BUYING A CONDO? HERE’S YOUR GUIDE TO SUCCESS
Written By Daniel Patching
The Vancouver Mortgage Broker
So lets start this article by defining what a condo is. A condo refers to a form of legal ownership, as opposed to a style of construction. Although they are commonly thought of as units in high-rise residential buildings, they can also include low-rise residential buildings (fewer than four storeys), townhouse or rowhouse complexes, stacked townhouses, duplexes, triplexes, single-detached houses, or vacant land upon which owners may build.
- Condo owners own both their own private unit as well as a portion of all shared common elements, such as lobbies, hallways, elevators, recreational facilities, walkways, gardens, structural elements, and mechanical and electriacal systems.
- In addition to the purchase price, you will also need to pay a monthly fee to cover the upkeep and replacement of the common elements.
- How much can you afford to comfortably spend? How large of a down payment will you have? What will you need to pay each monthin mortgage payments, condo fees, utilities, insurance premiums, property taxes and other expenses?
- Is the condo protected by a new home warrenty program? If you are buying a new condo, what does the warrenty cover? If you are purchasing a resale condo, is there any warrenty coverage remaining on the unit?
- If you are buying a new condo before constructionis complete, what are your unit’s exact specifications, and when will it be ready to move into?
- If you are buying a resale condo, can you get a copy of the corporation’s annual operating budget, financial statements and estoppel (or status) certificate? How large is the condo’s reserve fund?