The Patz McMillan Team

The Smart Approach to Condo Buying

Here in Vancouver, where the cost of detached houses is so high, most of us start out as Condo Dwellers. Here is some information about condos that might be interesting!

The Smart Approach to Condo Buying

Buying a condominium as an investment or as an alternative to paying rent (or both) isn’t entirely different from most other residential purchases. However, the availability of condos can be quite limited in some areas, or highly competitive in others. Your specific financial situation, lifestyle and convenience preferences need to be carefully considered. As with any real estate investment, your decision should only be made after an intelligent, methodical assessment.

Comparing Condo Markets
Even with a general knowledge of real estate, it is essential to recognize the factors and trends specific to condo markets. For example, it is advisable to investigate and area’s projected construction activity. Since some neighbourhoods have higher density designations (and more capacity for expansion) their continuous development could affect the resale value of existing units.

Another key condo factor is an area’s long-term economic viability. Condo dwellers tend to commute less than most other property owners. Therefore, a pricey downtown condo would have more promising investment potential than a less expensive suburban condo – unless the latter is in a desirable residential community, has a strong job base, or is conveniently linked to affordable transportation. The smart condo buyer will consult with the municipal planning department to determine an area’s long-term outlook regarding population, demographics, employment and housing.

More Key Factors
After sorting out general preferences (location, size, price) the next step is to assess particular design features (such as balconies, high ceilings and views) and available amenities (such as security, exercise rooms and swimming pools). Lofts are appealing to some for their high ceilings and large windows, while stacked townhouses hold merit because the “lo-rise” residential space is more like a single-family dwelling. For those who make use of exercise facilities, these amenities are great features, but bear in mind their impact on monthly condo fees.

While the “hype” of buying is typical during a pre-sale or construction of the condominium, resale buyers have a distinct advantage in that they are observing a completely developed and thriving community. The initial buyer has to imagine the finished complex and predict the future value of the units. It is easier for the resale buyer to predict the potential value of a unit, especially if several similar units are available for sale in the open market.

Rules To Live By
In addition to individual preferences and general market potential, there are lots of specific day-to-day condo rules a purchaser needs to be aware of. The condo corporation will have specific rules for pets, barbecues, repairs, maintenance responsibilities, etc. Although condo corporations have bylaws and declarations that must adhere to municipal and regional laws, it is important to note that every condominium has its own “charter” filled with legal terminologies, definitions and/or descriptions. Make sure you retain a lawyer who can explain your obligations and identify any restrictions before you sign a purchase agreement.
Rather than being swayed by attractive features, the astute buyer should develop a checklist to assess them fairly. When comparing similar units, it is a good idea to recognize the smaller details (e.g. proximity to stairs, elevators or parking; garbage disposal systems, security, etc.). Make a checklist and allow room for notes. Then make an honest judgment as to whether you will use what you pay for, or if it will be of benefit to a tenant. Even if you aren’t thinking about renting out your property, you will want to be confident of its long-term value – especially if newer, competitive properties are entering the marketplace.

Future Focus
Understanding trends can be extremely beneficial in determining if a property holds promise for resale. For example, ecological values are not just some “moral high ground” in terms of good citizenship. Environmentally friendly initiatives could provide significant long-term cost savings to resident owners, as fees increase for home fuel, water, and disposal services.

Perhaps the most significant housing trend is based on the undeniable fact that “baby boomers” are approaching retirement age, and many seniors are living longer, healthier lives. This is almost certain to raise demand for “low maintenance” living, which condominiums so thoroughly accommodate.

Thinking of buying or selling your condo? I’ll give you some valuable advice if you give me a call…

~ Patz