Tuesday 10 November 2009
Condo Real Estate
Author and speaker Gail Bebee of No Hype-The Straight Goods on Investing Your Money fame yesterday sent out her e-newsletter (just go to her website to sign up) with a link to an excellent guide to condo buying, whether as an investor or an owner-resident, by financial advisor Kurt Rosenstreter. Having once been a condo owner and board member, I can vouch for the sensible advice he gives. If the rental costs don't even cover interest on a mortgage these days, let alone taxes and condo fees, as in one example he cites, then it sure is time to rent rather than own a condo.
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3 comments:
His article reeks of fear mongering about the scariness of buying into a condo over the assumed ease and safety of buying a stand-along house in a small town.
Annecdotes do not equal evidence.
I'm surprised you'd post such a blatently biased and useless piece.
Instead of promoting something that's written only to serve the author's own interests in scaring people away from condos, why not link to an article that actually outlines some concrete red flags to look for or things to consider when someone's looking at a condo purchase for a primary residence (what do the last 2 years of condo board documents indicate about the way the building is run) or an investor (what are the CMHC/CRA guidelines and recommendations for purchasing an investment property)?
This advertorial you linked to instead? Useless drivel. I'm disappointed.
Hi Jen,
Guess I read the article differently than you. It appears to me to say to think of the possible downsides. During the time I was on my building's board, we had to fix the parking garage - ding! $1500 each (26 years ago) after the reserve fund was used up. Still, I really enjoyed living there and might do it again, following the due diligence which you allude to.
Of course these things happen to any building, which is why it's important to exercise due diligence.
But the tales of woe and special assessments the author write about are never contrasted with the equally devastating troubles one can face buying a house that's not been maintained, or had some DIY improvements that weren't performed with a permit (or to code), or suffers from some other unfortunate happening like a tree blowing down.
My complaint is not that he's saying "trouble happens in condos" - it's that he seems to imply that trouble ONLY happens in condos - not that trouble happens when people aren't diligent and proactive.
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