Today I would like to share with you trends that I have noticed in strata properties that are affecting value. Let me start by explaining a little about stratas in general.
A strata corporation is a community of owners all working toward a common goal. That goal is generally a well maintained home and property with everyone offering respect and understanding to one another.
Strata communities' issues are divided into 2 categories:
- Social Management Issues
- Property Management Issues
Property Management Issues are things like maintenance contracts, emergency repairs, insurance fees, etc..
Social Management Issues are things like dispute resolution and complaints. Social issues can get so exhausting that the only way council feels they can stop the fighting is by having new bylaws established.
Bylaws are often put into place such as 'no rentals' or 'no dogs' or 'no pets at all'. Bylaws such as these DO affect the value.
The reason being, properties that appeal to the broadest possible audience are going to attract the most potential buyers and this will have an upward effect on prices.
Each bylaw restriction that strata enacts limits the pool of buyers that will buy in that building. Heavily restricted buildings attract a smaller pool of buyers and that puts downward pressure on prices.
Strata councils and their owners need to keep this in mind if they want to protect their investment and the equity in their condos. Bylaws can be changed with a three quarter vote from the owners and there is a procedure that I would recommend you follow but that is a whole other video topic.
If you are a strata owner or thinking of buying in a strata building and have any questions about how bylaws may affect the value, please give me a call or contact me by email. I'm happy to answer any of your questions.
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