The Red Deer condo market is less active than condo markets in larger centres. With less density downtown and the commute to each end of the city relatively short, property values through the city vary very little.
Condominium markets are most active in areas where population density is high and property values have skyrocketed. People want to live as close as possible to where they work and if 50,000 people work in a small area of many tall buildings you’ll find land value increase substantially nearby. Try and find a single family detached home close to downtown Calgary and the price can be 5 times higher than the same house 7 miles away. There might be a few people that can afford a single family detached home close to downtown in major cities but in most cases, people look for other solutions to living close by.
This is where we see a need for apartment buildings and condominium buildings. An apartment building is generally owned by one entity and leased to individuals. A condominium often shortened to condo in most Canadian provinces, is a type of living space which is similar to an apartment but which is independently sellable and therefore regarded as real estate. Condominiums are a solution to more people needing to live and own their own property close to the amenities they need.
Even though Red Deer doesn’t experience density issued that lead to more condominiums there is still a need, and more and more people are realizing the benefits they offer. The benefits of condo living? Someone else handles the outside work. One of the biggest draws of condo ownership is freedom from maintenance you might not have the time, desire or ability to tackle — like shovelling snow, mowing the lawn or repairing some components (heating, water…) and exterior structures and maintenance. Your monthly condo fees cover these services.
One concern people have regarding the purchase of condominiums is condo fees and rightly so. Condo fees are important to be aware of and scrutinize before buying and that’s where it’s important to have the right support and assistance.
Most people don’t understand how condo fees can often be more affordable than then the fees and expense incurred with normal home and land ownership. A breakdown of condo fees compared to the expenses owning your own home can be similar or lower, plus someone else can do the chores.
One example of a comparison often overlooked is taxes. The taxes you pay on a condo are often lower due to common ownership of the land. Another important comparison is the maintenance and replacement of major components. In most condominium ownership scenarios, for example, you won’t have to replace roofing every 10 to 15 years at $5000 – $10,000. You still pay for the roof replacement but you essentially pay in small instalments and it’s easier on the pocketbook. Often condos share a heat source that distributes through each suite and to maintain the source over multiple units is much less expensive than a separate furnace for each unit. To replace your home’s furnace can cost up to $10,000.
There are some interesting and cost-effective benefits to condo fees that get overlooked.
For a closer look at the benefits of owning a condominium and to make sure the condominium you like is managed correctly or in good financial order before buying call a condominium real estate professional.
Blake King is Red Deer’s condominium real estate Realtor® expert and he can be reached anytime at firstname.lastname@example.org or by calling (403) 350-7672