Blog-Real Estate & More

DEPRECIATION REPORTS-HERE TO STAY!

With more than half of Canadian provinces currently using them as well as as a large part of the U.S., these reports commonly used in business, are here to stay for commercial and residential properties.  It will take some time for the relatively small number of companies available to produce them, to work their way through the backlog of buildings that require them.

Buyers will be looking for these reports so having them done in a timely way by a qualified professional will be important.  Stratas may be concerned about the costs but once the initial report is done, then the ongoing updates are far less expensive, especially if done on an annual basis. 

Additional savings will also be realized through proper and regular maintenance of the assets which should extend their lifespan.  You will find more information on this HERE.  

 DEPRECIATION REPORTS

The Condominium Home Owners Association of B.C. will provide you with information and answers to your questions about condo ownership and Strata Corporations.  CHOA is a non profit organization offering a wide range of services to Strata owners and members of the Strata industry.

If you are a condo owner or planning on becoming one, you will want to know more about Depreciaton Reports and how they affect you as an Owner, Seller or Buyer.

The Depreciation Report is a long term planning vehicle for the common property and assets of the Strata Corporation.  It looks at current condition, replacement costs, and how it will be paid.  This information will be a great tool in helping Buyers make an informed decision on a condo purchase.

Home inspectors do check many of these items such as roof condition, age and life left in boiler systems, etc but it also important to know replacment costs and how the Strata plans on paying for them.

Many strata owners are nervous about these upcoming reports as it forces them to face the facts and the music-how to pay.  Some stratas have not done a good job in planning for these costs but many have been doing something similar all along.

It is mandatory for stratas of more than 5 units whose strata corporations that have not exempted themselves with an annual 3/4 vote.

As of March 1, 2012 a new Form B is now used and if a Depreciation Report is complete, must be included with other mandatory documents.

Press HERE for more information about Depreciation Reports and the most recent changes.  You can also explore the rest of their website and the wide range of services that they offer.  The Executive Director is Tony Gioventu who also writes a weekly column in the Vancouver Province on Sundays answering reader questions on Strata ownership.

CONDOS-HOW FEATURES AFFECT VALUE

Some interesting information from CMHC on how some key condo features affect sale price:

• rentals allowed +5%
• pets allowed +6%
• second bathroom +8%
• less than 5 years old +25%
• same size but with 2 bedrooms -10%

Good information to have when you're thinking resale or when comparing similar properties with slightly different features.