https://www.thestar.com/news/gta/2020/12/11/this-toronto-homeowner-was-shocked-when-her-condo-fees-jumped-over-30-per-cent-within-two-years-the-provinces-auditor-general-wants-better-disclosure-rules-for-developers.html
Dear Victoria Gibson
Budget is prepared by Developer for future year ( first year of condo board at turn over)
Reserve fund amount is only 10 % in First Year (10% of OPERATING BUDGET)
Any shortfall in Budget; the Developer is responsible
This permits the NEWLY installed condo board to look at
a) DID we get what we bought
b) Is the Budget enough
c) Condo reserve Fund Study and
d) Performance Audit
e) Examine sweetheart deals
OFTEN first Owners of a condo pay first and last to the condo fund to give the condo funds to pay gas electric water service etc. (BUFFER in the chequing acct)
SO let's recap with simple numbers
Your condo fee at $300 per month quoted by the builder is at 50 cent psf
Added to that is the RESERVE FUND Contribution of 10 cents PSF
So in reality its 60 cents PSF
you paid first and last
SO YOUR 600 square foot unit is projected to cost ( 50 ) is really 60 cent psf
Now at move in you paid 360 X 2
720 is buried in the documents where you cannot explain PHANTOM RENT
Lets move forward
Your maintenance fee of $360
You actually paid $360 X 13 <<< Remember the top up?
Year Two
The Performance audit says that you need to ; Create a Table of Repairs over the 30 year remaining economic life of major components IE elevator Hot water tank heaters elevators, the BIG STUFF
This will add 25 cents per square foot to your new maintenance fee;
PLUS hydro rates and garbage have increased so the building is paying an extra 10 cents, not to mention staffing and concierge.
Now the developer paid the lowest quoted price for every appliance installed.
Cheapest bid right? Fridge stove washer dryer Heat Pump are having dramatic failure rates outside the new, warranty period and the natives are sure the Board of Directors is personally profiting.
Lawyers are wracking up 25 - 30 thousand per condo board to smooth out rules and regulations, AVOID / BAN Airbnb and install Condo standard Bylaws
(because the builder wants it registered and is not focused on UNIFORM BYLAWS for the new owners..... There's a story )
Your unaware uniformed condo buyer now gets a 15 % increase in fees...
But was it ?
Given the first year is padded with an extra payment
360 x 13 = $468
The extra $40 per month on the 360 is huge
$40 on the $468 is not so much.
It may actually be 7 - 8 %
Very much reflective of actual expenses.
Talk to informed EXPERIENCE Realtors when making these purchases
PLEASE Take your documents to a Lawyer to explain what you have purchased.
( 80% of buyers do not bcos they feel all builders are standard. They are not)
If you flip YOU PAY HST
That's a different conversation.
List With Dave
