Lower condo fees can mean higher concerns for you
If you have been shopping for a Mississauga condo with low condo fees, think again. Lower condo fees can lead to higher concerns for you. It’s common to find investors, especially first time buyers hunting for a good Mississauga condo with extremely low condo fees. It’s more common to find them disappointed when they do come across such dwellings.
Condo fees in a high rise
Most maintenance fees in high rise condominium apartment buildings take several considerations into account. Charges include property management fees, building insurance, heating, cooling, water, parking as well as looking into the common elements such as landscaping, elevators, snow removal, window cleaning, building maintenance, repairs, swimming pool, sauna, gym, tennis and squash courts and security.
If you do come across one with extremely low condo fees, we have to tell you to beware.
In some Mississauga condos, maintenance fees may also cover hydro and cable TV. If they are not included in the condo fees, you may very well have to end up paying for these separately. Even in freehold homes, these are charges you just can’t avoid.
If condo corporations charge you a fair amount, you can be assured that you have less to worry and are well looked after. If you buy a condo with lesser or little amenities, the amount goes down significantly no doubt as compared to luxury condo features such as a rooftop terrace, party rooms, sauna, gym and swimming pool.
Many boutique condo buildings come with low condo fees
These less loaded condos are mostly smaller buildings with fewer units. Usually more the amenities, larger the condo since they carry a larger number of suites to spread out the costs. One can find some of these condos in Churchill Meadows, Mississauga.
Old condos charge a higher condo fees is a myth
In Mississauga, maintenance fees hover around 50 to 60 cents per square foot. There is a common myth that older condos charge higher fees in comparison to newer condos in Mississauga. Often condo dwellers complain that sometimes the fees are so high. In such cases, they feel it is better to save up and invest in a freehold home where they do not have to cough up monthly fees. What they forget is that a freehold house also comes with its own set of maintenance costs, in addition to utility costs like heat, hydro, water, air conditioning etc. A house holder also has to save money for major repairs like roof, windows, furnace, air conditioning etc.
In the case of condos, the above expenses are paid out of the condominium reserve fund. This reserve fund is built over time, as a portion of condo fees goes towards reserve fund for future major repairs and equipment replacement etc. Sometimes in ageing condos that have charged lower fees, the residents are suddenly asked for a substantially higher amount to cover the cost of urgent repair work. Many try to sell off their units when slapped with unexpectedly big bills, but that’s easier said than done. So in the end, they end up losing not just their money but also their peace of mind.
When a condo building is well-maintained, you can be assured that it will appreciate in value. A well maintained condo also entices quality buyers and fetches you more gains both in the long and short run. You certainly have more to lose with a tired, ageing structure.
Our experience about condo fees in a well managed condo complex
It is important to be aware of the services included in your condo fee before making an informed decision. There is a reputed condo townhouse complex in Central Erin Mills earlier where the condo fees amounted to about $250 per month few years ago. This included common elements, building insurance, replacement and maintenance of roof, windows, garage door and even the furnace.
However, a similar condo townhouse complex in the vicinity charged a monthly fee of only $100 which included maintenance of common elements and building insurance. But it certainly did not include a host of other services that we had such as repair and replacement of windows, roof, garage doors, and furnace. So if the owners of this condo were to fix the above items, they would have to pay from their own pocket.
Condominium documents are crucial when shopping for a condo
When you shop for a Mississauga condo unit, it is important to check the documents such as the condominium declaration review with your lawyer. The condo documents can tell you much more about the engineering and financial health of the condo corporation. Whatever the situation, it helps to be aware that with higher inflation every year, expenses go up too and consequently, so do condo fees with each condo management setting their own rates.
If you are unsure on how to go about buying the best condos, get in touch with our team.