Typical condo fees generally always include a
contribution toward the building’s upkeep and maintenance
, but they may also include heat, water, sewer, garbage collection fees, and even electricity and cable TV in some cases. Consider how much these line items would cost if you lived in a home.
What are you looking for in a condo?
- What are the biggest complaints? …
- What’s the management team like? …
- Is there storage space available? …
- What does the insurance cover? …
- Will I need to move in the next five years? …
- Do I fully understand the monthly association fees? …
- What are the rules? …
- Is there any litigation?
What are common expenses in a condo?
A common expenses fee is
the fee unit owners pay to maintain the condominium’s common elements
. Common elements are everything in a condominium that isn’t a unit. Examples include a parking garage, hallway, lobby, recreation centre and elevator.
- Monthly condominium fees or common expenses (or monthly occupancy fees if you move into your unit before it is registered)
- Property taxes.
- Unit and contents insurance.
- Mortgage payments.
- Amenity fees, such as storage, pool and extra parking, if not included in the common expenses.
How much money should be in a condo reserve fund?
In general, funds need
at least $2,000 per unit per year
to avoid under funding. An average for a new building might be just $500 per unit per year while older buildings can be as much as $4,000. Other considerations for contributions include: The height of a condo tower.
Why should you never buy a condo?
Less Space and Flexibility
. Another one of the reasons not to buy a condo is that you have less space and flexibility in how you use your place. Some condos offer owners extra storage space or possibly a basement, but you’ll still likely have a smaller, more compact living environment than you would in a house.
How much does a condo cost per month?
Average condo fees range from
around $100 to $700 per month
, although these fees can go much higher based on what amenities they cover. If the condo complex has high-end shared features such as a swimming pool, gym, and spa, condo fees can be several thousand per month.
What should I be aware of when buying a condo?
- Consider your lifestyle. Hate to mow the lawn and trim the hedges? …
- Work with a Realtor with experience in condos. …
- Decide what types of amenities you want. …
- Find an FHA-approved condo. …
- Research the property management company. …
- Review association fees and regulations. …
- Ask about special assessments.
Why are some condo fees so high?
Condo fees are
used to pay for heat and electricity in the common areas
. Besides heat and electricity the condo building needs to be managed, the snow needs to be shoveled, the landscaping needs to be kept up, the hallways need cleaning, the elevator needs maintenance, the building needs insurance and so on.
What’s the difference between condo and condominium?
Condominium units
differ in ownership from apartments
because each condo typically has a unique owner. All the homeowners within a condo building will share responsibility for common areas, but the individual units are separate.
Are condos worth?
Yes,
condos generally appreciate in value
. That’s true of any piece of property—as long as it doesn’t have wheels or come from a trailer park. But, if you’re trying to decide between a condo or a house, keep in mind that a single-family home is usually going to grow in value faster than a condo will.
What happens if a condo association goes broke?
When condominium associations file for bankruptcy, they
usually file for reorganization under Chapter 11
of the United States Code. Reorganization allows an association to restructure its debt under the protection of an automatic stay that halts collection proceedings during bankruptcy.
What is a good contingency fund condo?
According to the Civil Code,
5% of the amount of common charges (accumulated through condo fees)
should be set aside as contingency funds. However, this amount is generally insufficient considering the current cost of materials and manpower. A set aside of 15% provides better preparation for future maintenance.
What is a condo reserve study?
A reserve study is
a report that’s designed to provide a framework of the common areas that the HOA is responsible for
. This study also provides replacement cost projections based on a 20 to 30-year trajectory. This gives the HOA plenty of time to plan for the long-term maintenance of components.
How long can you live in a condo?
The house should easily last
70 to a 100 years
if maintained properly, so it’s not a question if you want to live there your whole life or not, the large condo building built with concrete should last much longer, but at the end of the day everything has a life span, and once this is over you have no value left.
Why do you love living in a condo?
Condo living is a great choice if you enjoy the
feeling of being part of a community and forming meaningful relationships with others
. As you take advantage of the shared amenities and move through the building, you are likely to bump into familiar faces and meet your neighbours.
