Stories On NestLocal

Moving from a house to a condo

Purchasing a condo is not only a perfect fit for many first time home buyers, but we are also seeing a major increase in purchases made by recent empty-nesters, who want a home that is easy to care for and that can be locked up and safely left for months on end. Sometimes downsizing from a home to a condo can be the right choice for pre-existing home owners and many recent retirees are considering downsizing their house to a condo.

Often times once children leave home, couples find that they have too many bedrooms and too much empty space in the house that is simply going unused. This unused space often results in unwanted and unnecessary cleaning. Large 2-level homes may no longer be a viable option as home owners age, especially if lawn care and snow removal becomes difficult.

A condo can offer a kind of freedom that a house just cannot.

Renting versus buying is a common decision that many people face. It is a common belief that renting a unit is substantially cheaper than actually owning one and this is not always the case. In most circumstances, owning a home can actually result in great long terms savings, and also has the pride of home ownership associated. 

A common statement from many renters is that they are currently saving more towards their down payment and that is why they have not yet taken the steps to home ownership. While waiting to have substantial savings before investing in real estate is a sound and logical idea, it may prevent you from entering into the market completely. Understandably, with a larger down payment you will be able to have a smaller mortgage to pay off resulting in smaller monthly payments, but during this period of waiting, home prices have continued to rise, thus requiring you to have a larger downpayment for a smaller home.

Rights as condo owners: Rules vs. By Laws 

The hierarchy of condo laws:

1. The Condominium Act

2. Your Condominiums Declaration

The Condominium Declaration legally describes each unit within the condo building and sets out boundaries. The declaration will outline and break down how common costs and expenses are calculated for the building.

3. Your Condominium By-Laws

By Laws are legally binding documents written by the developer. These will go hand-in-hand with the Condominium Declaration and will cover important issues that were not specified previously. By Laws often will include how the corporation can spend funds.

4. Your Condominiums Rules

Rules are the most basic day to day things you will see within the building. This will include things like what time the gym opens and how late the party room stays open until.

The Declaration, Laws and Rules cannot disregard or contradict the Condominium Act.

Maintenance Fees

When first looking at maintenance fees of a condo building, they can seem irrelevant, and just another living cost that would not be present if purchasing a freehold home. As we delve further into what maintenance fees consist of, this thought should diminish, and the benefits should become clear. 

One of the biggest components of the maintenance fees are the various utility bills, such as: Water, heat, air-conditioning, hydro - depending on what is included in the particular condo building. When purchasing a condo- whether it be resale, or pre-construction- you will know what is included in the maintenance fee of your unit prior to submitting an offer to purchase. Many condo buildings will include the maintenance of a parking space and a locker in the monthly fees. Regardless of purchasing a home with maintenance fees associated, or a home without, the utilities and maintenance of the parking area is necessary and would be an additional cost. In a freehold home these bills might not come in one lump sum but they will be required to be paid in individual bills and at equally competitive rates to the amount allocated within a maintenance fee.

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