Seriously? I Have to Pay Condo Fees?
Yes. Simple right?
You wil be required to pay a monthly condo fee and this actually is a good thing. Here is a summary:
Let's say you buy a condo and the monthly association fee is $350 per month. Initially, this does seem like a lot of money - but let's break this down.
- Reserve Fund Contribution (click for more info)
- Landscape Maintenance and Snow Removal - Yes - you won't be shovelling or mowing! Woohoooo!
- Exterior Maintenance - Like roofing, siding, retaining walls, pavement and sidewalks within complex etc
- Heat - Most apartment style complexes have heat included here so you're not getting a bill
- Insurance - This is for the corporation - covers hail damage, lawsuits etc (yes, lawsuits happen)
- Monthly Budget - Will include things like professional management, utilities for common areas, concierge if they have
- Various of other things - this is the importance of reviewing all the financial documentation
Ok, so let's change this up - you buy a house for $400,000. You (as a sole owner) are responsible for the following:
- Exterior Maintenance
- Heat and all your other utilities and services
- You're shovelling and mowing - What's your time worth?
You're still paying a monthly fee - or you should be. The difference is in a condo, you are forced to pay it. If you bought a house - you are not forced - but the fee is essentially still there.
Home Owners Association (HOA)
HOA and Condo Fees and be confused, know the difference.
- HOA fees are typically annual and cover fees associated with your community such as a lake, community center or community. Like condo fees, you must pay them.
- Condo Fees are monthly and are specific for your complex or building.
Some condos have amenities - some do not. Amenities could be a pool, weight room, games room or theatre - can be a variety of things. The more amenities, the higher the monthly fees will be.
You need to keep this in mind when considering your monthly condo association fee. If the complex offers amenities such as an exercise room and pool - and they're well set up - this can eliminate your gym membership you currently.