Are you thinking about buying a condo in the future? Do you have concerns or have
any questions relating to condo fees? Finding all this information out can be
difficult especially with all the other decisions you have to make with this
major purchase. In this video we'll talk about all the major questions that
customers have about condos so you'll be better prepared with your next condo purchase.
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Hi everyone, welcome to another edition of Homebuyer's School. Today I'm joined by
Karen MacDonald, a Community Manager with Brookfield Residential, and today the
question we're gonna answer is, "What's included in condo fees?" And this is part
one of our two-part series on condo fees. So Karen, probably one of the most common
questions you're gonna get is so what's included actually in condo fees.
Yeah, it is something we hear all the time. What's included in condo fees Karl
really depends on what type of multi-family home you're buying, so say
with an apartment style you'd be buying
the maintenance of the exterior, the
landscaping, snow removal all common
areas but with apartments you'd also
have some kind of central utility
included your heating your water
possibly electricity cable that kind of
thing. Townhomes Rita bided townhomes you
be paying for just the exterior
maintenance - the landscaping, snow
removal, the insurance on the building
maintenance fees and the reserve fund as
well too.
Do you find--now I want to touch on the
reserve fund after a bit, but do you find that the the condo fees are higher
depending on the the type of multifamily?
Absolutely, absolutely.
Considering the total cost of condo fees you have to know what you're paying for
and compare it when you're buying a townhome as well to in an apartment
style you will have some utilities that are included in that condo fee so while
that may seem a lot higher than say a townhome and the townhome
where you are metered for your own utilities, you're probably
paying that separately from the condo fees so think about it as a whole.
So--and you were mentioning the reserve fund earlier, what does that mean?
The reserve fund is an amount that is allocated out of the budget for any kind
of future repair maintenance of common areas exteriors. So over time in a new
build it is built up so that any kind of repair or maintenance overtime needs--
that needs to happen gets taken out of that, and in an older condo apartment
style home you need to kind of check and see what the reserve fund is in advance
and see if it is something that in 10 years will be able to maintain a common area.
Is it something more for--obviously I
don't think in a new build there would be that much reserve fund right, but if
like for a resale it's something that you definitely want to take a look at
because--can you--is there anything preventing you from asking if they've
withdrawn from that reserve fund?
You should be able to find that out
absolutely in a resale you should be able to go to likely the management
company and find out what repairs have been done if the reserve fund has been
tapped already. In a new build you are protected to some degree because you
have things like your warranties in a new build that you don't necessarily
have any kind of maintenance or repairs that needs doing right away so there is
a difference between the two, the information should be readily
available to you though to find out.
Can you mention any other items--I know
you mentioned maintenance and some utilities, anything else that the condo
is or usually go towards?
Really overall it is that maintenance-free
lifestyle so when you're looking at the landscaping, the snow removals, all of
the utilities, it could be the recreation facilities,
swimming pools if that's included as well - I mean it has a whole you have to
look at. The whole building you look at, the whole development,
some people have daycares that they would be paying for within their
their amenities, there's so much to take it to.
So I guess with the multi family that has a lot of recreational or amenities right, I
guess the condo fees you expect to be a little bit higher.
Absolutely, but that's the lifestyle that you're paying--
--That's true.
If you're buying something that way
you're looking for that fitness centre, you're looking for that swimming pool,
that daycare, all the amenities included.
Do you think that--is it possible to opt out
of certain kind of fees to? Like "oh well I'm never gonna use that weight room", or "I'm
never gonna use that swimming pool." Do I have to continue paying for that?
Yes you absolutely do if you're buying in a development that has all of those
facilities available, you're buying into that development and so that is--
it's a must, it's an absolute. The only way to opt out is to not buy there.
Okay, so how do you go about paying these fees? Like, do you is it include do
you pay monthly, is it included in your mortgage, how does that work?
You would be paying on a monthly basis to the management company, you would
set that up in advance with the management company specifically.
It is again separate from your mortgage.
So there's a perception that sometimes condo
fees can be a little high, how would you go about addressing that?
Well I think it's
again determining what you're paying for with the condo fees. To a large degree
you're paying for the same thing in a single-family home, it's the
maintenance, the insurance on the building, reserve fund, landscaping, snow
removal, all of that. So I think it's just that the perception is that along with
all of the utilities, and if you have a higher--what seems like a higher payment
then it's kind of a waste of money.
Yeah but it really is the lifestyle that you're looking for and to a large degree
you're paying it in a single-family home as well too, it's just not in a tiny fund.
Okay well I never really thought about that.
Last question for you then, is there a cap on condo fees, so is it sort of like
well, this is the maximum you're gonna pay ever in condos?
Or is it just kind of open?
There is not, there is no cap on condo fees. It is again depending
on what it's maintaining and depending on largely the
cost of escalating pricing on
landscaping contracts, maintenance fees,
if there's repairs to be made in general
common area that's kind of cost and so
it's something that every homebuyer has to take into account, but in general
I'd say the cost of inflation is what they should go up on a yearly, every
second year basis.
Yeah, but it also, it depends I guess on the the property that
your--great, perfect. Do you have anything else to add?
No.
Awesome, well thank you very much for joining us.
Remember this is part one so tune back in for part two,
you'll see that on top there and we'll catch you next time, thank you very much.
That's another edition of
Homebuyer's School. Tune in next time
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and visit homebuyersschool.ca
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