Dear Toni: We're retiring this year and are considering downgrading to a condo. We have started looking at both new and existing properties in the Vancouver and Victoria areas but are facing challenges with both options.

New developments are often only available in advance sales and the deadlines for completion would force us to move twice without guaranteeing how the properties would be managed for sale, rent until completion of the property and with few assurances of completion dates, or how the fees for long-term operation would be structured.

Existing buildings are more attractive; However, we find that most properties sell within days of listing, and it seems like realtors are more concerned about keeping shift fees down rather than considering the age of the buildings and long-term maintenance, to protect owners' investments.

Are there any standards or consumer rules that we could follow? As new buyers of condominium living, we want to avoid a sinking investment.

Karyn and Jerry W.

There are many existing buildings and communities that make excellent investments. They can be easily identified by reviewing the financial reports, investments, a depreciation report prepared by a skilled advisor or reserve planner, and the Strata Corporation's logs to see how they handle maintenance, planning, and financing for the future.

Although every building has different equipment, staff and maintenance requirements, an annual budget that includes all maintenance contracts for maintenance and operation is a key benefit. Active use of the depreciation report to plan future renovations and key maintenance components is a healthy sign of a well-managed property.

Low shift fees are problematic for shift companies as they often indicate a municipality that is dependent on special taxes. Special levies require a 3/4 vote of the owners at general meetings and many owners vote against a special levy due to affordability issues. The result of failed tolls is deferred repairs that only add to cost and damage, and the possibility of legal proceedings or CRT orders.

There is also a direct link between low shift fees, deferred maintenance and renewals, and higher risks for insurers. This translates into higher insurance rates and deductibles for Strata Corporations.

Buyers should always request copies of depreciation reports, engineering and environmental reports, minutes of annual meetings, statutes and rules of ownership, a copy of the shifts insurance policy, and a Form B information certificate, which also lists any legal proceedings or rulings against Strata Corporation . Read all documents and discuss any issues with your agent and attorney. This should help separate the well-managed buildings from the buildings at risk.

The new build is in some ways easier to manage as it enables strata Corporation to make the right decisions that will affect funding and future operations. Owners can directly influence their investments by joining and assisting the newly formed shift council and making decisions that will ensure a well-funded and planned operations plan.

Strata fees for new properties often start low in the first year because new builds include service contracts that are included in the warranty period and some developers attract low cost buyers. Plan to increase fees once all units are occupied and strata Corporation is fully serviced for operations and maintenance.

This can be influenced by insurance costs, personnel and consulting services for warranty audits, legal advice and warranty management, the commissioning of a depreciation report and operational requirements.

Any building made up of endless components will fail. Effectively managing and planning these issues, when they arise, is the real test of a well-managed property. Product failures and installations are often out of control; A well-financed property can, however, react without a significant crisis for the owners.

Tony Gioventu is the Executive Director of the Condominium Home Owners Association.

© Copyright Times Colonist

source https://seapointrealtors.com/2021/07/24/condo-smarts-existing-condominium-buildings-can-be-good-investment/

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