So what does it cost to own a condo??

[Woz]

Hey

Well i am going to be in the market for a condo in the near future and am looking for what the "real" costs of the place would be. I am looking at condo's in the 250-300k range in the newer area's of the northwest (2 bedroom 800-1000ft^2 size).

Look for information such as:

heating costs (both gas or radiant heat for winter and summer, depending on what you have.)

electrical bills

taxes

insurance

Condo fee costs

I want to get a bearing of if i can actually afford this or if i should wait a bit because i don't know much about these costs other then what a mortgage would be.

Any help is appreciated.

Scott

[Masked Bandit]

Well the first thing is that you will have fewer costs than you think. Generally speaking the condo fees will include the heat, water. The taxes can just be thrown in with your mortgage. The condo fees will vary from one building to the next but budget about $250ish. The electric will probably be about another $40 to $50. Your mortgage, well we can't really help you there. Good luck.

[JAYMEZ]

My condo is almost 300,000..

Condo fees - around $300
Shaw junk - $96
Electricty - $80


mort .. thats up to you , same with insurance .

[FiveFreshFish]

^^^ Don't forget property taxes.

[Woz]

So it's pretty much the same as an appartment with just a bigger mortgage and the condo fees pay the heat and water? That's not bad then.

What are the taxes on a condo usually? Let's assume a condo "worth" 250k.

[kaput]

.

[FiveFreshFish]

Originally posted by kaput
I think property taxes in Calgary are 0.8% of the property's appraised value so in your case $2000/year.

It's based on the assessed value which is considerably lower than what is would appraise at.

[JAYMEZ]

Originally posted by FiveFreshFish
^^^ Don't forget property taxes.


I have to hunt down what i pay.. ill check tomm.

[kaput]

.

[Woz]

Thanks

Yeah i live in an appartment now ad i don't want to be shell shocked with all of the extra costs.

[Watcher]

I think a duplex might be cheaper than some condos.

This was a few years ago so the prices wont seem real, bu I was looking at an apartment style condo, with underground parking - $160k for 1200sq feet 2 bedrooms, and a 2nd underground parking spot(10K) and the condo fee was $500 per month.

So I bought a $145K Duplex 1375 square feet ( plus about 600 sq feet of basement.), a 2 car garage, no condo fees. The utilities might be as much as the condos fees during the winter, but they are less than the condo fees in the summer. And my outside maintenance costs me $300 per year.

Anyway, I was a bit disappointed in condos.

Perhaps, it is my fault - I thought that a condo might allow me to save money for a house - I guess its mostly a lifestyle choice.

[Woz]

yeah that is what it looks like for me as well. I always thought of a condo as a cheaper place to live but when you add in the condo fees it can get pretty close to the actual cost of a smaller home.

[R-Audi]

Here's Mine..
800sq ft., 2 underground stalls, right off 17th Ave DT

Tax: 135/month
Cable/int.TV 150
Electrcity 50
Condo Fees 500 (includes water and heat)
Mortgage..... 1200

My condo fees are a little on the high side.. but that should give you a rough idea

[bigboom]

Originally posted by R-Audi
Here's Mine..
800sq ft., 2 underground stalls, right off 17th Ave DT

Tax: 135/month
Cable/int.TV 150
Electrcity 50
Condo Fees 500 (includes water and heat)
Mortgage..... 1200

My condo fees are a little on the high side.. but that should give you a rough idea


damn $500 in condo fees? any idea why it's so high?

[yellowsnow]

i have a 600sq/ft condo in the nw with an underground parking spot and storage and i pay
$640 mortgage
$170 prop tax
$400 condo fees
$100 cable/internet

[nonsane]

I have ~700ish sq ft condo apartment and i pay
650 mortage
100 tax
200 condo fees(includes heat, electric, water, underground parking)

shaw 38$ (I only have the internet)
phone 20$

also keep in mind for the mortgage and tax, I bought in january so the purchase value is different.

[dodger97]

Just another FYI...I used to work at a property mgmt co and the inside info - check the condo's reserve account balance and any future structural repairs. Check the budget and find out when the fiscal year end is. It is not unusual for condo fees to skyrocket to balance the budget at the year end. It also is not unusual for there to be a "cash call" or demand for money from each owner to repair costly problems such as roofs, balconies, etc. Find out who the mgmt company is and contact them...see how long they have managed, the current fees, etc.

After working in the industry...I would not ever buy a condo but that is my humble opinion.

Hope this helps...:thumbsup:

[yellowsnow]

^^ that's exactly what happened to me. :( I purchased my condo a couple years ago, and the condo fees were around $200/mth.

