Posted on: 24-01-05 05:47:21
I am living in Condo apartment in Misissauga. This year also maintanance fee has been increased by 10%. It is almost 500 CAD per month. Is it economical to stay in condo due to ever increasing maintanance fee or should i plan to sell it & buy a independent house.? Pl. advice.
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Driller the thriller
Calculate your condo fees of $500 plus monthly property taxes and your mortgage payments. See for yourself if it makes a sense to stay in a condo apartment.
In case you are condo type person, as seen in the below link then you can consider better condo options:
http://www.canadiandesi.com/article.php?AID=61&SID=4
If you are really a condo freak then move into a newly built condo in Mississauga and this way you can escape from high condo fees.
Some new buildings are offering fees in a range of 200-350 per month. This way you might also expect some appreciation in property value in comparison to the older buildings, which are suffering as a result of inventory over supply since past few months.
Can you tell me which is this building that has increased its condo fees by almost 10% in one year?
Regards,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Quote:
Orginally posted by amit kalia
Calculate your condo fees of $500 plus monthly property taxes and your mortgage payments. See for yourself if it makes a sense to stay in a condo apartment.
In case you are condo type person, as seen in the below link then you can consider better condo options:
http://www.canadiandesi.com/article.php?AID=61&SID=4
If you are really a condo freak then move into a newly built condo in Mississauga and this way you can escape from high condo fees.
Some new buildings are offering fees in a range of 200-350 per month. This way you might also expect some appreciation in property value in comparison to the older buildings, which are suffering as a result of inventory over supply since past few months.
Can you tell me which is this building that has increased its condo fees by almost 10% in one year?
Regards,
Hi Amit,
What is the right of the condo unit's owner against the management about the increase of maintanace fees?
Can we stop them or ask them about accounts details ? Who has a right to change the management team?
Thanks
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Kap
Before buying a condo it is good to check the status of the Reserve Fund which is used to pay for maintenance repairs and capital improvements. Older condos may have depleted reserve funds and hence may charge higher maintenance fees.
Alway ask for financial statements from the condo governing board including bank statements showing the financial health of the condo corp.
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I have only 2 cents to contribute, not a cent more, not a cent less ;-)
Quote:
Orginally posted by desi_driller
I am living in Condo apartment in Misissauga. This year also maintanance fee has been increased by 10%. It is almost 500 CAD per month. Is it economical to stay in condo due to ever increasing maintanance fee or should i plan to sell it & buy a independent house.? Pl. advice.
Hi Desi_driller,
The condo fee is really high and the increase over last year is steep but the condo corporation ( the board of directors) take this decision in a General Body Meeting after showing the accounts etc. and I think as per the by laws of the condo corporation these decision become binding on every unit owner.
I do not know the cost of the condo but the $500 would service a mortgage of more than $50,000 extra if you go for a house instead of a condominium. What this means that if you qualify to buy a condo for $200,000 with a condo fee of $500 then you may qualify for a free hold house purchase of $250,000 if all other factors such as term, rate, amortization and your eligible income remain the same.
There is a discussion about the condominium buying in another thread the link of which is here:
http://canadiandesi.ca/read.php?TID=6931
I hope it might ask some of your questions.
Good Luck
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Quote:
Orginally posted by Pramod Chopra
I do not know the cost of the condo but the $500 would service a mortgage of more than $50,000 extra if you go for a house instead of a condominium. What this means that if you qualify to buy a condo for $200,000 with a condo fee of $500 then you may qualify for a free hold house purchase of $250,000 if all other factors such as term, rate, amortization and your eligible income remain the same.
Yes, but this $500 take cares of general maintenance of the facilites, hydro and water on condo. If a free house is baught considering this as extra budget, maintenance of house will add which are tax, hydro, water and general repair. That will cost another $500.
IMO, this $500 cannot be eliminated from the monthly expense on house or condo.
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Try overtaking child's imagination
Quote:
Orginally posted by jago_desi
Quote:
Orginally posted by Pramod Chopra
I do not know the cost of the condo but the $500 would service a mortgage of more than $50,000 extra if you go for a house instead of a condominium. What this means that if you qualify to buy a condo for $200,000 with a condo fee of $500 then you may qualify for a free hold house purchase of $250,000 if all other factors such as term, rate, amortization and your eligible income remain the same.
Yes, but this $500 take cares of general maintenance of the facilites, hydro and water on condo. If a free house is baught considering this as extra budget, maintenance of house will add which are tax, hydro, water and general repair. That will cost another $500.
IMO, this $500 cannot be eliminated from the monthly expense on house or condo.
Please note that I only said about qualifying and no where mentioned the carrying costs but if we are practical then it could be lower in case of a house then in condo. I do not know how you have done your calculations as you do have to pay propety tax for the condominium as well. Yes, the heat and hydro for a house would certainly be lower than $500 per month though you may have to pay extra for the property tax and fire insurance. One can not predict about the repairs which could be either less or more for any of the dwellings so I am not considering this in the example below.
For clarity, let us suppose A has a condo on which he has a mortgage of $200,000 @ 4.7% p.a (today's 5 year rate) and has a condo fee of $500 while another person B has a house on which he has a mortgage of $250,000 for a 5 year term Rest of the expenses I have mentioned below. Please note that I have been generous in considering heat, hydro and other expenses for the house but still it does not come out to be more than $50 difference. And a house could even cost less if it has a basement which could be rented out to even a measly $500 per month and in that case house actually becomes cheaper to afford.
Monthly Expenses...... Condo....... House
Monthly Mortgage...... $1,129.29. $1,411.61
Maintenance Fee...........$500.00........$0.00
Property Tax................$170.00.....$250.00
Fire Insurance.................$0.00.......$40.00
Heat / Hydro...................$0.00......$150.00
Property Insurance........$20.00........$20.00
Sub Total .................$1,819.29 ..$1,871.61
Rent from Basement.........$0.00.....-$500.00
Total Expenses............$1,819.29...$1,371.61
I hope it clarifies.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
