The Board of Directors is made up of volunteer unit owners who will be elected by the members of the Condominium Corporation. Aside from the volunteers, a typical membership of the board will come from a representation of a group of unit owners. For example, for a group of 4 or more units there should be at least 3 members that will be elected to the board and 2 persons for a group of 2 to 3 units. In cases for a newly built condominium, the Declarant will appoint a temporary Board of Director until such time that permanent members are in place. As such, the Board of Directors will act on behalf of the Condominium Corporation.
A Condominium Corporation is composed of all unit owners of the condominium complex who manages the condominium’s property and business affairs. It is bounded by the regulations set by the condominium’s by-laws where some of its functions involve the setting up of Condominium Boards of Directors, managing and maintenance of common areas and the preparation of an annual budget. It is also tasked to collect the common fees which will be allocated for the common expense of the condominium while ensuring that a percentage collected will be placed in its reserve fund. It also conducts regular meetings with all unit owners while making sure they abide with the Condominium Property Act and other promulgations set by its rules and by-laws.
Since condominiums are built on a large complex like buildings, the only property that you have personal ownership is your own unit while you share ownership through a percentage of the common property along with other unit owners. But there is the so called common area that everyone in the building shares. Some examples of this common elements include hallway, elevators, pools, the septic system, the land of the property, exterior walls and other general structures like windows, roof, and more. In the common area, you can have exclusive use rights where it gives you the right to use it exclusively provided proper arrangement has been made with the management. An excellent example of this exclusive use is the parking area.
Most, if not all, unit owners said group decision-making is the most difficult part. You cannot just impose your plans and suggestions to the common areas as it needs to be approved by the majority of the unit owners. Your individual decision can make way to the decision of the group but in some instances, not everybody will agree to it. Privacy can also be an issue where living in a condominium community can greatly be affected by your neighbors where noise and bad smell are the common complaints. This also goes with the complexity and diversity of the occupants of the unit where it can bare different personal characteristics that you have to live with.
Since most condominium complex is located in urban centers, owning a condominium will give you this big opportunity to easily reach major establishments in the downtown or waterfront areas. A lot of condominium unit owners enjoy their life as they are not primarily responsible for the daily maintenance of the common areas like snow removal or lawn care. Others said they could travel for a period of time knowing at peace that the exterior of their property is being taken care of. Essentially, your primary concern is only the dynamics of your condominium unit’s interior as compared to a full house where you need to take care of both the inside and outside of the house.
A condominium is a type of home ownership where a large building or complex is divided into manageable units for individual ownership. Since you will be using a single land, condominium owners are legally bound to agree for a shared ownership and maintenance of the property in general. You have to remember though that despite the shared ownership, you are the primary person responsible for the maintenance of your own unit. The practice of condominium management is also adopted in townhouses, apartment style units and cottages, warehouses, a combination of both residential and commercial units where in the new legislation can include the land itself and not just the building or its associated infrastructure.
Yes, and there is one amendment coming in. This is pretty normal especially if the industry keeps evolving where condominiums are becoming a favorite choice of home ownership. Proposals that are contained in the draft amendment coined as the Condominium Property Amendment Act which had already received Royal Assent in December 2014 includes a multi-phase implementation plan. The first phase focuses on new measures to protect buyers of new condominiums which in turn benefits to an enhanced purchase disclosure at the point of sale including date of occupancy, a realistic operational budget and condominium fees. Second and third phase will focus on the proclamation of amendments to the Real Estate Act designating the local Real Estate Council as the Regulatory body for Condominium Management. The fourth phase will focus on the creation of a Condominium Dispute Tribunal.
Setting and streamlining in consonance with other Canadian legislation, the new Condominium Property Act will provide condominium developers and corporations, including its directors and officers, with better tools in managing the property corporation. Such features of this new legislation exhibits increase in corporate transparency, fund accounts for mandatory reserve, better and improved financial reporting and the distinct requirement for reserve fund studies in the case of large corporations. It also features a 10-day cooling off period that will help potential buyers to evaluate the documents and its rules encompassing the condominium project that they will become a part of.
This new law particularly termed as the Property Condominium Act c16.05 replaces the old legislation on condominiums particularly the Condominium Act of 1969 which now focuses on the protection of consumers, through a management and operational framework which deals on the different stages of condominium sale which includes the approval, purchase and sales process. This was approved and taken into effect last January 1, 2010. Meaning, that old condominiums and condominiums that were built before January 1, 2010 will still be administered by the old legislation. All condominium units that are now sanctioned with the new law will be directly administered by the Director of Condominiums.
An independent assessor that has the accountability with the government will do the assessment of the property and these assessors will look into several factors to determine the market value of your property. The factors will include age and condition of the property, location, replacement cost, size and topography. Aside from this, the general shape of the land also affects the value where a perfect square shape commands a higher price. Lastly, the value of your property should also match, or within a reasonable difference, with properties that are nearby and similar in nature.
