You also have to add the realtor fees and legal expenses when you sell. It's only a couple points now but I won't be surprised if we have land transfer taxes to consider someday which is a massive issue in Toronto. Add a small reno, legal and real estate fees and suddenly you're underwater by even more than your 5-10% down payment.
It's timing, timing, timing, more than anything. If you're in for less than 5 years you need to rent. 10 years is probably a draw. Longer than that I might buy. But even more so, timing the market is the key. If this is the start of an upswing you should buy. Renting during a down turn is prudent. If you want to live in a condo just rent one. People are starting to realize nothing can make the headache and risk of a condo board worthwhile.
http://www.cbc.ca/news/canada/calgar...-tax-1.3916070
Quote:
June Donaldson, an advocate for condo owners in Calgary, says condo boards and property management companies have the power to raise fees and can justify the decision however they see fit. "Most condo owners have no idea how vulnerable they are," she said.
"It's wide open for condo boards and for condo managers to raise fees as much as they want, when they want, and how they want."
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