Strata fees in British Columbia

When looking for new strata properties (condos, townhouses, or strata duplexes) there are two common things that most purchasers are looking for. A complex with a healthy contingency fund and a complex with low strata fees. Unfortunately, in most cases these factors are at odds with each other. For example, most commonly strata duplexes are not managed according to the B.C. strata property act and do not have strata fees but also do not have a contingency fund. This does not mean there are no common expenses however. Common property such as the roof and the exterior of the building still must be maintained. The owners will have to fund the repairs as they are made. Sometimes, a complex with high strata fees will have a very healthy contingency fund. What is therefore most important is to consider the strata fees and contingency fund solely as pieces of information to use in evaluating the suitability of the condo complex for the buyer.

Buyers should establish how much it will probably cost them to purchase and maintain the strata property. A building inspection will give the buyer an idea of the condition of the property. The list price of the property may look cheap to the buyer but if the complex is likely to need major renovation or remediation in the foreseeable future, the property might not be a bargain. A healthy contingency fund may alleviate some of the expense but there may be uncertainty as to the final cost of the renovation/remediation. As well, buyers should consider their personality. If they like to keep their assets in top condition with regular maintenance, they would probably be happier in a strata property that keeps up a regular maintenance schedule. This strategy might mean more current expense but more time between major expenses. If the buyer prefers to delay maintenance until it is unavoidable, they might be happier with a strata property that minimizes upkeep and therefore has lower strata fees in the short term. The buyer would need to be prepared however to fund repairs as they occur.

The B.C. strata property act requires that each strata evaluate its contingency reserve fund every year and top it up if it falls below a certain level. Most established stratas will have at least 25% of the annual operating budget in their contingency reserve fund. However, the fund might have been depleted by recent large expenditures and this is not necessarily a bad thing if the complex is now in better condition and will require less annual upkeep. On the other hand, an unusually large contingency fund might mean that a large expense is expected in the foreseeable future which might even be larger than the fund.

Should you sell your existing house first or wait to find a more suitable property before listing your home for sale

Homeowners that find their present home does not meet all of their needs or wants will often consider buying a new home. Occasionally, these buyers are unhappy enough with their present home and/or feel that there is ample selection of the type of home that they desire that they will sell their existing home first before looking for a replacement home. The advantage of this strategy is that they are in a better bargaining position both when they go to sell their home and when they go to purchase their new home. As well, they know exactly how much they can afford for their new home. The risks is that they can't find a suitable home in the desired time frame and price range and are forced to look at other options such as renting.

However, quite often these buyers will want to locate a new home first before selling their present home. Most of the time, they will want to make an offer immediately to guarantee that they can purchase the replacement home. The advantage of this strategy is that they don't have to move until they have found a suitable replacement. The disadvantage is that they will not be in a good bargaining position when they go to sell their home as they will either have to or at the least very much want to sell their hoome. The option exists to make their purchase offer subject to the sale of their existing home. However, this type of offer is not as attractive to the seller. So the first drawback of making this type of offer is that the seller, all things being equal, will expect more money. The second is that it is standard practice for the seller to insert a clause that requires the buyer to remove their condition within a set time frame (24 to 72 hours typically) if the seller receives another offer. The seller is more likely to accept an offer without this condition, however, the buyer will fact the risk that the property does not sell as quickly as expected or that the property sells for much less than expected.

Renting in Victoria, B.C. for newcomers

While in some other parts of Canada, realtors handle property rentals, Victoria realtors handle just the sale and purchase of properties.

Tthe vacancy rate in Victoria for rentals is still fairly low although it has gotten easier lately to find a place and may continue to ease up. But of course the ease of finding a rental will also depend on the price range you are looking at and your perceived desirability as a renter to potential landlords.

There are property management companies in Victoria that handle rentals. They primarily work for the property owners but are a source of information about properties available for rent. Properties rented through management companies tend to have stricter restrictions re pets. My real estate firm Sutton Group - West Coast Realty has a property management division. A quick google search will give you some other options to consider.

Other online sources are www.usedvictoria.com, www.kijiji.ca, and www.craigslist.com. These are ads directly from property owners. These listings are a very useful resource, however you must exercise more caution than the other sources to avoid fraud. Recently in Victoria, a tenant with an overseas landlord rented her basement suite out to more than 30 prospective tenants. While she was quickly charged by police, in the meantime, these prospective tenants lost out on the money they had paid her in advance for the suite. Again, if it looks too good to be true, it usually is.

The way that locals usually find rentals is through classified advertising in the newspaper. Our local newspaper is the Times Colonist and you can subscribe online.

Hopefully I can be of service if you plan to buy property in Victoria in the future.