Welcome to my blog on housing, culture and design in Toronto, Ontario, Canada!  My name is Steve Fudge. I’m a realtor and housing consultant in Toronto, Ontario, Canada. 

Here’s our most recent installment of Dear Urbaneer, where clients and followers reach out with their shelter questions. This time, I am advising a dwell hunter who is weighing the pros and cons of purchasing a suite in a recently registered condominium or in an older dated complex.

Dear Urbaneer:

I’ve been considering purchasing a condominium, and have narrowed down a few possibilities that are within my budget and in my preferred neighbourhoods. I’m deciding between a couple of units in newer buildings, that are stylish but smaller (much smaller), and a suite in an older complex which offers more square footage but is dated. If I purchase the older unit, is it a complicated process to renovate given one has to deal with a board of directors and property management? Is it similar to renovating a house, which I have done before?

Signed,

Smaller & Newer or Older With Potential?

Here is my reply:

Dear Potential:

There is a lot to process when comparing and contrasting a new versus old condominium, especially if you are considering renovating the older unit. The allure of buying a unit in a newer building is the gratification of unpacking and voila, you’re living with on-trend finishes. No time wasted or the additional expenses of renovating. 

However, Buyers who gravitate to the sleek, shiny, and newer treasures offered for sale in Toronto should calculate the trade-offs that should  required in condo land compromise  is less square footage and space plans that are, shall we say, ‘creative interpretations of reality’. Like when a developer’s floor plan labels a niche in the front hall of a condo as the ‘den’ and for infinity it’s described on MLS as a 1+1. Seriously, the storage room in an older condominium – after taking away one wall and the door – is called a separate den in a new condo today. It’s aggravating. And what’s boring? Towers after towers of same old same old space plans, fixtures & finishes. When the Bank of Canada began increasing interest rates in March 2022 the flood of capital fueling our speculative bubble dried up. Actually, it didn’t dry up. The speculation economy was like a dog with a bone that saw a new bone. It released Toronto and is now knawing on other emerging markets. 

On the flipside, older condominium units are bigger, having a scale & proportion that ‘feels like a house’ (even 1bed units in buildings geared to first time Buyers 40 years ago feel supersized today compared to newer condos), and if it was constructed in the 1980s, a solarium (an enclosed balcony) plus other time warp treats like popcorn ceilings, wall-to-wall broadloom, vertical blinds, and almond Formica cabinets featuring horizontal honey oak handles. Although Toronto does have condominiums that were built earlier, the condo wasn’t truly embraced by Torontonians until the 1980s, though it didn’t end well as I share in When Dreams Of Domesticity Became Nightmares: A Recollection Of The 1989 Toronto Housing Market Crash.

Older condos are often in well-established locations – like beside a subway station or across the street from a park – and while they were as tall as most new buildings were (between 10 and 20 storeys tall with 100 to 200 units), we consider them mid-rises compared to the high density towers of today. In the early 1980s, condos were originally marketed to aging affluent households seeking accommodations for their retirement years. Loaded with amenities and positioned as luxury hotel-like residences, because their unit count was modest (compared to today) and the services indulgent, the monthly common fees weren’t cheap. Then, in the mid-1980s, condos started being geared to first-time professional singles & couples, and Mom & Pop investors who jumped onto the condo bandwagon as a hedge against inflation. With increasingly taller buildings and a move towards smaller units the common fees were more modest per unit. However, when the Condominium Act was revised in 1998 obliging condo corporations to have Reserve Fund Studies and a savings program to meet the replacement of all major condo components for the coming 30 years, many older buildings fell short in their bank accounts. In fact, it wasn’t unusual for common fees to suddenly double and/or a series of special assessments issued so the corporations could fulfil its legal requirements. The price shock made Buyers wary of older condos through the first decade of the 2000s, in particular.

Today, these buildings may have common fees on the high side, but when you do the math and take everything into consideration – like they typically include all the utilities (sometimes even cable and/or wifi) and they often have substantial sums in their savings accounts to the tune of several millions of dollars – they’re not as outrageously expensive as one might think, especially if one has been paying for the repair, maintenance and replacement costs of a single family dwelling that is 40 years or older. Because the newer the condo the smaller the units, these buildings remain popular with aging boomers, and I share in my post: Downsizing: The Challenges Of Finding A House-Sized Condominium.

After Toronto’s first real estate bubble went bust in 1989 driven, in part, by speculator’s purchasing what would become an oversupply of unrentable unsaleable condos on completion, the condo market’s recovery – which began around 1997 – was primarily driven by young urban professional first and second-time buying singles and couples (often with help from the Bank of Mom & Dad because ‘it was just like rent’). However, as this second condo boom entered its second decade (around 2010) developers began catering specifically to investors (local & off shore) seeking smaller units that generated higher rents (albeit not high enough to avoid negative carry with 20% down). When the Bank of Canada started increasing interest rates aggressively to combat inflation three years ago (in March 2022) it caused the market to pause, at which point investors realized that not only do increasing interest rates means decreasing property prices, but that 80% of property investors speculators are in negative carry which does not align with the investment fundamentals of the property market. This, in part, is what led Toronto’s second speculative condo bubble to burst three years ago, although the full magnitude of its impact has yet to be felt. I explain this is more detail in Dear Urbaneer: What About Buying A Property That’s An Assignment Sale?

