Purchasing a Condo - 5 Issues to Consider

I rent right now but there was a time when I owned a condo and it was actually an eye-opening experience. With prices falling in the past few months and spring being one of the busiest times to buy real estate, the market has been picking up. I'm not ready to buy yet but I'm sure many people are - when I do buy again, I'll be armed with my last experience in the back of my mind.

Here are a few things to consider when buying a condo besides the usual tips of location and getting a home inspector:

PRESALES

My first condo was a presale. It was fun watching it being built over the space of a year and then moving in on that first day. I'll never forget doing my first load of laundry!. But there were a few problems – some of the finishing was subpar and the exterior (especially on the roof) had a few unfinished items. To top it off, the city went on strike and when I moved in, it had not passed inspection yet – far too many unknowns as far as I am concerned. Lately, with falling prices, some people can't afford to even close on their units. A developer could also go bankrupt which would be very inconvenient.

SIMILAR OWNERS

My condo was at the lower end of the scale so we had a diverse set of owners which actually made for a nice community. But after a while, a few owners couldn't afford their units and had to rent them out which caused tensions with those of us who still lived there. While it was there right to do so, I didn't want to live in a rental building.

We also had arguments on the strata council as different people wanted different things – we had seniors, young families and couples and single people like me. The problem is when you live in such close quarters conflict can start fairly easily. If everyone has a similar background (let's say all seniors) arguments and disputes may be kept to a minimum.

COMMERCIAL UNITS

Having a commercial unit in your complex can actually increase your home insurance, I quickly found out. A friend of mine also lived in a building with a restaurant in it and the fire alarm went off at least once per month requiring everyone to wait outside on the street. Like it or not, they will increase traffic around the building which could be a security issue. Similar to my first point, commercial owners may have different agendas which can cause conflict (it did in my case)

WOOD FRAME BUILDINGS

No matter what they tell you, wood frame just isn't as sound proof as concrete. I uses to hear the people snore below me or bathe their dog in the bathtub. There's also the issue of maintenance – for the most part, concrete buildings tend to be lower maintenance. There's a massive problem with mould and rot in Vancouver as I can relate to, being a victim of shoddy construction and faulty building codes. All these issues would mean I'd focus on concrete buildings but they can be fraught with problems, too.

MINDSET

Most people have rented apartments before buying. I'm surprised how many new owners still think like renters after making their purchase – they don't want to spend money on maintenance or they expect other people to do all the work. Even though you subcontract out to trades, there is still much work to be done which means you need strong, proactive people on the strata council. I'm also shocked how many owners ignore bylaws or worse, don't treat the common areas with the proper care. I guess they think someone else will clean up the mess.

Home ownership is a huge step especially if you've never owned before.  Whether you're a first-time homebuyer or a seasoned investor, the real estate market can be fraught with perils and doing your homework is more than half the battle.

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