Recent study by Condos.ca indicates that in the city of Toronto, condo fees rose by 2.5 per cent last year over 2016. In comparison to an increase in both 2015 and 2016 of about 4 per cent. The median maintenance for a 594 sq. ft or a one bedroom apartment was around $386,60.
The study also includes the average fee in a group of 984 buildings last year was 65 cents per square feet. That means it will cost you $628.02 every month on a 985 sq. ft., for a two bedroom apartment that’s $881.20 a month on a 1,354 sq. ft, three bedroom apartment.
All these averages however do not contain parking and storage lockers, that would increase the monthly fee by $46.22 and $15.15 a month, respectively, as stated in the study.
Also Buildings with water, heater, hydro and air conditioning have an average fee of 69 cents per sq. As for those that do not have these utilities had 37 per cent per sq. ft.
As stated in the study “If you’re paying for these elements separately, the total monthly costs could be much higher than if they were included in the maintenance fees.”
Andrew Harrild, a company co-founder said that the low rise is because of the new condos on the market. In Canada, newer buildings tend to have lower fees. Note that pre-construction condos were not part of the study.
He also added saying that after your mortgage, it’s typically your next biggest expense. It’s a big issue, he said. When done right (the fees) are definitely an important part of a healthy condo building. They’re an important part of ensuring your asset is going to grow in value in time. There are some great buildings out there that have been around for 20 or 30 years and still have maintenance fees under control, Harrild said in a statement.
Every year the maintenance costs increases at about the rate of inflation, however, they should try to get the real costs of operating and maintaining a building.
Most buyers prefer having lower maintenance fees in order to acquire more income for their mortgages. However, sometimes the cost of the unit may be deducted due to the higher maintenance fees.
The median price of a newly constructed condo in Toronto last year went up 42.6 per cent to up to $702,992, from $493,137 by the end of 2016 as stated by the Building Industry and Land Development Association (BILD).
The region also introduced new rules last year concerning online training in topics such as avoiding conflicts of interest in purchasing decisions. In Ontario, they have released something like an online tribunal. This helps in settling condo disputes and new rules around mandatory meeting notice, disclosures and votes. In July, the government said that they were expecting to add an extra $12 each year to the fees per condo unit.