Jump to content

      



























Photo

How much are condo strata fees?


  • Please log in to reply
153 replies to this topic

#61 MarkoJ

MarkoJ
  • Member
  • 5,771 posts
  • LocationVictoria

Posted 09 January 2014 - 09:03 PM

Can you elaborate on this?

 

Let's say you are reading strata documents and you, the buyer, find out the building will need a new roof next year that will cost approximately $100,000 and there a 20 units.  The contingency fund is only $25,000 and the entire $100,000 will be raised via special assessment and the unit entitlement of the unit you are interested in is 1/20.  

 

You are a first time buyer and you cannot afford $5,000 out of pocket next year so you negotiate for $5,000, funded by the seller, to be held in trust by the seller's or buyer's lawyer to be released when the special assessment is due.  You could have provisions for the actual cost being below/above the $5,000.  

 

When contracts get complicated like above best to consult a lawyer to help with the specific wording.

 

Very few sellers would accept such an arrangement.  You are more likely to see it where a seller has had previous deals collapse over upcoming expenses.


Edited by MarkoJ, 09 January 2014 - 09:09 PM.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#62 Mike K.

Mike K.
  • Administrator
  • 83,184 posts

Posted 09 January 2014 - 09:33 PM

Thanks, Marko. That's a great piece of negotiating leverage.


Know it all.
Citified.ca is Victoria's most comprehensive research resource for new-build homes and commercial spaces.


#63 Nparker

Nparker
  • Member
  • 40,409 posts

Posted 09 January 2014 - 09:53 PM

In a previous property that I owned, there was a special levy raised to cover the costs of a potential litigation against the original builder, city etc. for damages resulting from premature building envelope failure. After quite a number of years the strata (owners) determined that the chance of success in such litigation would be minimal and it was decided to return the litigation funds back to the owners. In the intervening time I had sold my townhouse, but it had been written into the sales contract that any funds either won or returned from the litigation would come back to me as the owner who put up the money in the first place. The new owner had nothing to lose and in the end I got my money back. I am not sure how common such arrangements are, but it didn't seem to be especially complicated to make this provision in the sales contract or to get the buyer to agree to it.



#64 MarkoJ

MarkoJ
  • Member
  • 5,771 posts
  • LocationVictoria

Posted 10 January 2014 - 08:16 AM

In a previous property that I owned, there was a special levy raised to cover the costs of a potential litigation against the original builder, city etc. for damages resulting from premature building envelope failure. After quite a number of years the strata (owners) determined that the chance of success in such litigation would be minimal and it was decided to return the litigation funds back to the owners. In the intervening time I had sold my townhouse, but it had been written into the sales contract that any funds either won or returned from the litigation would come back to me as the owner who put up the money in the first place. The new owner had nothing to lose and in the end I got my money back. I am not sure how common such arrangements are, but it didn't seem to be especially complicated to make this provision in the sales contract or to get the buyer to agree to it.

 

A bit of a different scenario.  As you noted, the buyer had nothing to lose and neither did you.  It gets more complicated when the buyer has something to lose (upcoming expense), the seller is being asked to concede (pay for the upcoming expense) and there is uncertainty in regards to exactly how much the upcoming expense will be.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#65 Nparker

Nparker
  • Member
  • 40,409 posts

Posted 10 January 2014 - 08:53 AM

A bit of a different scenario...

Oh I realize that. I only relayed this story to show that all sorts of things can be built into a real estate transaction.



#66 Victoria Watcher

Victoria Watcher

    Old White Man On A Canadian Island

  • Member
  • 52,343 posts

Posted 24 January 2023 - 05:14 PM

More from this BP comedy writer/reporter.

 

 

 

 

 

Opinion: Penny-pinching Victoria stratas now forced to save for the future. Thank goodness

 

 

 

 

I have sat on strata councils for two of the apartments I have owned in the past and both experiences took years off of my life.

