The Negatives on Buying a New Calgary Condo
It is easy to walk into a show suite and fall completely in love with a new Calgary Condo - but before you sign on the line for your new home condo ownership there are a few things that you should consider. While in a perfect world you would move into your condo and have nothing go wrong, but take it from a few condo owners over at the Bella Vista, they would agree that more research is required before you leap into any purchase.
By far the biggest risk is in the quality of construction. Even the best builders have large issues from one time or another. With a new condo you won't know for months or years after construction if your condo may possibly have major defects or issues, and once it is established it could be far too late. When you are buying an existing condo, any major issues are likely already being dealt with and you will be able to review current issues in the condo paperwork. With new condos, because they are new or to be built, there just isn't the detailed paperwork that you require to make truly informed decisions.
Project financing will only take place when the buildings have a specific sale ratio. Until that number is reached, the project could be cancelled at any time. It could take months, sometimes years, for all the required units to sell in order for the project to break ground. This could result in substantial delays in your possession.
Possession - it is almost always delayed. This could affect your interest rates and your qualification in the future. If rates go up while you are waiting for your new condo to be built, you might not qualify to close. Mortgage rates are only guaranteed for 120 days.
Title transfer - when the condo is completed and you move into your new space it is important for you to understand that the title will not be transferred to you until the building is 50% owner occupied. Without the title, your mortgage can not be registered or funded. You end up paying the interest payment until you receive title, but none of your payments go to your principal mortgage during this time. This could take months, to a full year, so it is important to know that you could basically be renting your own condo, while waiting for the appropriate occupancy for your title to transfer and your mortgage to fund.
There is no condo board established at this time and the builder acts on your behalf until they are finished the project. This is when the builder will approve things like large dogs in units just to get them sold, then later their "bent rules" are grandfathered and owners have to live with the choices the builders make to close the sale. They don't care so much about the buildings future they are about making sales.
Condo fees often go up after a management company takes over because the allocated fees that the builder assigns to the unit are not often enough. And again, they are there to sell units and a part of that is ensuring that the condo fees are affordable enough at least upfront to allow for the units to entice buyers.
If you’re looking for condos for sale in Calgary I can help you find one that suits your needs. If your looking to sell your condo in Calgary, get in touch with one of the best Calgary real estate agents around. I’m an award winning Calgary realtor with over 18 years of experience and excellent results for my clients. Please read some of reviews on Google and see the 5 star service I have provided and the 5 star reviews I have recieved.
Video: Calgary Condo at 40 New Brighton I Sold Fast And Effectively For My Client
Crystal Tost: Top 3 Calgary real estate agent and RE/MAX Realtor
Crystal Tost, Award Winning Calgary Real Estate Agent
I have a proven track record of successfully selling Calgary Real Estate since 1997. I have obtained many awards within the RE/MAX brand as shown below and recently won 2014 top 3 Calgary Realtor. I have been recognized in the top 100 agents with RE/MAX Canada, top RE/MAX Agents in Western Canada and the top RE/MAX Agents in the world.. As you can see, if you choose to work with me, you will be working with one of the best Calgary real estate agents.
Calgary REALTOR® Crystal Tost has been awarded the RE/MAX Diamond Club Award!
What is a RE/MAX Diamond Club Award? This is a Hall of Fame Award given to a RE/MAX REALTOR® who has earned in excess a substantial amount in commissions from selling Real Estate.
To receive the prestigious RE/MAX Lifetime Achievement Award, a RE/MAX REALTOR® must achieve all the criteria below:
- Earned in excess of $3 Million in paid commissions within the RE/MAX System.
- Completed 7 years of service with RE/MAX.
- Attained the RE/MAX Diamond Club Hall of Fame Award.
Crystal’s dedication to successfully help her clients in Calgary real estate has given way to her winning numerous awards you see above. Crystal Tost looks forward to achieving many more milestones in her real estate career successfully helping her clients and looking out for their best interests.