Condo Crises

Condos are becoming a necessary home for many people who do not want to, or cannot own their own private homes. The cost of a private home in a large city takes a good chunk of an annual salary to maintain. It isn't simply a matter of taxes. Utilities, insurances, repairs and renovations or changes, amount to such high costs that many, even families with children, are considering going the condo route. While the original cost of a unit or townhouse seems relatively high, the maintenance of the entire complex is shared. The inside of the owner's unit is the responsibility of the individual but the infrastructure up-keep is borne by the group of owners who have bought the whole structure jointly and severally. New condos present a wise purchase since everything, including the appliances, roofing, grounds and inner wall matters, is new and thus reliable. Or should be. Old condos are cheaper but the "tried and true" adage cannot readily be applied. Like older people, condos have problems of aging that are undeniable. One must beware when purchasing what looks like a bargain older, "well kept" unit. In an area of aging strata developments all may appear settled and well in hand, but what you see is not what you get always. Water leaks are becoming one of the most expensive claims that many condos are facing. It is relatively easy to replace a roof or pave a driveway but water leaks cause not only intense personal stress and damage, they are a sign that old systems such as piping and electrical matters need to be replaced in the entire place. In one complex, copper piping is showing age leaks and, one after another suites, must be torn up to search out the water systems, the piping removed, and new conduits put in. The cost of such improvements and repairs is sky high and owners are faced with increased fees. Many people who thought they were safe from high home costs are often assessed by their condo councils, well beyond their capabilities and some have trouble finding loans to keep their homes. A few end up "on the street" or finding accommodation they did not plan for. The only possible comfortably affordable route is for the complex to take out a corporate loan and pass the payment burden down to the owners in smaller amounts but with longer periods of pay back. this, of course, sees re-sales bothered and insurance companies champing at the bit. At the same time, they must guard against unscrupulous repair service folk, some of whom may see it as a cash cow. What to do? The only words I can think of are buyers beware.