- TD Canada Trust Condo Poll suggests condo affordability is key for young
MONTREAL, May 10 /CNW/ - Many Montrealers are attracted to condos
because they want to live downtown and cut down their commute. In the
2011 TD Canada Trust Condo Poll, which surveyed Canadians who are
thinking of buying, or recently bought a condo, more Montrealers named
these two reasons as the main motivation for their condo purchase than
respondents in any other city. The poll found affordability to be
another main reason for Montrealers' interest in condos (42%). Across
all cities surveyed, affordability was most important for respondents
under 35-years-old (62% versus 46% for other age groups). This age
group seems to view condos as a stepping stone into homeownership, with
many planning to move in the not too distant future. But, is this a
"The convenience of living downtown and cutting down the commute time is
making condos an attractive option for many Montrealers who view them
as an affordable alternative to a house," says Christine Marchildon,
Senior Vice President, Quebec Region, TD Canada Trust. "However, if
you ultimately hope to own a house and plan to move from your condo in
a few short years, I strongly encourage you to calculate the costs that
you will incur, such as condo fees, parking fees and moving expenses.
Depending on how soon you plan to move, these costs could outweigh the
equity you'll build and receive from the eventual sale of your condo."
What do Montrealers say are the most important features in a condo?
The top feature Montrealers look for in a condo is a balcony (92%).
They also say low condo fees are important (91%) and nine-in-ten
Montrealers (89%) said they wouldn't pay more than $400 in monthly
condo fees. These figures remain consistent with findings from a
similar poll conducted by TD Canada Trust in 2010. Attractive interior
design features (89%) were also important. Nationally, those over 50
are more likely to say attractive exterior design is an important
consideration (88%), whereas younger respondents were more concerned
about being close to public transit (85%) and near theatres,
restaurants and shopping (85%).
Home Sweet Home - but for how long?
Four-in-ten (41%) Montreal respondents expect to live in their condo for
three years or less (14%) or four to six years (27%). Nationally, the
number planning for a short stay jumps even higher amongst respondents
under 35. In fact, across cities surveyed, nearly one-quarter (22%) of
respondents in this age group said they don't plan to spend more than
three years in their condo and another 45% plan to move after four to
Has the tightening of mortgage rules affected the condo market?
As the TD Canada Trust Condo poll found young Canadians to be most
concerned about affordability, it is not surprising that many in this
age group said the new amortization change to 30 years for new
mortgages had a significant impact on their decision to choose a condo
over other types of homes (63%). Lending law changes didn't influence
Canadians over 50; three-quarters say the changes to lending rules had
no effect on their decision to consider a condo.
Somewhat alarmingly, the poll found that more than one-quarter of
Montrealers who intend to buy a condo (26%) were not aware of the
recent changes to lending rules. Nationally, this number was even
higher (39%) among those under 35. "If you're planning to apply for a
mortgage, it's essential that you understand the lending rules and the
options you have. This allows you to weigh the pros and cons of
different mortgage options and make well informed decisions about the
type of mortgage you choose and the size of down payment you can
afford. This can save you a lot of money in the long run," says
Marchildon. "There are experts at the bank who can walk you through
different mortgage options and help you find the right solution for
you, including a variety of flexible mortgage payment features, which
can give you the choice to manage your mortgage payments, which is
something that you may need in the future."
Condos popular with boomers but for different reasons than young
Those over 50 are attracted to condos because they fit into their plans
to downsize their home. Not surprisingly, when those over 50 move into
a condo, 31% don't plan to move again. Since they plan to stay put,
many over 50 are making their condos as comfortable as possible, with
53% planning to spend more than $10,000 on upgrades (compared to only
15% of those under 35).
"Moving to a smaller, less expensive home can sometimes be called
'right-sizing' and allows many pre-retirees to afford a bit more luxury
in their new space," says Marchildon. "If homebuyers plan to make
upgrades, I recommend they make a budget and stick to it. Especially
for those who are selling their home and downsizing as part of their
retirement strategy, it's important not to get carried away and spend
all the extra money you earned with the sale of your previous home."
About the 2011 TD Canada Trust Condo Poll
From March 25 to April 11, results were collected from 806 people in
Vancouver, Toronto, Calgary and Montreal, through a custom online
survey by Environics Research Group. 201 respondents were surveyed in
Montreal. Respondents had either bought a condo in the past 24 months,
intend to buy a condo in the next 24 months, or considered a condo when
shopping for a home.
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5
million customers. We provide a wide range of products and services
from chequing and savings accounts, to credit cards, mortgages and
business banking, to credit protection and travel medical insurance, as
well as advice on managing everyday finances. TD Canada Trust makes
banking comfortable with award-winning service and convenience through
24/7 mobile, internet, telephone and ATM banking, as well as in over
1,100 branches - most open 8 'til late and many now open Sunday. For
more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the
sixth largest bank in North America.
SOURCE TD Canada Trust
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