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07 Feb

Condo Living: Understanding the Fees you need to shoulder

Posted in Condos on 07.02.13

condoIf you are planning to buy a condo unit, you might was well learn the monthly fees that your building admin will charge. Think how these fees plus your mortgage payments and property taxes can cause a big dent on your monthly budget.

Maintenance Fee

The maintenance fees are actually your share of maintaining the building. This will not be profitable for the management since most of the buildings are registered as non-profit corporations. Most of the fees will help cover for the cost of window cleaning, garden maintenance, house cleaning, snow shoveling, among others.

Your fees will be calculated depending on the size of your unit and will be recalculated every year depending on the operating budget of the building.

Contingency Funds

A portion of the fees will also be allocated to a contingency fund that will cover for other major building maintenance such as for plumbing, roof, or heating system repairs. If you will compare condo fees to townhouse fees, the latter is easier to handle considering their utilities are metered separately.

Some condos may ask for higher fees as they have concierge services, beefed-up security, pool, gym with available trainers, or underground parking.

Special Assessments

These are fees that will cover for other major repairs that may not be covered by the contingency fees. Once they are collected, you might see a significant drop in your monthly maintenance fees.

You need to make sure that you are aware of the monthly fees that you need to pay before purchasing a condo. This will allow you to compare your choices and determine which features and amenities will you really need and whether your budget can handle these fees or not.

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