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Homeowners' monthly affordability is influenced by various factors, including condominium fees, which encompass expenses such as building insurance, common area maintenance, amenities, and reserve fund contributions. These fees can vary significantly depending on factors such as the size of the unit and its proportionate share of the condominium corporation's expenses. CEO Benjy Katchen of Wahi emphasizes the importance of considering maintenance fees when budgeting for condo ownership, highlighting Wahi's study as a useful resource for estimating these costs across different price points in the Greater Toronto Area (GTA) market.

Several factors impact condominium fees, with the age and amenities of a building being significant contributors. Older buildings, often featuring larger floor plans and inclusive utilities like heat and hydro, tend to have higher fees. Luxury buildings with upscale amenities also incur greater maintenance expenses. Wahi's analysis revealed that the highest median monthly maintenance fees in the GTA were predominantly found in older luxury buildings situated in downtown Toronto, with only one located outside the city limits in Oakville.

Contrastingly, recently completed suburban buildings, primarily constructed between 2018 and 2022, tended to have lower maintenance fees. These developments, located beyond the city core in areas like Oakville, Milton, North York, and Scarborough, showcased more affordable fee structures. Wahi's examination of condominium fees across the GTA in 2023 highlighted Milton as having the lowest median local maintenance fee, while Newmarket recorded the highest. Understanding the dynamics of condominium fees is crucial for prospective buyers in navigating the real estate market and making informed financial decisions.

Read the full article on: REAL ESTATE MAGAZINE