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

131 Properties
Page 1 of 11
3
Beds
2F11/2
Baths
1,377
Sq.Ft.
2023
Year Built
1
Day on Site
A2023944
MLS®
Crosslink job 345B . This executive style 4-plex unit is located in the highly sought-after Whispering Ridge community. This stunning unit offers 3 bedrooms, 2 full bathrooms, a half bathroom, and a...
$259,900
Neighbourhood: Dover
2
Beds
2
Baths
1,000
Sq.Ft.
1970
Year Built
1
Day on Site
A2023513
MLS®
Don't miss out on this excellent fully developed Townhouse (no condo fees). It is well cared for and it shows! Pride of Ownership! There are two Bedrooms up (originally 3 Bedrooms) and many updates...
Open 2/8
2724 47 St S Lethbridge,  AB T1K 8J6
$363,000
Neighbourhood: Southgate
3
Beds
2F11/2
Baths
1,068
Sq.Ft.
2020
Year Built
2
Days on Site
A2022847
MLS®
Even better than new! This fully developed two story townhome in Southbrook comes with it ALL, and not a thing left to finish! This popular open floor plan has 3 bedrooms, 3 bathrooms, and plenty of...
1
Beds
870
Sq.Ft.
2012
Year Built
2
Days on Site
A2023693
MLS®
Rare riverfront property along Lesser Slave River 30 minutes east of the Town of Slave Lake is ready for your big ideas! With over a km of riverfront, and zoned Community Facilities, there are...
Open 2/11
3906 56A Street Close Camrose,  AB T4V 4L1
$264,900
Neighbourhood: Parkview
4
Beds
2F11/2
Baths
1,066
Sq.Ft.
1990
Year Built
4
Days on Site
A2023145
MLS®
Welcome to easy living! This Senior's Unit is 1,066 sq ft of living on the main level. There is ONLY ONE STEP into the unit or into the garage so this is perfect if mobility becomes an issue. The...
$499,900
Neighbourhood: Carrington
3
Beds
2F11/2
Baths
1,384
Sq.Ft.
2023
Year Built
4
Days on Site
A2023366
MLS®
Brand new, the 'Talo' floor plan built by Rohit Communities. Every detail of this Boho Chic interior selection home was designed with a purpose. Stunning elements like white hexagon tile backsplash...
$329,900
Neighbourhood: Metcalf Ridge
3
Beds
2F11/2
Baths
1,364
Sq.Ft.
2022
Year Built
5
Days on Site
A2022503
MLS®
Wow this Brand New townhouse is simply stunning! With 3 bedrooms and 3 bathrooms, it offers plenty of space for a growing family. The quartz countertops and full tile backsplash add a touch of luxury...
$329,900
Neighbourhood: Metcalf Ridge
3
Beds
2F11/2
Baths
1,228
Sq.Ft.
2022
Year Built
5
Days on Site
A2022515
MLS®
This Brand New End Unit 2-storey townhouse is a true gem! With its spacious 1228 square feet, you'll have plenty of room to stretch out and make it your own. The luxurious features such as quartz...
$299,900
Neighbourhood: Hampton Pointe
3
Beds
2F11/2
Baths
1,227
Sq.Ft.
2017
Year Built
5
Days on Site
A2021726
MLS®
This Beautiful Unit offers 1,267 sqft, 3 bedroom, 3 bath townhouse with a single attached garage. The open entry way greets you with plenty of natural light. Enjoy entertaining in the open concept...
3
Beds
2F11/2
Baths
1,401
Sq.Ft.
2023
Year Built
5
Days on Site
A2023195
MLS®
Waterford Brand New END UNIT Townhome! Under construction: Approximately 3-4 months to completion. The RAWSON, by Douglas Homes Master Builder, is one of the amazing plans available. This townhome...
$454,900
Neighbourhood: Cityscape
3
Beds
2F11/2
Baths
1,256
Sq.Ft.
2015
Year Built
5
Days on Site
A2023177
MLS®
Why rent when you can own this fantastic open concept, No condo fee 2 stry home tastefully designed and built by Mattamy homes, situated in Cityscape! Located in a family-friendly neighborhood...
$365,000
Neighbourhood: Hawkridge Estates
4
Beds
3F11/2
Baths
1,298
Sq.Ft.
2017
Year Built
6
Days on Site
A2022569
MLS®
Get the look of NEW for less! If you've been looking for a spacious home to call your own, this end unit in desirable Penhold is ready and waiting! Why pay the builder's prices for a half-done home...

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