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Condo Fees vs. Home Ownership

West End Boy

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Can someone explain what is usually covered by condo fees?

I am trying to compare the cost of a condo vs. a house, and the range of condo fees seems huge on mls.ca, so I'd like to confirm what is included in most condo fees.

Thanks for any info.
 
^It depends on the building. Condo fees cover the costs of common area expenses for a condo corporation, such as regular cleaning services, general building maintenance, electricity, gas, water and sewage, window cleaning, carpet cleaning, waste disposal, pest control, signs, the superintendent, minor repairs, cleaning and maintenance supplies, elevator inspection and repairs, parking garage maintenance, security, landscaping, snow removal, insurance, the reserve fund, parking garage monitoring, HVAC, management company fees, general legal fees, water treatment and many other possible costs.

Larger buildings can have pools, gyms and a number of full-time staff. Those would also be covered by your fees.
 
I think property taxes are always seperate.

Utilities depend on the building... some include water, hydro and heating in the maintenance fees (often making them quite higher), and others don't include some or all of the utilities.

My advice is if possible, buy in a building where utility fees aren't included in the maintenance fees.... that way if you are efficient with your utilities, you won't end up paying for any neighbours who use more than they really should.
 
What about utilities and taxes? Is it common for these to be included in the condo fee?


condo fees may include utilties ... but NOT always. you will have to verify.

some older buildings (90's and earlier) typically do, but alot of the newer ones from late 90's and on do not.


property taxes are NEVER included in the condo fees ... the only exception to that are CO-OP buildings, but some people confuse them with condos.
 
some older buildings (90's and earlier) typically do, but alot of the newer ones from late 90's and on do not.

Thanks. That explains why some of the older buildings seem to have much higher fees than newer ones. I wasn't sure if this was just because they were old and needed to pay for big ticket items (which I'm sure is sometimes the case).

Unfortunately, it makes newer buildings seem less costly to live in when that might not in fact be true.
 
The other factor is that condo fees in new buildings are often artificially low. They often increase substantially after a few years.
 
The cost of house ownership is higher than you would think. Sometimes people throw around the figure that it takes about 1% of a house's value per year to maintain (not improve) it in a sustainable state of repair. So if you are talking about a $350,000 house that is $3500 per year or $300 per month outside any utility costs etc. Keep in mind that there are long-term capital costs accruing (like a new roof every 20-25 years) even when they don't show up every year.

The power of a house over a condo is that you have control over the amount of financial resources and standard of care allocated to maintain your property. This is far more important than the actual dollar value break-down. It is a far more flexible way to live in the long-run because life is not linear and sometimes you have the time and means to invest in your property and sometimes you don't. When you don't you can hold the line on expenses and run down your property for a period.

On the other hand, a monthly break-down is like living for dumbies (I mean this in a good way). Someone dictates how much you spend and how it is allocated. This is a good way to go if you find you are the kind of person who has trouble making your own long-term goals. It is appealing to the kind of person who, say, has a monthly automatic saving plan where x hundred dollars automaticly gets put in their investment portfolio.
 
The cost of house ownership is higher than you would think. Sometimes people throw around the figure that it takes about 1% of a house's value per year to maintain (not improve) it in a sustainable state of repair. So if you are talking about a $350,000 house that is $3500 per year or $300 per month outside any utility costs etc. Keep in mind that there are long-term capital costs accruing (like a new roof every 20-25 years) even when they don't show up every year...

My experience of owning a house in the last 12 years is different; I would say that the cost of house ownership due to repairs and maintenances was around $500-$600 a year regardless of the size, cost, and age of the house (our houses ranged from $130K to $700K; from a post-war bungalow to a large suburban house). Even with all additions and improvements (e.g., hardwood floors, new bathroom, solar heating system for a pool) it was still cheaper than 1%; I would say that the cost of improvements was more related to the size/value of the house than the regular maintenance.
 
My condo fees include hydro and I am curious what it costs to carry a house
(say approx 1500 sq feet) per month from a utility perspective - hydro gas water.
 
3000 sq ft house - South Etobicoke, MPAC assessment $404,000, other similar properties in the area selling for $650,000-$750,000

Gas - $2200/year
Property Taxes - $3600/year
Electricity - $900/year
Water/Garbage - $500/year
House Insurance - $1000/year

Gas - $185 month
Property Taxes - $300/month
Electricity - $75/month
Water/Garbage - $42/month
House Insurance - $84/month

Total Monthly Costs - $686
 
Depends how much you use. If you're running a lot of equipment on an ongoing basis, hydro will go up. If you use all energy-efficient appliances and use them sparingly, your use will be less. There are so many variables.

As for house costs, again, a lot of variables. If you've got a big yard, how much time and money does it cost you to do the gardening, mow the lawn, etc.? It's not just the cost of utilities and minor repairs that should be included in the cost of maintaining a house.

Condo fees are generally higher in buildings with a pool and/or a concierge. Those are two big expenses.

Remember to take a look at fees per square foot as well as what's covered in the fees so you're comparing apples with apples.
 
You also have to factor in other costs, besides just upkeep. Things like - security system, gardening, lawn mowers or landscape maintenance, snow clearing, gutter clearing, etc. Plus, factor in, as stated above, roof repair, new AC/boiler/etc, new paint every few years...

When the above costs are factored in - as well as possible use of condo facilities like gym membership (saving a couple up to $200/month if bought separately), pool, rooms for fundraising and parties, etc., in my own personal situation, I've found the condo fees to be substantially less than owning an equivalently priced home in the same neighbourhood (around 35% less).

It really depends on your own likes/dislikes, uses/non-uses - just make sure to take the above advice and compare apples to apples.
 
Roof Repair - let's say $5,000 on an average home, over 25 years is about $17/month. Boiler you can rent from Enbridge for $15/month. Gutter Cleaning is really negligible/non existant if you don't live around a lot of trees.

I agree on some of the other points, having a gym/pool is really convenient. It all comes down to what you want to do and don't want to do.

If you want to live a worry free lifestyle, buy a condo.

If you want more space and freedom - ie; backyard, but can deal with the many issues a house can bring up, then a house is for you.
 

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