With interest rates higher than the pandemic lows, and the ripple effects of newly completed condos not appraising for their original purchase prices, motivated condo owners have no choice but to accept a sum that is significantly lower than what the unit would have garnered in 2021 0r 2022. Although units in older buildings tend to have lower prices per square foot than units in more recently completed condos, the value-gap is substantial and starting to turn heads. For example, we recently listed a 785 square foot 1+1 near Yonge & Wellesley in the understated luxe 168 unit 17-storey Cosmopolitan Condo competed in 1987 listed for $489,000. That’s $623 per square foot! Or, you could purchase a 340 square foot studio in Prime Condo, a 598 unit 46-storey high-rise completed in 2024 for $495,000 or $1456 per square foot. Although our listing is move-in-ready, the kitchen and washroom are older. As a result, they’re well-suited to people who have the time, patience and resources to invest in upgrades and renovations to meet their specific tastes and still come out with a more affordable residence in much the same way that a “fixer-upper” house does.

However, while the fixer-upper concept is the same, renovating a condominium is quite different than a house. There are different rules governing the scope and execution of the renovations with a condo, and the process, including approvals, is different too.

Here is a rundown of what you need to know when renovating a condo, and where you might be best served to direct your renovation budget from a return on investment perspective.

Can I Renovate An Older Condo?

The short answer is yes, you certainly can renovate an older condominium. However, be aware that it’s a little different than renovating a house. A lot of what you are able to do (or not do) depends on Rules & Regulations set by the condo corporation. These documents are included when you order a Status Certificate from the Property Management. The fee for a Status Certificate is $100, though sometimes it can cost more if you need it urgently.

In addition to reading the Rules & Regulations, I recommend you have a conversation with the Property Manager, even if you’ve only  conditionally purchased the unit and you’re completing your due diligence. Hearing them respond to your questions – right down to their tone of voice – can provide a lot of information. Furthermore, they’ll likely bring to your attention things you haven’t considered, like how frequently the Board of Directors who review and approve all renovations meet. If they only meet once a month then the renovation you believe will take a couple of months may drag on simply because of the frequency (or infrequency) the board meets. While the Rules & Regulations on renovations can vary from building to building, there are also standard ones surrounding what days/times they can be completed, that only licensed trades are allowed, and certain base standard of construction (such as placing a cork underlay when installing hardwood or laminate floors and the agreement a majority of that flooring will be covered by area rugs). The property manager or the condo board will be able to supply you with these guidelines.

It’s really important to find out what renovations are allowed, and if they are, what requires permitting. Renovations are always limited to inside your unit, so you can’t make any changes to spaces external to your suite, including outdoor areas you may have exclusive use of. Most condo corporations prohibit changes to structural components, relocating plumbing stacks, or moving heat pumps. They may also prohibit drilling into concrete ceilings, or relocating duct work. Typically cosmetic renovations – like replacing fixtures and fittings – that don’t require permits are allowed, but the condo corporation will still want details.

For budgeting, there may be extra costs involved when renovating a condo unit. You might have to pay a damage deposit, get extra insurance, or pay for protective material to cover common spaces (i.e. covers for hallways and elevators). Sometimes there are additional fees for elevator use. And the condo corporation will likely insist all debris is removed daily by your trades and not appear in the common dumpster.

Can I Move Walls?

One of the big questions with a condominium renovation is how much can I really do? With a house, generally, it is carte blanche, but given that a condo unit is part of a larger building, different rules apply. Theoretically you can move walls, but this is usually the type of modification that needs to be approved by the condo board in question. That’s because walls may have structural significance.

Given you can’t alter the building envelope or common areas, you usually cannot change exterior windows or entry doors, although in some cases, you are able to upgrade windows to more energy-efficient choices. I also want to mention that there may be more flexibility in a smaller building, like a townhouse complex, or in a building that is sufficiently old that everyone moving in wants to renovate. We’re seeing some buildings gentrify just like neighbourhoods do, and starting a new life cycle (and a commiserate jump in value).

If your renovation plans include relocating existing electrical outlets or adding some, ensure you get permission from the condo board. Unlike in a house, your electrical system may be tied with other units in some capacity. It’s important not to make any assumptions.

Ensure that these jobs are undertaken by a licensed trade with the appropriate insurance coverage. Renovating a condo, even when you believe it’s a DIY job, is not a place to cut corners. The potential for damage is greater, and therefore so is your liability.

