As a Vancouver strata management company, we tend to see a lot of strata buildings throughout the lower mainland. Some are great, but unfortunately others are not so good…
Buying a strata property can be quite complicated, as you’re not only buying your individual strata lot, but you’re essentially buying into a percent of a strata corporation.
Here is a list of the top 5 things to watch out for when purchasing a strata property
1. Not enough cash in the CRF. Sometimes this doesn’t mean anything, especially if the strata just recently completed a major renovation and depleted the CRF to do so, but be sure that there isn’t another cash call coming down the road.
2. Many strata buildings built in the 90’s are now due for an elevator replacement as they typically only last 25-30 years before requiring replacement. An elevator replacement can easily cost $500,000.
3. Building envelope; if your strata building was built in the late 1980’s or early 90’s, and hasn’t yet been rainscreened, then buyer beware! This could easily run $1-$2m, and could cost each individual strata lot owner $40,000- $50,000. If they find rot when redoing the building envelope, be prepared to shell out even more!
4. Plumbing pipes. Copper pipes will eventually need to be replaced due to leaks, and this can easily run $10,000- $20,000 per individual strata lot. Make sure that this has been done prior to you buying in, or get ready to fork out a few bills
5. Roof condition. Be sure to check the condition of your roof. Roofs will only last for 25-30 years, and can be very expensive to replace, not to mention the damage that an expired roof can cause to the building,.
As you can see, there are quite a few landmines that strata property purchasers can step on. Read our next article to find out how you can avoid making a costly mistake;
Looking for help purchasing a strata property? Reach out to our real estate and strata management company here.