Solid Advice for Condo buyers

Alberta's young population's first step into home ownership is often a condo. Condos are stylish, well located and a reasonable price. 

There is a lot to know about buying a condo because there are monthly fees and assessments that could (will) be looming in the future.

"Find out exactly how much you’ll be paying in condo fees and evaluate whether you’re getting good value for your money. Dig into the health of the reserve fund, because that’s a good predictor of whether you’ll be levied any special assessments if you buy. Ask if there are any claims or actions aimed at, or prompted by, the condo corporation. How much are your utilities? Who pays them?" Real Estate Matters Jump Here 

If you're in your condo for the long term there will be repairs and as the condo ages the cost of repairs increases. That's why the reserve fund is so important. Even new condos can have huge repairs and assessments like the one in Calgary. 

Your money will be well spent getting a condo document review to make sure there are no red flags in the finances of the complex you are buying into.

Some horror stories about assessments (Ontario) Here

Service Alberta Condo Tip sheet Here

Really good assessment information Here

Some Good News

Although the rest of Canada's real estate markets may still be seeing a slowdown this year. Edmonton is starting to pick up. Specific property types will see a jump in sales this year as new buyers enter the market.

Edmonton still is number 1 -"The results are in and Edmonton was named the number one city to invest in, according to the Real Estate Investment Network (REIN). Backed by a healthy economy, infrastructure development, a growing job market and increasing population, the ‘City of Champions’ may be a sure bet.

Gone are the days of double-digit price increases and condos that are snapped up as soon as they’re listed. Now, Edmonton’s market reaches a more historic norm as it stabilizes.

This is expected to alleviate pressure for buyers since they can negotiate their terms.

“The current market has come back to earth after three years of unsustainable price increases,” says Don Campbell, president of REIN, Calgary. “People moving to Edmonton region are bringing the condo lifestyle along with them, thus driving the demand over the previous years.”

Condos are favoured among Edmonton’s growing Baby Boomer population, which grew 43% between 2001 and 2006, according to Statistics Canada. This aging demographic enjoys the low-maintenance lifestyle that these units present. Also, first-time home buyers choose condos due to affordability. According to RBC’s 2008 affordability index, a buyer would have to earn $86,337 per year to qualify for a mortgage on an average home priced at $354,060. Condos have a more favourable affordability index of 26.2%, meaning the buyer would need an annual income of only $57,417.

Investors looking for cash flow can expect one with a condo. These units are expected to see a 12.2% increase in rent in 2008, according to CMHC. The average rent for a two-bedroom apartment was $1,000 in April 2008.

“Edmonton is the largest rental apartment universe and people are trying to capitalize on the fact that the economy is still doing well,” says Julie Taylor, analyst at CMHC, Ottawa"