3 Reasons to Own a Condo Before a House

With some of the highest real estate prices in North America, today’s generation of buyers in Vaughan and the Greater Toronto Area are searching for creative ways to get into the realm of homeownership. 

As condos typically come at a lower price point compared to a house, they’ve become an attractive option for first-time buyers and those with a budget-conscious mindset.

That said, some people may think it’s not worth the effort to purchase a condo if they’re ultimately looking to own a single-family home in future. In reality, buying a condo before you own a house has plenty of merits – and in some cases, it can even help you reach your forever home sooner than you would if you were just renting. 

In this blog, we’ll share three reasons why you should consider owning a condo on your way to owning a house. 

Are you looking to build out a complete home budget? Be aware – there are more costs than just what you see on the price tag. Start here: What are the Costs of Buying a Home in the GTA?

1. Build Equity Sooner

One of the primary reasons to purchase a condo ahead of a home is that it allows you to stop paying rent sooner. As a renter, you’re essentially paying your landlord’s mortgage for them. When the time comes to move out, you won’t see any return on the costs you’ve put in. On the other hand, purchasing real estate allows you to build equity for yourself.

When you buy a condo, you allow your money to work for you. You’re making a strategic investment that you can tap into later. This equity will become extra important when you’re ready to buy a home down the line. 

Because most condos come at a lower price point than a detached home, buying one allows you to start your investment sooner. Which in turn, can actually help you reach your goal of owning a house sooner. 

Further, switching to condo ownership also protects you from the potential risks that come with renting. For instance, when you rent, your landlord can choose to evict you (with fair notice) without your control. Not only can this be incredibly stressful, but as average rental rates rise, your next apartment could come at a notably higher cost. As a homeowner, your living conditions are much more secure – both practically and financially. 

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Get ready to buy a condo in Vaughan or the GTA? Explore these helpful articles from our blog. 

• How Long Will It Take to Save For a Condo?
• Working With an Agent When Buying a Pre-Construction Condo
• Top 5 Reasons You’ll Love Condo Living

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2. Get Used to Recurring Expenses 

Like a house, condos come with a diverse range of expenses as part of homeownership. This makes them a unique way to acclimate yourself to the process of budgeting for various recurring costs. Staying on top of items like mortgage payments, insurance costs, and utilities requires careful financial planning. By owning a condo before a home, you can start building healthy financial habits early on. 

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Preparing for your first-ever home purchase? Check out these blog posts to find out what you can expect from the process. 

• Essential Tips for First-Time Home Buyers
• 5 Mistakes First-Time Home Buyers Make
• How to Write a Winning Offer Letter

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3. Future Investment Potential 

Another great reason to consider owning a condo before a house is the future investment potential. When the time comes for you to move up to a full home down the line, you have the option to sell your condo and use the funds towards your purchase, or you could choose to keep it as a dedicated investment property. 

The demand for rental housing in Vaughan and the Greater Toronto Area is just as high as it is for for-sale homes. If you choose to use your condo as a dedicated income property after moving out, you’ll be able to capitalize on this demand, earning an impressive stream of passive income. Then, once you’re ready to sell later in the future, your condo will have appreciated in value to an even greater degree. 

Find Your Perfect Condo With the Lino Arci Team

As Vaughan’s number one real estate team, we can help you reap the benefits of homeownership sooner. We’re exceptionally well-versed in our local market and can help you find a condo that suits your needs today and into the future.

We’re also well-connected to a number of the Greater Toronto Area’s most in-demand pre-construction projects. Our clients get access to off-market properties, insider information, and more. 

Ready to find the perfect condo to begin your homeownership journey? Work with the #1 real estate team in Vaughan! Call 416-571-2724 or send an email to info@arciteam.com today.