One of the differences between buying a house and a condo is the concept of co-ownership. Buying a condo is a little like joining a micro-society where each owner must contribute to the well-being of the group. To be able to maintain, repair and improve the building as a whole and common areas, each owner must pay its share of the costs which is done through condo fees.
As we said, part of the condo fees will pay for common areas while a certain portion will be set aside in a « contingency fund » for major repairs in the future. The contingency fund is in fact requested by law and crucial when it comes to condo management by a condominium association.
Here are a few items to consider when looking to buy a condo:
- Contingency fund: should be equal to at least 5% of the annual common fees.
- Did the condo association make a detailed list of potential repairs to be made in the future?
- Condo fees: are they enough to pay for the maintenance and potential repairs of all services included in your condo building?
- Who is managing the co-ownership budget?
- How will they split the expenses in the contingency fund?
- Did you read the minutes from previous meetings to know exactly what repairs were done and how condo fees have changed over the years?
In other words, if you are thinking about buying a condo, don’t look only at the monthly fees but take the time to analyse how the money is managed as a whole. You’ll feel more confident about how your money will be spent. This will also help you avoid unpleasant surprises in 5 to 10 years when a major repair will need to be done!
Did you know that District Griffin uses the services of external management companies? We also make sure our monthly maintenance fees are consistent with the market with the help of an external research company. This avoids any conflict of interests in fund management and insures uniformity between projects.
To find out more and see what a good co-ownership management company could do for you, click here. (in French only)
Are you looking for a condo matching YOUR lifestyle? Visit us!
- 1040 rue Wellington (coin Peel)
- Monday-Thursday: 12 -7 pm
- Saturday and Sunday: 12 – 5 pm
- 514 914-4743
- info@districtgriffin.com
