- TD Canada Trust Condo Poll finds Vancouverites most willing to make
joint purchase of a condo -
VANCOUVER, May 10 /CNW/ - The majority of Vancouverites who recently
purchased or intend to purchase a condo say that if they had more
money, they would prefer to buy a house instead. The 2011 TD Canada
Trust Condo Poll, which surveyed Canadians who are thinking of buying,
or recently bought a condo, found that affordability of condos is a big
attraction, especially in Vancouver (64% versus 46% nationally) and for
respondents under 35-years-old (62% versus 46% for other age groups).
Vancouverites are more likely than those surveyed in other cities to
say they would consider buying a condo with a friend to make purchasing
more affordable. Condos seem to be viewed as a stepping stone into
homeownership, with many planning to move in the not too distant
future. But, is this a good strategy?
"Especially if you are planning a joint purchase with someone, be clear
about your timeline and have a plan in place for the eventual sale of
the condo," advises Barry Rathburn, Manager, Residential Mortgages, TD
Canada Trust. "Further, if you are only planning to own a condo for a
few short years, calculate the costs that you will incur, such as condo
fees, parking fees and moving expenses and work this into your budget.
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. I
understand the attraction of owning a property, but in some cases it
can make more financial sense to continue to rent while you save for a
down payment on the home you really want." Home Sweet Home - but for how long?
Half of Vancouver respondents expect to live in their condo for three
years or less (18%) or four to six years (32%). Across cities
surveyed, the number planning for a short stay is highest amongst
respondents under 35. 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.
Has the tightening of mortgage rules affected the condo market?
Forty-nine percent of Vancouverites said the recent amortization change
to 30 years for new mortgages had a significant impact on their
decision to choose a condo over other types of homes.
Somewhat alarmingly, the poll found that more than one-quarter (26%) of
those intending to buy a condo in Vancouver were not aware of the
recent changes to lending rules. "Homebuyers need to have some
understanding of the mortgage laws. If you plan to buy a home, you can
possibly save yourself a lot of money in the long run by understanding
your options and making well informed decisions about the type of
mortgage you choose and the amount of your down payment based on what
you can afford," says Rathburn. "Familiarize yourself with different
mortgage options, so you can weigh the pros and cons of each before
making a decision. 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."
What do Vancouverites look for in a condo?
Vancouver residents named good building security as the most important
feature to look for in a condominium (98%). Keeping with the theme of
affordability, low condo fees was the second most popular answer
(96%). Eighty-four percent of Vancouver respondents said they were
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 were attractive interior
design features, available parking and an energy-efficient building
Condos popular with downsizing pre-retirees:
Nationally, 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 free up money to allow
pre-retirees to make some upgrades and enjoy a bit more luxury in their
space," says Rathburn. "It's especially important for those who are
selling their home to downsize as part of their retirement strategy to
make a budget for any upgrades and stick to it. You don't want to get
carried away and spend all the extra money you earned with the sale of
your previous home."
Approximately half of Vancouver respondents are planning to make
upgrades to their condo right away (48%). One-quarter of Vancouverites
say they will spend less than $5,000 on these upgrades, 51% will spend
between $5,000-$10,000, 18% will spend $10,001-$15,000 and 7% will
spend more than $15,000.
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. Responses were collected from 204
Vancouver residents. 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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