Condos with cheaper fees are always better
Paying additional fees above your mortgage hurts, we get it, but it's not always beneficial to invest in the lowest condo fees to avoid further costs. Higher condo fees could signal work is being completed and buildings are well cared for by the management company. Prospective owners are advised to review condominium documents for cost, finances and reserve funds. No new owner wants an assessment after taking possession, and a lower applied condo fee could mean one is on its way. Lower fees may also indicate the strata corporation is not performing the required work and could demonstrate inadequate budget and funding to operate smoothly.
It’s just as important to look at what’s included in the maintenance fee and the history of the building’s finances. While one building may have a lower maintenance fee, one may use special assessments, which require larger lump sum fees to fund repairs, whereas the other has never had a special assessment, and some of your utilities are included in the fee.
We strongly encourage clients interested in condos to review current and previous documentation. The lowest cost isn’t always the best deal