It added: “The study reveals no discernable correlation between age of building and maintenance fees and, in fact, there are numerous buildings 20-years plus in age with maintenance fees priced below average for the City.”
Malhotra said: “It is great to know that the older condos with seemingly higher maintenance fees are actually comparable to new condos when you break things down on a dollar per square foot basis.”
The report also found that very few buildings have flat fees for maintenance, but that fees actually increase in correlation to unit size.
“From a total monthly expenditures standpoint, that’s often true,” stated the report. “But not on a price per square footage basis, which is the only way to objectively compare buildings.”
Malhotra advised that investors and buyers be careful about the conclusions drawn from these statistics.
“For example, though having a second parking space will add to one's maintenance fees, it’s not true that buyers are paying $30,000 or $50,000 more for those second parking spaces with respect to the resale market,” he said.
“From my study of what has sold in Mississauga over the past few years, condos with two parking spaces have sold at prices equivalent and even less than those condos with one parking space.
“This usually shocks investors who have paid huge premiums from the builder when buying a brand new pre-construction condo from a sales office.”
to access an infograph of the Condos.ca study.
The March/April issue of CREW, currently available on newsstands, features a comprehensive report about the Canadian condo market.
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