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Mom and Dad, will you buy me a condo?
- TD Canada Trust's 4th Condo Poll shows Canadians see condos as a source of long-term income -
TORONTO, May 5 /CNW/ - Interested in buying a condo? Maybe your parents will help. According to the 4th TD Canada Trust Condo Poll which surveyed Canadians who would consider purchasing a condo, 10% would contemplate buying a condo for their adult children.
"Canadians continue to see the value in purchasing a condo, whether it is a place to call home for themselves or for their children," says Chris Wisniewski, Associate Vice President, Real Estate and Secured Lending, TD Canada Trust. "Affordability and stable monthly expenses can make condos very attractive for both first-time buyers and investors."
Why buy a condo?
The TD Canada Trust Condo Poll revealed that condos with their low maintenance needs compared to homes is the biggest motivation for Canadians (36%). Affordability comes in second as the most popular reason for condo purchases nationally (24%). Interestingly, in Vancouver, affordability is the primary reason for condo purchases (45%, up from 35% in 2009) - more than double the city's second place reason to purchase a condo: lower maintenance (21%). This is a different story in Halifax since affordability is not a major reason to purchase a condo with only 5% saying price is the deciding factor.
Canadians choose condos
While Canadians appreciate the affordability of condos, 60% of those who would consider purchasing or already own a condo say that their plans wouldn't be impacted or that they would still purchase a condo even if they had more money. That figure is highest in Halifax (79%). Additionally, one-third of Canadians considering a condo would raise a family in one (36%). Only 40% would buy a house instead of a condo if they had more money.
Is a condo a good investment?
Thirty-seven per cent of Canadians surveyed would consider investing in a condo that is not their primary residence, this number is up from 33% in 2009. In 2009, 44% of Canadians viewed market conditions for buying a condo as better than the year before. In 2010, 43% believe conditions are the same as 2009 and 29% say they are better. Nonetheless, the number who would consider purchasing a condo as an asset to sell when condo prices increase, has dropped from 27% in 2009 to 19% in 2010.
Overall, Canadians still know what they want to pay
For the fourth year in a row, the majority of Canadians (81%) say they would spend less than $400,000 for a two bedroom condo. In terms of condo fees, only 17% of respondents would be willing to pay more than $400 per month.
About the 4th TD Canada Trust Condo Poll
The 2010 TD Canada Trust Condo Poll was conducted through interviews with adult Canadians who would consider purchasing a condo as a primary residence. Two hundred interviews were conducted in each of Greater Vancouver, Calgary, Greater Toronto Area, Metropolitan Montreal and Halifax to understand condominium choices among residents in Canada's urban centres. The survey was conducted by Angus Reid Public Opinion, a division of Vision Critical, on April 14 - 20, 2010. The sample size includes 1,012 men and women.
About TD Bank Financial Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group is the sixth largest bank in North America by branches and serves more than 18 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Insurance; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking, including TD Bank, America's Most Convenient Bank; and Wholesale Banking, including TD Securities. TD Bank Financial Group also ranks among the world's leading online financial services firms, with more than 6 million online customers. TD Bank Financial Group had CDN$567 billion in assets on January 31, 2010. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
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