Winnipeg's Real Estate Blog

Condominiums: An overview (Part 1)

Condominiums have been steadily gaining in popularity in the past few years in Winnipeg.  At least part of this is due to the fact that while buyers have a tough time finding a nice house under $150,000, condos are still available in this price range.

Whether you are a first-time home buyer, or an 'empty-nester', there is a condo which will fit your needs.  Here is an overview of available choices and the differences between them:

Apartment-style:  These are usually 3 stories tall or more, and are defined by having one general entrance way leading to a lobby or hallways, from where the individual suites branch off.  Taller condos are most often built with concrete floors, which aids in the noise-reduction.  Ideally, you would want a balcony so you can sit outside and have some fresh air.  Most have window a/c units, but the nicer, more expensive ones have central air.  Another thing to keep in mind is that not all of them have in-suite laundry, which is a nice option to have.  They usually come with a parking spot, with underground spots commanding a higher price.  These types of condos can sometimes still be found around the $100,000 mark for a 1-bedroom, and $125,000 and up for a 2 BR, depending on the options.  Luxury condos of 1400 sq ft and more can run significantly more, depending on location.

Townhouse-style:  These are usually one and 2 story buildings, with each unit having its own entrance.  Most of these are wooden-frame construction, the downside being that you could hear your neighbor's stereo (or amorous escapades).  These normally have an outdoor parking stall, window a/c and usually have in-suite laundry.  An average 2 BR of about 900 sq feet will run you around $130,000,  again depending on location.

Side-by-sides:  Most of these are of newer construction, and can range in price and size.  Being newer buildings (usually built within the past 10 years), they also come with more options, such as c/air, attached garages, full basements and other amenities.  Privacy is increased in that you only share one wall with a neighbor, and most of the newer ones have fairly good sound insulation between the walls.  Prices range from around $200,000 and up.

Detached Condos:  These are what I call the 'best of both worlds".  Essentially they are stand-alone buildings, completely detached, but offering all the benefits of condo-living.  You have your own home, usually with all the options including attached garages etc, but no yard-work, snow-shoveling or other maintenance required.  These types of condos are rare, and therefore pricey.  They usually start around the $250,000 mark and run into the half-million dollar range.

Well,  there we have the basic types and styles.  I hope you enjoyed, and will come back in a couple of days for Part 2, which will go into the legalities, restrictions and benefits of owning a condo, along with explanations on "Reserve Fund", "Condo Fee Inclusions" and "By-Laws" of condos.

If you have any questions along the way, please don't hesitate to comment here.

ciao

Costs involved in buying a house or condo!

I have found that many buyers are not aware of the fact that there are additional costs when buying a home or condo.  I had always 'assumed' (I know...you're not supposed to do that),  that banks would council their clients as to the actual costs involved, but learned that this is not always so.  Blame the hectic market pace, understaffing or any number of things, but for whatever reason, it's not being done.

So when buyers come to me, I sometimes have to give the bad news:  Here are some of the major expenses involved when buying a home (or condo)

Legal Expenses:  The basic legal fees for purchasing a home run around $500.00  Now, many lawyers will quote something like $299 or $349,  but thats the basic fee.......there will be additional expenses on top of that, so you can expect to budget around $500.00  (This will be significantly higher when purchasing a "Private Sale", where the lawyer has to draw up the offer and act on your behalf)

House Taxes:  Depending on the time of year you take possession, you may have to pay the remaining taxes for that year.  In Winnipeg, our taxes run from Jan to Dec, and are paid in June.  What this means, in short, is that if you take possession after June, you will most likely have to pay a portion of the taxes, (assuming the current owner has paid up the taxes for the entire year).  If you take possession before June, you may actually get a refund from the current owner.  The joy this brings will be short-lived, however, as you will then be responsible for the full tax bill on June 30th.....

Land Titles Transfer Tax:  This one is a real beauty.  Every re-sale of a house or condo is subject to this tax.  The kicker is that the more expensive the home, the higher the tax. 

So a $90,000 home (if you can FIND one  of those) will cost you $360.00. 

A $150,000 home or condo will cost you $960.00.

A $200,000 home will cost you $1710.00

For every $1000 above this price, you can add another $20.00 for our provincial coffers  (you know, to keep our roads nicely repaired and stuff like that)

So if you're up at a $300,000 house, you'll be facing a $3710.00 bill....

Of course, the buyer needs to be aware of moving costs, and other incident expenses.

The Good News?   Many buyers are also not aware that they wont be making a mortgage payment for about a month AFTER they take possession.  So if you're moving from an apartment into a house, and you take possession on July 1st, and left your apartment on June 30th,  your last apartment rent payment was likely made on June 1st, while your first mortgage payment will probably not  be made until the first week in August.

Fix-Up Before Selling: A little investment can pay off BIG for the home-owner

Currently, Winnipeg is experiencing one of the hottest "Sellers Markets" in the country.  This is a little bit of a double edged sword:  homeowners are sometimes a little over-confident when it comes to pricing and selling their homes.  After all, we hear about the 'bidding wars',  and the stories of homeowners getting 30, 40 or 50 thousand dollars above their 'asking price'.

Here is an interesting fact to keep in mind:

Winnipeg's List-to-Sales ratio is around 75%.  That means that 75% of listed homes sell within their listing period (usually around 3 months).  The other side of that equation is that 25% (1 out of 4) don't sell.  Main reason for this: Over-pricing of the home.

Over-Pricing:  Buyers in Winnipeg have become accustomed to the idea of paying more for a house than the owner is asking.  So when buyers see a house that is already over-priced, they naturally make the assumption "We have to pay MORE than they are already asking?"....and in many cases buyers move on to other homes.

This over-confidence often leads to a 2nd failing:  the "sell-as-is" mentality.  Sometimes homeowners feel that since the market is so hot, anything can be sold.  As the 75% ratio shows us, this is not always true.

What do buyers look for?  Extra clean, ready to move homes.  In fact, they will pay extra for it.  The owner is well advised to spend a little on paint, carpet and modern lights, at the very least.

For some excellent ideas in fixing-before-selling, read

Market Value Boosting Renovations

Home Staging: Benefits for the Home Owner

Home Staging can take many forms: from simply 'de-cluttering' the home, to painting and replacing carpets and all the way up to actually renting high-end furniture.

In it's simplest form, (de-cluttering), home-staging will improve the look and feel of the home, creating a feel of space and cleanliness. It is always recommended that any obvious flaws, such as poor paint or worn carpets, be replaced and/or repaired.

Lights are a very important factor when showing a home. Modern lighting does not have to be expensive, but bright lights improve the look and feel for many homes.

Why is home-staging so beneficial: Buyers spend, on average, 15 to 20 minutes in a house and need to be impressed. A buyer may go out one afternoon and look at 4 or 5 competing homes. Since he/she can not buy all of them, they are really looking at which ones to eliminate from their list. Wow them when they come to your home. Impress them with cleanliness, space and warmth, and your home will stand out in their mind.

Buyers are willing to pay extra for that 'ready-to-move' condition, so any improvements (within reason) you can make, will be well rewarded.

I have the fortune of working with a great home-stager, Leesa Johnson of Beyond Belief Home Staging Services. Her website at www.bbhomestaging.com has some excellent before-and-after pictures. Leesa tells me that in Ontario, estimates are that 1 in 4 homes which sold, had been staged.