Then they decided their reserve funds were getting low, and the building's elevator needed to be repaired. so my condo fees doubled around the 3 or 4th month of owning the property.

stupid condo managers! i'll have to double check what their business name is called again, but there were lots of pissed off residents cuz of them

[Woz]

Only reason i would live in a condo is because at the current time a house is out of reach. Maybe in a year it will be possible. My parents have always been against condo's but i just would rather pay into something that is mine then piss it away with rent.

Seems like most condo fees contain heat and water. That is good as the one expense i was really worried about was natural gas costs.

Also, what a wide range of condo fees...wow.

[Watcher]

Originally posted by R-Audi
Here's Mine..
800sq ft., 2 underground stalls, right off 17th Ave DT

Tax: 135/month
Cable/int.TV 150
Electrcity 50
Condo Fees 500 (includes water and heat)
Mortgage..... 1200

My condo fees are a little on the high side.. but that should give you a rough idea

I dont mean to single you out but thats some nasty numbers, even when your condo is paid for, it will still cost you about half the cost of renting,

Have you ever read Robert Kiyosaki? He tries to point out that owning a house is not an "asset" unless it is generating a net positive cash flow....

Makes me wonder if you should move into a rental , then take out a mortgage on a revenue property(ie house).

[sputnik]

Originally posted by Watcher


I dont mean to single you out but thats some nasty numbers, even when your condo is paid for, it will still cost you about half the cost of renting,

Have you ever read Robert Kiyosaki? He tries to point out that owning a house is not an "asset" unless it is generating a net positive cash flow....

Makes me wonder if you should move into a rental , then take out a mortgage on a revenue property(ie house).

He didnt say his condo was an asset. Besides, based on his mortgage payment and the size of his condo he probably already has tons of equity in the unit. Although it may be a liability if he was to sell he would make some decent money.

The problem with Kiyosaki is that he writes about investing in depreciated areas. Calgary has ZERO depreciated areas and without massive amount cash down (which is a poor investment) or having a huge rental rate you are going to be working at a loss in this city. IMO Kiyosaki makes money selling books telling stories about buying real estate instead of actually buying real estate. He gives people in the impression that cheap houses are being forclosed everywhere and flipping them or renting them is SUPER easy.

Buying into the rental market would be better in cities where affordable homes are still available, or if Calgary crashes again and people are selling their equity for $1 just so that someone else assumes their mortgage. However that is unlikely to happen anytime soon.

[big_red_ogre]

I purchased a condo in Silver Springs in May. I paid about 270 000 for it. My condo fees include water and sewer, structural insurance and all the land maintenance, they work out to around 210 a month.

btw, if you are buying a condo, make sure to see the condo docs before you close the deal, if the reserve cash seems low, don't buy because many condo managment companies will apply a "special assesment" that could be up to 6-7000 dollars depending on the work they need to do.

I pay about 40 dollars for electricity, 50 for gas (gas stove too). my property taxes are around 1300 dollars a year, but i make the payments with my mort payments. phone, tv and internet all run to about 120 bucks, (digital cable is not worth it for me, as long as i can get star trek at 7 on space im a happy man)


and back to condo fees, what they include and how much they are depends on the type of condo. appt style will probably include more, but also cost more, townhouse (me) style will cost less, but most likely will not inlcude as many things. (i prefer this because it allows me to control my costs better)

edit: and insurance for 40 000 dollars contents for me is about 300 bucks, the rest of the insurance is covered by condo fees.

[calgarygts]

^^You should check around for insurance....mine is 50k content coverage for around 140$ a year (AMA).

[big_red_ogre]

i have tennants living with me so for me to get their names on it cost me a bit more.

[googe]

avoid condos managed by condominium first.

[nonsane]

Insuring my house with the same insurance company as my auto insurance made house insurance free$$$

20/mo insurance
10% discount on car insurance
20$ saved on car insurance/month

[h22aseller]

^ me too pretty much, my car, bike and house are all with the same company, i only pay about 380/yr for full coverage on a 2006 FZ6

[Rav4Guy]

$285 for a 870 sq ft. condo in Springbank Hill. Includes water, heat, insurance, reserve, underground heated parking, etc.

$30/month for electricity including a computer running 24/7.
$15/month for content insurance
$40/month for shaw internet
property tax was prepaid.. I think it was about $1400.

Then you need to factor in food, furniture, renovations, car insurance, etc.

