Want A Rec Property? Buy or Rent as Needed?

My wife and I have just returned from a short break up in the Sunny (with occasional rainy patches!) Okanagan. Still got to play a couple of rounds of golf - so stop complaining! While there we popped into a couple of open houses - display centres (yes I do this occasionally on holiday!) just to get a feeling for what a vacation condo - either apartment or townhouse/duplex would cost. Two issues everyone faces here - 1) is there a unit in one's price and expectation range that would work and then 2) most importantly - does it make sense to lay out the necessary cash (from resources or by financing - or a combination) to own this item. What are the real issues here? Unless you have lots of cash sitting in your various bank accounts, and you won't miss a mere $400/500K and the monthly commitment to Strata fees and the annual tax payment; the main consideration is, how much will we, our family and friends get to use this? I believe that this is the single most hazy factor in the decision and that most folk will admit, in hindsight, that they overestimated this. The second part of this question is "Will we want to spend almost all our future holidays here, or will we get bored and want more variety?" To mitigate against the underuse, there is the possibility of renting to friends/ acquaintances and even total strangers. Will that income be sufficient to offset your costs or, as the economists will say "opportunity costs". The third factor is clearly, How much appreciation will this asset have in the next few years, the next 8 years or the next 20 years? Are they still building lots of these type of units? Will they still be popular in the future (i.e. will there be a demand)? The alternative is to pay the $200/night or $400/night needed to rent as needed. This brings with it the flexibility of going somewhere else next time!!

BTW we did see one that took our fancy but when we weighed it up we felt that we would'nt get enough personal use (we obviously work too hard!!) and/or it would not carry itself from the rental proceeds (option to place in "rental pool"). So, we'll carry on thinking - like so many folk - "would'nt it be nice to have.......?"

Ready for a North or West Vancouver Condominium?

Lately, I have been chatting to a number of folk who have sold or are ready to sell the family house and move to the next step - apartment or townhouse. Never lived in a strata? What do you need to know? Here are a few things to think about. No specific order - here goes. How old is the complex? Not always the younger the better! - condition i.e. maintenance is paramount. If I live in one what is my responsibility and what do the "management folk" look after? How much does that cost per month? What is included in this monthly fee? Heat/hot water/ electricity/property tax/cable T.V.? Is the "manager" competent/do we manage it ourselves? Who gives instructions to the manager? Do I get involved? What big expenses are due for the complex? Roofs/re-siding/painting/refencing/ new boilers/elevators and on and on! Is the monthly fee enough? Has a good reserve fund been built up? Will I find that half my neighbours are tenants? What if the neighbour has noisy dogs/children? These are just a few of the considerations - brainstorming would double or quadruple the list. ...and what of the "soft" questions, like - am I ready to live in a "communal" environment? Can I get on with/see eye to eye with 68 new "partners? Whew - quite a lot to consider! Speak to an experienced Realtor; preferably one who has lived in strata as well as a detached home and one who regularly deals with the tricky issues regarding buying and selling this type of home. Call/e-mail me, I'd be happy to help. 604-988-7368 or alanskinner@shaw.ca