Speaking of which, here’s an example of how we’d update an 80s condo we currently have listed for sale that doesn’t require a permit. To improve its utility and increase its resale value, we’d convert the original solarium in – Swizzle & Shake At The Cosmopolitan Condo Near Yonge & Wellesley Street East – into a second bedroom. We’d do this as part of a more comprehensive cosmetic refresh that included skim-coating the popcorn ceilings, installing new hardwood flooring with cork underlay, and replacing the solarium sliding glass doors with a new more industrial looking door with glazing. We’d actually move the location of the new glazing 3 feet forward into the large living room, which is sufficiently large to not impact its livability. This solution would instantly recovers its costs on resale, in my humble opinion. 

A Note About Kitec Plumbing And Condominiums

On plumbing, you will want to investigate whether or not there is Kitec plumbing in the older condo you are looking at. Kitec plumbing was used widely in condominium construction between 1995 and the early 2000s in Toronto. Originally touted as a low-cost plumbing material, over time it became apparent that Kitec was highly prone to corrosion, causing leaks and burst pipes. This is an issue in any house, but can be truly disastrous in a condominium building, given the communal structure of the buildings.

This underscores the importance of a property inspection, even in a condominium. 

I wrote about this, and how to spot Kitec plumbing in this post Dear Urbaneer: I’m Buying A Condo – Should I Be Worried About Kitec Plumbing?

Here are some other points to clarify with your condo board when planning your renovation job, things that might otherwise slow down work:

• Work Hours

Given you are in a communal setting, and noise is very much a product of home renovations, chances are the condo association will limit work to be done during specific hours, often typically business hours. They may even have limits within those hours on various noisy activities, such as hammering or drilling.

• Access to the Unit & Waste Disposal

Depending on what floor your unit is on, your contractors (and materials) will need access to the elevators. What is the process for this? What hours are permissible? Is there a service elevator that you need to use? 

Are there rules around hallway access and use? Remember that hallways are shared spaces.

Similarly, in addition to booking elevators, you may need to ensure there is adequate parking for your contractor & team during the project.

Renovations inevitably produce a large amount of waste, some of it cumbersome and bulky to dispose of. Where, what and how are you allowed to dispose of waste? Are you able to park a waste container onsite or nearby for your renovations, and how will you get these materials out of the building?

What Are The Best ROI Renovations For A Condo?

It’s a good plan to invest both in renos that boost your own functionality as a homeowner, and that are enticing to future buyers.

Kitchens and baths usually are the best areas to direct renovation budget, but keep in mind your timeline. The trend lifecycle for condominiums tends to be shorter than in a house, and your home will feel dated more quickly, which is even more apparent in kitchens and baths, which could mean another project down the road.

If ROI is a guiding factor, your finishes and materials should be timeless over trendy to extend the life of your kitchen and bath, and in general in your condo.

Another value-added upgrade would be flooring, especially with soundproofing quality. For a cohesive look, choose the same material throughout the unit. Hardwood, tile and luxury vinyl plank are trending.

You can’t go wrong with more storage in a condo. Look at your design to see where storage can be added, or where you can make the storage that you have better, with custom closets, multi-functional storage and cabinetry with built-in storage solutions. Also use vertical space wherever you can to increase storage.

Smart tech is always a value-add, especially in the case of kitchen appliances. Multi-purpose appliances are a good choice too, because they require less space, with greater use. For example, look for an oven with steam/air fryer functionality. That eliminates the need for those small appliances, and also helps create a healthier kitchen. Wellness-oriented kitchens are a big trend in 2025.

You can never go wrong with a fresh paint job to breathe new life into an older space. It’s affordable and very effective.

For more ideas, check out this past post Dear Urbaneer: How Do I Boost The Value Of My Condominium?  

Thank you for your excellent question!

– S

Does the idea of a well-managed, spacious condominium that offers a terrific layout and more square footage top your list? How about the opportunity to put your own stamp on it? If the answer is Yes, you’ll want to check out this listing we sold:

We call it: Swizzle & Shake At The Cosmopolitan Condo Near Yonge & Wellesley Street East, NOW SOLD!

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Want to have someone on your side?

Since 1989, I’ve steered my career through a real estate market crash and burn; survived a slow painful cross-country recession; completed an M.E.S. graduate degree from York University called ‘Planning Housing Environments’; executed the concept, sales & marketing of multiple new condo and vintage loft conversions; and guided hundreds of clients through the purchase and sale of hundreds of freehold and condominium dwellings across the original City of Toronto. From a gritty port industrial city into a glittering post-industrial global centre, I’ve navigated the ebbs and flows of a property market as a consistent Top Producer. And I remain as passionate about it today as when I started.

Consider contacting me at 416-845-9905 or email me at Steve@urbaneer.com. It would be my pleasure to assist you, and yours.

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Serving first-time Buyers, upsizers and downsizers, and people building their long-term property portfolios, our mandate is to help clients choose the property which will realize the highest future return on their investment while ensuring the property best serves their practical needs and their dream of “Home” during their ownership.

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Thanks for reading!

-The Urbaneer Team

Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-800

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