Condo fees by any other name are only expenses you pay anyways

Monday Mar 26th, 2018

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Who pays?

Do condos cost so much more then freehold homes

 

Condo owners pay fees. Very often they are equal to or less than the amount the owner of a freehold home pays. Here are some examples of who pays.

Taxes may be included in the fees depending on the type of dwelling. This is typical in a high-rise. In condo town-homes and detached dwellings the owner pays taxes directly.

Utilities such as heating, hydro and internet may or may not be included in the fees. Newer buildings typically have their own meters and only charge a small amount for the utility needs of the common areas. Older buildings have a central meter and the amount used is partitioned to all owners.

Reserves funds are typically set up for emergency work and repairs. When you move into an older place, the reserves have already been accumulated. When you get a paycheck, do you put aside a percentage every month to cover roof, window, driveway, furnace and A/C replacements. What about regular wear and tear and floors, walls and landscaping.

If you are thinking about buying something, do not discount condos just because they call something a fee. Remember that the fee is really an expense that you incur by a different name.

Let me help you sort through all of it if you are looking, since condos can be detached homes on a golf course where the common elements are the greens or a townhouse where the only common element may be roof replacement every 15 years.

 

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