing to consider is the intended purpose of the condo. Is this condominium going to serve as your permanent residence, or are you planning to rent it out? Are you renting it out temporarily and then moving into it later on? Many buyers choose to purchase homes with the intent of securing a monthly income. Others also choose to buy when the market has cooled and prices have dropped so that they can get their hands on a great condo at a lower price. If they are unable to move into the condo, then they will rent it out temporarily until they are ready.

Buyers who plan to lease out their condos should take great care when pricing their units. The rent should be high enough to cover the mortgage, as well as any additional fees that are covered under the agreement. If you are offering to have utilities included, for instance, then you will need to account for those. This is mainly done for convenience, as including utilities can provide the following benefits :

• The tenant will only need to pay one flat price each month, which makes it easier to manage and remember so that all payments are kept up-to-date without needing to send out multiple payments to various sources.
• The utilities do not need to be switched over every time somebody moves in or out.
• The owner maintains control and is able to shop around and choose the utility companies that provide the best rates for the unit’s needs.

When considering this option, the buyer must take into account the highs and lows of utility usage in the unit. During summer months, for instance, air conditioning will be used a great deal, while heating will be required during colder winter months. Likewise, water is likely to be in high demand during spring, especially if the tenant has a green thumb.

If the rent is set with the expectation that utilities will be used at peak amounts, then the owner will benefit during months of low usage, as the rental rate remains the same regardless of lower utility costs. However, if the rent is set too high, then renters will likely be turned off, even with all the added perks. It is up to the buyer to find a happy medium that benefits everyone.

Things to Consider Before Purchasing A Condo Part I : Getting Started by Condo.ca