Condo Checklist - Questions to Ask When Buying a Condo

It's more than just location, location, location when buying a condo. Certain rules and regulations set out in the condominium's documentation may surprise you. When buying a condo, ask the following questions:

• What are the rules about the number of people who can live in the unit?
• Can I rent out my unit?
• What percentage of units are rented out
• Can I have pets?
• Can I operate a business from my unit?
• What are the rules concerning decorating my condo, inside and out? (e.g., paint front door, hang up a wreath or door decoration, etc.)
• What types of renovations are permitted?
• Can I use a barbecue on my patio or balcony?
• Can I use patio furniture)
• Is there guest parking?
• What are the rules concerning use of common elements such as pools, exercise rooms and party rooms?
• What portions of my unit are covered by the condo corporation's insurance) What is excluded?
• What are the regulations regarding security of the condo?
• Is the corporation in good financial condition?
• Are there any legal claims or judgements against the corporation?
• What is the age mix of people who live in the condo? Is it mostly seniors, young adults, or families with children?
• Are utilities included in the monthly maintenance fees? If not, how much will I have to spend for them)
• What are the rules regarding cable/satellite television and Internet access)

Finally, don't forget that while location isn't the only important thing; it is probably the most important thing. Make sure your new condo is close to whatever neighbourhood amenities you'll require. If you are in a developing neighbourhood, check to see if an about-to be- constructed building will impede your view.

Source: Clear Communications Newsletter

Mortgage Rate Forecast - Low Rates to Continue

Low interest rates were a big reason why the real estate boom lasted as long as it did. And, the good news is, they have not changed much. Buyers now have a lot of listings to choose from and can still take advantage of low interest rates. Canada Mortgage and Housing Corp. predicts interest rates will likely remain within 25 to 50 basis points of their current levels into the first half of 2009. It says that rising bond yields may push rates marginally higher during the last six months of 2009. CMHC forecasts that the one-year posted mortgage rate will be in the 6.00 to 6.75 per cent range, and that five-year posted mortgage rates will be in the 6.50 to 7.25 per cent range. As you see on the chart, those rates are very low by historic levels.

A recent survey by the Canadian Association of Accredited Mortgage Professionals (CAAMP) says that borrowers who took out five-year, fixed-rate mortgages during the last year had an average interest rate of 5.59 per cent. Advertised rates during the same period averaged 7.18 per cent, showing that borrowers were able to negotiate an average discount of 1.59 per cent below advertised rates.

Half of the mortgages taken out during the last year were for amortizations longer than 25 years. Longer amortization mortgages account for 16 per cent of all outstanding mortgages. CAAMP says that most people were not aware that the government recently introduced stricter regulations on insured mortgages, but that once the changes were explained, 60 per cent supported the changes.
The CAAMP says 66 per cent of mortgages are fixed, but "there has been a pronounced shift towards variable rate and adjustable rate mortgages." The market share for these kinds of mortgages almost doubled during the last year, which suggests that consumers may be expecting interest rates to go down. CAAMP says that 84 per cent of the people surveyed are satisfied with their mortgages.

Source: Clear Communications Newsletter