Some potential downsides. The building you're discussing is being built by Pointe of View. (They might be calling themselves something different now, but it's the same company) So you're getting cookie cutter condos, with small floorplates, and the lowest quality finishes money can buy. There are probably very few units available at 130k, (their website is quite vague) and it's most likely the smallest unit in the worst location at that price point. So be very careful to understand how big the bedrooms are, and how big the living room is, and things like that, before you sign on the dotted line.
I'm pretty sure REIN principles are against buying pre-construction condos as well, but I'll let others speak to that factor, as I'm not totally firm on the reason for that.
I'm not saying it's not a good deal (they very well might be) just giving you a few things to look into.
Regards,
Michael
I'm pretty sure REIN principles are against buying pre-construction condos as well, but I'll let others speak to that factor, as I'm not totally firm on the reason for that.
I'm not saying it's not a good deal (they very well might be) just giving you a few things to look into.
Regards,
Michael
I always caution investors on purchasing new. New is not always good especially with the poor construction practices and project management of some developers and the deterioration of building specs as it is passed down through sub contractors.
There are many, many, many... did I say MANY, new condo buildings in and around Calgary that have had major mechanical, structural and building envelope issues. You do not hear about it in the media because condo owners/boards are smart enough to know to keep these issues quiet. They don't want a stigma associated with the building.
One of the first condos we bought in the early 2000s had an issue with the building envelope resulting in water penetrating the upper floor units. The problem did not surface until 3 years after the building was built. The developer, who was a reputable developer by the way, had shut down the corporation the condo was built under shortly after completion of construction. Condo board fought long and hard to get them to pay for the repairs; they agreed to pay for 50%. Condo owners and board did not what to take legal action as this would make it public and ultimately could affect resale so we decided to settle on the 50%. Owners paid the other 50%.
Our unit received a bill of almost $5000 (1 bedroom + den) others in the building received bills of up to $13,000. 95% of owners voted on a special assessment paid in full instead of increasing the condo fees (folks were concerned that the fees were high enough as it was, adding more would making it difficult to sell).
I felt sorry for the few that voted against the special assessment being paid in full... they could not afford to make the payment and it caused a lot of stress for them.
I have heard of many other horror stories around calgary. There is currently one unfolding on 17th Avenue SW. Building is barely 10 years old and there are assessments far exceeding $25K. Major water and mold issues.
Building envelope issues have really come to the surface the last few years with all the rain Calgary has been getting. Last summer was wet and alot of buildings discovered some major issues.
Be careful and make sure you have money in reserves. you just don't know.
There are many, many, many... did I say MANY, new condo buildings in and around Calgary that have had major mechanical, structural and building envelope issues. You do not hear about it in the media because condo owners/boards are smart enough to know to keep these issues quiet. They don't want a stigma associated with the building.
One of the first condos we bought in the early 2000s had an issue with the building envelope resulting in water penetrating the upper floor units. The problem did not surface until 3 years after the building was built. The developer, who was a reputable developer by the way, had shut down the corporation the condo was built under shortly after completion of construction. Condo board fought long and hard to get them to pay for the repairs; they agreed to pay for 50%. Condo owners and board did not what to take legal action as this would make it public and ultimately could affect resale so we decided to settle on the 50%. Owners paid the other 50%.
Our unit received a bill of almost $5000 (1 bedroom + den) others in the building received bills of up to $13,000. 95% of owners voted on a special assessment paid in full instead of increasing the condo fees (folks were concerned that the fees were high enough as it was, adding more would making it difficult to sell).
I felt sorry for the few that voted against the special assessment being paid in full... they could not afford to make the payment and it caused a lot of stress for them.
I have heard of many other horror stories around calgary. There is currently one unfolding on 17th Avenue SW. Building is barely 10 years old and there are assessments far exceeding $25K. Major water and mold issues.
Building envelope issues have really come to the surface the last few years with all the rain Calgary has been getting. Last summer was wet and alot of buildings discovered some major issues.
Be careful and make sure you have money in reserves. you just don't know.