Condos less work, but comparable expense

There are two condominium markets in St. Albert and in both ends of the spectrum – lower-priced units and higher-end units, there is a shortage, which tends to send would-be buyers into Edmonton. Last month 14 condos sold in St. Albert and this week there were 46 units on the local market, but the actual number of choices available for potential buyers is limited.

“Of those 46 on the market, 32 of them are under $300,000 and 14 are priced more than $300, 000,” said Re/Max realtor Mark Cassidy.

The average selling price for a condo in August was $256,649, but with only 14 sales, it’s hard to gauge such a number, since one sale of a higher-end property could skew the figures. Similarly, if one condo/apartment sold for less than $200,000, the average would be lower.

Condos remain attractive options for first-time buyers and investors, and are in demand, said Don Cholak, also from Re/Max, who explained that the problem is finding a suitable property for those clients.

“There aren’t enough lower-priced condos on the market here. Find me a newer – less than two-year-old condo, in St. Albert in the $200,000 to $240,000 range. There aren’t any. But there are lots in Edmonton so people are forced to look in West Edmonton,” Cholak said.

Many first-time buyers, who may think of a condo as a good potential starter home, become discouraged once they understand the cost of the condo fee. The older the condominium complex, the more likely it is that condo fees will be higher, since the condo board will need to set aside more money for upcoming roof or other structural repairs.

“It’s no different than an older house. You need the same maintenance work but you have to analyze all your monthly costs,” said Cholak.

As a rough estimate, Cholak explained that on an older 1970’s-era condominium, priced in the $250,000 range, the condo fee could be approximately $400 per month, which an owner would have to pay on top of mortgage payments. Taxes could add a further $100 per month.

“So right off the hop, you’re paying $500 per month, on top of your mortgage. And taxes in St. Albert tend to be a bit higher than Edmonton,” he said.

The established home-owner, who may be looking for a lifestyle change, will still be price sensitive, at the same time as he/she looks for newer upgrades in a condo, which may not have been available in their older house.

“You don’t see those condos more than $300,000 come on the market very often,” Cholak said.

Whether a condo is brand-spanking new, or older, would-be buyers should do some serious research to protect their investment.

The Condominium Act regulates how much money the condo-board must keep in reserve.

“You should check the minutes of the board meetings, the condo plan, the reserve-fund study and the insurance coverage,” said Jon Hall, a spokesperson for the Edmonton Realtors Association.

A buyer can protect himself even when purchasing in a brand-new condominium complex that has yet to be built, Cassidy said.

“Always review the condo association documents. If there is no association, you can ask that your deposit be held in a solicitor’s trust account. So if the builder fails to meet his part of the agreement, it will be returned. Anytime your money is in someone else’s hands, you have to make sure there is an agreement to protect it,” Cassidy said.

But once the dollars and cents are in place, there are strong enticements to condo living, Cassidy said.

“Most people want less maintenance. Someone else looks after the maintenance. There is a fee for that,” Cassidy said.

Cassidy explained that the city’s economy and demographics seem to point towards an upcoming increase in condo sales.

“Right now, we are at the tail end of the season, but I think there is less available on the market in the lower-priced units and in the higher end, over $400,000, there are only three properties for sale in St. Albert,” he said.

“It’s all about lifestyle,” agreed Jasmin Matias, a sales rep for Valencia on the Park, which has 39 new townhouse condo units for sale ranging in price from $322,000 to $400,000.

“It’s pretty nice to come home, sit on your patio chair on the balcony and pour yourself a glass of wine, without having to worry about the yard,” she said.