The real estate in Canada is booming more than ever. Foreign investors have not been left behind in the real estate’s craze. A significant number of investors are buying condominium units. A condo is a form of real estate which is divided into a number of units that are owned separately but have shared common areas. Compared to apartments which are normally leased, condo units are purchased outrightly.
Renowned realtors in Canada have always asked potential buyers of condo units to be sure if they want to stay in a condo. This is because a person might not be comfortable with the rules that are set and more importantly being too close to others. Regardless of one’s residency, decisions on buying condo units should never be rushed. A lot of homework needs to be.
Choosing Between Pre-construction and Pre-owned Options
When a pre-owned is purchased, the buyer can see the exact unit. The buyer can know what he is getting into. In case of modifications, they can be planned.
A pre-construction, on the other hand, is a sketch of the unit. Work on the actual condo has either started, or the sales agents are out there convincing potential buyers. The completed units may at times turn out to be different from sketches provided.
Do a Background Check on the Builder
Take time and dig information on the builder. Get details such as work that they have handled in the past, their response to complaints, their financial strength and the number of resales going on. A high resale rate means that either substandard work was done or there is a problem with the condo boards.
Get the Right Professionals
The following professionals are very important in the buying process: a realtor who has experience in dealing with condo units, financial broker to evaluate and arrange the mortgage you qualify for and a lawyer to analyze the offer given and other details. The lawyer will also help a buyer understand their legal obligations.
Understand the Closing Costs and Condo Fees
Closing costs include the tax on the land transfer, legal fees, fees required for bank appraisal and insurance premiums for mortgages. On average, closing costs can add up to 5%.
The shared facilities like parking, elevators are not included in the purchase price but are paid for monthly. The monthly fees are aggregated and divided by the total area covered by all the condo units. Allocation is then done according to the size of one’s condo unit. A status certificate is always prepared yearly to show how the common expenditure have been collected and spent well.
Understand the Role of the Condo Board
Condo board is composed of the condo owners, and it determines the condo fees to be charged. All contracts for maintenance and other repairs are entered into by the condo board. The second function of the condo board is to resolve disputes between the condo units’ owners.
In conclusion, having understood the process of buying a condo unit in Canada, always expect delays before you can move into your unit and think resale when the right price is offered.