Comparing Condo Fees with House Expenses
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Condo fees are NOT a complete waste of money. Fees pay for many items which would cost extra in a house. Here is a list of services and their equivalent house costs....
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Comparing Condo Fees with House Expenses
- 1. Bo Kauffmann – Winnipeg Real Estate Blog 1 Condo Fees vs House Expenses! A Perspective https://blog.winnipeghomefinder.com/buying-a-condo-in- winnipeg-condo-fees-vs-house-expenses/
- 2. Bo Kauffmann – Winnipeg Real Estate Blog 2 Prospective home owners sometimes use the subject of condo fees to justify their preference of a house over a condo. The argument is: "If I buy a house, I can save the condo fees." This reasoning is not entirely accurate, since it assumes that house-ownership is completely without cost. Water, Home Insurance, and Heating Costs • Water: Virtually, all condo fees already include water and hot water. • Home insurance: Property is also going to be substantially more in a house, since the condo building is already insured, and the condo-buyer only has to purchase condo insurance. • Heating costs for an apartment or townhouse style unit are also going to be substantially less than the heating costs for a stand-alone house in the $200K range. (I point out the price range, since MOST 200K houses will likely have either old furnaces, old windows, poor insulation, etc.) Emergency Fund Home owners (especially buyers of older buildings) are well advised to start an emergency fund for things that go wrong. For example, a new roof ($5000), new furnace ($4000), hot-water tank ($800), windows and doors ($15,000) can put a real dent into your savings. So, putting aside a small amount each month, the house- owner could save enough money to pay for those things. All the while, the condo-fees already include this savings fund: it’s called the Condo Reserve Fund.
- 3. Bo Kauffmann – Winnipeg Real Estate Blog 3 So lets take a closer look In the first column, we have the costs of house-ownership. The middle column shows that some of those items are already included, while the rest are substantially lower. The column on the right- hand side shows the actual savings enjoyed by the Condo-Owner. $215 per month LESS for the Condo So, in this example, the operating costs of a condo are actually about $215 per month LESS than the house, if you include the 'emergency fund' savings plan for the house. So now, take the $215 off the condo fee of $275, and the actual additional costs (over and above a house-ownership) are only $60 per month. For that money, the condo owner gets professional management, landscaping and snow-clearing, and often the use of amenities such as workout room, swimming pool, etc. It's about life-style Condo ownership is about the life-style. If you travel a lot, or are too busy for yard work, or any number of other reasons, then condo-ownership may be for you. It should be pointed out that, even in a condo, it's prudent to have some extra money set aside, in case the Reserve Fund is not large enough to tackle any major project or renovation. When that happens, the condo owner will face a 'Special Assessment', a sudden bill he will have to pay. But there again, that’s really not much different from having to buy a new furnace or other major unexpected repair.
- 4. Bo Kauffmann – Winnipeg Real Estate Blog 4 Condo Fees vs. Housing Expenses Expert Tip for home buyers Home buying (or Condo buying) should be fun..... but always 'play safe'. Surround yourself with knowledgeable experts and minimize your exposure to risk. It is likely the largest purchase you will ever make. This article is published on my real estate blog at https://blog.winnipeghomefinder.com/buying-a-condo-in-winnipeg- condo-fees-vs-house-expenses/
- 5. Valuable Real Estate Information Resources Winnipeg Home Finder If you’re looking to buy, or sell a property in Winnipeg, check out this website. It contains links to all Re/Max Condo Listings, all Re/Max House Listings and even Re/Max Luxury Property Listings. Winnipeg’s Real Estate Blog Bo Kauffmann, REALTOR® After retiring from the Winnipeg Police Service, Bo joined Remax Performance Realty and quickly became on of Winnipeg’s top producing REALTORS®. You can find him on Facebook, follow him on Twitter and Google+, and connect with him on LinkedIn. Winnipeg’s Real Estate Blog and Winnipeg Home Finder are trademarks of Bo Kauffmann, REALTOR®