Brokers now have a better sense of how to advise condo-buying clients about the truths and myths of condo fees, according to condos.ca, who has published a study on the true costs of Toronto Condo maintenance fees.
“The study confirmed a number of long-held beliefs about condo maintenance fees such as the more amenities, the higher the fees, but the ‘worst offenders’ were not the obvious ones–pools, for example, only affected fees on average by $0.03 per square foot,” the report states. “It revealed a number of other surprises including the true cost of parking and the fact that older doesn’t necessarily mean more expensive when it comes to maintenance.”
To arrive at its conclusions, condos.ca collected every MLS sale and reported maintenance fees for every condo building in Toronto over the past ten years. The company claims the result of the study has helped them create a maintenance fee database for over 660 buildings in Toronto and nearly 900 throughout the GTA.
One surprising finding from the study was that older buildings don’t typically have higher maintenance fees per square foot, despite this being a widely-held belief among buyers and industry professionals.
“The myth was likely established because the absolute numbers are often higher with older buildings because units tend to be larger,” the study reveals. “Very few buildings have flat fees for maintenance–fees increase in correlation to unit size–and that is likely what’s driving the belief that older condos are more expensive than newer condos. From a total monthly expenditures standpoint that’s often true but not on a price per square footage basis which is the only way to objectively compare buildings.”
to access an infograph about the study.
A new study, ten years in the making, will help brokers better advise clients who are interested in purchasing one of the most popular property types.