If you are in the market and looking to buy a condo, you will be pleased to know that in recent years, the condo has become the favourite choice for not only first-time buyers but also seasoned investors. Condos provide a convenient way to live in a community with great amenities.
Remember, this lifestyle comes at a price, and it makes sense to be aware of what exactly that price entails. As attractive as the condo is, you also need to factor in monthly condo fees, apart from the mortgage. The condo fees you would pay go towards ensuring an amenity-filled, hassle-free lifestyle. So let’s find out what they cover exactly and how much they cost.
To put it simply, condo fees are monthly contributions towards the maintenance and upkeep of your community made by unit owners to the condo corporation that runs the condo building. The amount is pooled together and is used towards funding the maintenance and general upkeep of the property.
Condo fees are non-negotiable and not optional. As with similar operations, condo maintenance fee could increase yearly thanks to inflation and other factors.
The amount can vary from condo to condo and it depends on:
• The age and size of the project
• The location
• The building’s height
• The number of buildings within a complex
• The variety of amenities offered
While every condo property is different, the most common costs in the monthly fees would include:
Utility fees: A condo corporation may pay for water, electricity and some of a building’s utilities.
Reserve fund: Essentially an amount set aside for unexpected repairs, a portion of your condo fees will go toward maintaining the building’s reserve or savings fund.
Maintenance of common areas: The maintenance fees you pay each month can go toward lawn mowing, snow removal, garbage pickup and such. It can also include the upkeep of common spaces like the hallway, lobby, elevators, and the area around the property.
Amenity fees: Different condos offer different amenities and as a rule, the more amenities your condo offers, the higher the condo fees could go up. These could include the concierge and reception services, pools, saunas, shared outdoor spaces, covered parking and many such.
When you invest in a condo, it is recommended to view the certificate to assess the condo’s status. This can help prepare you for any future increases in your condo fees, including the portion that goes toward the savings fund. The size of your condo’s property can also be a contributing factor in your overall condo fees. A building with 10 units will likely not have the same fees as a building with 50 units, as the required utility fees and maintenance will be different.
To understand the condo fees in your property, it’s important to do adequate research. Also note that you should be ready to expect the fees to change year to year, typically going up to adjust for inflation. Are you a first time buyer or investor? If you have questions about condo fees, contact us directly and we will gladly answer your questions!
If you’re looking for a convenient, comfortable, and residence you can call home, condominiums are a great choice. To learn more about various Condominium options across the GTA, and preferred rates and 1st access to many premium properties, get in touch with us today.