Condo Fees are Skyrocketing !!
Condos represent a haven of peace, a small paradise, nothing less than living in a hotel all year round. There are many condo buildings in Montreal.
A consumer is looking for a condo; he finds one that is perfect and the condo fees are very low. But did he think about the condition of the building?
Co-ownership finally allows several people to become owners. Each owns its apartment and pays a monthly rent to maintain the common areas. Among the co-owners, some are elected to manage the building. Everything is new, everything is nice; twenty-five years later, that’s another story...
Since 1994, the co-owners have the obligation, by law, to keep some funds in reserve. To the condo fees, it is necessary to add 5% for future jobs. Many people do not do it and on top of that they realize that 5% is not enough. The situation is disastrous!
People do not want to spend; when we talk about putting some money in the contingency fund, they answer that they won’t be there in 3 years or 5 years; so why would they put some money in it?
Due to lack of foresight, some owners have seen their condo fees doubled or more. They have to get back on a sound financial footing again because there was not enough contribution done during the first 20 years.
Actually, in France, there are 300 000 apartments in co-ownership that are technically in bankruptcy. In the province of Quebec, there are buildings where people are not able anymore to meet the costs; they feel trapped like hostages in the building and the resale is almost impossible.
There is no bankruptcy yet in Quebec, but the threat is very real...
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