In some cases, buying a condo may not be as economical as buying a house In many major cities like Toronto, condos have become the property of choice for those who want to live close to the action, take advantage of the conveniences of the condo lifestyle, or find a more affordable entry point to get on the property ladder. Consider that the median selling price for a house in Toronto last month was $1,328,888 compared with $671,502 for a condo. Before jumping in though, it’s important to do your research on maintenance fees — which can increase over time and greatly vary from building to building — and what’s included with those fees.
Depending on how high the condo fees are, in some cases buying a condo may not be as economical as buying a house. Condo fees are normally calculated based on the size of the unit and what the fees cover, such as building insurance, maintenance of common elements, amenities, some utilities and contributions to the building’s reserve fund. Wahi’s latest analysis of condo fees for one-bedroom units in the Greater Toronto Area reveals the 10 buildings with the most and least expensive median monthly condo fees, as well as what those fees include, and insights into how these fees range around the region.
Various factors influence maintenance fees, such as the size of a building’s reserve fund and the exact square footage of each unit. Buyers need to do their due diligence on these factors before making an offer to buy. The Condos with The Highest Condo Fees.
Not surprisingly, older luxury buildings have the highest fees, ranging between $1,075 and $2,268 within the top 10 most expensive buildings for fees. Except for one building in Oakville, the other nine can be found in Downtown Toronto. Older buildings typically have large floor plans and their fees tend to include heat and hydro, not to mention more luxurious amenities such as pools, saunas and well-equipped gyms.
Some even have car washes, squash courts and business centres. The Condos with The Lowest Condo Fees. Within the GTA, newer suburban buildings located outside of Toronto’s core tended to have the lowest fees, ranging between $217 and $254 within the top 10 least expensive buildings for fees.
These buildings can be found in Milton, Oakville, Scarborough, North York, as well as a few in downtown Toronto. Even those with lower fees have some impressive amenities, although these newer buildings tend to have much smaller units compared to the older luxury buildings. While the fees in a brand-new condo may be low now, buyers should budget for increases as the property ages and the requirements change.
Maintenance fees are an important factor to consider when figuring out your homebuying budget. These fees cover various expenses and can have a substantial impact on your overall financial planning. Understanding what expenses condo fees cover, how well-funded a building’s reserve fund is, and the cost of maintaining its amenities will go a long way in helping you determine if a condo is right for you.
Benjy Katchen is the CEO of Wahi, a digital real estate platform that provides valuable information for realtors and home buyers. For more information, visit www.wahi.
com..
