There are crucial factors that can affect your decision to buy Vancouver real estate. That’s why it is necessary to take the time to do extensive research because there’s no such thing as a one-size-fits-all solution.

When it comes to property ownership, reading the fine print can be a daunting and overwhelming job because you have to go into details. However, knowing the facts saves you the stress in the future, especially when conflict arises. 

Just because you have received a copy of the property title, does not mean that you are good to go. There is still some pertinent information and implications you have to be aware of. 

While there are different types of ownership, this article will focus on owning a strata condo and a freehold house. These terms may look foreign, especially for first-time property owners, so it's important to dig deeper into them. 

What is a strata condominium?

Strata condominiums are immensely popular in British Columbia because of their affordability and at present, there are more than 500,000 units that have been created. Condominiums have been initially built as a cheaper alternative to a single-family house. 

Today, it has become a more appealing option for all households taking 

Vancounver real estate market into consideration, though there are single-family homeowners that still have some reservations when it comes to this type of arrangement or ownership. If you are thinking about considering this option, here are other things you might want to look into. 

Pros 

1. Fewer worries about repairs and maintenance

Living in a strata condo gives you greater peace of mind because you do not have to think about landscaping and building maintenance. Someone will take care of them for you. 

As a condo owner, you'll need to pay for the maintenance fee, which is usually collected annually. So if your roof needs to be repaired, strata will cover the cost and get the job done.

2. Budget-friendly

Condominiums are considered entry-level properties and an ideal option for first-time buyers. However, it's also interesting to note that a condo has a smaller space. They usually have one to two bedrooms. 

3. Accessible location

Another benefit of living in a strata condo is its proximity to major urban centers. They are often located in cities with medium to high density or thickly populated areas where you get immediate access to transportation, groceries, malls, restaurants, and other commercial areas. 

4. Shared costs

Strata condos in Vancouver are built with spaces known as common property. This means that a certain portion of the complex or building is shared by all condo owners. Examples of common property include roof, amenities, pool and many others.

With that being said, any cost for the repair, maintenance, or utilities associated with using the common property parts of the condo will be shared by all owners. 

5. Access to modern amenities

You can live like a king or queen when you are living in a strata condo because of the accessibility of amenities like fitness center, pool, high-speed internet, and much more. It's similar to living in a hotel. 

There's also a great sense of community because of the opportunity to socialize with your neighbors. 

6. Security

Vancouver real estate condos have security cameras installed in common areas to capture suspicious activities or break-ins to protect condo owners. 

Cons 

1. Possibility of mismanaged funds

There are instances when stratas are not particularly aware of what they're doing, putting homeowners and their property at stake. There are two types of accounts that a strata council needs to handle: the contingency reserve account and the operating account. 

The funds for maintenance are taken from the operating account while the contingency reserve is dedicated to the strata's savings account which will be used for undertaking major projects. 

If these two accounts are mismanaged, property improvements will be elusive. 

2. Extra costs

If you want to spare yourself the headache of maintaining your property, you have to pay for the fees in exchange for comfort and convenience. Keep in mind that the fees are not fixed and still subject for increase when the building depreciates. 

It's necessary to pay extra attention to your maintenance fees to prevent the risk of being priced out of your strata condominium. 

3. Limited control

With areas considered as common property, you have little control if changes will be made because matters will be dealt with by the strata council. There is also a possibility of paying a portion of the project in the event it is not covered by the contingency fund. 

4. Special assessments

A special assessment is required when a contingency reserve fund is mismanaged or too low. So aside from paying your monthly maintenance fee, you'll also need to shoulder the additional fee, which can hurt your pocket as they can be anywhere between hundreds and thousands of dollars. 

5. Rules and restrictions

There are also rules and bylaws you need to adhere to as a condo owner. These restrictions may range from limiting the number of pets you can keep inside your property to the type of renovation you will undertake. 

If you're fine living by other people's rules then this won't be a problem. For others, following rules and regulations can be stifling.

What is a freehold house

A freehold house refers to outright ownership of land and house. The property isn't co-managed or co-owned by other owners. 

This means you're solely responsible for the repairs and maintenance of your property, including the taxes that come with it. Duplexes or semi-detached homes are examples of a freehold property. Here are a few advantages and disadvantages of living a in freehold house.

Pros 

1. More freedom

When you own a freehold house, you get to make some improvements anyway you want without worrying about rules and restrictions. 

2. Less fees

While you still need to pay for property taxes, you'll have less worries because you don't have to pay for the condo fees and other charges involved in living in a strata condo.

3. Greater value 

With the option to renovate or remodel your house, there's a greater chance of increasing its value. Since you no longer have to ask permission from a strata council, any project that you deem helpful in giving your property higher value won't be challenging to undertake. 

Cons

1. More expensive 

Unlike a strata condo that has smaller spaces, freeholds are costlier because you also have to pay for the land where the property is situated. Another factor that affects the price is the demand. 

If there's greater demand for freehold houses than condos, the price will also become higher. 

2. Additional repair and maintenance

While there's the freedom to remodel and renovate, you're still not spared from spending thousands of dollars for repairs or maintenance. If you need to replace your roof, you have to cover the total cost for the replacement. 

3. Lack of total control over neighbors

Though you enjoy complete autonomy as you follow your own terms, seeing your neighbors doing outrageous things with their property will be something you are no longer in control of as there's no condo board that will take care of the situation. 

Conclusion

Deciding to purchase Vancouver real estate should not be a hasty decision as it involves a few considerations and extensive research. Take time to weigh the pros and cons and ask yourself whether or not these options are aligned with your needs and budget. 

While both strata condo and freehold house have their own advantages, the decision in investing in Vancouver real estate will still be based on your long-term needs.