From the Olympic Village and Coal Harbour to the sky-high condo towers of Burnaby’s Metrotown district, strata properties are as ubiquitous a part of the Vancouver landscape as bike lanes, over-priced coffee shops and Lululemon.
But if you’re thinking about buying a strata property as either an investment or your primary residence, there are several special considerations you need to keep in mind before, during – and after – you sign on the dotted line.
What is a strata property?
Unlike “freehold properties” (where an individual owner owns the entire land and property outright), a strata property is any form of housing where the individual units are owned separately, but the common areas and assets are owned collectively by the strata corporation (which is generally made up of all the individual unit owners).
When most people think of strata living, they tend to picture high-rise condominiums. But strata properties can be any development where the ownership of – and responsibility for – the common elements is jointly owned and managed by all the individual unit owners. This can include mid- and low-rise buildings, townhouses, and even single-family detached homes.
Strata buildings are particularly popular in the Lower Mainland, where space is at a premium and the cost of housing seems to keep going up year after year. In B.C. alone, an estimated 1.5 million people call a strata unit home.
The pros and cons of strata ownership
Strata properties can offer both homeowners and investors a wide range of benefits, including:
Lower costs per-square-foot than comparable freehold properties.
Fewer worries about (and time spent doing) repairs and maintenance.
Greater security and peace of mind.
Convenient locations that are often close to transit, services and urban areas.
Access to shared amenities like gardens, pools, gyms or meeting rooms.
A sense of community with your fellow co-owners.
On the con side, strata owners are usually required to pay monthly strata fees to cover the maintenance and repairs of the common areas, keep their buildings running properly, and contribute to their overall management and operation. These can run anywhere from a few hundred dollars to $1,000 a month or more.
In addition, to ensure harmony between the owners, stratas also generally have rules or bylaws in place that limit what changes you can make to your unit, as well as things like whether or not you can smoke in your unit, how many pets you can own, how much noise you can make, where you can park, and whether you can use your unit for short- or long-term rentals.
As a strata owner, you’ll be responsible for making sure you, your family, and your visitors or tenants follow all these rules to a T. So the more you can find out about the rules (and whether or not you can live with them) before you buy, the happier you’ll be with your new home.
Is strata living for you?
The biggest decision you need to make before buying a strata property, is the question of whether or not strata living is for you.
If you hate spending your weekends mowing the lawn and love the freedom of being able to jet off to Paris or Cancun for two weeks at a moment’s notice, then a strata property might be exactly what you’re looking for.
But if you hate having to follow someone else’s rules, pay those pesky monthly fees, or compromise on what you can or can’t do with your home, then you may be better off sticking to a traditional freehold home.
What to look at before you buy
Once you’ve decided to buy a strata property, in addition to all the usual things you need to take care of or confirm when purchasing a home, there are a few unique considerations you need to think about before you make an offer.
First, talk to your REALTOR® to get a feel for how the strata is run, and what your future neighbours are like.
Figure out exactly how much your monthly strata fees will be, what they’ll cover, and whether there are any one-time special assessment costs coming up soon to cover any major upgrades or repairs.
Find out if there are rules limiting things like the number of rentals that are allowed or any resale restrictions that could affect your investment, or impact your use and enjoyment of your new home.
Make sure the common areas have the features and amenities that are important to you, like a fitness centre that’s large enough to work out in, a 24/7 concierge, or EV chargers in the garage.
Most importantly, be sure to review all the latest strata bylaws, declarations, rules, financial statements, governing documents, council minutes, insurance policies, depreciation reports and other strata documents before you make any final decisions.
These documents not only tell you about the strata’s rules and regulations. They’ll also give you a clear picture of how the strata is being run, what kind of physical and financial shape it’s in, and whether or not it will be a good investment for you, your family, and your bank account.
Still not sure?
If you’ve never owned a strata property before, strata ownership can feel a little daunting. So if you have any questions or concerns – or just want to have a chat to figure out if strata living is right for you – contact us to schedule your free call or coffee today!