An Ideal Lifestyle for Some People Wanting Freedom and Forced Savings for Repairs and Replacement
So you want to purchase a home but don’t want to spend your weekends mowing the lawn or shoveling snow. Then condominium living may be just what you’re looking for!
With a condominium, you own your individual unit in a multi-unit property, plus you share ownership of the land and other common elements with the other condominium unit owners. Common elements typically include the hallways, elevators, parking lot, landscaped areas, swimming pool, games room, and the like.
Just remember that unlike freehold properties, condominium ownership involves a monthly condo fee. Typically this fee covers the costs of building maintenance and insurance, replacement of the roof and windows, and the upkeep of the common areas mentioned above. In some cases it may also cover the costs of heat and hydro for your unit. Condo fees can vary significantly, so be sure to find out what the fee covers.
What’s the Reserve Fund?
Reserve or contingency funds are set up by the Condominium Corporation to cover major or unexpected expenses, such as new elevators, parking lot re-paving, or new flooring in common areas. A portion of your monthly condominium fee is allocated to this reserve fund.
So your condominium fee is really a form of forced savings – with funds being set aside to cover the costs of any maintenance or replacement issues that arise.
With freehold ownership, finding the funds to cover these sometimes unexpected costs can prove very difficult. Consider the financial burden of learning that you suddenly have to come up with thousands of dollars to repair a leaky roof.
Considering a condo purchase? Contact one of our Royal LePage sales representatives for the latest on what’s on the market that will best suit your budget and lifestyle.