As a home owner, it can be pretty difficult to see the value of owning a condominium, but for many people condos are not just a home, they are a lifestyle. They provide freedom from yard work, property upkeep and a majority of the overall maintenance in exchange for a monthly condo fee. No more shoveling of sidewalks during the winter, no rushing home to cut the grass in the summer, just your own interior space and perhaps a small deck to worry about maintaining. This is the ideal lifestyle for many people who lead busy lives or are in the process of slowing down their lives and freeing up more time for travel and relaxation. More commonly, condos are becoming the area where first time home buyers are looking to get into the market. With condo prices averaging significantly less than the typical home, condos have become one of the few types of property new buyers can think about purchasing. Other people flocking to this market are the people coming from various large cities where apartment living is common place.
One misunderstood aspect of condos for many people are the condo fees. Those mysterious fees that go into a pot of money to pay the monthly bills. When you understand the mechanics of how it actually works, the mysteries start to make more sense. Condo fees all revolve around the condominium Reserve Fund and the Reserve Fund Study. The Reserve Fund Study is a complete plan for day to day operations as well as the long term maintenance of the condo. It takes into account the expected longevity of everything from the boilers to the roofs to the parking lots over a twenty five year term. When these reserve fund studies are done incorrectly, or large repairs appear sooner than expected, the condo corporation can suddenly find themselves short of money to complete this long term plan. This leads to the dreaded special assessment where the unit owners have to come up with additional funds dependent on their unit factor, to balance out any shortfalls in the reserve fund. This makes it very important for the people who prepare the reserve fund studies to have significant training and experience to prevent owners from unhappy surprises. It can be a warning sign to potential buyers if there is a history of special assessments in the building. These signs can indicate a flawed reserve fund study, an attempt by the Boulevard 88 Hong Leong Holdings board to keep condo fees lower to assist in selling units, or just a bad run of problems that have been addressed
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