[Smileycelia]

If you buy a condo in downtown Toronto and stay there for a year, is it still worth it? Do you think you'd make a profit in a year with the way condo values are increasing? With closings costs, taxes, mortgage interest, legal fees, I wonder what is the minimum amount of time you should own a condo and keep it for it to be worth buying.

Any thoughts out there on this? I noticed that it's not uncommon for people to own a condo for two years before they move onto their next purchase.

 

[W. K. Lis]

Realtor commission, land transfer taxes, lawyer fees, and elevator fees are some drawbacks that I can think of. There are realtors who have 3% or even 1% commissions, but still it is a cost to consider.

 

[Chiggs@mac.com]

With land transfer tax and closing costs when you buy as well as real estate fees and legal fees when you sell, I believe that you will need the value of a condo to increase by a minimum of 10% over a one year period in order to break even. None of us know for sure what will happen over the next year but with a large number of developments finishing up over the next year, I personally do not believe the average unit will increase by 10% over the next year.

 

[Monaco]

Generally no but it depends on the market and how much your unit will appreciate -- and this is difficult to predict over one year. Some people have made handsome profits after 1-2 years but this is far, far from guaranteed.

Some people move out after 2 years precisely because they've seen how much their condo has appreciated and realize they can turn a profit after factoring in costs. Or because they have to due to life changes.

 

[Kevin86]

I'm not sure about this but I have heard that buying a pre-construction home is a better value than a condo. Homes probably appreciate in value faster than a condo and you may be able to sell after a year or so.

 

[BobBob]

Condos are homes too, you know. I think you mean house?

 

[Flux Capacitor]

don't forget to calculate the amount you would speand on rent, if you didn't stay in one!

 

[simuls]

IMO, with all costs factored in and the massive glut of supply that will hit over the next year, I think it would be unwise as there will be little to no appreciation and possibly some depreciation over the next 2 years.

 

[cabbagetowner]

only buy if the appreciation is greater than the transactional costs.

 

[avatarreb]

Renting for the 1 year would be much less risky. I would rent if it was me.

 

[Kevin86]

Renting for the 1 year would be much less risky. I would rent if it was me.

If you are referring to the "risk" of depreciation, I think it is next to unlikely as I think the market has bottomed out and it has no way to go but UP.

 

[daveto]

If you are referring to the "risk" of depreciation, I think it is next to unlikely as I think the market has bottomed out and it has no way to go but UP.

I think I just vomited into my mouth.

I hope you were being sarcastic?

 

[TrickyRicky]

I think it is barely worth the bother of moving your furniture in and out.

 

[cdr108]

BUY, BUYE, BYE ... everyone should BI.

 

[safeashouses]

I think I just vomited into my mouth.

I hope you were being sarcastic?

Go easy on the kid. If he was born in 86 all he can recall are steadily rising housing prices. He'll be in for really interesting surprise very soon!