Buying a Vancouver Condominium – Consult with a Vancouver Mortgage Broker

Buying a Vancouver Condominium – Consult with a Vancouver Mortgage Broker

Condominiums are a hot ticket item these days in the Vancouver real estate market. The condominium market is slightly different from the housing market as there are some extra things to keep in mind if you plan to go this route.

Like real estate, buying a condominium can be an excellent investment. You can buy it for yourself or use it as an upscale rental property, or even as a speculative venture.

However, the condo market does have some areas that require a potential buyer to use some caution before they buy. This means you have to engage in some due diligence and do your homework before you jump into the condo market. Here are a few tips to help you avoid falling into a potentially bad deal.

1. Know the Market and your Motivation for Buying

Be very careful in avoiding an over heated neighbourhood condo market where the prices could be over inflated. Make sure you aren’t being drawn in by the investment hype that might be surrounding new or proposed condo projects. Do some solid research on the condo market.

If you’re considering a proposed project that is yet to be built and are buying on spec, make sure you know the background on the developer especially if the project is a new one, and that the developer has some positive history and experience in the condo market.

2. Know the Area and the Surrounding Condo market

Make sure you understand the dynamics of the neighbourhood where you want to buy your condo. Also, make sure you know what future projects might be happening in your area. The last thing you want is to have an expensive view ruined by another high rise condo or apartment complex going up on the next block across from you. The surrounding areas can significantly affect the re-sale capability of the condo.

3. Understand the Numbers

Make sure you know the supply and demand of the condo market in Vancouver. Also, you should be fully aware of the tax implications of investing in the condo market. You should talk to an accountant who specializes in the real estate market. There can be costs or tax deductions of which you may not be aware and can end up costing you big time.

You should give some serious thought as why you are purchasing the condo. Your investment approach can depend if you are looking at the condo as a capital appreciation purchase or if you intend to use it as a rental property.

4. Don’t Overdue the Condo Makeover

As a condo is a serious investment, you also want to keep in mind that you will likely sell the property somewhere down the road. Although you will want to make improvements that reflect your taste, you have to make sure you don’t revert to any re-decorating extremes that could turn off prospective buyers down the road.

Bottom Line

A condominium is a great investment but should not be taken lightly as the condo market can be a somewhat more volatile than the real estate market. Take it from your knowledgeable Vancouver mortgage broker and be proactive so you go into this investment well informed and with your eyes wide open.

Consider a number of different scenarios on both the up-side and the down-side of the market so you are comfortable with having a range of options to choose from as circumstances change.