Buying a Co-op Condo, Investing in One or Renting?

I recently got this question and it prompted a blog post on co-op condominiums, renting, investments and buying.Buying a Co-op Condo, Investing in One or Renting

It's important to understand that if you are looking to buy a condominium you need to know what's available out there. A condominium and a cooperative, also known as a co-op, are different.

Condos are multi-dwelling units that are privately owned and have shared common areas. A co-op is not considered real property. For those that buy into a cooperative, they become a shareholder in a corporation that owns the entire property. As a shareholder, you are entitled to exclusive use of a housing unit within the property. You don't actually own an individual property, just a portion of the entire property.

So, what's better?

It depends on the type of lifestyle and living arrangements you want. Because cooperatives are owned by a corporation, they usually have a tenant/owner board of directors. This board is responsible for meeting with, and approving or disapproving, new owners.

In a co-op, a large portion of the monthly maintenance fees are tax-deductible. Depending on where you buy into, you may or may not be able to invest in a co-op and then rent it out. That's usually not the ideal use of a co-op apartment. Many co-op buildings will not allow new shareholders to buy a property as a rental investment. They may have a rental policy but it may only apply to those who have already lived there for a certain amount of time.

On the other hand, buying a condominium may actually be cheaper than becoming a shareholder in a cooperative. If you are buying a long term rental, you don't typically need a 40% down payment.   With the right loan, most Canmore area condo buildings may be purchased with less down and you will not need to jump through the hoops that co-ops require. The board normally has to approve any new tenants, which can cause a snag for trying to get into a building that you really like.

Co-ops are definitely their own beast, that's for sure. They may work out for certain situations and may be ideal for some, but not everyone can benefit from owning a part in a cooperative. Most people prefer to own their own unit outright and pay an association fee for use of certain common areas.

There are advantages and disadvantages to either so it's important to do your research, ask, questions and do your homework on the association before jumping in. 

If you're interested in learning more about cooperatives in Canmore, Banff or other areas perfect for vacation homes and investments, browse the website or contact me at any time.

Potential Co-op Listings

263 Properties
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2
Beds
1
Baths
1,044
Sq.Ft.
2011
Year Built
2
Days on Site
A2003528
MLS®
Wow what a terrific starter home or a perfect place to retire located in the quiet community of Barnwell. This 1044 sq ft 1 level home has 2 good sized bedrooms, 4 piece bath, a fantastic kitchen...
4,764
Sq.Ft.
2022
Year Built
2
Days on Site
A1259274
MLS®
4 plex w/Garages in Clairmont under construction and slated to be finished SEPT 30TH! SIMILAR UNITS ARE RENTING OUT FOR $1750-$1800 per month with tenants paying all utilities. Each unit has its own...
$325,000
Neighbourhood: Evergreen
3
Beds
2F11/2
Baths
704
Sq.Ft.
2019
Year Built
3
Days on Site
A2003007
MLS®
Looking for style and function but still want to have money to travel? Look no further, 51 Ellington has it all. This modern townhome offers the fine finishes and fixtures you ll want to show off...
$575,000
Neighbourhood: Alpine Park
3
Beds
3
Baths
1,550
Sq.Ft.
2023
Year Built
3
Days on Site
A1259085
MLS®
NO CONDO FEES! Why not be close to downtown Calgary as well as the Rocky Mountains. The Haley by multiple award-winning Genesis Builders is located in the newest SW Calgary community of Alpine Park...
$459,000
Neighbourhood: Cityscape
3
Beds
2F11/2
Baths
1,256
Sq.Ft.
2015
Year Built
3
Days on Site
A1258850
MLS®
Why rent when you can own this fantastic open concept, tastefully designed, 2 storey townhome situated in Cityscape! Located in a family-friendly neighborhood within walking distance to transits,...
$175,000
Neighbourhood: Varsity Village
2
Beds
1
Baths
693
Sq.Ft.
1981
Year Built
3
Days on Site
A2003510
MLS®
Are you looking to get in to the market? With a little sweat equity this may be just the home for you! If you're looking to get in to the rental market or for a reasonably priced property to flip......
$468,100
Neighbourhood: Homestead
5
Beds
3F11/2
Baths
1,105
Sq.Ft.
2023
Year Built
4
Days on Site
A1258759
MLS®
Premium fee simple Townhome currently under construction with a Spring Possession. This home has NO CONDO FEES and is being built in the new development of Homestead. It is a totally finished end...
$379,900
Neighbourhood: Prairie Creek
3
Beds
1F11/2
Baths
1,193
Sq.Ft.
2002
Year Built
4
Days on Site
A1258819
MLS®
Welcome to this +1,192 total SQFT UPDATED HOME with 3 total bedrooms, 1.5 bathrooms, OVERSIZED TANDEM DRIVEWAY, customizable basement AND fully fenced, nicely landscaped backyard, located close to...
$125,000
Neighbourhood: Palo
3
Beds
1
Baths
931
Sq.Ft.
1977
Year Built
4
Days on Site
A1259069
MLS®
Affordable home for the first time buyer or one to add to your revenue portfolio! No Condo Fees! This 3 bedroom, and 4 piece bath unit has new flooring and paint PLUS a new Hot Water Tank, Washer and...
$469,900
Neighbourhood: Homestead
4
Beds
3F11/2
Baths
1,244
Sq.Ft.
2022
Year Built
6
Days on Site
A2003114
MLS®
Welcome to A BRAND NEW TOWNHOUSE, never occupied with NO CONDO FEE! Built with PARTNERS, a WEll KNOWN BUILDER! in the new community of Homestead in NE| 1224 sqft total in Main and Upper Floor|...
$249,000
Neighbourhood: Downtown Lacombe
2
Beds
2
Baths
1,070
Sq.Ft.
1991
Year Built
7
Days on Site
A1258811
MLS®
Looking to downsize the yard work while still having lots of living space on the inside? This great bungalow style townhouse with single attached garage is perfect for the single person or empty...
$499,900
Neighbourhood: Seton
2
Beds
2
Baths
1,250
Sq.Ft.
2021
Year Built
7
Days on Site
A1258844
MLS®
*RARE - QUICK POSSESSION*BEAUTIFUL JAYMANBUILT NEW HOME*SOLAR & SMART TECH*NO CONDO FEES*PARKING FOR 2 CARS*This lovely multi story townhouse features a nice open floor plan that flows smoothly into...

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