Because people have many different needs, housing structures, and types of ownership have developed over the years. The type of housing which is most suitable for you at the current time will be determined by your individual requirements and your level of income. For instance, a single-family, detached home is one in which has no common walls with any other residential structure and is located on its own land with front, rear, and side yards. A semi detached home consists of two single-family units joint together by a common middle wall and is sometimes called a side-by-side duplex. A townhouse in British Columbia is usually defined as one of a group of dwellings, most often two-storey joined by common walls of which each has its own entrance from the outside.
This is a delivery model, which has demonstrated its benefits to the users because they must ensure the best value for users, sound stewardship and quality of service, oversight and custodianship of owned and leased assets. The management contracts represent an effective approach, which enables them to meet their objectives. These objectives are generally met by ensuring that the strategic management of property portfolios are effective and, because of the use of established industry approaches, such as the enhanced use of capacity to set high service delivery standards. It’s best to check out the various providers of services before deciding who meets your needs best.
For most investments, a legal entity known as a limited partnership will be created that holds the title to the property. Investors will become unit holders of the limited partnership and a legal entity belonging to the sponsor acts as a general partner. Limited partnerships are normally tax efficient vehicles because the income flows through to unit holders and they also have liabilities, which are limited in relation to their equity. Legal or tax advice should be obtained from your advisor. However, generally speaking, because of the flow through of profits or income is taxed directly in the hands of the unit holders instead of being taxed at the corporate level, followed by further taxes on dividends.
Both of these vary depending on the circumstances. For instance, crowd funding regulations from the Ontario Securities Commission used to be $10,000 and are likely to be reduced to $1,000. In terms of length, you should remember that real estate investments generally are regarded as long-term investments and the length will be dependent on the project in which you invest. Most investments will generally have an investment period of 5-to-7 years, after which the property is sold and the sale proceeds distributed to investors. There are also projects in which you have the potential to receive 50-to-70 percent of your initial investment within one or two years when construction has been completed and the property fully leased. The project is then refinanced at lower interest rates and more favourable terms and any surplus proceeds are distributed to investors.
The present securities regulations of regulators such as the Ontario Securities Commission only allow investments from accredited investors. These investors are defined as you alone or together with your spouse own financial assets (reasonably illiquid assets excluding real estate), with more than $1 million before taxes, but net of your liabilities. Otherwise, if you have net assets of at least $5 million and your net income before taxes is in excess of $200,000 in each one of the last two years. Alternatively, your net income before taxes combined with your spouse exceeds $300,000 in each of the last two years and you expect to maintain the same level of income this year. These requirements change constantly, so keep an eye on them.
Crowd funded real estate presents excellent opportunities for direct ownership and the choice of which particular real estate properties would provide suitable investments while avoiding the pitfalls of having to fund and manage properties alone. You also have the choice of investing in community projects in which you have confidence and the returns will come in while you are participating in the benefits of your investment. You can take advantage of monthly cash flow being paid directly to you, as well as the benefits of capital appreciation (if your real estate values grow). You should take care to ensure that the investment is tailor-made for your personal investing needs, and that transparency provides the proper financial details to manage your investments.
These are another form of real estate investments, which should provide stability and diversification to your real estate portfolio. REITs invest in many different properties in many locations all over the country and the world and have experienced and capable management staff to handle the regular operations. By law, they are required to distribute a large portion of their returns to shareholders, providing an opportunity for steady and lucrative returns. If they are publicly traded, they are no doubt vulnerable to market forces, but this very volatility can provide outstanding returns in the right circumstances. Once you pick the right REITs, a lot of pain is taken out of the process of real estate investing.
Real estate investing in any form can be lucrative and every investor should investigate the possibility of buying and managing director investment property. However, this is a task that requires lots of time and effort, large upfront investments, and the ongoing development of knowledge. This is why serious real estate investors look to various forms of real estate investment for diversification and to make the real estate portfolio manageable. It is possible to find avenues of investing in direct investment property, while minimising the down payment as also sources to provide the technical knowledge to operate commercial real estate or the interests of landlords.
Investment in equities can be profitable, but also very volatile and the returns will vary depending on the sentiment of the markets and the way they behave. On the other hand, real estate produces rental income, which is extremely stable and doesn't change on a day-to-day basis. If the real estate investment is properly planned, investors will continue to earn rental income exceeding expenses and mortgage payments on an indefinite basis because of the long life of the asset. Particularly in a growing economy, there is a bonus by way of rent increases and appreciation in property values.
There are plenty of reasons why investing in real estate is a good idea. You can ad annual income because investor properties produce rental income from tenants which will earn a profit after all related expenses have been paid. Once expenses such as mortgage payments and interests have been met, there will be a monthly profit. You can also rely on capital appreciation on your investment. As long as there is demand from tenants for properties to live in, the property will have tangible value, which will appreciate if the market for properties is expanding. If the local economy shows growth, there will be increased demand for places to live in and therefore more competition for vacancies and better chances of rent increases. Finally, mortgages can be leveraged to enhance your returns and the rental income will help in servicing your debt.