Keystone Blog

Cliff Arnall, by some doohickey mathematical formula, calculated that the Monday of the last full week of January to be the most depressing day of the year. Of course, in typical enterprising spirit, it has metamorphosed into a marketing tool to indulge ourselves by going shopping, taking a travel excursion, buying a puppy, or any number of ways to pry your hard earned money from your bank account, or heaven forbid, added debt to your credit card.

In reality, when I look around, I realize I am pretty darn lucky and more often than not, it is enough to snap me out of the “Woe is Me – Life Sucks Syndrome”. However, often it is easy to be overwhelmed by all the world’s poop.

Coming to work the other morning, my husband Rob and I were listening to North by Northwest on CBC. The guest was John Izzo, who has written a book called Stepping Up: How Taking Responsibility Changes Everything.

Stepping Up

So, instead of feeling sorry for yourself, or going to that sale, step up and make a difference. See a Need? Consider your passion. Absolutely anybody can make a difference! No more excuses!

“The place to step up, is wherever you are right now.” John Izzo

Make a difference! 100% Responsibility / Zero Excuses.  Reclaim your power to build a better community, a better workplace and a better world. Join the Stepping Up Movement!

Let us know how you decide to make a difference, we will post it and hopefully help your positive change and influence grow and inspire.

It’s just that simple!

By Timothy Schafer - Trail Daily Times

Published: January 18, 2012 4:00 PM

A new provincial requirement for strata corporations means greater financial certainty for buyers and existing property owners, says a local real estate appraiser.

Keystone Appraisals Inc.’s Rob Ironmonger said a recent provincial government decision to require strata corporations to maintain a fund for maintenance and repairs also makes it mandatory for them to evaluate the anticipated costs to renew or replace all common property.

Called a reserve fund study, the process would look at common property — balcony railings, fences, pavement and other equipment and fixtures — shared by individual strata owners and estimate its usable life span, and its cost to replace.

This exercise would reduce the risk for strata members, said Ironmonger, and avoid putting them on the hook for huge cash outlays if the strata doesn’t have enough reserve funds to cover in the eventuality of repairs.

“Even though some (smaller) strata corporations may opt out of it, I think it’s going to be a situation where they become less desirable from a purchasing point of view, and even from a lender’s point of view,” he said.

Under the new rules of the Strata Property Act, strata corporations have until December 2013 to commission a depreciation report, which includes an inventory of all common property and estimates the cost of renewals and maintenance.

As well, prospective strata property owners must now be provided with a copy of the depreciation report.

This gives the buyers an advantage for real estate, said Ironmonger.

“By and large the people that seem to be advocating wanting the reserve fund studies as part of their purchasing agreement are buyers from provinces where that has been the standard (like Alberta and Ontario),” he said.

“But now a financial institution is also going to want to see a proper reserve fund study done.”

Without a depreciation report, a buyer has no guarantee the strata fee won’t double overnight to cover some unforeseen expense, said Gina Ironmonger, a real estate appraiser with Keystone.

“There’s a huge variation in strata fees on the market,” she said. “But a $75 fee without a depreciation report carries a much higher risk of escalating versus, say, a $100 fee with a report and a sufficient reserve fund.”

Congratulations to Louise Higgins of Montrose who is the winner of our Fresh Start 2012 Contest!! Louise has won an onsite consultation with our Interior Decorator, Leeza Zurwick.

Do you have any decorating/design needs?? Maybe you want to spruce up that drab living room, or finally re-do your kitchen, contact Leeza at leeza@keystoneappraisals.ca and she would be happy to assist you!

Click here to watch the latest video by the Kootenay Boundary Real Estate Show! Gina Ironmonger and Leeza Zurwick are at Oglow's Paint and Wallcoverings in Castlegar to discuss paint and colour trends for 2012.

Don’t forget to enter our 2012 Fresh Start Contest! You have until January 15^th to enter!

Also, we are offering FREE courses on Understanding Your Property Assessment and How to Appeal. Click here for more information.

Depreciation Reports (aka Reserve Fund Studies) for all Strata Corporations in the Province are now mandatory. These regulation changes introduced by the BC Provincial Government in December 2011 will impact not only strata corporations but will also have a huge impact on the real estate industry as it will change the way these properties are bought and sold. I expect that there will be consideration given to them in the risk assessment of mortgage providers and therefore, in financing decisions but also in risk assessment by insurance providers.

In a News Release by the Condominium Home Owners’ Association of BC (CHOA), Tony Gioventu, Executive Director, says:

“These regulations will have a dynamic impact on B.C.’s strata community. The requirement for a depreciation report will considerably affect the way a strata corporation in B.C. plans for its future. Strata corporations will now need to be proactive with their financial forecasting and future repair and maintenance planning”.

Strata corporations will have until December 13, 2013 to obtain a depreciation report or hold a ¾ vote to exempt themselves. Strata corporations with less than five units are not required to prepare a depreciation report or hold a ¾ vote to exempt themselves.

Further, Form B now also adds that the most recent depreciation report, if any, must be provided to prospective purchases by March 01, 2012.

A Depreciation Report, also called a Reserve Fund Study, is a comprehensive study of the common physical components within a strata corporation, including an inventory and summary of all necessary renewals and maintenance for the next 30 years, plus a financial plan for the future. We all know that as buildings age there are cost incurred to maintain the common property and assets of the strata corporation. A depreciation report provides a strata corporation with the tools it needs to properly and accurately plan for the future.

Keystone Appraisals provides this service through our sister company, Vision Property Advisors Inc. Vision Property Advisors are fully accredited Certified Reserve Fund Planners (CRP), who have completed a comprehensive course of study on Depreciation Reports and Reserve Fund Planning through the Real Estate Institute of Canada. For more information check out Vision Property’s website or the link to Keystone’s Insurance page.

If you would like to know more about Depreciation Reports and impact to the real estate industry, please give us a call and we would be happy to discuss or arrange to speak at your company meetings. Besides strata corporations, organizations that may find the changes of interest to their industry include real estate companies, financial institutions, insurance companies, etc.

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