Can You Afford Your Condo's Monthly Fees?

If you're planning on purchasing a new condo and have never owned your own property before, there's one important thing to remember. When you see a lovely condo being advertised on the listings and you feel that it's something you can afford, you'll first want to find out what the condo fees are. The fees will need to be paid monthly and should be added to the mortgage amount of the condo when you're trying to determine whether you can afford the monthly payments.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Condo Fees

Condo fees can vary across the board from one condo to the next. Quite often, these fees aren't listed in the advertised listing and you'll need to contact a real estate agent to find out how much they are. This is one of the first things that you should be doing if you're serious about buying a new condo. Your agent can direct you to the condominiums that have fees that you can afford.

What Are Condo Feels Composed Of?

As more and more people are stepping into the world of condos we thought we'd address condo fees and what they cover. Condo fees are calculated according to provincial regulations and they will be shown in your documents. In most cases, the cost of operating the whole building will be divided by the number of units (with the size of the units taken into account) to cover the common expenses.

Here are some of the usual expenses that your condo fee will cover.

• Management fees for the property.
• Maintenance and repair of the common areas of the building.
• Upkeep of any amenities such as a pool, common rooms etc.
• Replacement or repair of any building systems.
• Landscaping.
• Keeping the building clean.
• Condominium employee salaries.
• Access to Internet or cable.
• Cost of utilities.
• Condominium insurance costs.

You won't be able to negotiate the price for condo fees and they are never optional. If, for example, you're moving into a condominium building with a pool and never expect to use it, you'll still have to pay for its upkeep. If you present the argument that you don't swim, you'll just be told to look for a condo that doesn't have a pool as an amenity.

Before you purchase a condo you can find out about the fees based on the operating budget from the property manager, the developer or the vendor.

Condo Fees Are Higher in the City

For the most part, you can expect to pay a higher condo fee if you choose a condominium apartment that’s situated close to the downtown core. As a general rule, as you work your way outwards from this part of town, you'll see the condo fees coming down in price. This, of course, is just a general rule since a high-end luxury condo with a lot of amenities close to the outskirts of the city will charge higher fees usually than a condo downtown that has very few amenities to offer.

How Condo Fees Factor into a Mortgage

It's important to note as well that when you apply for a mortgage the condo fees will also be taken into account along with the monthly loan payments. You'll have to qualify for the mortgage based on the ability to pay both.

People that want the condo lifestyle are more than willing to pay these fees for the value they provide. When you own a unit all of your lawn mowing, snow shoveling and landscaping will be done for you.

As a single-family home owner you could possibly also end up hiring your own landscaper and snow shoveller to do the work for you. This is much the same as paying condo fees, but is not worked into the qualifying of the mortgage.

Work With an Experienced Real Estate Agent to Learn More About Calgary Condos

Too many people get caught up in the excitement of the moment when looking at the price of a certain condo and decide that they can afford it. The price of the condominium that is being viewed is only part of the monthly payment that will need to be made. The fees need to be figured into the equation along with the mortgage payment. Once you've done this, you'll know whether you should go ahead and view the condo you like or whether it's time to look at something a little cheaper.

There are plenty of condos available in Calgary and each one has its own set of condo fees. If you are serious about learning more about a condo that you have viewed, simply let your real estate agent know and he can help you get the information you need regarding the condo fees and everything they cover.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.