Status certificates and reserve funds
By Mark Schadenberg
No two condominium complex areas are the same as there are townhomes, high-rise buildings, new and old, renovated old schools and factories, and detached bungalows.
The common denominator is condo fees and a reserve fund to pay for future projects. The best example of saving for a raining day is replacing a roof.
When buying a condo, always look at the status certificate before making your purchase 'firm and binding'. Learn about the condo board's saving practices and estimations of future condo fee increases.
Currently, CKCO TV Kitchener (CTV) is in the middle of a three-part look at the condo lifestyle. It's a good feature because it is a snapshot of southern Ontario not the crazy hysterical Toronto market where investors buy condos that will not exist until sometime in the future. The GTA is about buying a stock and hoping it increases in value, while southern Ontario is about buying a roof over your head as a solid investment (versus paying rent) for someone seeking the convenience of condo living.
Here's the Kitchener CTV link:
http://kitchener.ctvnews.ca/investigates/is-the-condo-market-in-waterloo-region-a-good-choice-1.1005991
Residential condos are popular investments. Vancouver, which boasts one of Canada's most active condo markets, has seen as many as half the units in some new buildings sold to investors.
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