We’re big proponents of condominium and townhouse living. Aside from the lifestyle benefits, a home in a multi-family residential building is significantly more financially accessible than a single family home. However, there are other monthly costs associated with multi-family home ownership. In addition to the initial costs that apply to buying any type of new home, such as legal fees, property transfer tax, and federal and provincial taxes, you will also need to factor in condominium fees to your monthly mortgage payments and allowance for your property taxes.

Some new condo buildings come with extra amenities such as a 24-hour concierge, indoor pool, lounge area, media room, fitness center and perhaps a rooftop garden.

Strata ownership (or condominium ownership as it is known in Alberta) is a common type of legal ownership that was designed to equitably distribute the costs of the day-to-day upkeep and long-term maintenance of a jointly owned building and property. Strata/Condo fees, which are due each month, cover expenses such as: alarm monitoring for the front door, annual building envelope inspection, janitorial services for all common spaces such as the lobby and corridors, common property building insurance, fire equipment maintenance and testing, electricity, landscaping, mechanical equipment maintenance, snow removal, window cleaning, etc. These costs would apply to most base-level new condominium buildings.

Some new condo buildings come with extra amenities such as a 24-hour concierge, indoor pool, lounge area, media room, fitness center and perhaps a rooftop garden. These are all additional expenses that will be reflected in the monthly strata fees to be shared by every legal owner.

While you’re visiting Presentation Centres to scope out your new home options, be sure to ask the sales team about the estimated monthly fees for the home you are interested in purchasing. Strata/condo fees are based on the size of the home so the fees will vary from home plan to home plan. Once you know the fee, add it to your monthly mortgage payment and property taxes to determine if you can afford the home you want. Based on their experience (and legal obligation), the condominium builder will provide an estimated dollar value for the monthly fees each month, but keep in mind that the amount will fluctuate over time to represent the actual costs of maintaining the building. The builder will hand over the operation of the building once a minimum number of home owners have moved in and at that point you and your fellow homeowners will be in control of determining and managing your common property budget within the regulations of B.C.’s Strata Property Act or Alberta’s Condominium Property Act.

So when you’re considering your first new condo purchase, be sure to list all of your initial expenses as well as your projected monthly expenses. Ensure that you can afford the monthly cash-flow. While home ownership is an incredible and worthwhile investment for your lifetime, you’ll want to be realistic about how much you can afford each month. This will ensure that it’s a positive, stress-free experience in addition to being a great investment.