Buying a condo is different from buying a home, or even from renting real estate. Toronto and Mississauga are boom cities for condos because they allow people to own property in densely populated downtown areas. The problem is that many first time condo buyers look only at the sticker price when deciding if they can afford a place, forgetting that living in condo developments means paying an extra few hundred dollars in monthly condo fees. Each condo comes with different fees, so we can't give you a dollar amount to expect, but we can tell you what you can expect to shell out for on a monthly basis.
Common Expenses
A large portion of monthly condo fees go toward maintaining the building your unit is a part of. The costs of maintaining common amenities is split between residents, so if you live in a large building with only a few units or you've chosen condos for sale in Mississauga with a lot of expensive features like a pool or a rooftop garden, your fees can be pretty steep. If you're looking to save on condo fees, choose a building with few or no features. Some cheaper features include a theater, common room, and weight room.
'Common expenses' also includes the salaries of the support workers who provide services to building residents. Since service fees are split amongst residents, living in a condo can be a cheaper way of hiring servants than buying Toronto houses. Some often seen types of service workers found working in condo buildings include cleaning crews, gardeners, concierges, security guards, activities directors, laundry cleaners, and snow removers.
Reserve Fund
The rest of your monthly condo fee will go into a reserve fund. This fund is kept in readiness to pay for future repairs to the building. For instance, if the roof needed to be replaced or the parking lot repaved. Where regular homeowners would have to pay a lump sum for repairs, condo owners pay small monthly installments to the reserve. Even if you've taken a condo for rent in Toronto you'll still need to pay into the reserve. Reserve funds can also be used on upgrades agreed to by the owners' association or mandated by the province such as increasing the energy efficiency of the building or improving the look of the facade.
Utilities
Some condo developers include utilities such as water, heat, and electricity in their monthly condo fees, making them seem more expensive while others do not, so make sure to check with the developer. In all likelihood you will be paying your own fees for telephone, internet, and television, just like you would be if you bought a house for sale in Toronto Beach neighborhoods, though some buildings do include it.
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