New strata councils quickly or slowly come to realize that their property manager doesn’t actually take care of “everything”, that he or she is merely an agent hired to perform “some” of the duties of the strata council.

Council members will need to examine their management contract carefully to learn what they can reasonably expect of their manager and to realize what he or she will not do. A lack of this basic understanding is the underlying cause of many ongoing disputes between property managers and strata councils.

One of the first decisions a new Council makes concerns how involved they want to be in the day to day operation of their building. Some act as pseudo managers and others leave the day to day responsibilities in the hands of a management company.

Next they need to decide which duties will be performed by their property manager and which will be handled by council members. It may be next to impossible to reach an agreement, but only when those roles are crystal clear will the council be able to work effectively.

Section 26 of the Strata Property Act states that the strata council’s role is to, “Exercise the powers and perform the duties of the strata corporation, including the enforcement of bylaws and rules”. Clearly then, it’s the Strata Council that really runs the show.

-talkstrata.com

Not too many years ago, buying a condo was considered a compromise move. Condos are more affordable, particularly for first-time buyers who have a tough time breaking into the housing market. Until recently the cheap entry fee entitled you to apartment-style living, no yard to call your own and lusterless appreciation—not an attractive package to most home buyers.

This may be changing. Latest statistics from Canadian Mortgage and Housing Corporation (CMHC) show condos make sense for investment or ownership. Rentals are up 30% over last year according to the Toronto Real Estate Board’s analysis of the last quarter of 2008 vs 2007.

New construction favouring condos
Recent statistics show that construction of condos is actually increasing. New construction of single and semis has fallen steadily since 2002. Young people seeking a downtown lifestyle, empty nesters downsizing, and people tired of commuting, all make condos extremely popular and support a robust market.

Hi-rise sales stable
Condo sales have had some ups and downs, but sales volume by year has been quite steady. The CMHC expects a slight dip in 2010.

The rental market for condos is improving as potential first time buyers postpone home purchases in favour of renting. Renters are less inclined to leave their apartments and pursue home ownership. Rentals through the MLS are up 12% over 2008.

Is a condo a good investment?
As with any real estate, a condo could be a good or bad investment. It all depends on the building and the market. There are some great condo investments in many areas around the country and there are also some bad investments.

The condo situation looks promising. The percentage of total sales is expected to continue rising from 25% of all sales in 2000 to 60% this year. Condos are selling well and renting well, making them a good investment whether you’re planning on moving in or leasing out.

Condo buying tips:
Look for a condo that’s in a development that has a high ratio of owner-occupants to renters. Some lenders won’t lend on condos that have a high rate of absentee ownership. Also, owner occupants tend to be more concerned about keeping things going well in the development.

Find out what the condo fees are and what is covered by this fee and include it in your costing. Some condos prohibit pets. And some have parking, storage and renting restrictions. Read and understand the Covenants, Conditions and Restrictions (CC&Rs) and any other pertinent governing documents before you complete a purchase.

It’s usually best to avoid buying into a condo complex where the homeowner’s association is involved in litigation. To find out if there are any other association issues that you might want to avoid, read copies of the minutes from recent homeowner’s association meetings. One of the best ways to get the straight scoop on a condo project is to talk with some of the current residents. Find out what they like and what they don’t like about living there before you decide to buy.

What are the tax, legal, and financing considerations?
If you decide to invest in a condominium rental property, many of your personal expenses may be deducted from income in addition to the normal tax deductions such as mortgage, interest, depreciation, and other condominium-related expenses. For example, you would normally be entitled to set up a small office in your current residence for managing your investments, which would include keeping your records. You could deduct a percentage of all your home-related expenses. The normal formula is to take the square footage of the office area that you are using relative to the total square footage in your home. In general terms, 10% to 15% or more is usually deducted for that portion.

In addition, you would be entitled to deduct a part of the car-related expenses involved in managing your investment portfolio, whether it is one rental property or more than one. The percentage of all your car-related expenses can vary, obviously depending on the usage of the car relating to your investment.

If you are seriously contemplating investing in a condominium, it is important to consult your real estate agent and seek the advice of a competent tax and accounting professional, and legal advice from a lawyer specializing in condominium law.

-CanadaRealtyNews

VANCOUVER, B.C. – May 4, 2009 – With more buyers and fewer homes for sale in recent months, the Greater Vancouver housing market has entered a more moderate and balanced state.

For the sixth consecutive month, new listings for detached, attached and apartment properties declined in Greater Vancouver, down 33.7 per cent to 4,649 in April 2009 compared to April 2008, when 7,010 new units were listed. The total number of property listings on the Multiple Listing Service® (MLS®), while slightly down compared to last month, remains unchanged compared to the same period in 2008.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 2,963 in April 2009, a decline of eight per cent from the 3,218 sales recorded in April 2008, and an increase of 31 per cent compared to last month.

“We’re seeing greater balance in the housing market, as evidenced by a strong sales to active listings ratio of over 19 per cent,” Scott Russell, REBGV president said. “The result is a relatively stable market in which homes are being realistically priced.

“The bridge between buyer demand and housing supply is continuing to narrow, which, as we see, helps bring stability to home prices,” he said. “The trends in our housing market over the last couple of months offer a much more comfortable, historically normal set of conditions.”

Sales of detached properties declined eight per cent to 1,190 from the 1,293 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties declined 12.2 per cent from April 2008 to $675,268.

Sales of apartment properties in April 2009 declined 10.5 per cent to 1,179, compared to 1,317 sales in April 2008. The benchmark price of an apartment property declined 12.6 per cent from April 2008 to $340,203.

Attached property sales in April 2009 are down 2.3 per cent to 594, compared with the 608 sales in April 2008. The benchmark price of an attached unit decreased 9.7 per cent between April 2008 and 2009 to $431,759.

Bright spots in Greater Vancouver in April 2009 compared to April 2008:

Detached:

Vancouver West up 59.5 per cent (193 units sold from 121)

Attached:

Port Coquitlam up 69.6 per cent (39 units sold from 23)

Richmond up 17.9 per cent (132 units sold from 112)

Vancouver West up 46.3 per cent (98 units sold from 67)

Apartments:

North Vancouver up 29.2 per cent (84 units sold from 65)