Claridge Plaza I & II | 78m |25 fl| Completed

[McC]

Originally Posted by JackBauer24

although most of the increase was planned and noted (aka hidden) in the budget.

<wince!>

[c_speed3108]

Originally Posted by JackBauer24

Part of the intention of the Condo Act was to prevent exactly what you stated - a drastic increase in condo fees after the first year. But builders/vendors have become very creative with their budgets and condo fee estimations. For instance, there is a new condo in Westboro that just had its first anniversary from registration and had their first condo fee increase; they went up by 47% - although most of the increase was planned and noted (aka hidden) in the budget. So be sure you do your homework in your cooling-off period (aka read the proposed budget and small print in the condo docs) and don't be shy to ask for the increase of condo fees in the builders past projects.

Indeed, but for every loophole any law closes, new loopholes remain to be found.

In reality, you have to watch out for the low condo fee trap. Even in established buildings where the developer is long gone. If fees have not been set high enough to properly maintain the building and reserve fund a problem can pop up...a very big problem.

There are some buildings in Toronto where people went decades demanding the lowest fees (before the condo act was changed). Now owners in some of those buildings are facing special assessments as high as 5 figures.

Low fees are trap and not usually a good thing.

[JackBauer24]

Originally Posted by c_speed3108

Indeed, but for every loophole any law closes, new loopholes remain to be found.

In reality, you have to watch out for the low condo fee trap. Even in established buildings where the developer is long gone. If fees have not been set high enough to properly maintain the building and reserve fund a problem can pop up...a very big problem.

There are some buildings in Toronto where people went decades demanding the lowest fees (before the condo act was changed). Now owners in some of those buildings are facing special assessments as high as 5 figures.

Low fees are trap and not usually a good thing.

All in all....
If you're buying a condo (resale or new) make sure you....
a) read the status certificate/condo docs (the budget in particular)
b) know the history of the builder and of the increase in condo fees they make have experienced
c) know what the reserve fund is
d) do your homework and compare condo to condo evenly - and if/when one stands high and above the rest with regards to their crazy-low condo fees, dig deeper, there's most likely a hidden cost that'll be passed along to the buyer

[Boxster]

Originally Posted by c_speed3108

The developer sets the condo fees for the first year. They are on the hook for any year one budget shortfalls. This is condo act stuff. This is designed to prevent a developer from promising condo fees during the sales process that are unrealistic.

After year one the condo fees are set by the board. Any end of the year shortfalls must be made up by the owners via special assessment. This is why sometimes in new condos there will be a bit of a fee adjustment after year one and/or after year two. Many real estate agents advise allowing for a jump of up to 33% in fees in new buildings just to make sure you don't find yourself living in something you can't afford because the developer told you such and such.

[note that does not mean they will increase by 33%. It is generally less. It is just an amount to make sure you are safe]

That is what I thought.

[KellBell]

Originally Posted by c_speed3108

As an FYI the condo fees do not go to the developer, nor are they controlled by the developer. They are controlled by an elected board made up of unit owners just like you (and you can run in the election if you like). The developer is gone once the units sell. Same as when you buy a house. Builder is gone and just you remain.

The future of condo fees are controlled by a combination of things including realities (ie how much the hydro or water bill is), how much money the building will need in future repairs (Engineers will help the board determine this via the reserve fund study), and finally the level of service in terms of nice to have things likes gyms and activity rooms.

Don't be afraid to get involved in your building/complex. Always remember you don't just own your unit. You own the lobby, the elevators, the parking garage, hallways and everything else too!

Congrats on your new condo! Glad to hear you love it and are enjoying it!

:-)

Hey C-Speed, thanks for the tips/advice. I like to keep these forums congenial (unfortunately they aren't always that way, so I appreciate your friendliness)! I think I will take your advice.

You are right about who determines the condo fees - the builder doesn't sit on the board or anything like that. That said, the builder does have an impact on condo fees indirectly, as a result of the way they built the building. Ie: if they built a piece of crap to begin with, your condo fees would likely go through the roof to cover the costs of repairing a building that wasn't built right in the first place.

That said, I've heard that Claridge has a good record for stable condo fees in the buildings they've built (again, not that Claridge "sets" the fees per se, just that the group that does, has a record of keeping them low and stable). That's just what I heard - I don't know whether or not it's true. So far I've found that to be the case but perhaps others haven't?

[kevinbottawa]

The presentation centre in CP1 is turning into a Starbucks. The signage is up. Wind Mobile and H&R Block have been tenants at CP 3/4 for the past month or so.

[1overcosc]

Originally Posted by kevinbottawa

The presentation centre in CP1 is turning into a Starbucks. The signage is up. Wind Mobile and H&R Block have been tenants at CP 3/4 for the past month or so.

I saw that too.. and I still can't believe it... there's one like two blocks away in the Rideau Centre right by the Rideau Street entrance.

[silvergate]

Originally Posted by 1overcosc

I saw that too.. and I still can't believe it... there's one like two blocks away in the Rideau Centre right by the Rideau Street entrance.

If it makes you feel any better, Carleton has 5 Tim Horton's, 2 Starbucks, a Second Cup, and Rooster's Coffeehouse.

Where there's demand, they will build.

[kevinbottawa]

Originally Posted by 1overcosc

I saw that too.. and I still can't believe it... there's one like two blocks away in the Rideau Centre right by the Rideau Street entrance.

And they're putting one in the food court next month.

[YOWflier]

Originally Posted by silvergate

If it makes you feel any better, Carleton has 5 Tim Horton's, 2 Starbucks, a Second Cup, and Rooster's Coffeehouse.

Where there's demand, they will build.

Back in my day Carleton had only 1 Tim's, which was inaugurated toward the end of my academics and with much protest (from CUSA, etc.). It was basically a little hole in the wall on the 4th floor of the Unicentre.

How times change ...

[Catenary]

Originally Posted by ac888yow

Back in my day Carleton had only 1 Tim's, which was inaugurated toward the end of my academics and with much protest (from CUSA, etc.). It was basically a little hole in the wall on the 4th floor of the Unicentre.

How times change ...

It still is a hole in the wall on 4th floor UC. But there's one on First UC as well now, and one of the Starbucks. There are also a number of other cafeterias on campus that have coffee.