Let’s be real. First time buyers are probably only going to be able to afford a condo. And that’s if they’re lucky. But even though condos seem to be relatively affordable, there are costs that may be unknown to buyers.
Buying a condo can be tricky. It’s best to go with an experienced real estate agent that is familiar with specific condo buildings. Some condos may be more prone to issues based on the quality of construction and materials used in construction. A good realtor will steer their clients away from problem buildings that could help you avoid future costs.
But the big cost of condos is maintenance fees. All buildings have issues and must be fixed. These fixes are paid for by monthly maintenance fees which are based on square footage of the unit or the floor the unit is on. It’s important to know what maintenance fees cover and if they are expected to increase overtime and by how much.
Unexpected costs for condo repairs are covered by the reserve fund. It’s important to check the amount in a condo’s reserve fund to ensure that you won’t have to cover unexpected costs on top of maintenance fees. Repair costs are often non-negotiable, but this depends on the condo’s set of rules.
At the end of the day, the key is to do research before buying a condo and review the set of condo documents.
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