Before You Buy, Be Sure You Understand – And Can Afford – Your Condo Fees

Property market business investmentCondominium maintenance fees are a monthly charge the owner of a unit must pay to cover the costs of items such as building insurance, upkeep, repairs to common areas including the grounds, the heating and cooling system, water and sewer pipes and property taxes. A portion of those monthly fees are also set aside and put in a reserve fund, or rainy day savings account, for future expenses like a new roof or furnace.

In Ontario, when you buy a condo, your maintenance fee is predetermined by the developer and is outlined in the Schedule of Declaration. Based on the size of each unit, a percentage of the common expenses is allocated to each unit so that the sum of the whole adds up to 100 per cent.

A budget is then drawn describing and adding up all expenditures that the condo corporation will incur for a year. Each suite is then assessed its annual proportion of these expenditures. For example, if your annual fee is determined to be $2,000 a year, that’s $166.67 to be paid on the first of every month.

If the budget does not change, the maintenance fee stays the same. But if costs increase by two per cent then all owners’ fees will increase by two per cent.

Special assessments could also drive up maintenance fees. It’s an additional payment a condo board imposes on unit owners when there’s an unexpected shortfall or expense to be covered and there’s not enough in the savings to pay the bill. For example, a flood in the basement or wind damage to the grounds could prompt the extra payment. Just like monthly maintenance fees, condo owners must pay special assessments. Owners can’t vote on whether or not to levy that assessment.

Like maintenance fees, special assessments are proportional. A smaller suite will pay less than a larger one.

In Ontario, special assessments are more commonly enacted in condos built before 2001, when the Condo Act didn’t enforce boards to do reserve fund studies, which, like a home inspection, roots out potential problems in the future and ensures there’s enough money saved to cover those costs.

Before you purchase a condo, be sure you know how much you will have to pay in condo fees. Your realtor and lawyer will help you decide if the fees are reasonable and if the condo fund appears to be managed properly.

See what’s for sale in your neighbourhood – Do a quick search

Do a Quick Home Market Evaluation and see how much your home is worth.

Thank-you for reading our article about “Before You Buy, Be Sure You Understand – And Can Afford – Your Condo Fees”, contact us if you need anything or leave us a comment below.

10376 Yonge Street, Richmond Hill – The Benson

10376 Yonge St Richmond Hill

 

Introducing The Benson.  Located at 10376 Yonge Street, the cool new building  has helped give downtown Richmond Hill a trendy face lift. To go along with the town’s recent downtown makeover, The Benson has fit in to its new surroundings considerably well.

The chic boutique condo has an impressive 1,185 square feet units with soaring 10 foot ceilings and floor to ceiling windows. Looking out on your balcony, you will find breathtaking south and west unobstructed views of the heart of Richmond Hill. The roof top terrace promises more great views on a warm summer night.

Living  right on Yonge Street has its perks.  Steps away from shopping, restaurants and transit right at your doorstep. Less than 10 minutes away is the shopping, the central library, Mackenzie Health Centre, both elementary and high schools, and the brand new Richmond Hill Centre for the Performing Arts which always promises to be a good night out on the town. For those who like to take a hike, the historic town park, Mill Pond is a just a jog away.

See Similar MLS listings around 10376 Yonge Street

(Register to see all available listings, even the hidden ones)

Fill in the form below to contact Kirby Chan for more information about this property or if you are thinking of selling your home, get an in-depth Market Analysis Report.

Information Is Believed To Be Accurate But Not Guaranteed. Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.