What is in a condo fee and why would you add hundreds of dollars to your mortgage each month to own four interior walls? Paying a condo fee is as much a lifestyle decision as it is a financial one.
When I began looking for homes 4 years ago, I stubbornly refused to consider a condominium because I I didn’t understand what the fees paid for. The quaint little cottage in the city that I bought was built in 1920 and has all the charm and uniqueness that I could have hoped for. I was fully aware that it came with costs, but under-estimated these costs both in time and money. Mowing, weeding, trimming, snow shoveling, painting, cleaning, eaves-troughs, winterization, roof leaks, foundation leaks, ice dams, new windows….do you get the idea? I love my home, but I would be lying if I said I don’t sometimes resent the time that I put into it.
I didn’t think I would. I am a handy guy. I can do a lot for myself, but I don’t necessarily want to and I don’t necessarily have a choice. Wouldn’t it be great, I sometimes ponder, to only have to worry about four interior walls and how I am going to make that space a home?
Your home is key in how you spend your time. How do you want to balance your time between being in your home, out of your home, and working on your home? Every condo fee covers different things, but here are some things that save you time or money from working on your home:
A) A reserve fund: Keeping mother nature outside by setting aside enough money to continually maintain and restore exterior elements.
B) A maintenance fund: The grass is mowed, the common elements are clean, the driveways and walks are plowed without any effort on your part
Heating, cooling, electricity, water, sewer, and recreational facilities are some of the other expenses that can be covered.
Owning a condo means buying into collective ownership. Costs are more predictable and generally lower (given economies of the collective) than I pay in my quaint little cottage.
I will be writing future posts which will shed some light on these and other costs of home ownership.
Condos may not be for you. They are not for me, but I am ever more appreciative of what they offer. The costs paid for by condo fees are real. The budget they are based on is determined by a volunteer board of condo residents and ratified by all.
Our service is about helping you make conscious choices about your time and money.
Every condo has a different fee. Determining the value of a condo fee based on what it is paying for is one of the many time-money calculations we can help you with.
For more information on condo fees and other considerations when buying a condo, check out CMHC’s condo buying guide here.
