Did you read the article this week-end with the above captioned heading? It certainly caught my attention.
Of course, for most of us this is old news indeed but, oh well, I guess recycled news never hurts if it is still timely.
The article is specifically referring to condos that are part of the Village at Blue where prices have fallen from 10-40% from their original values. They are NOT referring to other projects in the area which have seen a steady rise in prices over the same decade.
Value is based on one thing and one thing only: supply and demand. In my own experience at a REALTOR® of principally resale real estate, potential buyers have a reluctance to buy at Blue out of fear regarding the associated costs of owning a unit. Village Association dues, rental restrictions, mandatory refurbishment programs and other factors all spell risk compared to “conventional” residential condominium ownership. Is it valid?
The costs of ownership are indeed significantly higher in the Village however, the rental revenue is also higher than in other developments. In the end, unit owners of any condo will generally at best, find that rental income will offset some or all of the operating costs, depending on personal usage but will not cover the cost of mortgage financing. When people buy in the Village, they need to understand that they are buying into a commercial operation, not a residential one. They are also buying into a very specific niche market and lifestyle that appeals to some people and not to others.
Back to the article. In my own opinion, prices may not yet have bottomed out at Blue given the large inventory of units still available. But sitting on the sidelines may also mean missed opportunities if the perfect unit comes along or if you are anxious to begin a new chapter in life.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg