Buying a condo? Alexey Saltykov of CondoEssentials can help

Russian-born Alexey Saltykov came to Canada via Germany with a job in hand as a management consultant in the insurance industry. His company asked if he wanted to transfer to Toronto, and he jumped at the opportunity. Three years later, Saltykov saw a niche insurance need in Canada, and took another leap — this time an entrepreneurial one, starting up his own company, InsurEye.

Why did you want to come to Canada?
I moved to Canada in 2009, mostly due to the amazing Canadian winters. That is, actually, just a half-joke — I do really enjoy the winters here and all the snow. But I had an opportunity to move to Canada because the management consulting company (Boston Consulting Group) I was working for in Germany had an opportunity for me here that was a good fit with my knowledge and skills. Canada has an amazing reputation in Europe, so I really looked forward to moving here.

When did you launch InsurEye and what is it?
InsurEye was launched in 2011 when I decided to leave the Boston Consulting Group and start my own business together with my best friend, Dmitry Mityagin. The basic premise of the company was that we wanted to become an independent source of information for all Canadians, offering them an honest perspective on financial products. We started with a tool that educated Canadians about insurance protection on their credit cards and added later home, auto and life insurance reviews, followed last year by mortgage and credit card reviews.

And you recently announced a new tool for people in the market for a condo?
Given the rapid growth of the condo market in many Canadian cities such as Toronto and Vancouver, we saw that it had become difficult for Canadians to inform themselves about the condos they were about to buy. It is a very large purchase considering that in the last quarter the average value of a condo sold in Toronto for more than $515,000. People read tons of reviews when buying a phone for $500. Should not condo reviews be available for Canadians as well?

Why is such a tool important?
Builders and real estate agents try to beautify the properties they sell, but, in our mind, people should have access to real condo insights, those of condo owners and renters. Existing real estate tools, like MLS, will offer you prices and square footage, but will not inform you if a condo is managed well or if the building has some mechanical or plumbing issues. That is why we decided to branch out with a new tool, CondoEssentials.com, and partner with a real estate expert in condos, Henry Karimi. For now, we offer reviews for condos in Toronto and in some other Ontario locations.

Is this mainly for buyers, or will renters find it useful as well?
CondoEssentials is both for purchasing condos and for rentals. The building, amenities, unit layouts, condo services, etc., stay the same whether you buy a condo or rent one. If people, after having explored condo reviews on our platform, decide that they like a particular condo, our real estate team is happy to help them with either purchasing or renting the unit. We also help Canadians with other topics related to condos such as getting condo insurance quotes.

Tell us some tips every newcomer should know about condos in Canada
There are a few things to consider if you are buying a condo in Canada. I’d start with location — make sure that it is what you are looking for. Some condos are close to public transportation, others might require that you have a car. Having a good school nearby is very important if you have kids. It is your future home; take the time to find a place you really like. Newcomers should also know when purchasing a condo, there is also a maintenance fee that you will pay monthly. This goes toward security services, amenities, landscaping, garbage removal, etc. Older condos might look more attractive from the price perspective, but they often come with a higher maintenance fee (often $1,000 per month). That will be a big expense in your monthly budget and will potentially make it harder to sell the condo in the future.

Also, make sure the condo corporation, an organization that maintains the condominium, has a decent financial reserve fund for any unexpected emergencies (e.g., roof damages). Otherwise, unexpected repairs might result in an increase of your condo fees and additional charges. To avoid this, you can request a status certificate before you have completed the purchase. The last suggestion is to ask around with your colleagues, friends, family members, or simply people you know if they have any experiences with the condo you are planning to buy. Also, do not forget to check condo reviews at condoessentials.com!

There is lots of news about the risks involved in pre-purchasing a condo still being built …
Condo builder’s contracts are still a bit “Wild West” in Canada and you need a good lawyer who can look through the contract details. A big trap that is often missed is a clause allowing builders to increase the final price if there any additional or unforeseen expenses. I have seen cases where builders passed to the owners an additional charge of $50,000 or more just before the closing date, when the condo was originally priced around $350,000. On your builder contract, make sure the amount is capped to avoid any unexpected surprises. Also, it does not matter if you buy a condo or rent one, you still need insurance. Make sure that, if you have a roof over your head, you have insurance to cover it.

Finally, what tips do you have about house insurance?
It does not matter if you buy a condo or rent one, you still need insurance. Though it is not mandatory by law like car insurance, your landlord (for condo rentals) will typically require it. In fact, home insurance covers more than what you might think. It is not only your home that is covered, but also your liability. For example, you are liable if you leave the tub on and flood your neighbour’s unit. It also covers (within defined limits) your contents, condo upgrades, additional living expenses (rental costs if your condo becomes temporary inhabitable) and, sometimes, special condo assessments.

Another important aspect of home insurance to know, though it mostly relates to house insurance, rather than to condo insurance, is dealing with water damages. This aspect is very specific to Canada. Until recently, some types of flooding in Canada, such as overland flooding, were not covered at all. Other water damage types (e.g., sewer backup) required optional insurance to be purchased. The situation is changing now, but homeowners should make sure that their policies cover both overland flooding and sewer backup.

The last tip relates to going away for long periods of time (longer than a week). Most Canadian home insurance policies have a clause that requires somebody to visit your home every few days in your absence, otherwise your insurance claim might be rejected. Remember that when leaving for vacations or a longer business trip.