August 03, 2014
Condo Fee is a monthly payment the Property Owner makes to cover the cost of maintaining certain aspects of the house such as, but not necessarily, home insurance, snow shovelling, and lawn mowing.
In Toronto, high rise condo generally cover hydro, utilities and shared facilities such as swimming pool and weight room. It usually does not cover home insurance, cable, and property tax. Condo Townhouse often covers home insurance and snow shovelling, but nothing else.
Condo Fee is non-profit managed by a board of directors appointed by voting from you, the condo owners. The board of directors than hires a condo manager paid for using the condo fee to maintain the condo.
1. Although non-profit, it is POINTLESSLY EXPENSIVE to pay the condo manager to maintain condo. The Condo managers hires lawyers to ensure the changes are legal. They generally hire others, not at a cheap rate, to do all the maintaince such as snow shovelling and cleaning shared areas.
2. Another problem with condo fees is that sometimes it does go in the red. What this means, is that the condo account does not have enough money to cover the cost of any potential future costly damages. This means condo owners have to pay more in such situations and the monthyl condo fee rises dramatically.
3. Typically, condo fees go up every year anywhere from 5% to 10% ad this for condos that have sufficient money allocated in the bank!
Bottom line: Condo fees are pointlessly expensive because of the bureaucracy and the maintance which can really be done by you. Unless if you are an old man that cannot perform simple task, it is better not to buy a condo for investment purposes. Condos are good to rent out, but they don't rise that much and the condo fees constantly wreak havoc on the value of the property.
Yet, as I am writing, there are massives of new condos being built in the Toront area. The media must be very good at influencing the public.
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