5 Simple Things To Consider When Buying A Condominium
Today, I received a great email from Serge in regards to an Alberta Real Estate Association article entitled “Condo Commentary: Do You Own That Window?”
Basically, it was answering the question on how to tell if the exterior of the windows (and doors) are part of the condominium unit or not.
Going to the point, the article informs the readers that “Before September 1, 2000, exterior doors and windows were considered to be part of the unit. After that date, exterior doors and windows became part of the common property. However, a corporation registered prior to September 1, 2000 had until September 1, 2002, to register a special resolution to amend the plan so that these became part of the individual units again. This can mean that some condominiums may have windows and doors that are part of the unit and not the common area.”
This got my train of thought going. Since Alberta’s economy is poised to be one of the best in Canada this year and in 2015 as reported by RBC, and that Edmonton’s local government have reported an increase in growth population by 7.4%, the probability of people buying condominiums, either as a home or an investment would increase.
With this in mind, I believe it is apt to share with you this 5 simple things to consider when buying a condominium. Take this to heart and you’ll be at the right side of things. Please feel free to add or share your thoughts in our comment section below.
- LOCATION, LOCATION, YES-LOCATION: This is the golden rule of real estate and this rings true wherever you are in the world. The neighborhood and location of the condominium hinges on this simple fact. Remember that the location is one of the main contributing factors in successfully renting out or reselling the property in the future-unless you prefer to live out your life in there, which I would highly doubt.
- RULES, RULES, RULES: It holds so much importance that I need to repeat it thrice. A thorough review of the rights and restrictions in the condominium bylaws is very much needed. Read and understand the rules as some or most of it might affect you or your future rental business. Here’s a good example. My condominium doesn’t allow pets and I handle several units for rent here so when I got two inquiries from potential tenants, I was painfully disappointed (in the business side) that they have trained house dogs. Trained or not, pets aren’t allowed so that situation basically ruined my business-at least for those two.
- FEES, PAYMENTS, DUES: Those three synonyms mean the same thing, monthly bill. No matter where you go, condominiums always charge a certain fee for the maintenance of the common areas and the overall building.
It’s important to know what the condominium fee is. Something that should ring your bells and alarms is the low condominium fee. It’s not always good. You may want to find out why the fee is low, assuming you followed what I wrote in number one.
- PLAN OUT: Like everything we do in life, buying a condominium should be planned out. Would you use it as a home or will it be a rental property? If it’s the latter, would you manage it yourself or will you hire a property manager? It’s all about risk management. If you have things well planned out, the probability of losing money would be minimal or even non-existent.
- RENTAL PROPERTY: I just want to include this in here. If you plan to live in the condominium, then the first four steps would cover you. But if you’re planning to make this a serious investment, read on. Keep in mind that it is important to be strict in yourself when conducting due diligence for your potential condominium. Inquire about the experiences of the present tenants as most of the time, this would give you a good glimpse of what it’s really like living in the building-the things that the paperwork won’t reveal. And speaking of paperwork, you may need a real estate lawyer to pore over the condominium association’s rental lease.Lastly, a simple way to see if the condominium is good for rental is to check if there are a good number of owners renting out their units. This is because the bylaws could be amended to prohibit renting in the future-if there are a good number of owners renting out their units, then the chances of that happening would be slim-again, part of your risk-management.
Stick with this 5 simple things and you’ll be on your way to having a great condominium property.
To make sure you don’t make any mistakes in the process, it is truly advisable to seek the help of professional Realtors. Team Leading Edge is an experienced team that have sold condominiums in Edmonton. Recently awarded as one of the Top 30 RE/MAX Real Estate Teams in Western Canada, the team is made up of competent Realtors that could and would help you in every step of the buying process.
Check out all the available condominiums for sale in Edmonton through our MLS real estate listings. It is updated daily so you will get superb listings to choose from and don’t hesitate to call Team Leading Edge anytime to get you started on that future property of yours.
Tags: alberta, canada, condominium, Edmonton, investments, Landlord, Real Estate, Renting, tips and tricks, Western Canada
