Winnipeg's Real Estate Blog

Condominiums: By-laws, Reserve Funds, Condo-Documents? (Part 2)

In part 1 we examined the different types and styles of condos..  Now lets look at some of the more common questions buyers have about condos in general:

What do Condo-Fees pay for?  Each condominium project (and there are hundreds in Winnipeg) has a different arrangement.  With some, your condo fee only pays for the very basics, such as snow-clearing, grass cutting, management fees and common-element insurance'.  With other condos, the fees might include water, cable-vision packages, heat and an on-site caretaker.

What is a 'common-element'?  Basically it is any area where all residents have access.  In an apartment style condo, that would be the entrance and the hallways, as an example.  In a townhouse, or bungalow styles, it would be the roadway and the visitor parking lot.  The 'common-element insurance' basically protects the owners from any lawsuits by visiting guests, whether invited or uninvited, but that is a subject all to itself.

What is a Reserve Fund?   Every month, a small portion of the condo-fee goes into a special savings account, called a "Reserve Fund".   Again depending on the type of condo we are looking at, this reserve fund might pay for any building repairs such as a new roof, new windows, painting and re-carpeting of hallways, etc.  Basically the maintenance and repairs of areas which are common to all owners, and which effect all owners.  So for example, if you own a stand-alone bungalow condo, you might be responsible for your own roof repairs, new windows etc etc.

About Condo By-laws:  When a condo-project is first created, the builder usually sets up a set of 'by-laws', which would govern the use and rights of the individual owners.  The initial set of by-laws are quite often very simple, such as "No Laundry to be hung from windows"  of an apartment style condo.  Bungalow condos might have a rule that states "No Outbuildings or Sheds or Fences to be erected".

As owners settle into the condo, they establish a board, and can then write their own by-laws.  In order to change a current law, or to create a new one, the owners need to approve such changes by a 75% margin.  In short, majority rules.

Taxes:  Unfortunately, in our fair city and province, condominiums are taxed at precisely the same rate as regular houses.  Considering that many condos, especially high-rises, uses a lot less services (i.e.: street cleaning, garbage pickup which is often paid for by the condo fees, snow clearing, etc etc) this current system is not considered fair by many.  Fair or not, condos offer a unique lifestyle, and definite value in a time when it is becoming more and more difficult to find a house in a similar price range.

If you have any questions regarding Condos, please feel free to contact me anytime.

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Buying, listing agent, Real Estate, sell my house, Selling, Winnipeg

Condominiums: An overview (Part 1)

Hello Everyone:

This is a re-issue of a blog-entry I did back in March 2008.  With condos in high demand, I thought it might  be a good time to re-issue an old favorite.

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

Want to buy a house WITHOUT a bidding war? Here is the simple secret!

Hello everyone:

Lots and Lots of buyers (and that means MANY), are sick and tired of "Bidding Wars". About half of the buyers I interview, tell me outright :"I dont want to have to compete for a house".The secret to getting a house WITHOUT a bidding war is really simple: PATIENCE. Working with a patient agent and having some patience yourself is usually rewarded at some point. Here is how:
Many agents like to list a house at 10 to 20K below it's value. I know: it seems wrong, crooked, shifty.....you can put any number of labels on it, and I wont argue with you. But its a reality in todays market. The reason for deliberately underpricing a house is simple: It generates "Multiple Offers" (Bidding War), and in such, the best offers come to the forefront.
Look at it this way: If YOU are the only person to make an offer on a house, I as your REALTOR® will advise you to ask for a Home Inspection, put as little money down as possible, and get a 3-day financing clause.Now take that same house, and we are competing against, say, 5 other offers. Guess what happens: The people that CAN write unconditional offers will do so, just to win the bidding process. Gone is the Home Inspection, the financing clause, and out come the 20,000-dollar deposit cheques.
Who wins? The home-owner, of course.So how does patience help? Every once in a while, a home-seller, or his agent, decide for whatever reason, to slightly overprice a house. Buyers recognize this when it happens (if they are working with a knowledgable agent), and tend to refrain from putting in an offer right away. So the house may end up on the market for a few weeks, and then go thru a price-reduction. But that initial pool of buyers have moved on, and sometimes the home-seller will find it tough to get them to come back. So this is where the patient buyer, with his patient REALTOR® come in.So far this year, my buyers have managed to buy a house for UNDER asking price on 10 occasions. Thats roughtly 50% of my buyers have managed to avoid a bidding war.....pretty good odds, I would say.Patience pays off.So if you're looking for a house or condo, and either dont want to, or simply can not get involved in a bidding war, CALL ME. Together we will find you a nice house or condo.
Check out my Website

Buying, listing agent, Market Update, MLS, Real Estate, real estate agent, REALTOR, Winnipeg

MLS Statistics for August 2009 for Winnipeg's Real Estate Market.

Hello Everyone:

Here are the Sales and Listing Stats for August 2009 for the hot Winnipeg Real Estate Market, as compiled by Winnipeg REALTORS®.   

WINNIPEG - While MLS® sales in August fell short of last year’s mark by only 17 sales and 11 %

off the best sales month on record for August in 2005, this year’s August, based on prices in general

being slightly better in comparison to last year, recorded its best dollar volume result ever for this

month at $231 million. It also paves the way for the third consecutive year of $2 billion worth of

MLS® sales activity as year-to-date dollar volume now sits at $1.75 billion.

