Buying a Condo-Who's Running The Show?
When buying a condo, we are all seduced by the decor, the ambiance, the view, and other visual effects, when we should really be checking something else that is not visual!
The Strata / Building often plays a very nondescript part in the whole process of choosing a condo, - especially for first-time condo buyers. However, the strata can play a very large part in using up your finances if you hit an unlucky situation after moving in.
One of the important factors would be 'who is running the show?' In a very small condo complex it may be run by residents, but a professional management company is preferable, especially in a condo of any size.
Professional management companies do charge for their services, but they can often save this fee by obtaining lower quotes for repairs, because they will use the same company many times. There is also less chance of the company using their influence on resident votes, so they may be construed as more fair. Finally, it is a business to them, and it the strata will be run as such, instead of as a part-time rush before each meeting is due!
Always ask to see the rules of the strata, the financial report, the by-laws and the meeting minutes of the last 2 years. The conditions, covenants and restrictions will affect your lifestyle, so make sure they 'fit in' with it.
The financial report will tell you if there are any big increases in the fees coming up, or if there are any 'emergency' fees due soon. This raises the important question, what will happen if there is a big emergency? How is it paid and how much money is in the contingency fund?
Once you have ironed out all these questions, you can consider whether you would like to get a professional inspection done. These inspections include the common areas as well as the condo you are interested in. Once all these precautions are in place, you will feel more secure to go ahead and make an offer.