- They make upgrades, but TD Canada Trust Condo Poll finds Calgarians
are most cost-conscious about intended renovations to their new space -
CALGARY, May 10 /CNW/ - Calgarians are most likely to say their main
motivation for buying a condo is that it involves less maintenance
(68%). Further, according the 2011 TD Canada Trust Condo Poll, which
surveyed Canadians who are thinking of buying or recently bought a
condo, Calgarians are the most likely in the country to say that they
are buying a condo to downsize in preparation for retirement (24%). For
a little luxury in their smaller space, 35% of Calgarians plan to put
in upgrades to their condo right away.
"Moving to a smaller, less expensive home can allow pre-retirees some
financial freedom to make upgrades and enjoy a bit more luxury," says
Jessy Bilodeau, Mobile Mortgage Specialist, TD Canada Trust. "However,
it is important not to get carried away with these upgrades, especially
for those who are selling their home and downsizing as part of their
retirement strategy. You don't want to get carried away and spend all
the extra money you earned with the sale of your previous home.
Fortunately, our poll suggests that Calgarians understand the
importance of sticking to a budget."
In fact, Calgarians are the most cost-conscious with their plans to
upgrade. They are the least likely in the country to say that they will
spend more than $5,000 on upgrades (61%).
Has the tightening of mortgage rules affected the condo market?
The recent amortization change to 30 years for new mortgages had less of
an effect on the intentions of Calgary buyers to buy a condo over
another type of home than buyers in other cities. In Calgary,
seven-in-ten surveyed said the changes did not impact their decision
(versus 57% nationally). However, somewhat alarmingly, the poll found
that one-quarter of Calgarians who are planning to buy a condo were not
aware of the recent changes to lending rules. "This was a bit
surprising to me; Canadians who are planning to purchase a home should
be familiar with mortgage rules," says Bilodeau. "It allows them to
make informed decisions about the mortgage they choose and the size of
their down payment, possibly saving a lot of money in the long run.
Anyone who has questions about the rules or wants clarification about
their mortgage options, should speak to an expert at the bank. They
can walk them through different mortgage options to help find the right
solution for them, including a variety of flexible mortgage payment
features, which can give them the choice to manage their mortgage
payments, which is something they may need in the future."
What about younger buyers in Calgary?
While many are planning to retire in their condo and stay put, almost
half (41%) of Calgary respondents expect to live in their condo for
three years or less (15%) or four to six years (26%). Nationally, the
number planning for a short stay jumps even higher amongst respondents
under 35. Nationally, 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 six years.
Younger Canadians seem to view condos as a stepping stone into
homeownership, with many planning to move in the not too distant
future. But, is this a good strategy?
"It can be tempting to buy a property and start building equity, however
if you are only planning to own a condo for a few short years, it could
make more financial sense to continue to rent until you can afford a
down payment on the home you really want," says Bilodeau. "Before
making the decision to buy a condo and sell it in the near future,
calculate the costs that you will incur, such as condo fees, parking
fees and moving expenses. These costs could outweigh the equity you'll
build and receive from the eventual sale."
What do Calgarians say are the most important features in a condo?
Always cost-conscious, Calgarians overwhelmingly named condo fees as the
most important feature to look for in a condo (98%). Almost nine-in-ten
(86%) Calgarians say they are not willing to pay more than $400 in
condo fees monthly. These figures remain consistent with findings from
a similar poll conducted by TD Canada Trust in 2010.
Other important features in Calgary were good building security (96%)
and available parking (94%).
Nationally, those over 50 are more likely to say attractive interior
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%).
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
Calgary. 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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