Posted on: 12-09-06 06:27:45
Good observation.
But when I own a sixplex or a multiplex, freehold, for renting them out, all apartments in the building are mine and they are freehold.
A large number of high-rise apartment complexes are owned freehold by big companies and given out on rent. It is in this context I said that an apartment can be freehold. (In India also you can buy freehold apartments, in addition to condo/co-op. I own apartments in all three ways.)
However, you are perfectly right. Usually when you buy a single apartment it is likely to be a condo/co-op. I just wanted to bring out that building style and ownership pattern are two distinct concepts. An experienced investor would not use them interchangeably.
Thanks for the observation.
Is it posssible to buy a 4-6 Apartment building .Live in one and rent out the others .
If yes what would be the ranging price for such buildings in Down Town and not so Down Town Toronto ??
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Fido.
Quote:
Originally posted by parth1970
As we know most of Maintenance fee at Town house @ 100-150 $, In Condo this is killing and increasing almost every year.
I beg to differ here. The condo fee/ maintenance fee may sound "killing" but NOT if you count on the benefits that one can get in return.
Condo fees in many apartment buildings cover heat, hydro, water, cable (some buildings), common elements like landscaping, exercise, gym, pool, tennis, squash, billiards, conceirge (some buildings) and much more.
One may not worry about future major repair of common elements if the condominium is well managed and the reserve fund is adequate( at least 10% or more of your condo fees is put aside every month towards revere fund).
Condo maintenance fee may cover building insurance, parking, common elements like-roof, windows, outside structure, landscaping, inside road maintenance, snow removal etc.
With GTA house prices reaching the first time buyers' affordabilty upper limits it may make sense to move into well managed townhouse complexes (1400 sq ft-1700 sq ft). In Mississauga, such condo townhomes sell for anything between $275,000-$350,000 compared to $,330,000-$400,000 similar size freehold properties.
Some may argue that by saving $200 in monthly condo fees may buy them a similar sized freehold townhome or a semi-detached property, because savings of every $200 condo fees works out to 35K more in mortgage amount, given prevailing mortgage rates amortized over 25 yrs.
This may be true, but don't forget higher property taxes (based on City's current value assessment of your property) plus cost of maintenance of a freehold property.
Condo living is more to do with a lifestyle choice.
Condo fees might seem steep at first glance, but it's likely one would spend even more performing indoor and outdoor maintenance on a house.
In condominiums one can live worry free and enjoy the amenities at the cost of monthly condo fees. Where as, in freehold properties one pays extra monthly mortgage (making bank's more richer) plus one may need to set aside extra funds for future repairs and or replacements- like roof, windows, driveway, landscaping, deck, A/C, furnace etc.
Assuming that condo owners' association is operating as it should, one's property will be well maintained. That means that the value of one's property should remain high over time. And remember, if one buys a condo, one's weekends can be spent on the green -- golfing, not mowing.
Though condo living gives one a great lifestyle but it is not for everyone. In a condo, one might not enjoy the same freedom and privacy as one would enjoy in a single-family dwelling. One will share a wall of one's living space with a neighbour. One can modify or beautify the interior of one's unit, but usually painting or planting outdoors by individuals might not be allowed.
A condominium corporation is run by a board of directors elected by the owners. Major decisions are voted on at owners' meetings. Condominium associations may set restrictions on such things as owning pets or having an outdoor barbecue. The condo corporation has the authority to pass its on by-laws too.
In my opinion, changing demographics (aging baby boomers) could significantly influence the price and demand for condominiums in the years to come.
You may want to visit my condo blog and read more about condos in general and some Mississauga best condominiums.
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Quote:
Originally posted by Ulkesh
I was very confuse about the age of the Condo good to buy. If i am considering buying condo, A well maintained condo with 30 years of age is worth to buy?
How long normally condo is consider as good? How many more year one can live in condo without any problem.
I am not asking for any particular suite or choices but in general how many years is consider as age of Condo ( well build and maintain)
any help will be appriciated.
Thanks
Ulkesh
A part of your answer has been replied above, when I referred to the reserve fund study. This fund takes care of major future repairs and replacement of the common elements as the building gets older. You should look at the condo reserve fund, seek some professional's help to find out if the same is adequate to meet future needs.
If the reserve fund is inadequate then the condo board has to develop and implement a plan to top it up (often by special assessment). Then, one should also try to find out if there have been any special assessments, if so, when, why and how much?
Also find out if there is any engineer's report that formed the basis of reserve fund study. This can also reflect the condition of your building in which you might be considering to buy a condo apartment.
If the answers to the above findings are satisfying to you and your lawyer, then a well maintained condo with 30 years of age might be worth to buy.
A good professional can help you in finding you the right building, so consult a good Realtor and a real estate lawyer.
Regards,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Advantage of Condo Town home:
1. Most have Less maintenance by condo management hence less condo fees( normally cover maintenance common areas, snow removal, repairs to the condo like roof, siding etc)
2. More floor space ( old ones have basement), newer one are 3 levels
3. You have own back yard where you can barbeque or kids can play or do gardening
4. You own the land (unlike Apartment condo you own the air space)
5. You can put your satellite dish antenna ( normally town condo don’t care)
6. You have own car garage ( some don’t)
7. No parking problem for your guests
Basically it is just like house , but you don’t worry about repairs to your roof , removal of snow etc
There are some disadvantages
1. You have to climb up/down the stairs in your town home. So if you old or having arthritis it not a good idea to have house or town home
2. No club facilities – if you like one
3. mow the lawn
Other CD members can think of other disadvantages
In a condo townhouse you often pay your own utilities- Gas and hydro
With a condo highrise (older buildings) Hydro was not metered. This has now changed with new complexes as people want to have some control over the expenses.
In a highrise you light all the hallways and underground garage 24 hours a day. Pools, playgrounds and exercise equipment need to be cleaned and maintained in addition to the party rooms and main foyer (entry). Plus security guards and staffing. Concierge, 24 hours per day. The more exclusive the higher the security, thus higher maintenance.
Maintenance fees for these Buidings tend to be higher as there are many more features available to the residents, thus appearing more desirable.
It would be difficult to compare maintenance fees by square footage as a highrise offers different amenities.
So much of talk on condo and townhouses, It is very confusing to know which one is better since many different opinions are given by peoples.
Can any one make it more clear compression between buying condos or free hold townhouse?
In terms of: monthly expenses, investment , Renting V/S Buying?
