Is Condo Living Right for Me?
Before you decide if living is a condo is right for you, let’s discuss what exactly a condo or strata is.
What’s the difference between a Condo and a Strata?
Let’s get this one out of the way really quick: absolutely nothing.
In Canada, the provinces of British Columbia and Ontario refer to condominiums as ‘stratas’ - whereas throughout the rest of the country they are referred to as Condominiums, or ‘Condos’. The word ‘strata’ (borrowed from the geological term) was first used in Australia, to identify stacked buildings (apartments) with two or more ‘layers’. Over time, this word became used interchangeably with condominium, to identify a shared form of living.
The word Condominium comes from a Latin base:
‘Condo’: meaning together'; and
‘Dominium’: meaning to own, or right of ownership.
Put literally, condominium means the right of shared ownership.
So, why do BC and Ontario call them stratas? Mostly they just like to be fancy.
What is a Condominium?
A disarming number of people living in a condominium have no idea what that actually means. To borrow from one of my favorite condominium lawyers: “a condominium is a miniature test of democracy.”
You see, when you purchase a condominium you are not just buying title to a home, you are investing in a shared (or ‘common’) property. Precisely how much of that share you own, and what responsibility you have to that share, can change from condo to condo - but you will always own and share a portion of the condominium.
A condominium is also special form of non-for profit business. It’s got a budget, financial statements, an elected Board of Directors, and (usually) a manager. As Owners in a Condominium, you are also stakeholders in the corporation. A condominium is unique in that it is governed by it’s own legislation and regulations, as well as their own set of Bylaws, and various policies unique to the property.
These are the things condominiums all have in common… and it pretty much stops there.
Living in the right condominium is more than just understanding the investment, it’s choosing (or helping to create) a community you want to live in.
All condominiums are different
This is important, so I’ll say it again: Every. Condominium. Is. Different.
Don’t believe me? How about a real-world example.
Some time ago a builder (we’ll call him Bob) gathered some investors and broke land on a shiny-new condominium. Wasn’t tiny either, a 220 townhome style properties in a newer area of town. Nice looking homes, very affordable, and he didn’t skimp on the materials.
Well, turns out Bob ran into financing issues around the halfway point. Instead of pushing through as planned, Bob decided to ‘phase’ the Condo project. Basically, he took the one big project and split it down the middle into two separate builds. Neat, right?
The first ‘phase’ being nearly completed meant he could start selling those suites, and use that money to complete phase 2. Fast forward just about two (2) years later, the second phase was all built, and people were buying them like they were .25¢ lemonade in July.
Where am I going with this? Well, let’s step back and look at the bigger picture. Here we are, one big condo split into two. Each built only a few years apart, by the same builder, with the same plans, using the same trades, and the same materials. All in the same area of the city.
Same everything, right?
Five (5) years down the road and the two properties couldn’t be more different.
Phase A attracted a younger crowd of first-time home owners, and elected a Board to match. They liked spending money, but hated condo fee increases. This meant the first building was, due to beautifications and a lower condo fee, more attractive– but they were also spending outside of their reserve fund schedule, and would need a big budget increase in the future.
Phase B attracted investors (landlords), and a more mature demographic. They understood the value of long-term saving and took a methodical approach to spending. They didn’t change things quickly; they took it slow. Their budget increased each year with inflation, and the Board planned out projects a year or more in advance.
Same beginning, vastly different results.
Let’s recap!
What do we learn from this? Well, all condominiums are a unique form of business, and they all must adhere to strict regulative and legislative requirements, but every condominium will come with its own Board, and bylaws, and quirks, and problems – and people. It’s important to consider when you look at purchasing a condominium: that you are also purchasing into its neighborhood. Buying a beautiful condominium with great finances and a stellar Board will not console you when you discover its residents take umbrage with dogs larger than a Maltese, and you’ve got two big ol’ furry family members.
So, yes, condos are a business – but they are the business of people’s lives. If you plan on living in a Condominium, we encourage you to be engaged! Ask questions, look for ways to support your neighbors, your volunteers - and to find not just your home, but your place in that community.
A community is only as good as it’s people, after all!
Not sure if the condominium you are looking at is right for you? We’re happy to help review the documents and any special requests you have, to offer you detailed insight into the ins-and-outs of your particular property. Already living there, but struggling to understand what it all means? Drop us a line and let us know how we can help!
Thanks for reading!
Shaun J. Coles | Owner
SJC Document Reviews
Serving Canadians | In Condos
