by Stuart Neal
on Friday, July 24th, 2020 at 4:55pm.
6 Reasons to Pay Condo Fees
Many clients we work with ask us not to show them condos. Once we drill down as to why they feel this way, it is often because they don’t understand the value of paying into a condo reserve fund. In many cases, we find that once they understand what they are actually buying, selecting a condo for a home actually becomes their preference.
1. No Need to Worry About External Maintenance, Snow Clearing & Yard Work
Apart from putting some money into a slush fund for longer term maintenance, or unforeseen circumstances, condo fees pay for essential homeowner services including insurance, snow clearing, gardening and in many cases onsite management.
2. No Need to Save Extra
If you are not paying condo fees, you had better be a saver. Too many home buyers overlook the true costs of ownership. New roofs, driveways, siding, windows, landscaping, snow clearing, paths, drives, or even natural disasters like a flood for example can really hurt if you are having to pay the entire cost yourself.
3. You Are Buying Freedom
Condo fees give freedom. If you are the type of person that wants to lock the door and head for the sun on a whim, buy a condo.
Whist you are away if it snows. If the grass needs to be cut, or if a pipe bursts, there will be someone to step in a fix it for you.
4. Lower Risk
As a condo owner, you are sharing many of the costs associated with property ownership and management with others. Sharing these costs with other homeowners, minimizes the risks of incurring cost ‘spikes’ due to unforeseen circumstances.
5. Fixed Costs
Every 5 years a condo is required to get a Reserve Fund Study completed. This study is created by professionals who understand the long term requirements of keeping a building in tip top shape. The cost of your condo fee is calculated in line with the anticipated costs of keeping the building updated and well maintained well into the future. As a result, the cost is in many cases stable for a several years at a time.
6. What About Townhouses or Half Duplexes?
Again, the same benefits apply. Upkeep of the exterior. For example, the siding and roof and perhaps in some cases fences etc. are all governed by bylaws. This means that when the time comes for replacement of an item, there are laws in place that force your neighbours to cooperate with you. No need to fight over who or when the roof will be renewed. Provided the bylaws were drafted correctly at the start, you are covered by the bylaws.