How to Buy a Condo in British Columbia
British Columbia is Canada's playground and considered the most desirable place to live in the country. In 2010, Vancouver was recognized as one of the world's most livable cities by the Mercer survey. Property prices are high. According to TD Canada Trust, the benchmark price for detached homes in Vancouver was close to $800,000 in 2010. As a result, most home buyers in British Columbia opt for condominiums that provide a more affordable lifestyle.
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Instructions
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Consult with one or more lending institutions. A loan officer will examine your total family income and debts in order to determine the size of mortgage you can reasonably carry. He will also describe the two types of mortgages available in British Columbia. A conventional mortgage allows borrowing up to 75 percent of the purchase price of the home. A high-ratio mortgage allows borrowing of more than 75 percent of the purchase price, but the borrower must pay a mortgage default insurance premium.
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Find a real estate agent who specializes in condo sales. If you are new to the province, ask friends or colleagues to recommend an agent. Obtain a copy of the Strata Property Act, which was introduced by the provincial government in 2000. This act outlines specific responsibilities for developers and unit holders of all strata properties---lofts, apartment units, townhouses, half-duplexes---in British Columbia.
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Decide on a location. Do you want to live in downtown Vancouver and enjoy the amenities of city life or do you want to buy a less-expensive condo in a nearby community, such as Richmond? If you decide to commute, check all transportation alternatives. A short drive on a Sunday afternoon could easily become a stressful daily commute. Alternatively, you may be looking for a retirement condo in Nanaimo or on Vancouver Island.
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Ask questions. As a condo owner, you will be paying a monthly strata fee for common area maintenance. Find out what services or utilities are included in this fee. Will you be required to pay additional fees for using any of the facilities, such as the party room? Is the property managed by a company licensed by the Real Estate Council or is it self-managed by the owners? Will you be permitted to rent out your condo to a tenant? Are pets allowed?
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Make an offer. Consult with a lawyer, notary public or real estate licensee to ensure that you understand all the details. The seller may accept, reject, ignore or make a counter-offer. Remember, this is a legally binding contract and both you and the seller will be bound by the terms of the agreement.
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Budget for the closing costs. There will be last-minute costs, such as legal and appraisal fees, moving expenses and home insurance to pay before you move into your new home. In British Columbia, the provincial government imposes a property transfer tax which must be paid before ownership can be transferred to you. Contact the Property Transfer Tax office in Victoria for more information. If you purchase a newly constructed condo, you may be subject to the harmonized sales tax (HST) on the purchase price. Contact the Canada Revenue Agency for more details. See Resources for more details.
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References
Resources
- Photo Credit sobe condo skyline image by Wimbledon from Fotolia.com
