How much is too much with condo fees?

Question

I was looking through the housing listings and found a condo listed for $150k. It's roughly 1300 sq feet with 3 bedrooms, 1.5 baths. Given the price I'm sure it's not updated but that's more of a plus for me. I have no problem putting a little work into the place.

The condo fees are $327 and include heat. The complex is older, roughly 30 years old, but still looks decent and they do have some ameneties (pool, tennis, etc). How much should I expect to pay in condo fees? What should I look to avoid? What kind of questions should I ask? Most of the condo fees around here seem to be high.

Condo fees include: Property Management, Heating, Sewerage, Water, External Bldg Maintenance, Lawn Care/Snow Removal, Trash Pickup

The fees are monthly, and I live in Southeastern CT, which isn't quite Boston or NYC but isn't cheap. There is a housing boom (and shortage) over here from the nearby casinos which continue to expand, and there are other major projects (2 $1 billion+ dollar movie studios, many other big projects that are over $100 million)potentially coming to the local area, which is a small city (40k) surrounded by cow towns.

Answer 1

Depends on where your condo is located and how old it is.

Older condos tend to have higher association fees because more things start to go wrong as the property ages......roof, painting, general repairs.

Here in Tennessee, for a new condo complex, the fee monthly is around $100-$140 which includes upkeep of the outside of the buildings, mowing and landscaping, swimming pool and work out rooms, trash collections, and most have a private gate entry that has to be maintained in good working condition. Most association fees do not include water/sewage in all, so ask about that.

I once lived in a condo complex in Tampa Florida where basic cable tv was included with the association fee, and I thought that was great......especially since my fee was only $75 AND included water/sewage in addition to the other stuff I mentioned. I had it made there, but I'm sure it's changed in the 16 years since I was there.......LOL.

$327 sounds really high unless you are in one of those expensive cities like NYC, Boston, DC or California. For basic mid-America, that would be way too expensive.........and the sad part is that it's not tax deductable.

Good luck in your search for a new home!

Answer 2

My association fee is lower than that, $245 this year I think, BUT they come back about twice every 3 years asking for more money for various special projectts. My condo is about 30 years old also, and obviously things have worn out and are being replaced.

"Too much" is subjective. Expect the condo fee to increase with inflation plus a bit. Think of it as two components. (1) Cost to do X (the various services they provide) increases generally as inflation. However, amount of X is increasing as things wear out.

To perhaps get a better handle on how your costs will change, get a look at the condo association financial records. In San Diego they have to account for that stuff yearly. From that you can look to see if they have enough reserves and maybe get a feeling for how well they manage their money (e.g., whether they spend too much for what they get).

Heat could be a big piece of that depending on where you are. Does it also include water?

Answer 3

Is that per year.. or per month..?? If they are in line with other condo in your area then I guess that answers your question..