Are condo fees worth it?

Date

Dear David,

My husband and I have been part of the “sandwich generation” for the last ten years. We took care of my aging in-laws and helped our kids to launch their careers. Now that things have settled down, we’re talking about moving to a condo but disagree on a couple of things. I want the freedom to garden and travel, but my husband hates the idea of paying a monthly fee. Our budget is around $800 thousand, is it possible to find something that suits us both in this price range? – READY TO TAKE THE NEXT STEP

DEAR READY: Congratulations! As a magna cum laude graduate of the sandwich generation, you are finally at a stage where you can put your needs first. There are plenty of local options available for mature homeowners ready to downsize, and with a little research you can find something right for you and your husband. 

Many people think the word “condo” is synonymous with “apartment building”. While this is true in some cases, there are many property types that fall under the condo umbrella. Buyers new to condo ownership may struggle with the notion of paying condo fees. Some mistakenly assume they don’t offer any benefit, but condo fees cover everyday operating expenses, among other things. Depending on the condo, monthly fees may cover things like picking up garbage, plowing snow and maintaining driveways and roadways within the complex. In some instances (like land leases) they may even cover property taxes. Condo fees for retirement-type bungalows can range from a few hundred to almost $1000 a month, depending on what amenities are part of the complex. 

Maintaining a home costs money, and as a freehold property owner, you likely have a slush fund earmarked for emergencies. Condo owners set aside relatively similar amounts of money for maintenance and savings, via their monthly fees. Condo corporations account for every penny they collect, and must divert funds into a mandatory savings account (called a Reserve Fund) to reduce the likelihood of big surprises when they update elements of the property that are covered by the homeowners. 

When you’re ready to start your home search, consider your lifestyle and how well each community will meet your needs. If you are in good health and able to drive, you may wish to look at options further from the city, versus being carefree and car-free. Lifestyle amenities may include show shoveling to your door, lawn and garden maintenance, or none of the above. Each complex is different, and when you’re ready to dig in, your Realtor can explore the options with you.

PRO TIP: Connect with your Realtor, get a list of properties, and fill up the car. I suggest taking a drive on a sunny weekend to get a feel for each neighbourhood and location. There are many options for mature buyers looking to break free from the responsibilities of a freehold home, and several fall well within your budget. These types of neighbourhoods are becoming quite popular outside Waterloo Region as well. #Advice #AskDavid #TheNegotiator

David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Call or text today for your free home evaluation! 519-577-1212.

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