Condo Fees

22 April 2015
Remax-Condos-Plus

One of the reasons why people are hesitant to buy a condo is because of the condo fees. This is a legitimate concern for people who don’t understand what costs are involved. We want to take this opportunity to break down the cost of Condo Fees and show you what you're actually paying for.

With condo fees there are three types of costs.

The Reserve Fund.

The first cost is the reserve fund. By law, owners need to set aside money to replace all of the common elements each year. Meanwhile, a home owner sets aside nothing, and then gets hit with a bill for $10,000 for a roof or $5,000 for a furnace every few years.

Utilities

The second cost is for utilities the Condo Corporation pays for on behalf of the owners, like water, hydro and sometimes cable. Home owners get individual bills for all of their utilities and they’re usually more expensive.

Building Operation

The Third cost the condo corporation pays for is the operation of the building itself, from landscaping, to common areas such as pools. Condo owners get to use these with no work involved. However, home owners have to cut the grass, shovel the snow and look after the pool, if they have one.

So there you have it. Condo Fees are NOT an unnecessary expense but are really a value added benefit to most owners.

  Buyers