What is Reddit's opinion of Never Buy a Condo and Other Things I Have Learned from the Practice of Law?

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I own a condo at Bishops Landing; I have some advice.

The first thing you should do is go to CMHC and read their reports and publications. They have a lot of stuff on buying condos and the Halifax market in general. The last time I read a report was about 4 years ago when i bought my place and what I took away from it was that housing starts are up and expected to increase supply, keeping supply/demand balanced. The one exception is on the peninsula, where development is slow and there is no land for sprawl.

My take on the market is that Nova Scotia has an aging population who will move from homes to condos, but really it is a question of demand and supply as to whether developers meet that demand. In a rising interest rate environment, I expect that will slow development but it also slows the real estate market. Also, students are choosing to stay, driving some demand, but mostly for condos as rentals.

Owning a condo is not for everyone. Make sure you read minutes of previous condo association meetings. Bishops Landing has a very professional board, property management company, etc, and the meetings are attended by mature adults and very business-like. My father-in-law's former damn disaster of child-like owners doing stupid things that eroded property value. Biggest risk of owning a condo is a special assessment that could mean you suddenly have to write a cheque for a big number to cover some unexpected event. You need to be prepared for that, but Nova Scotia us great because there are laws that require reserve and contingency funds to be evaluated and supported by an engineering study, so you don't get the "Surprise! The roof needs replacing!" email.

Cost is also a concern. Some condos have horrible efficiency and that translates to high fees. Others have lots of benefits that translates to high fees. I don't mind high fees, because I get 24x7 concierge, pool, gym, car wash, guest suite, etc. Some condos have similar fees but offer nothing; they are just aging and expensive to maintain. Make sure you do an apples-to-apples comparison on fees. Buildings with higher fees have lower perceived value and therefore lower prices, so sometimes a bargain unit is actually expensive in terms of total cost. Finally, taxes for condos in Halifax need to be reformed - you pay twice what a comparable apartment building would, and nowhere else in the country does that.

Finally, there is a good book called "Never Buy a Condo and Other Things I Have Learned from the Practice of Law".

I always see a lot of hate for condos, with most people seeming to object to paying mortgage and rent at the same time. You don't really buy a condo for the investment return, although that is still possible.

Condos are a lifestyle choice. You get shared amenities, such as pool, weight room, concierge, etc. You don't have to deal with things like snow removal, landscaping, exterior maintenance, taking trash to the curb, etc. You can go away for a month and just lock the door behind you. There is a value to be placed on that kind of convenience.

I own a condo at Bishop's Landing and have no regrets, although I rent it out. Tax plus condo fees are close to $1200/month, which is not that far off from what you might pay in rent elsewhere, but Bishop's Landing is a pretty high-end spot. Like any other real estate investment, location, location, location, but you'll burn out your brain trying to make the math work as an objective investment choice.

There are a few things you should do before buying a condo. The first is read Never Buy a Condo and Other Things I have Learned from the Practice of Law. If you read that and still think a condo is a good idea, there are a few things you absolutely must do. The first is to review the financial health of the condo corporation/association and make sure it is financially sound. As a condo owner, you have shared ownership of the complex. Any major expenses that exceed the reserve and contingency funds of the association, or that the board deems should be paid outside of those funds, comes back to you in the form of a special assessment. Can you afford a $6000 bill from your condo association because the building's siding leaks? If not, you need to reconsider. Reserve funds, by Nova Scotia law, must be supported by an engineering study, so you are relatively well protected in Nova Scotia compared to elsewhere. I would choose a building with a healthy reserve fund and recent study. The second thing you need to do is obtain the meeting minutes from the last few AGMs or association meetings and see what kind of neighbours you are buying. The folks at Bishops Landing are generally well education, smart, commercially-minded, reasonable individuals. The folks at my Father-in-law's condo are the polar opposite. For example, the pool rules had more legislative activity and controversy than US same-sex marriage laws. They decided things like closing the pool for a week as punishment because Martha had both grandkids in the pool when the rules clearly state one guest per resident, then naming and shaming Martha as the cause of the pool closure, was a perfectly reasonable action.

I also dislike when people say the market is "hard" or "soft". It is a market, and prices will always rise or fall to match buyer and seller. The only time you lose or gain in real estate is on entrance and exit. If you are moving to a new place, price doesn't matter. If your condo is suddenly worth 1/2 the value, that doesn't matter provided you are selling to buy another place, because the other place will also be selling at 1/2 of its value. If anything, entering the market when it seems stalled or undervalued is the best strategy.

Regarding the local Halifax market, on the peninsula there is a ton of disparity in condo fees between individual buildings. Inefficient heating/cooling, high-maintenance finishes, structural deficiencies, excessive shared space, can all lead to higher condo fees. You can compare on a per square foot basis but make sure you view that through the lens of what shared services you get for the money. Fees are tied to building amenities and sometimes you get what you pay for. For example, at Bishops Landing, there is a grass lawn, pool, hot tub, weight room, concierge service, on-site maintenance guy, car wash, guest suite, etc. The fees for some of the ones on Spring Garden Road and surrounding areas are crazy expensive with few amenities while Bishops Landing is one of the most cost effective in its class. Rising feels can kill the resale value.

You may also find this link helpful: http://www.downtownhalifaxcondos.com