When purchasing a condominium, there are two important aspects to consider: the monthly condo costs and the existence of a contingency fund. You should be aware of the following six things while working with tenants in order to safeguard and maintain your real estate investment.
Making use of condominium fees as a source of finance
As a result, co-owners of a building often pay different condo fees than one another. If you pick Sabak Bernam condominium, you can expect to get the highest level of service.
Condominium costs, also known as association dues, are levied to co-owners on a monthly basis. Such funds are designed to cover the costs of routine building care, such as window cleaning, pool and lawn upkeep, snow removal, stair painting, and minor repairs, among other things.
These loans are used for large-scale improvements, such as the replacement of a roof or the installation of a new heating system, among other things. An emergency fund must be created by the co-owners’ syndicate in order for a portion of the condo costs to be covered in the event of a disaster.
Condo fees in Quebec are not discretionary; the Civil Code of the province dictates that all co-owners pay to the maintenance of the building, regardless of their individual financial situation. Furthermore, if a co-owner fails to make a payment on time, legal action against him or her may be pursued. At some time in the future, the union may be able to recoup the money it is owed by auctioning off the nonpayer’s house.
Where can I get the formula for calculating how much a condo would cost me to purchase?
A percentage of the overall building value is used in the calculation to determine how much each co-share owner’s piece of the building is worth. If your unit is worth that much, your portion of the building’s common expenditures will be 7 percent of the overall value of the structure.
- Some new condo developers offer cheaper condo fees in order to get customers to purchase their units. This is a rather regular occurrence. There’s no chance this is going to work in the long term. If the facility is to remain in good condition, these expenses will have to be increased greatly in the future. Excessively low expenses for a pre-existing building may mask a lack of preventative maintenance and a failure to finish critical projects on schedule. If a structure is disregarded, the value of the structure diminishes over time. The scenario is one in which all of the stockholders are losers.
- Keep in mind that your obligations as a co-owner extend well beyond the four walls of your condominium building. Your co-owners and you are jointly and severally liable for the upkeep and maintenance of the structure.
Conclusion
The value of each unit is expressed in the declaration of co-ownership as a percentage or as a decimal fraction, depending on the case. Many criteria are considered when setting the price of a unit, including the size of the unit and the placement of the unit inside the building. Astonishingly, a 1000-square-foot apartment on the top floor with a view of the park is worth substantially more than a 1000-square-foot unit on the lowest level with a view of a parking lot, which is something I had never considered.