 

Both were dominated by senior citizens who had a lot of time to focus on this position because they were retired. These folks meant well, but I noticed that they spent most of their time worrying about who made too much noise and not enough planning for the future of the buildings.

 

 

 

https://www.vicnews....thank-goodness/

 

 

Why would you worry about the fate the building in 30 years when you were 75 years old?

 

I’ve heard this complaint from other people over the years as the older folks on the strata councils worked furiously to keep strata fees at a rock-bottom level by not spending on upkeep or the contingency fund.

 

That cheap attitude has led many stratas to find themselves unable to financially deal with problems that come up as their buildings age.

 

To be clear, it’s not just older folks (for the record, I’m 54 and will be a senior soon), but others who are more focused on low strata fees than on the future.

 

 

 

 

 

 

 

 

 

 

The guy writes like a 21-year-old.


Edited by Victoria Watcher, 24 January 2023 - 05:15 PM.

  • Sparky and lanforod like this

#67 aastra

aastra
  • Member
  • 20,650 posts

Posted 24 January 2023 - 06:29 PM

 

as the older folks on the strata councils worked furiously to keep strata fees at a rock-bottom level

 

It's a big problem, those rock-bottom strata fees. You hear people complaining about it all the time.


  • Victoria Watcher likes this

#68 Doctor Detroit

Doctor Detroit
  • Member
  • 13 posts

Posted 06 December 2023 - 10:33 PM

I'm a senior citizen. I've lived in a 13-unit strata (north end of Fairfield) for eight years, and been on the strata council for five.

 

Many years ago, in the Washington DC suburbs, I lived in a 161-unit condominium made up of two-over-one townhouses: two 2-storey dwellings above one 1-storey unit, each around 1200 square feet. I was on the condo council there, too. * 

 

We had been a 45-and-older building prior to the Eby government's deciding last year we couldn't be; we're now a 55-and-older building.

Our owners are very much aware of the ongoing need to maintain a building that's nearly 50 years old. Just now I looked at our CRF contributions and the operating budgets (budget, not actual) from 2013 through 2022. Our average annual CRF contribution has been 35% of the operating budget. At the same time, a $10-per-month-per-unit increase in the contribution yields only $1,560 annually.

Replacing our roof and our 1976-era fire alarm system in the past four years led the council to propose two special levies, each around half of the estimated cost of the expense. The owners passed the first unanimously; the second had one vote against.

We need to increase our CRF balance, but for us a low balance means "equal to the annual operating budget."

 


* I didn't know anything about condos when I bought mine (I was under 30 at the time). I went to council meetings to learn. Picture if you will the roof required for 108 townhouses (the upper units) with a 600-square-foot footprint. The total Replacement Reserve ( equivalent to CRF) was less than $50,000. This in a community that had its own circular road, an in-ground swimming pool, multiple parking lots, outdoor stairways and walkways.





 


Edited by Doctor Detroit, 06 December 2023 - 10:33 PM.


#69 Matt R.

Matt R.

    Randy Diamond

  • Member
  • 7,880 posts

Posted 06 December 2023 - 11:58 PM

We did all the roofs at Parkside place, I can’t find what the cost was but it was substantial! Lots of roofs to be done.

That strata was great. Sometimes I miss the simpler times!

#70 sebberry

sebberry

    Resident Housekeeper

  • Moderator
  • 21,503 posts
  • LocationVictoria

Posted 07 December 2023 - 09:29 AM

The more time that goes on, the more I hate that we're so reliant on functional strata councils as the basis for our good mental health.


Victoria current weather by neighbourhood: Victoria school-based weather station network

Victoria webcams: Big Wave Dave Webcams

 


#71 lanforod

lanforod
  • Member
  • 11,241 posts
  • LocationSaanich

Posted 07 December 2023 - 09:43 AM

Or on good rental companies. Sometimes it takes experience with a bad one of either for folks to recognize why freehold SFH are in such demand.
  • Matt R. likes this

#72 Mattjvd

Mattjvd
  • Member
  • 1,046 posts

Posted 07 December 2023 - 10:09 AM

The more time that goes on, the more I hate that we're so reliant on functional strata councils as the basis for our good mental health.

