For Toronto- or Vancouver-based home-owners “Goldilocks” may seem like a dream in the face of double digit increases in home values. Even with the recent increase in listings, and the multi-point plan by Government to cool markets, the bargains are not to be found in resale homes and condos. Goldilocks market seems like a far-off dream, but is there a “Goldilocks” solution for home buyers determined to live in Toronto?

Goldilocks Affordability in Condos

There is a thin sliver of “Goldilocks” affordability left in the market — new condo developments. Not as strongly hampered by the immediate market forces, and lower to carry on maintenance costs (since they are new), Condos are a somewhat affordable option for new home owners, down-sizers (Baby Boomers), retirees searching for security, and even families. As with any “Goldilocks” just right solution, there are pros and cons (being in the middle is “just right” not necessarily perfect), but the new condo — versus the resale condo — feels as close to just right as many of us can afford.

Assuming you are committed to a home move this year — either to realize profit on your existing home, to start a new family, or, as a first-time home owner — some factors need to be considered before deciding whether that home should be a new condominium.

Just Right Lifestyle?

The Goldilocks value may be there, but is it “just right as a life style for you? Here, are some questions to ask yourself before deciding to invest in a condominium. Even though there are pros and cons, the cons (such as size) are typically the reason condominiums are more affordable. “Just right” sometimes means compromise, a middle way between what you really, really want, and what you can really afford.

Assuming you’ve decided to buy, versus rent, you have to determine if a condo is right for you. Here are some questions to ask yourself :

#1 Do you live alone?
Condos are not necessarily small, but a premium location near a transit station might have you trading off space for location — easier to do if you are alone.

#2 Do you have a family?
Then, you’ll need more space, and to keep it affordable you may not be able to locate by a subway stop. How efficient is your family? Is it a newborn situation? If so, the baby can adjust to anything. If you have an existing crew, already scrambling for space on the couch and engaging in grudge matches over the restroom, then maybe you would fare better in a larger condo, further from downtown (to keep it more affordable).

#3 Do you have pets?
Other possible family members need to be taken into account as well… pets. If you have pets, are they tiny creatures that would likely be just fine in a small environment, or do you have a big, loveable pooch who will need plenty of walks? Many condos allow pets, including dogs, but check out the local park situation for those all-important walks.

#4 Do you have a lot of “stuff”?
Are you willling to give up “stuff.” Assuming you’re not a hoarder, most of us are willing to “spring clean” to move. The amount of space you have is also a huge factor in this decision. Condo living is best managed if you find the inherent minimalist in all of us. Condos can look magnificent with the right furniture, storage, and a minimum of clutter. It is important to make sure that you are happy with your lifestyle. If your items have tremendous sentimental value, you will obviously want to bring them with you. Aside from those items, however, you will likely not be able to bring much if you move into a condo, unless you can get really creative when coming up with storage ideas. Again, this will come down to location versus price. Larger condos can be had for reasonable dollars per square foot outside of downtown and away from major transit stops.

#5 Do you have an active lifestyle?
By active, we mean leisure. Condos are excellent options because they often come with amenities such as swimming pools, business centres, conference rooms, fitness centres, barbecue areas, playgrounds, and more that are not affordable options for detached home owners. For many people, this is an ideal situation because they always have something to do, and it is far easier to commit to hitting the gym twice a week if you do not have to pay for it. Plus, everything is right there at home, so you can enjoy these amenities regardless of your schedule. Most property managers also handle maintenance for tenants at no extra cost.

#6 Do you love people? Are you an urbanite?
Let’s face it, a condominium community is a private home, but the community is a close-knit one. If you are annoyed by every little noise, you are not going to love condominiums, but you can learn to like them if you can learn to ignore the little sounds. If you are an introvert or particularly sensitive to noise, then condo living almost certainly would not be the right move for you. However, if you are outgoing and friendly, if you like meeting new people and learning about new cultures, like to chat on the elevator and if you enjoy parties and community events, then condo living may be the best move yet.

#7 Do you run a home-based business?
Chances are if your home-based business requires “visitors” such as purchasers or client visits, it will be discouraged, but it may not be dis-allowed. Whether you can run a home-based business depends on a number of factors including lease agreement, property rules, HOA regulations, local and state laws, and the nature of your business. If you sell items in an online marketplace, you may be okay. If you are a consultant, designer or service that visits your clients, you’re fine. However, a business that requires customers or clients to go to your home at all hours of the day would likely be a problem.

#8 Do you hate the daily commute?
Your daily commute can be considered one of the top three reasons to consider a condo (or an urban house if you can afford it). It’s not just about frustration and driver-rage, it’s about time. The time saved by walking to the local subway stop, versus fighting for two hours each way on a highway into the city is among the main reasons people choose urban condos. The daily cost of gas alone may significantly offset any potential savings in home cost by living further from your work place or life-style needs.

#9 Do you like certainty?
Sure, every couple years or so condo maintenance fees may increase, but the wildly variable costs of maintaining a detached or town home are removed from your lifestyle picture in a condo. No $10,000 roofing decision every ten or so years. No need to debate shovelling your own snow or hiring a contractor. No need to pump our your septic tank (rural). Other costs should factor into this as well.

#10 Do you value safety above convenience?
Can’t afford your own body guard? Condos are not quite fortresses, but most condos have security, locked entrances, secure parking, cameras in common areas, and other features that can bring great peace-of-mind for residents.

There are at least these ten compelling reasons to consider a condo. There are just as many reasons to consider a detached home or non-condo town home — although they may or may not be affordable for newer buyers or down-sizers. As always, it really comes down to lifestyle, versus budget.

Ten Reasons Why Condos Might Be the “Goldilocks” Solution to Your Urban Home Needs by Condo.ca