High condo fees? Low price?
Looking for a fabulous new Edmonton condo to call home? Great! We've got some golden nuggets of wisdom to share with you before you dive into the world of condo buying.
The Amazing Deals Dilemma
If you stumble upon a condo deal that seems too good to be true, it just might be. Sometimes, condos are priced super low (like, "is this for real?" low) because of a few behind-the-scenes hiccups. Errors in management, poor maintenance and repair records, and the age of the building all contribute to this. These can lead to tiny price tags but with a twist - higher monthly fees.
The Monthly Fee Mix-Up
Saving on the upfront cost is awesome, but if you're paying more every month, it's like a see-saw, and not the fun kind. Imagine being part of a condo community that's a bit on the rocky side financially, and being stuck with a home that's tough to sell later. Condo fees, property taxes and mortgage payments all form part of the monthly carrying cost - the higher the condo fee the lower the market demand for the condominium.
Review all condo disclosure documents before you buy! High condo fees can make it nearly impossible to sell your condo down the road so proceed with cautionRealtor, Ryan McCann
The Long-Term Gambit
Some buyers are betting on Edmonton’s condo market comeback - and that's a bold move! They dream that one day they'll sell their condo for a profit that'll make all those hefty monthly checks worth it. But sometimes, dreams take a bit longer to come true, and it could mean a pinch in the pocket.
The Unexpected Extras
Owning a condo can sometimes come with surprise requests from the condo board. A board might need funds for all sorts of things, and if the reserve fund doesn’t cover it, owners might have to step in and top up the reserve (pay out of pocket). It's a bit like a surprise party that no one asked for. Assessments aren’t uncommon as part of owning a condo, but significant ones can deter future Buyers from buying your home.
The Cautionary Tale of Condo Complexes
Over time, some condo complexes might face financial hurdles that can lead to big changes, even bankruptcy. Edmonton has plenty of condos new and old that offer tremendous value but it’s critical to review all of the Condo Corporation’s documents, especially the Reserve Fund Study and full financials. An Edmonton Realtor and Document review company can guide you through the process and avoid common pitfalls.
Keep your eyes wide open for those sweet-sounding deals on condos with low prices but high monthly costs. Your future self will thank you for shopping smart and looking beyond the initial price tag!
Remember, the perfect condo is out there waiting for you and you don’t have to go it alone. Click here for a list of Edmonton’s best condos.