When buying a condo, there are many costs that may seem to come out of nowhere. Even when you have the best deal possible for a condo price, you need to need to make sure that you plan for every possible cost so that you won’t end up breaking the bank. Here are the main costs that you need to plan for when buying a condo.
1. Your Deposit
Your deposit is typically 4-5% of the purchase price. This needs to be paid within 24 hours of buying your condo on paper. The deposit is held in trust by the listing agent’s brokerage and is then paid to the seller on closing.
The land transfer tax is made up of the City Of Toronto tax and the Province Of Ontario tax. This is the largest cost when purchasing a condo, and is paid on closing.
For a $350,000 purchase, the tax is about $7000.
For a $400,00 purchase, the tax is about $8000.
For a $600,000 purchase, the tax is about $16,000
F800,000 purchase, the tax is about $24,000.
If you are a first time buyer, you do save a substantial amount of these land transfer taxes.
When buying a resale condo, there is no GST or HST attached to the purchase price. When buying new construction condo, the HST is already built into the purchase price in most cases.
3. Legal Fees.
Lawyer fees are also something you need to budget for. When purchasing a condo, the costs including taxes are about $1300. You can get a very inexpensive lawyer for under $1000 or a very expensive lawyer for $2000. But a good, experienced real estate lawyer should be about $1300 including taxes.
4. Moving Costs
It costs roughly $200 per hour to rent a moving truck with 2-3 people helping you. Depending on how much furniture you have, you could probably move into a condo for under $1000.
5. Condo Inspection
We highly recommend you consider purchasing an inspection on any condo you purchase like you would for a home. There are many things that come up such as electrical issues within a unit, water issues between units, plus much more. Thos cost for this is around $300, and it is certainly worth the cost just to make sure you know your condo is in great shape.
As for Real Estate fees when hiring a Real Estate professional, there typically are no real estate fees when purchasing a condo, and the seller in most cases does compensate both the selling agent and buying agent. However, there are certain circumstances when a buyer would compensate their buyer agent directly.
Feel free to contact us if you have any questions, and visit www.CallJohnAndLaura.com for more Real Estate tips and local Toronto news.