By Andrew TynesPublished December 10, 2018 10:34:22It’s a beautiful place to live and work, and it’s all you need to start planning for your retirement.
But if you want to save a little money, it might not be the right choice for you.
We asked our expert condo broker and resident experts, including a condo expert, a home builder and a retired corporate executive, to explain why.
The question that came up was: “How do I buy a condominium?”
“I was recently informed by a resident who lives in a condo that the condo industry is booming and condominium investors are buying condominium properties for as little as $100,000,” says Michael D. Mabbutt, owner of Mabbe Property Group in Victoria, BC.
Mabbutt says many of the condos he owns are valued at $200,000 or more, and his company has sold condos for $1 million to $2 million.
He also says he’s seen condos selling for up to $5 million, which would be more than most people would be able to afford.
“If you have a little more cash, you could buy a condo and not feel the need to live in a condo,” he says.
“But if you’re looking for something more comfortable and better value, I would recommend buying a condo.
You’re not going to be living in a tiny house or a small apartment, you’re going to live somewhere with an amenity to get to.”
If you’re buying a condos for less than $100-200, you need a few things.
“You need a home that’s ready for occupancy, and you need at least a one-bedroom unit,” says Tom Miller, senior vice president of real estate at RealtyTrac.
“If you’ve got a lot of money, you can spend it on that.”
He says if you don’t have that, you’ll want a second home that has a backyard.
If you have an interest in condominium ownership, Miller says you should also look into investing in a second property, and if that’s not possible, you may be able go with a condo instead.
Mortgage insurance companies, for example, can help with that.
“They will generally cover the purchase price of your condominium if you have good credit history and you are a current homeowner,” says Mabberts, who also recommends checking with the local rental board to make sure it’s up to date.
“In many instances, the insurance company will be able make a profit if you get a condo before it goes on the market.”
There are several things to consider if you are planning on purchasing a condo, but you may want to consider a few additional considerations.
“The first thing is that you want your condo to be affordable,” Miller says.
“When you are thinking about condominium purchases, there are certain requirements you need, including that you must have a credit score of at least 660, and a low-risk mortgage.
If your credit score is below 660, you will need to apply for a home loan and have it paid off.
If it’s below 660 you will also need to have your mortgage paid off, and the condo must be located in the city of Vancouver.”
If that’s the case, you should check with your lender to see if they can help you with that first.
“There are also certain minimum income requirements, and these will vary from state to state,” Miller adds.
“The minimum income requirement for condominium owners is $75,000, and they need to be residents of the city.”
Miller says there are several different types of condo units available.
“You can choose from three types of condominium units, which are: a detached home, a studio or basement, and even a large two-bedroom,” he explains.
“There are some additional requirements to consider, like that the unit must be built within 10 years of the condo’s opening date, and there must be at least one child living in the unit.”
All of the condominium rental units are listed on the CondoLenders.ca website, and when you search for a condo unit you can get a list of current condo listings, and also a list with current monthly rates,” he adds.
The other thing to consider is that a condo may not be right for you, but the best place to look is right around the corner, Miller adds, so you can take a look before you commit to the purchase.
