Aren't Condo Fees Really Expensive?

Aren't Condo Fees Really Expensive?

First, "Condominium" refers to a type of ownership and not a style of building. Condo owners buy their individual units plus pay a portion of the cost associated with running the common areas. Whether buying a condo apartment, townhouse, semi-detached or detached, new construction, or resale. Downsizing Seniors are often attracted to the convenience, affordability, and lifestyle that condo living brings. 

Monthly condo fees include the maintenance of the building (Including underground parking, common areas and amenities, exterior grounds in parking), And also pay for the property management, superintendent, and other human resources. A certain portion of the condo fees is put into a general contingency fund and held in reserve. Depending on the individual condo, some of all of your utilities are paid out of the monthly fees as well. Condo fees can run between $.50 and $1.00 per square foot.

What Determines Condo Fees?

Size of the building: The size of the building that your unit belongs to can play a very important factor in the cost of your monthly condo fees. While not always the case, larger buildings tend to have slightly lower monthly fees, as the total costs are split between a larger number of units.

Size of the Unit: Since residents pay a proportional representation of Condo Fees, owners of large units within the same building pay higher fees. Ditto for owners of extra parking spaces, or larger balconies or storage lockers. The monthly fee is confirmed at time of purchase, along with all that is included.

Age of the building: Newer condo buildings tend to have lower monthly condo fees because they do not have to factor in expensive capital repairs or fluctuations in the fiscal management over time. In other words, when you buy into an older building you are inheriting the historical financial decisions of the previous condo boards. On the other hand, older buildings sometimes include all (or most) of the utilities, such as, heating and air conditioning, hydro, water and sewer, gas. Some even include basic cable! All-inclusive maintenance fees mean that no matter where you are - up north, down south, or father afield - your home is being maintained for one monthly fee.

Building Amenities: While some buildings come with nothing more than a foyer, others come with all the bells and whistles. As expected, though, you have to pay to use those bells and whistles - this is included in your monthly condo fees. Swimming pools, party rooms, valet parking, theatres and yoga rooms are amongst the many luxury amenities currently being offered at various condominiums across Canada. Buildings with these types of amenities obviously charge higher condo fees, not only for usage but to cover the cost of upkeep and operation.

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