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The Merits of buying a Condo at Big White vs. Renting
I did a little research. I was talking to my neighbour Gary Turner who is a real estate specialist at Big White to get the inside scoop on condo prices up there. Condo prices range from under $100,000 to $4.8 million for the highest listing. The average price is just over $200,000. There are 255 listings currently which represents 2 years of inventory (lotsa supply). Since 2005 prices have dropped 25-30%so if you are buying this may be a good timing. However, some things to consider are taxes, strata fees and what they include, the age of the building and whether it's in need of repair.
Rental of a Condo could run you about $10,000 for the season for a 3 bedroom. So for example if you compare that with buying a condo at a price of $250,000. You put 20% down ($50,000)and finance $200,000 which will cost you about $12,000 per year plus $3,600 for strata fees, $1,500 for taxes and incidentals will take you to $20,000 per year. From a financial standpoint it appears renting is the better option however there are other considerations that weigh in favour of buyig a Condo. There is pride of ownership, paying down your mortgage is like a forced savings, your condo may appreciate in value if you get the timing of purchase and sale right and finally the interest can be tax deductible if you rent it out. The main point is the experience at Big White is priceless.
I did a little research. I was talking to my neighbour Gary Turner who is a real estate specialist at Big White to get the inside scoop on condo prices up there. Condo prices range from under $100,000 to $4.8 million for the highest listing. The average price is just over $200,000. There are 255 listings currently which represents 2 years of inventory (lotsa supply). Since 2005 prices have dropped 25-30%so if you are buying this may be a good timing. However, some things to consider are taxes, strata fees and what they include, the age of the building and whether it's in need of repair.
Rental of a Condo could run you about $10,000 for the season for a 3 bedroom. So for example if you compare that with buying a condo at a price of $250,000. You put 20% down ($50,000)and finance $200,000 which will cost you about $12,000 per year plus $3,600 for strata fees, $1,500 for taxes and incidentals will take you to $20,000 per year. From a financial standpoint it appears renting is the better option however there are other considerations that weigh in favour of buyig a Condo. There is pride of ownership, paying down your mortgage is like a forced savings, your condo may appreciate in value if you get the timing of purchase and sale right and finally the interest can be tax deductible if you rent it out. The main point is the experience at Big White is priceless.
posted by David Allard at
8:03 AM
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