One thing that a lot of people don’t realize about purchasing real estate is that the final sale price is not the only time you are going to have to pay fees, and we are not just talking about the mortgage payments either. Once you become a home owner of any kind of property, you will have to make payments of money to several different organizations each year. These are known as recurring costs, and they will be different depending on the piece of property you buy. Here are some of the recurring costs that you can expect when you buy a condominium. Monthly fees: As the name suggests, you will be expected to pay these fees every year for as long as you own the condo. The fees are paid to the condominium corporation, and cover costs such as building upkeep, the fees charged by the management company, janitorial costs associated with the pool and interior, the wages of doormen or concierge, upkeep of the grounds, and the heating or cooling of common areas. Obviously, in order to make these costs worth it you will want to take advantage of the amenities in your building! Property taxes: Just because you don’t own property per se doesn’t mean you get to escape taxes! Once a year you will receive a little piece of paper in the mail where the government tells you how much they think your condo is worth, regardless of what you think. The price usually rises year to year, and you will have to pay a lump percentage to the powers that be in your city. Insurance: Most mortgage companies will expect you to have insurance in order to qualify for a loan, and you will have to pay this each year. In addition, you will probably want to cover the contents of your home in case of theft or fire. Utilities: Internet, phone, possibly heat are all going to be a part of your recurring costs if you don’t already pay them as part of your monthly (common) fees. In addition, you will want to make sure exactly where the money you are paying in common fees is going. It might be that you have to pay an amenity fee on top of your common fees, that’s up to the management company. Either way, expect to budget for a few recurring costs when you purchase that new condo!
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