Should you move out of your house and into a condo?

 Are you considering making the switch? Here are the questions you need to ask.

You’re not suffering from empty nest syndrome, nor do you really believe that turning the back room into a home gym is the way to go. You’ve decided to sell the house and move to a condo because you’ll be closer to a variety of services.

This is a decision being made by many people who are retired or approaching retirement and by people whose children have left home. Is it a good idea for everyone? Read on for some advice about how to make the right decision for you.

A smaller space to live larger

Living closer to health care and other services is a good reason to make the move from a house to a condo. It’s also a good way to reduce your expenses since you’ll enjoy:

- Lower property taxes

- Heating and insurance costs that better reflect your needs

- Reduced housework

- Less maintenance work to be done

You can use the money you save to make some changes to your lifestyle, so that you can continue to economize or simply vacation somewhere far and remote! After all, condo buildings are more secure and your absence will be less noticeable than when you leave an empty house.

Be careful - If you plan on taking long trips, make sure to contact your insurer.  If you’ll be taking a trip during the winter, you have to ensure the heating remains on or else you need to consider shutting off the water, draining your pipes and flushing your toilets. If you don’t take these precautions, certain types of water damage won’t be covered. We recommend that you call your insurer if you will be away.

Know yourself

Are you inclined to keep an eye on what’s happening on your street through the half-open blind? When you stay at hotels are you typically disturbed by noises from other guests? If so, condo living may not be the best choice for you.

While you will be the owner of your unit, when it comes to common areas you will be in a co-ownership arrangement with a group of people you may not necessarily know. This means having to follow the condo rules regarding noise, pets and even your choice of flooring! The trick is to be well-informed so that you can choose the unit that suits you. Learn more about the rules and responsibilities of condo owners on the Consumer Protection Ontario website and make sure you’re comfortable with them.

Get expert advice

Real estate agents are a valuable resource when you’re buying a condo. Purchasing a condo could actually be more complicated than buying a house, so if you want to make the transaction with your own agent, make sure he or she is with you for you first visit.

If the seller already has an agent, you can trust him or her to provide you with accurate information. Agents are obliged to provide information to all  parties involved with the transaction, without bias toward the seller or the buyer.  When in doubt, you can consult real estate agents’ files on the Real Estate Council of Ontario (RECO) site. Another great resource on the steps to follow is the Condominium Buyer’s Guide from the Canada Mortgage and Housing Corporation (CMHC).

Adding up all the fees

In addition to your mortgage payments, you will have to pay condo fees. They cover regular maintenance costs and insurance for common areas, while another part goes toward the building’s reserve fund, which is used to cover major repairs such as the roof, brickwork or the foundation. Beware of condo fees that are very low and make sure there is a healthy reserve fund or else you will have to shell out extra money for work that may become necessary.

Take your time

Once you’ve made your decision, take your time. Rely on the advice of professionals like a lawyer or notary. Consult a real estate agent to find out more about the various types of condos, which include:

• “Off the plan” condos
• New condos
• Divided or undivided co-property condos new or resale, divided or undivided co-property

The real estate agent's services are free to the buyer. Don’t forget to think about the furniture and other belongings you will need to get rid before moving into a smaller space. Finally, make a list of must-have features, such as easy access to public transportation, indoor parking, an elevator, a pool and so on.

It’s a big life decision, so take the time you need to think about it!