So, you want to Buy a Condo
There are a few things you should Know
By Gary Caouette
  • There is a lot of information out there in the condominium world for you to digest, the following article is meant to give you a quick look at what you should know and do if you are looking to purchase a Condo.
Condo Life
  • Many buyers are not aware of what it means to be a condominium owner. You are buying a piece of a corporation, that is a community that you will live in, that you will share most of the decision making with others. Make sure you understand what lifestyle you are choosing when you buy a Condo.
  • The pros: Building maintenance and repair and (in some cases) lawn care and snow removal are looked after, access to on-site amenities (if available), monthly costs are more predictable (normally), possible social, entertainment and recreational activities at your complex.
  • The cons: You may be paying for things you never use. Repairs and maintenance may not be in your control. Privacy and noise. Unexpected repair costs. Decision making on issues may be challenging. Restrictions on space, parking, pets, parties, decorations, and many other things.
Specialists in their Field
  • Pick the best help you can possibly find when you decide to buy your condominium property.
  • When you take your vehicle in to get it fixed, it is advisable to go to a shop that specializes in fixing the specific problem you are having with your vehicle. The same applies when buying a condo. Condominium requirements, needs, and priorities are different from those of non-condo properties.
  • You will be best served if you use a professional with lots of condominium industry experience in their field when you choose your Real Estate Agent, your Pre-Purchase Document Review Specialist, your Lawyer, and your Insurance Agent. These professionals will save you time and money by helping you avoid the many pitfalls you will run into when buying a condo. Find out if they know Condominiums.
Finances
  • If you buy a unit in a condominium corporation you want to make sure it is financially healthy, or it will have serious consequences for you. You will run into higher maintenance and repair costs; your property value will be lower, and you may struggle when it comes time to sell your unit.
  • A comprehensive review will give you the important things you should consider, before you buy, so you can decide what amenities, services, rules, restrictions, obligations, and financial requirements you are willing to live with. Buying in to a condominium corporation means that you are going to inherit any and all past, current, and future obligations, no matter how good, how bad, or how ugly they are.
Pre-Purchase Document Review
  • A condominium purchase is far more complicated than a single detached home. You’re considering spending hundreds of thousands of dollars to purchase your Unit; you should make sure you are getting what you paid for, and it is not only about the finances.
  • A comprehensive review will give you the important things you should consider, before you buy, so you can decide what amenities, services, rules, restrictions, obligations, and financial requirements you are willing to live with. Buying in to a condominium corporation means that you are going to inherit any and all past, current, and future obligations, no matter how good, how bad, or how ugly they are.
  • A proper pre-purchase document review will save you frustration and money in the future.
Inspections
  • You should consider doing a home inspection that will cover the structure, the air quality, the moister levels, and the noise levels, of the building and unit, you are going to Purchase.
  • An indoor air quality inspection done to identify water leaks, potential mold, airborne particulates, volatile organic compounds, poor ventilation, and odours from other units will help you to avoid the health issues and repair costs for a building and unit that may have these problems.
Buying New or Resale
  • There are significant differences in buying a newly constructed condominium or a previously owned (Resale) unit.
  • The pros for New: Purchase price may be lower. More choices in unit location, size, options. Less risk of requiring any repairs for a period of time. New home warranty protection.
  • The cons for New: Units may not be completed so you cannot see what you are buying (changes can occur). Purchase agreements require follow-up to insure you get what you paid for. Your deposit will be locked-in during construction (maybe for a while). Financing has more challenges. Move in dates may not be as first expected. Can be noisy and disruptive until all units are completed.
  • The pros for Resale: You can see exactly what you are getting. Move-in day is normally a certainty. Financing is usually easier and normally no GST. You can assess the community before you buy. You can determine how well the corporation is functioning. Size of resale unit can be larger.
  • The cons for Resale: Fewer options will be available and may require upgrades. Fewer amenities may be available. More repair and maintenance costs (in and outside of your unit) will be required when you move in. Energy efficiency may not be built in. May not have any new home warranty left. If the reserve fund is underfunded, you will be spending more money then you might have accounted for.
Educated buyers make better purchases
  • If you are thinking about buying a condominium property, you need to consider all the suggestions in this article to insure you know what you are getting into. Make sure your condo lifestyle choice is right for you.
Contact us if you have any questions