It is a bit scary. On my return to Victoria over the summer getting meeting minutes from strata council meetings was a big part of our house (well condo/townhouse) hunting. Ended up in a good spot with just 4 residential and 2 commercial (office) units. Everyone is on the strata council, by-laws are minimal, and the AGM is just getting together at someone's dinning table to talk, while taking minutes. Even with a really positive experience with the strata so far, I miss my fee-simple townhouse in Edmonton



#73 Mike K.

Mike K.
  • Administrator
  • 83,184 posts

Posted 07 December 2023 - 02:03 PM

Now the province wants to make it easier for people to electrify their strata garages.

Know it all.
Citified.ca is Victoria's most comprehensive research resource for new-build homes and commercial spaces.


#74 sebberry

sebberry

    Resident Housekeeper

  • Moderator
  • 21,503 posts
  • LocationVictoria

Posted 07 December 2023 - 02:13 PM

Now the province wants to make it easier for people to electrify their strata garages.

 

Can they make it easier for me to have a pet yet?


Victoria current weather by neighbourhood: Victoria school-based weather station network

Victoria webcams: Big Wave Dave Webcams

 


#75 Victoria Watcher

Victoria Watcher

    Old White Man On A Canadian Island

  • Member
  • 52,343 posts

Posted 07 December 2023 - 02:24 PM

Is it electric?
  • Nparker likes this

#76 sebberry

sebberry

    Resident Housekeeper

  • Moderator
  • 21,503 posts
  • LocationVictoria

Posted 07 December 2023 - 02:34 PM

Is it electric?

 

Shock collars are cruel.


  • Victoria Watcher likes this

Victoria current weather by neighbourhood: Victoria school-based weather station network

Victoria webcams: Big Wave Dave Webcams

 


#77 Mike K.

Mike K.
  • Administrator
  • 83,184 posts

Posted 07 December 2023 - 02:41 PM

Nevermind the roof repairs. EV owners need a private gas station.
  • Nparker and Matt R. like this

Know it all.
Citified.ca is Victoria's most comprehensive research resource for new-build homes and commercial spaces.


#78 sebberry

sebberry

    Resident Housekeeper

  • Moderator
  • 21,503 posts
  • LocationVictoria

Posted 07 December 2023 - 03:17 PM

Nevermind the roof repairs. EV owners need a private gas station.

 

"I just need 5 minutes to fill up at the electron pump" said no EV owner. 


Victoria current weather by neighbourhood: Victoria school-based weather station network

Victoria webcams: Big Wave Dave Webcams

 


#79 Doctor Detroit

Doctor Detroit
  • Member
  • 13 posts

Posted 07 December 2023 - 03:44 PM

We did all the roofs at Parkside place, I can’t find what the cost was but it was substantial! Lots of roofs to be done.

That strata was great. Sometimes I miss the simpler times!

 

The cost of replacing our fire alarm system came to more than two years' worth of CRF contributions, which is one reason our council proposed and our owners approved a special levy for about half of that amount.

 

We had to bring everything to current code, which includes a mini-horn alarm in the living area of every unit, plus one in each bedroom. That came to about three dozen, along with their connection to the central panel. We also opted for a monitoring service.

More than once during the project, an inspector or someone from the fire department asked me if our old system had failed. It hadn't, but I was more than a little anxious about that possibility, since we would have been required to have a 24-hour fire watch until we got parts for out old system -- possibly from the history museum in Gatineau -- or had a new one installed and verified.



#80 Nparker

Nparker
  • Member
  • 40,409 posts

Posted 07 December 2023 - 03:53 PM

...We had to bring everything to current code, which includes a mini-horn alarm in the living area of every unit, plus one in each bedroom...

Government regulations making life more affordable for everyone.


  • sebberry likes this

You're not quite at the end of this discussion topic!

Use the page links at the lower-left to go to the next page to read additional posts.
 



0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users