Condominiums are great purchases in the current Edmonton market. For first time buyers they are a good way to get in to quickly rising market and investors like the rentability, condo boards help with property management and they show a good return. The increase in single buyers have also made condos a hot seller.
The one point to remember about condos is they require more due diligence than other investments. Most important are the fees and reserve fund,
"The fees, paid monthly by owners, can include hydro, heating, taxes, maintaining gardens, snow shovelling, cleaning and repairs. But they may not include all of the above — each building is different. In a new building, the builder estimates the fee.
Condo buildings are managed by boards of directors that are elected and report to the shareholders — their fellow owners. Boards decide how to run the building and, among other things, draw up the yearly budgets, which determine what the monthly maintenance fees will be."
When you look into buying a condo you should definitely have the Reserve fund, Board Reserve Fund Plan, Financial Statements, Current Budget and bylaws reviewed. If it is your first condo purchase it is well worth the money to have a professional review the documents for you. Some companies will review documents and do a unit inspection at the same time, very convenient and the cost is about $400.
"I think the best protection is for buyers to have their documents looked at by condominium legal experts," Mr. Silver says.
"In the majority of cases, there are no contentious problems or issues. However, before buying, it's really vital to have condominium specialists look at all the documentation. That can help prevent surprises." For Full Article Click Here
