Guest column: Is Ontario condo ownership right choice for you?

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Good afternoon Windsor Star editorials,

Many condo buyers are honing in on finding lower-priced units with low condos fees as Ontario’s real estate market goes through a condo sales slump. But saving money without looking at the full picture may cost them in the long run.

The Condominium Authority of Ontario – the province’s authoritative voice for condo living – wants to share a message with buyers. The article below was written by our CEO & Registrar Robin Dafoe and aims to provide tips and considerations to your readers to help them decide if condo living is right for them – costs and otherwise!

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We hope that you will consider working with us to publish this article and help buyers make more informed decisions that protect their homes and investments.

5 things to know before buying a condo

By: Robin Dafoe, CEO & Registrar
Condominium Authority of Ontario

Affordability is top of mind for people trying to get into the housing market now that condo prices are softening. That’s a no-brainer – condos can be a less expensive option. It seems like everyone is looking to save where they can, often by looking for low priced units with rock-bottom condo fees.

But is there a cost to saving money in the short-term?

Money is definitely a piece of the puzzle, but not the full picture. Here’s five other things to think about before you buy a condo:

1. Owning a condo is different from owning a house

Condos are a shared ownership model. You are buying a stake in a community and should take a keen interest in its financials, its shared physical assets, and the interests of other residents living in the community.

You’ll own a percentage of the corporation that is managed by an owner-elected board of directors who are accountable to the owners. Any issues between owners requires cooperation, accountability and a genuine desire to resolve issues collaboratively. So, before you buy, think about whether this kind of ownership works for you!

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2. Check your condo’s financials and understand what your condo fees really are paying for

Buyers of resale condos can ask for a status certificate before completing their purchase. This is a super important document that provides key information on the unit you want and the condo’s financial health, among many other things. If you’re buying pre-construction, get a copy of the condo’s disclosure statement for similar info. Review these carefully with your lawyer.

When you see the condo fee, you should understand that lower is not always better. It’s more helpful to ask if the fee is set at a sustainable level and can pay for the condo’s amenities, services and future repair needs. Part of these fees contribute to the reserve fund – which is a legally required account that condos use to cover major repairs and replacements. Make sure it is adequately funded before you sign the dotted line.

3. Read the governing docs before buying

Each condo has its own governing documents that lay out what residents and the corporation are allowed to do. These include the declaration, by-laws and rules. The documents are both shaped by and shape the community. Before you buy, ask yourself if the rules set in that community are for you. For example, some condos may not allow dogs larger than a certain size, or they may not allow dogs at all. Don’t be surprised after you move in!

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4. Get familiar with who repairs and maintains what

Condo corporations are generally responsible for fixing and maintaining the building’s common areas and elements, like the garage, pipes, gym, party room, and the standard parts of your unit. Fixing a unit’s wear and tear, decorative or non-standard elements generally falls to the owner. It’s important to review the condo’s governing documents to get a sense of owners’ responsibilities and understand your condo’s definition of a standard unit.

5. Get involved

Living in a condo means living in a vibrant community where you have a right to know what is going on and share your voice. Read your condo’s newsletter, ask questions, attend and vote at annual general meetings and other owners’ meetings. Owners can run for election or join committees if they want to make more of a difference. Be sure to use and enjoy the common areas of your building – you pay for them!

And, of course, check out the Condominium Authority of Ontario’s website and CAO’s Condo Buyers’ Guide. Both are great resources to help buyers make informed decisions!

Thank you and I look forward to hearing from you.

Regards,
Diana

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