In our previous blog, we went over the market trends for detached homes and condo prices in Calgary. The average price of a home increased by 1.3% for a two storey home and decreased by 3.5% for condos.
There were two main factors to help you decide which type of home you should invest in which included:
- What is your price range/budget
- What is your lifestyle
We will go over the benefits of purchasing a condo in Calgary when it comes to budget and lifestyle.
When it comes to buying a new home, you will need to consider the new mortgage rules which have already entered into effect. This is resulting in more Canadian purchasing homes that are 20% below their original budget for a home. Here are some factors to consider when you’re purchasing a condo, according to the Service Alberta website. Once you purchase a condo, you will also need to factor in the Condo Corporation you will belong for yearly maintenance. The fee is different for each location and used factors such as the age of the building, the volume of service requires, location and any amenities such as concierge or fitness rooms.
When purchasing a condo, you will need to consider the following ongoing expenses for your mortgage:
- Principal payment
- Interest on mortgage
- Condo fees
Your condo fees will be calculated using the square foot of your home. For example, if your condos fees are $0.55 per square foot and your unit is 650 square feet, then your condo fees will be $357.50 per month. When it comes to purchasing a detached home, you will need to focus on different considerations. Homes in Calgary are approximately two-thirds of the price of a condo, comparing at $539,000 vs. $279,745, respectively.
To purchase a $500,000 home, here are some costs you will need to focus on:
- Downpayment (10%): $53,600
- Mortgage Insurance: $11,578
- Home Insurance: $2,695 annually
- Misc. Fees (Home evaluation etc.): $1000
The total you would need to purchase a home would be $68,773. Whether you are purchasing a condo or a house in Calgary, you will also need to calculate your monthly expense. These expenses would include water, electricity, internet, cable, phone, loan payments, credit card payments, insurance, gas, grocery and more.
For the final segment of this blog, we will go over how your lifestyle influences which type of real estate structure would be a better investment.