Condominium living is fast becoming a preferred lifestyle for anyone looking to get into home ownership or those eyeing a freer lifestyle than fussing over a home and yard affords.
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While it may seem there is no shortage of condo projects to choose from, doing a little legwork before jumping into a condominium purchase — and heeding a little advice from the experts — may just amount to time and money well spent.
“The first thing to do is to understand what your needs are,” says Robert Andrews, of Sage Condominium Consulting. “For example, if you are not happy with the commute then don’t buy a place near South Centre (shopping mall).” |
In addition to knowing what size or type of condo you are searching for, Andrews suggests weighing the cost of upgrades against potential payback if aiming to resell, to “shop the price versus the value of the upgrades.”
And since most would-be buyers are not experts in the legalities of condominiums, having a professional look over the legal aspects of what you’re buying into is always a good idea, Andrews says.
“Particularly in the resale market, make sure you use a document review service, and also for a condo conversion project. It identifies the adequacy of the reserve fund, the corporation’s budget and any special assessments that may be needed — and there is a ton of good value in resale or condo conversion.”
Those who prefer coming home to a condo that no one else has lived in are wise to check out their builder’s track record, and that includes ensuring the company is a member of a new home warranty service, such as the Alberta New Home Warranty Program.
Getting pre-approved for a mortgage is also a smart place to start condo shopping, to not only know what is in the budget, but also because it is a necessary step toward sealing a deal in a market that often won’t wait long, says Andrews.
Taking the plunge may seem a little daunting with condos reportedly selling for above the asking price, and after multiple offers being made in some cases, but there is still value to be found in Calgary’s booming market, say the experts.
“I believe there’s lots of opportunity there to find value and get your money’s worth, depending on what area of the market you are looking in,” says Lauretta Kaechele (CPM, CMOC), vice-president of Emerald Management and vice-president of the Canadian Condominium Institute.
Kaechele says the recent surge in condominiums being built has upped the ante on quality, resulting in better workmanship over the past few years than in projects a decade ago or older.
She advises not only employing a professional review service, but also personally taking the time to read the fine print before signing on the dotted line — paying close attention especially to the Use and Occupancy rules and Owners’ Duties and Obligations sections of a condo corporation’s bylaws.
“If you are going to read anything, read those. You are buying, in some cases, a piece of an apartment and it takes money and rules to run it,” says Kaechele. “You are going to live there and will be spending a lot of time there, so it can be a pleasant or a very unpleasant experience if you don’t do your due diligence.”
And that due care may also include using a realtor, who may have access to listings not publicized and generally be trained to know a good deal when he or she sees it.
Bev Tonkinson, a realtor with Sutton Group Altawest, says even though condo prices are on the rise, Calgary does still offer still viable options — even for modest budgets.
“There are still great values in the city. We’re still behind, as far as I am concerned, Vancouver and Toronto. I think we are just playing catch up right now, so there’s still lots of great values.”
Along with having access to new condo suites coming on to or returning to the market or resale units about to hit the Multiple Listings Service, part of a realtor’s job is being on top of what properties sell for. While working through a realtor will likely have fees attached, it could amount to savings and peace of mind in the long run.
“I caution jumping into the market before you have those market values because our realtor is going to take every property you’re interested in and do a market evaluation on it, so you’ll know if you’re getting good market value,” says Tonkinson.
As a condo purchase is often the most money a buyer or buyers will ever shell out, it’s not a step to be taken on impulse, even if the current market carries with it an air of urgency.
“Just know overall what you’re getting into,” says Tonkinson. “I think because of the values in Calgary jumping up like they are, a lot of people are looking at condo living ’cause it is less expensive to get into the marketplace — but you have to understand what it means to live in a condominium.”
For more hints and tips about buying and owning a condominium in Calgary, watch Shaw TVís Condo Living with Barb Mitchell, every Wednesday, Saturday and Sunday.
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