[Woz]

Originally posted by big_red_ogre
I purchased a condo in Silver Springs in May. I paid about 270 000 for it. My condo fees include water and sewer, structural insurance and all the land maintenance, they work out to around 210 a month.

btw, if you are buying a condo, make sure to see the condo docs before you close the deal, if the reserve cash seems low, don't buy because many condo managment companies will apply a "special assesment" that could be up to 6-7000 dollars depending on the work they need to do.

I pay about 40 dollars for electricity, 50 for gas (gas stove too). my property taxes are around 1300 dollars a year, but i make the payments with my mort payments. phone, tv and internet all run to about 120 bucks, (digital cable is not worth it for me, as long as i can get star trek at 7 on space im a happy man)


and back to condo fees, what they include and how much they are depends on the type of condo. appt style will probably include more, but also cost more, townhouse (me) style will cost less, but most likely will not inlcude as many things. (i prefer this because it allows me to control my costs better)

edit: and insurance for 40 000 dollars contents for me is about 300 bucks, the rest of the insurance is covered by condo fees.

Where are there condo's in silver springs? That is where i am renting right now and would like to stay in the area.

[frostyda9]

800 sq ft, deep SE
1000 mortgage
110 tax
200 condo fees (radiant BBH, parking stall)

Insurance is dirt cheap, ~$20/mo

Utilities are cheap, Shaw/Vonage/Enmax are ~100 combined.

A mortgage is a mortgage...a set amount at a set rate at a set amortization will cost you a set amount. As you see from the responses here though, condo fees are what will make or break your ability to afford it.

[HRD2PLZ]

Condo fee's vary greatly between buildings. For example, this is for 2 condo's that I own:

Riverfront Avenue
550 sq.ft. 1 Bedroom
$240/mo condo fee's (heat, water, sewer, reserve fund, management, building insurance, landscaping and snow removal, underground parking).
Electricity - ? (unit is rented out)
Insurance - $300/yr
Property Tax $1400/yr


Somerset
991 sq.ft. 2 bedroom + Den
$265/mo (heat, electricity, water, sewer, reserve fund, management, building insurance, landscaping and snow removal, underground parking).
Insurance - $300/yr
Property Tax - $1100/yr

My units are insured for slightly less than the average person would, as my tenants are required to carry their own content insurance. The insurance I carry is for appliances, etc.

[R-Audi]

Originally posted by Watcher


I dont mean to single you out but thats some nasty numbers, even when your condo is paid for, it will still cost you about half the cost of renting,

Have you ever read Robert Kiyosaki? He tries to point out that owning a house is not an "asset" unless it is generating a net positive cash flow....

Makes me wonder if you should move into a rental , then take out a mortgage on a revenue property(ie house).


I appreciate the honesty.. but I think the only thing that is nasty is the condo fees.. and they just went up to 500 from 350 because of repairs..
It is nearly impossible to find anything decent downtown that is under 1k... Im not planning on keeping this until its paid off. I feel renting is a complete waste.. basically money thrown away where its tough to argue buying any sort of housing/condo isnt a good investment these days.
I looked at both DT and suburb places.. and came to my conclusion that I would prefer to pay more to be closer to work then drive/train it.. 1.5hrs of my time every day is worth more then I would save.

[Watcher]

Those sound like good reasons. Although I still have a hang up about condo fees that make it impossible for me to save, I totally understand and agree with your reasons.

[robpark]

A quick word of advice in regards to condo buildings built during the last big boom in Calgary.... This pertains only to highrise/high density units that employ post tension cables in their construction. In the 80's labour was short, skill was low and post tensioning cables were a new construction technique. The end result was you had a lot of buildings go up in Calgary with faulty post tensioning that now must be fixed (weren't sealed properly, moisture got in, cables rusted and snapped under pressure)... What does this mean? Well, post tension cables are buried inside the concrete form of the building, so getting at them means removing the concrete and putting in new cables... The result is an INSANELY expensive procedure that most buildings will have to levy a special assessment for.

The last building I know of that encountered this problem had to levy an average special assessment of $20,000/unit... The only reason they were able to request such an astronomical amount was because the building is filled with the well-to-do. Buildings without well monied residents are unable to fix the problem and will slowly deteriorate and eventually become unsafe. There are a couple of buildings in Calgary that fall into this category. You will find most of the buildings with these problems in the Beltline.

Always, always, ALWAYS do your research before buying into a condo. Owning a unit can be an excellent way to enjoy a low maintenance lifestyle in some of the city's nicest communities, but as soon as you sign on the dotted line, you become part owner of the building and as such become responsible for the maintenance and upkeep of that building.