Love Thy Neighbour Robert Ede
Do it Right the First Time ! 
Robert Ede

Why you just might be Better off buying a Condominium


 

 * The Condo management is a local, concerned & committed level of service and governance.  If one of your neighbours acts un-neighbourly - you have someone to call who MUST care about your concern.

 

 * The exterior of your home & the streetscape is kept uniformly tasteful and in good condition.  When you are away the jobs are always done.

 

 * The total risk & responsibility of the exterior & structure of your home is insured and maintained by the condominium's reserve fund. In the event some damage occurs to your home as a result of a mishap 3 doors down, it's automatically taken care of - no lawsuit or insurance company feud-for-recovery, as might happen in an attached, freehold/row house.

 

 * You own the unit PLUS you own a proportionate share of the common elements i.e. all the land and buildings.  In Condo's built 25-30 years ago, densities were lower and therefore sites were larger - it is possible that your Condo corporation could be re-developed for a more valuable use and as "shareholder-owner" you would reap the benefits too.

 

 * Condominiums are often much more affordable housing options in first class neighbourhoods in top-notch locations.

 

 * The new Condominium Act compels very Condo Corporation to set a 30-year plan for its budgets and a minimum 10% of annual budget contribution into the Reserve Fund.  Soon every Condo in Ontario will be able to operate every year without Surprise Maintenance Fees (called Special Assessments) because of the long-term planning and saving due to these ongoing Reserve Fund Studies (done once every 3 years).

    

Maintenance Fees are Long-term Savings AND Short-term cost-savers

 

*The prudent non-condo homeowner sets aside 1% of his/her property's value as a reserve for repairs and replacements

    

Eventually, in every home the windows, driveway, shingles, eavestrough, landscaping etc will need repair or replacement, whereas in a condo those costs are borne (& planned for) by the corporation's management.

 

 

If we say average value of a Johnsview townhome is $225,000, then 1% is $2,250 annually and $187 per month

 

The same townhome has maintenance fees of approx         $260 per month

which includes:

 * Water  - eliminating a separate Water Bill of approx.            $30-$40/mth

 * Structural Insurance - reducing the cost by approx.           $10-$30

 * Landscaping & Snow etc - saving you at least 1 Hr/wk @   $10-$40

 

            Adding “Prudent non-Condo"  Repair set-aside        $187

 

                                                                            Total                 $237-297

   

      - You’re going to pay a very similar amount one way or the other

 

 

If paying Condominium Fees were "a bad deal" no one would buy one

- but these calculations show it's really "a pretty fair deal"

 

 -Enjoyment of your unit and all the common elements, pool, grounds etc

    - No real gardening -unless you choose to indulge yourself

    - No worries about foundations or roofs (sometimes windows & doors)

    - Less to think about when you are away from town

 

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