Don’t Fear The Fees: A Closer Look at Condo Fees
Tuitions fees. Late Fees. Hidden fees. Millennials might not be aware that at one time, late fees for a library book or a DVD rental would end up costing more than the actual value of the book or DVD itself. It’s virtually impossible to use the word “fee” in a positive light…or is it? In the Calgary real estate market I’ve had several conversations on the pros & cons of Condo Fees. Continue reading the blog below to find out why condo fees aren’t as bad as everyone makes them out to be, especially when you compare them to the costs involved in owning a home.
The idea that paying “condo fees” is a waste of money can deter potential homebuyers from purchasing a great condo in Calgary. Homebuyers that feel this way and subsequently choose to purchase a home over a condo, might end up with some rather large and unexpected bills to maintain or repair their new property. Insurance, utilities and regular maintenance costs are vastly different between homes and condos.
Insurance is the first cost differential that homebuyers need to take into consideration when debating condo fees. Essentially, insurance for a condo is going to be far less than that of a home. Condo fees cover insurance liability on the exterior of the property. Any additional insurance a homebuyer purchases for a condo only needs to cover the contents inside the condo. Condo insurance is going to be at least 50% less than that of a home.
If you have to replace a roof, the siding, or the fence of a home, financially you’re going to immediately find yourself digging in your pockets. When it comes to a condo, the monthly fees ensure that roofs, fences, and exteriors are properly maintained. It’s also comforting to know that during our freezing winters that heat is covered in the condo fees, which allows you to crank the thermostat to your heart’s content. When it comes to a house, heating costs are going to start at a minimum of $100 per month, and that’s low-balling the number. Additionally, condo fees will ensure that you never have to purchase and use lawnmowers or shovels ever again!
When it comes down to deciding on condos versus homes, the best advice I can offer is to crunch the numbers with your real estate agent and ask, “what am I getting for $400 condo fees?” Every client of mine has different goals when it comes to purchasing a home or a condo and it’s important to have open communication at all times. Although I’ve mentioned lot’s of benefits of condo fees, it doesn’t mean that all fees are made equal. If a downtown Calgary condo has fees of $700 a month, I would definitely investigate further and find out what exactly you’re getting for that price.
For some, investing in a condo suits their lifestyle. Not having to worry about maintaining yards or worrying about replacing roof shingles every few years. Don’t be deterred from buying a potentially great investment just because of condo fees. Crunch and compare the numbers before purchasing any properties. If you want more information and want to check out some great condos for sale in Calgary, contact me today at [email protected]