Buying a condo for your child's university years can be a great real estate investment, especially for students attending Universities like UBCO, where off-campus housing is very hard to find. This guide covers some things you should consider when purchasing a condo near the University of British Columbia Okanagan Campus.
Determine Your Financial Capability
- Budgeting: When budgeting, compare the costs between renting and owning. Make sure to include costs such as condo fees, property taxes, insurance, and maintenance. If you have more than one bedroom, you can add 1000-1200 per month income to your budget if you plan to rent out a room.
- Mortgage Pre-Approval: Prior to looking at condos, get a mortgage pre-approval to know what your payments will be.
- Investment Consideration: Think about what you plan to do with the condo once your child graduates.
Know the local market.
- Research the market: Learn about the various condo buildings around UBCO. Some buildings are closer to campus than others.
- Market Trends: Look at the current trends in the real estate market in Kelowna, especially around UBCO, with details of days on the market, average prices and inventory levels.
- Hire a Realtor: Find a local real estate agent specializing in the UBCO market and has experience dealing with condos and out-of-market buyers.
Choose the Right Condo
- Located near UBCO: You should prioritize condo buildings near campus to make getting to classes easy. Most of your child's life will be centred around campus, so this should be a top priority.
- Safety Features: Also, ensure the building has safety features, such as FOB entries, security cameras and well-lit parking.
- Size and Layout: Consider the size and layout of the unit. You will probably want to opt for a two or three bedroom condo if you would like to maximize your investment.
- Reviewing Condo Documents: Review the Condo (in BC they are called Strata) documents carefully before removing buyers' conditions. These documents are critical and give you a detailed history of the building and any past/future issues. A Realtor specializing in condos will usually provide this service for you.
Property Management and Other Things to Consider
- Management: Does your child have any friends they would like to have as roommates, or will you need property management services?
- Insurance: Get insurance for the condo building's deductible. Deductibles have grown lately (some over 100k), so having insurance to cover an at-fault issue is important. Also, make sure to include household contents and improvements.
- Taxes: If you own a condo, be sure to consider the tax ramifications of owning a rental property and any taxable income. Your accountant can decide the best tax strategy.
Schools Done, Now What:
- Post-Graduation: When your child moves out upon graduation, decide if you will keep the condo as a long-term investment or sell it.
- Selling Your Condo: If you decide to sell, find out what times of year are most active for University buyers. Selling your condo with a tenant may take a lot of time because most UBCO buyers want to use it for themselves.
Conclusion
Finding a place to live for your child going to UBCO will probably be more stressful than getting accepted. This is one of the most important reasons why buying a condo can be a great decision. Not worrying about accommodation lets you and your child focus on what matters most… their education! By carefully planning and considering the points above, you can make an informed decision that suits your family’s needs and financial situation.
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