Expert: Derek Hamilton - 10/30/2011

Question
Dear Mr. Hamilton,

My mother would like to buy a condo in Toronto, Ontario in a few years.  Sometimes she sees co-ops in great locations on the market for very cheap prices compared to comparable condos.  I know that condo are different than co-ops, and I think there are different types of co-ops.

What are the differences in the types of co-ops and why are co-ops priced much lower than condos?  Are co-ops a good thing to buy if you don't want to do any maintenance work yourself?

Thank you,

Jennifer.

Answer
Hi Jennifer,

Ideally I think your investment would be better Purchasing a Condo on the subway line from the lake up to Lawrence Ave to the North. When you purchase a Condo you own the unit and have many to choose from.You can arrange for a minimum deposit and get excellent Financing. The Condo market has been amazing over the last 10 years in Toronto and have gone up considerably in price. You get underground parking, two or three bathrooms,high ceilings,many Condos have fitness centers,party rooms, social nights, pools etc... Generally when buying a Co-op you are purchasing a converted older building and you get so many shares in the building. Your Maintenance fee's will be a little higher but will include the Taxes.  In most cases you need to make the offer Conditional upon being approved by the board members and you will require a much larger down payment. Co-ops are much cheaper to buy, but don't escalate in price like Condos and they don't offer the same amenities like parking, unsuite laundry etc...Saying all of this, My own Mother lives in a Co-op in the St.Clair & Avenue Road area and loves the space and location.
Just don't expect to make a fortune when selling it!
Send me another note if you have any other questions or need some help finding something for your Mother in the future.
Thanks,
Derek