The popularity of condominiums has growth significantly in recent years not only in places like the Greater Toronto Area (GTA) but elsewhere including the Collingwood and Blue Mountains.

With home prices soaring across Canada, condominium ownership has become an attractive and often a more affordable alternative for some buyers versus a single family home.  For others, it’s a desirable lifestyle and no place is this more evident than around southern Georgian Bay.  Whether they are retired or simply want to enjoy the area’s recreational amenities, condominium ownership provides a maintenance free lifestyle for those that are done with or have no desire for grass cutting, snow removal and other tasks that comes with single family home ownership.  It does however come at a cost not only with the expense of monthly condo fees but sometimes with hidden surprises.

The Galleries in Collingwood

A recent story on CBC news titled: “Condo owners in aging building face $14M in repairs. If they can’t pay their part, they risk losing homes” details some of the pitfalls that can come with condo ownership when the required finances for major maintenance expenses are not accrued and spent as required to properly maintain aging buildings.

Over the years I have sold many condo units in Collingwood and surrounding area, three is 2021 alone.  The CBC report is a sad story and I am sure the building in question is not the only one in Ontario or Canada that is in bad need of expensive if not long overdue maintenance.  Condo corporations have a board of directors made of volunteers who own units in the respective building.  Like any volunteer position, it can be a thankless job trying to appease the wishes of all owners some of which are not always appreciative or in agreement with decisions especially those involving money.  Over my 20 plus years as a real estate Broker, I have had many condominium owners say to me “…our condo fees are really low.”  Well that’s not always a good thing and this story is a good example as to why.

When major repairs are required, the condominium corporation’s “reserve fund” is where the money for those repairs/maintenance is to come from.  If the reserve find is under financed, owners are then potentially faced with a special assessment to cover the costs.  Owners in the condo building covered in the CBC story are now faced with a special assessment running into terms of thousands of dollars each.  Bank financing is not available and failing to pay may result in them loosing their homes.  It’s a sad story and one that for the most part was completely avoidable had condo fees been increased over the years thus assuring that the condo corporation’s reserve fund was being adequately increased to cover the projected repair and maintenance needs as identified in an qualified engineering report.

Many of us clearly remember watching the news reports regarding the collapse of Champlain Towers in Surfside, Florida where dozens of people were killed.  Fortunately we have not had a similar incident in Canada but that’s not to say it can’t happen.  Good management of both condominium properties themselves and the building’s financial needs are crucial.

There is nothing wrong with the condominium lifestyle and it’s not hard to see why many people are choosing that form of residential living whether it’s full or for part-time recreational use versus owning a single family home, ski chalet or cottage.  Every condominium I have sold where I represented either the Seller(s) or Buyer(s) was conditional on the Buyer’s lawyer reviewing the condominium’s corporation’s “Status Certificate” which among other things includes the building’s financial statement)s) and reserve fund study.  Most of the condominium properties in the southern Georgian Bay area are well maintained and adequately funded.  Nonetheless Buyers need to know and be assured of all the facts before firming up on an Agreement of Purchase and Sale and that’s where we as real estate professionals can and must play an important role.

Thinking of buying a condo or have one to sell?  Contact Me to learn more or visiting my Condo Communique website page to learn more.