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

224 Properties
Page 1 of 19
$330,000
Neighbourhood: Country Meadows Estates
3
Beds
2F11/2
Baths
1,205
Sq.Ft.
2017
Year Built
1
Day on Site
A1220784
MLS®
This 3 bedroom 2 storey half duplex in the desirable community of Country Meadows is sure to impress inside and out. Nestled upstairs you will find a generous primary bedroom with walk in closet and...
$529,999
Neighbourhood: Rainbow Falls
4
Beds
2F21/2
Baths
1,640
Sq.Ft.
2005
Year Built
2
Days on Site
A1220314
MLS®
Lovely 2 storey house in the well sought community of Rainbow Falls in Chestermere! Lots of upgrades. with a double attached garage. Fully finished basement. Very well maintained. Ready to move in...
$199,777
Neighbourhood: Southwest Innisfail
2
Beds
1
Baths
1,183
Sq.Ft.
1987
Year Built
3
Days on Site
A1220813
MLS®
INNISFAIL UNICORN
Accessible bungalow with attached garage. Much sought after style and location. NO CONDO FEES!
Main floor laundry; spacious living room and dining room. Well appointed...
3
Beds
2F11/2
Baths
1,608
Sq.Ft.
1980
Year Built
3
Days on Site
A1220852
MLS®
Investors Alert!!! Welcome to this large bungalow with NO CONDO FEE. T Main floor features a living room, dining room, kitchen, 3 bedrooms upstairs, and a common bath. Basement is fully developed...
$309,900
Neighbourhood: Clearview Ridge
3
Beds
2F11/2
Baths
1,267
Sq.Ft.
2011
Year Built
3
Days on Site
A1219934
MLS®
3 BDR, 3 BATH SEMI-DETACHED 2 STOREY ~ ATTACHED GARAGE ~ SOUTH FACING BACKARD ~ Covered front veranda welcomes you and leads to a sun filled foyer ~ Open concept main floor layout complemented by...
$255,000
Neighbourhood: Indian Battle Heights
4
Beds
2
Baths
718
Sq.Ft.
2003
Year Built
3
Days on Site
A1218213
MLS®
Calling all first time home buyers and investors!!! This south facing 4 bedroom, 2 bath bi-level townhouse (NO CONDO FEES!) is a must see. You have an open concept upper level that features a vaulted...
3
Beds
1F11/2
Baths
1,165
Sq.Ft.
1990
Year Built
3
Days on Site
A1220949
MLS®
Conveniently located two storey town home offers perfect location of green space behind the home and in front of the home. This property offers off street parking by back alley access to your fully...
$299,900
Neighbourhood: Forest Heights
6
Beds
2
Baths
1,010
Sq.Ft.
1977
Year Built
4
Days on Site
A1217080
MLS®
Welcome to this well cared, over 1000 sq ft, Bi-Level, side by side half duplex in a great part of Forest Heights area, with a large and fenced backyard close to Schools, Shopping and a park. There...
$286,900
Neighbourhood: Varsity Village
4
Beds
2
Baths
844
Sq.Ft.
1981
Year Built
4
Days on Site
A1219996
MLS®
Easy revenue here with good long term paying tenants in place willing to stay. or just use it to live in with less expense and costs. The high rate of inflation is affecting all of us. Affordable...
$399,900
Neighbourhood: College Park
5
Beds
3
Baths
1,200
Sq.Ft.
2019
Year Built
4
Days on Site
A1213399
MLS®
Essentially brand new legal up/down duplex with superb tenants and conveniently located close to College, shopping, bus stops and downtown amenities. This Inception Homes built property offers modern...
$389,000
Neighbourhood: Sunset Ridge
3
Beds
2F11/2
Baths
1,186
Sq.Ft.
2013
Year Built
4
Days on Site
A1220547
MLS®
Move in Ready with a Quick Possession! This Jayman built 3 bedroom 2.5 bath home is Ideal for families, first time buyers and down sizers! The Open floor plan offers hardwood floors through out the...
$499,900
Neighbourhood: Evanston
4
Beds
3F11/2
Baths
1,178
Sq.Ft.
2014
Year Built
4
Days on Site
A1220584
MLS®
Hot New MLS(R) Listing Alert!!! Summer 2022 possession available. Convenient Evanston Location - Steps away from
the parks, pathways, schools, shopping, transit and located near the new exits....

Post a Comment