We had a surge, as in dramatic increase, in energy costs a few years ago. As I predicted here, the local condo boards had to address this added cost so they of course raised the fees. All of the condos I sold that year had received maintenance fee increases.
Within the last 30 days, I've had the pleasure of viewing three status certificates of good condominiums around town and was quite surprised by the results.
In each case, the projected condo fees for the next five years are scheduled to increase on average, at a rate of approximately 15% per year.
Some of this can be explained away by the urgent need to increase the contingency fund that was deemed too low by the Board of Directors (tough decision for a board to make no doubt). There will also be the added costs stemming from the Harmonized Sales Tax. In another instance, the costs of garbage disposal was going up quite dramatically so that of course had to be paid for from the maintenance fee.
Regardless of the reasons, and there will be no shortage of those in the months/years to come, there's no doubt that the cost of living in a condominium will be increasing steadily as the national cost of living increases and new buyers should take that into account before they buy.
I wonder if CMHC, the people who insure the mortgages on these condos, are also taking this into account. Somehow, I doubt it.