August 2009 also saw WinnipegREALTORS® record its 8th million dollar plus home sale which is

equal to the most sales ever sold in one year in this price range. It was an impressive newly built

home in Waverley West that sold for $1,290,000. With four months to go, there is a distinct

possibility another one or more luxury homes may sell before year end. There are currently 18

million dollar plus MLS® listings – 16 homes and 2 condominiums. The highest list price is a

Wellington Crescent home going for $2,800,000.

Talking about million dollar plus home sales, the Calgary Real Estate Board sold its first $10 million

home in August. It was the home of former NHL goaltender Mike Vernon.

Also noteworthy, is year-to-date sales activity in comparison to the same period last year is

improving and coming within a few percentage points now of WinnipegREALTORS® January

forecast. It predicted home sales would be down 5% from last year and house prices up in the low

single digits as opposed to double-digits like the past six years.

August MLS® unit sales were down 1% (1,151/1,168) while dollar volume rose 6% ($231.2

million/$218.9 million) in comparison to the same month last year. Year-to-date MLS® sales are off

8% (8,620/9,392) while dollar volume is down only 4% ($1.75 billion/$1.83 billion) in comparison to

the same period in 2008. Year-to-date active MLS® listings of 3,000 at month end are tracking very

close to last year while listings entered on the MLS® to the end of August are at 13,000, slightly

lower than 2008.

The full stats are available on my website by clicking this link:

MLS Market Stats

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Buying, listing agent, Market Update, MLS, Real Estate, real estate agent, REALTOR, sell my house, Selling, Winnipeg

Buying or Selling a Condo? Here is a Guide!

Hello Everyone:

When it comes to Condo's, I do have a bit of knowledge in this field.  In fact, nearly 1/3 of my sales come via condominiums, either in representing the buyer or the seller.

The vast majority of Condo-Corporations are professionally managed:  That is, a management company looks after the day-to-day affairs such as hiring the landscaping people, dealing with repair and maintenance issues, handling the finances and book-keeping etc etc.

One of the major responsibilities of such a Management Company is to make sure that all the necessary documents are provided whenever a current owner wants to sell his/her unit.  In Manitoba, the Condominium Act stipulates the owner's requirements, which include providing the prospective buyer with a copy of the following:

1) A copy of the Disclosure Certificate

2) A financial statement.

3) A projected Budget statement

4) The Management Agreement

5) A copy of the By-laws

6) A copy of the Declaration

The first on this list, (Disclosure Certificate) is arguably the most important.  It contains approx. 15 sections which outline the financial and legal well-being of the corporation.  Sections include:

Whether or not the corporation is involved in any legal disputes. 

Whether there are any insurance claims against the Corporation. 

Is the Corporation planning to change or add to any of the amenities and common elements?  For example, are they planning to install a tennis court and pool, potentially raising condo fees?

These are just some of the major points in a Disclosure, and you can see why it is an important document.

When a Corporation is professionally managed, obtaining such a certificate is merely a phone call and around $75.00 cost.  However, in very rare cases, condo corps decide to 'self-manage', in which case the elected Board is responsible for providing this document.

Reason for my blog-entry on this:  I've recently met with a condo board which has decided to self-manage, and they were not aware of some of these regulations.  So here is a copy of a blank Disclosure Certificate...

Disclosure Certificate

In addition, I also have a copy of a Buyers Guide, which potential condo buyers might find useful.

Condo Buyers Guide

For more info on buying and selling, homes or condos, be sure to visit my website at www.WinnipegHomeFinder.com

til next time.....

Condominiums Part 2: Fees, Funds, Bylaws and

Condos have been around for a couple of decades. I recall when they first came into being, some of the misconceptions around them. Its important to realize that if you are buying a condo, you are buying a part of the whole project. Also, the owner is regulated in what they can, or can not, do in and with their condo. Here are some of the major points to consider when condo-shopping.

Please be sure to visit my website at :  www.WinnipegHomeFinder.com

Condominiums Part 1: Styles and Features

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 styles and some of the features to look for.

Please visit my website at www.WinnipegHomeFinder.com

55+ Condominiums: Geared towards the Seniors market

If you are looking for a Condo in Winnipeg with age-restrictions, the following is a list of units which may fall into this category.  This is certainly NOT an exhaustive list, but does list many of the condos with such restrictions, which are usually either 50+ or 55+.

Bell Cove (Headingley South)

Country Villas Blvd.  (E.St Paul)

3420 Grant Ave.

4314 Grant Ave.

380 John Forsyth Rd.

1460 Portage Ave

1976 Portage Ave.

3200 Portage Ave.

Rockmaple Rd.  (E. St. Paul)

4025 Roblin Blvd.

679, 681,685, 687, 697, 785, 795, 805, 815  St. Anne's Rd.

500 Tache Ave.

208, 212 Watson St.

687 Warde Ave.

20 Wynstone Cir.  (E. St. Paul)

If you know of any other condos which are age-restricted, please let me know by comment, so that we can add them here.

Also Read:

Condominiums: An Overview (Part 1)