Common Condo Myths
Good morning, Marilyn. As a Realtor™ who specializes in helping empty-nesters to downsize, I’ve noticed there are two main paths my clients generally take: they either sell and purchase, or they sell and rent. When they sell their over-sized, mostly-empty-except-for-storage homes, the most common property type they tend to purchase is a condo. Condos offer a safe, work and worry-free strategy for aging in place, and they can be a SMART next move.
“Condo?!” I hear your listeners gasp, “But aren’t they all noisy, cramped sky-boxes with outrageous maintenance fees?”
Tush, tush. Listen up. There’s a lot of myths about condo ownership and living, and today we’re going to address the most common ones to help you make a clear decision based on the facts.
Myth 1: Condos Are All Just Noisy, Cramped Sky-boxes
In many people’s minds, “condo” is synonymous with apartment, and “apartment” in their mind means tiny. But the term “condo” actually refers to a method of ownership, not a style of property. There are condo apartments, but also condo townhouses, and condo detached properties. I currently have clients looking at buying a condo apartment that rivals the size of any detached home. We’re talking 1600, 1800 or 2000+ sq are feet!
The difference between a condo and a “freehold property” is that you own the individual unit and the condo corporation maintains the exterior, common areas, and shared amenities. Residents pay a proportion of the cost for these services. With a freehold property, all the cost and maintenance is the owner’s sole responsibility.
Myth 2: Condo Fees are Expensive!
Downsizers moving from a freehold property to a condo tell me they think the maintenance fees are too expensive. But consider everything that they cover: every window that is cleaned, every weed that is pulled, and every sidewalk that is shovelled is done by someone else – and not by you! You benefit by accessing the clean, well-maintained fitness facilities, the smoothly running elevator, and the safe, brightly lit underground parking.
And, did you know that many condo fees cover either part or all of your utilities? Yes, water, hydro, heating and cooling, and cable tv in addition to everything else mentioned is sometimes included. It’s one payment for everything, no matter whether you’re in Toronto or Tofino, Markham or Madrid. Think of it as a convenience cost!
Owning a freehold property comes with maintenance costs, too. My snow plough guy last year wanted $1000 for the season! A new roof or furnace can be tens of thousands of dollars. We’re used to paying for big-ticket items as they come up, just not on a monthly basis.
Myth 3: Condo Fees Can be Raised Without Warning or Justification
While it’s true that condo boards have the authority to adjust maintenance fees, they cannot do so arbitrarily. Here’s how the process typically works:
- Budget Planning: Each year, the condo board is responsible for creating a budget based on past spending, anticipated future costs, and reserve funds for unexpected repairs.
- Transparency and Communication: Most condo associations are required to communicate with residents about proposed budget changes, including any increases in maintenance fees.
- Voting Procedures: Significant changes to fees often require a vote from the condo owners. This democratic process gives residents a say in how their money is spent and helps prevent arbitrary increases.
It’s important to know that the condo board is made up of residents, just like you. They are only going to do what is in the long-term best interest of the condo corporation.
As your real estate agent, I can assure you that we will do our due diligence in investigating all aspects of the condo’s governance and fiscal responsibility. Every condo purchase we coordinate comes with a conditional period allowing your real estate lawyer to carefully analyse corporate documents and assess its financial health. Only after they sign off do we finalize the purchase. We work together to protect you and your retirement future.
If you are thinking that maybe a condo apartment might be a downsizing property option you’d like to learn more about, please accept our invitation to our upcoming webinar, “Condo Considerations - Virtual Condo Tour.” We’ll cover all the bases when it comes to buying a condo as a senior. It’s free, informative and fun. Wednesday, September 10th at 4 pm. Register at smartrealtysolution.com or by calling me, Sharon, at 416-460-5636. When you register you’ll receive a recording of the webinar, a copy of our workbook, and helpful follow-up resources.
That’s it for me, Marilyn. My name is Sharon Parenteau, and these have been your SMART Realty Solutions for today.
Join Us On
Marilyn Wetson's "From a Woman's Perspective"
Post a comment