Tap to Read ➤

Are Condo Fees a Complete Waste of Money? ūüíĶ

What do 'Condo-Fees' pay for? How does owning a condo compare to owning a house?
Bo Kauffmann Sep 21, 2020

Your browser doesn't support HTML5 video.

Are Condo Fees a waste?
Some potential buyers point to 'Condo Fees' as a reason NOT to buy one.

Let's take a closer look at what they are, and how condo ownership compares to house ownership.

Your browser doesn't support HTML5 video.

Let's Compare Costs
Comparing ownership costs between a house and a condo of similar value.

Let's say $200,000 each, and the condo has a monthly condo fee of $275.00
Water Bill
Water is usually included in the condo fees, but will cost about $60/month for an average house
Savings for Condo owner - $60/mth
Home Insurance
Condo-owners only require condo-insurance, which is much cheaper than normal house insurance.

This is because the condo-building is already insured.
Savings for Condo-Owner - $75/mth

Your browser doesn't support HTML5 video.

Home Heating Costs
A $200K home in Winnipeg will be older, and most likely leak heat like there's no tomorrow.  Estimate $100/mth for heat.

Apartment style condo, on the other hand, will cost approx. $50/mth
Savings for Condo-Owner - $50/mth
Real Estate
No Spam! 
Unsubscribe anytime!
Emergency Fund
A homeowner is well advised to establish a separate savings account for emergency repairs.

Unexpected repairs and maintenance can (and will) come up, especially in an older home.

What kind of things can go wrong?
Furnace Repair             $350
Clogged sewer line      $300
Hot Water Tank         $1,000


New Furnace              $4,000
New Roof                    $6,000
Foundation Repair   $15,000
What Could Go Wrong
Let's start small and put aside $50/mth into a separate account.
Part of the 'dreaded' condo-fee is a contribution to a common reserve fund, to pay for future building repairs, renovations and upgrades
Condo Owner saves    $50/mth
Let's Add All That Up
Water Bill           $60
Insurance           $75
Heating              $50
Emergency         $50

Total  Savings      $235.00
Condo Fee ($275) - Savings ($235)

Cost of Condo Ownership = $40.00
Condos are not for everyone
You may LOVE living in a condo, or you may have great reasons NOT to buy one. 
Hopefully, I've shown that 
Condo Fees, by themselves,
should not be one of those reasons.

Your browser doesn't support HTML5 video.

Your browser doesn't support HTML5 video.