I don't understand how house vs condo pricing works. - Page 2
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Thread: I don't understand how house vs condo pricing works.

  1. #11
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    Here is one property for example.

    https://www.realtor.ca/Residential/S...erwood-Heights

    For me to buy a similar lot now it would cost around 150K. So would it be correct in me thinking that I'm actually just paying 169K for the house and the other 150K for the land? Or just ignore the land part and look at over all value of the property.


  2. #12
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    The only time you really separate land and buildings is when you deal with insurance and when you are building new.

    It's not like you buy a car and then think of it in terms of the radio, tires, mags, engine, etc.

    Many used cars can be parted out for more than they are sold for, yet people don't think of it like that.

    When you buy a house, it's no good without the land and if you buy the land, it's not very useful to most people unless they are building.

    If you want to break it up into components to make you feel better you can but, in reality, you're probably overthinking the whole thing.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  3. #13
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    Okay thanks

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  5. #14
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    Quote Originally Posted by Mukhang pera View Post
    Not quite true that you do not own the land. You own a proportionate share of the underlying land. But not a share you can sell independent of your strata lot.
    I like to see a person try to sell their land under a freehold single family home, WITHOUT selling the house on top of it and see how far they get.

    As said above, the two examples are the same. A townhouse does own their proportionate share of the land under their home and as is the case with a single family home, they would sell that land ownership when they sell the home on top of it. The condo fee is to cover the maintenance of the property and to pay part of the property taxes and insurance that they do not pay personally, for the common area. The single family homeowner pays all of their property taxes, insurance and maintenance separately.

  6. #15
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    minor correction, property tax on common area is not paid by the corporation. Usually the individual portions are grossed up (boma rate) to include their portion of the common area.

    Condo fees can pay the utilities in some cases, but usually is there primarily for maintenance and the insurance.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  7. #16
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    Quote Originally Posted by Just a Guy View Post
    minor correction, property tax on common area is not paid by the corporation. Usually the individual portions are grossed up (boma rate) to include their portion of the common area.

    Condo fees can pay the utilities in some cases, but usually is there primarily for maintenance and the insurance.
    Agreed on the property taxes. With respect to utilities, I live in a condo building where we have central heating and a/c. The cost of operation is included in my condo fees. I imagine that if I lived in a land strata with separate houses, I would need to pay for the operation of my own house's heating and a/c.

    With respect to insurance, insuring the building itself is the job of the condo corporation. This cost is covered by condo fees. It's also recommended that each condo owner take out condo insurance, covering the inside of the suite. This also protects the condo owner from claims arising from his or her condo. The classic example is an overflowing toilet which floods the condo downstairs.
    Last edited by heyjude; 2017-01-07 at 12:26 PM.

  8. #17
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    Not to mention that your tenants, should you have them, also need tenant insurance to cover their liability and possessions.

    Many people mistakenly think condo insurance covers them...it doesn't really or not in the way they expect.
    Last edited by Just a Guy; 2017-01-07 at 01:03 PM.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  9. #18
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    Quote Originally Posted by OptsyEagle View Post
    I like to see a person try to sell their land under a freehold single family home, WITHOUT selling the house on top of it and see how far they get.
    I can find some illustrations, if you'd like. Not such an unusual transaction as you seem to think.

    Back in the day, I was involved in the conveyance of a West Vancouver property where the house on the lot was specifically exempted from the sale. The purchaser wanted the lot on which to build his mansion, with views to downtown and out to UBC. The vendor wanted the heritage house on the lot, with a plan to move it to another lot about 5 blocks away. Both got what they wanted.

    In some SE Asian countries where I have lived, non-citizens are not permitted to own land. In some places, they can buy condos, but a freehold lot, no. There it is not unusual for a non-citizen to lease a building lot on a long-term lease and to pay for construction of a house on the lot. The owner of the lot remains free to sell the lot, subject to the registered leasehold interest of the owner of the house. I can think of no particular impediment to such a transaction being entered into in many parts of Canada. It's done all the time with mobile homes, many of which cease to be very "mobile" over time. However, in Canada, given the multitude of ways in which transactions can be structured, there is little incentive to enter what would be seen here as rather unconventional.


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