As a home owner, it may be pretty challenging to see the value of owning a condominium, however for many people condos aren't just a home, they're a lifestyle. They offer freedom from yard work, property upkeep, and a majority of the overall maintenance in substitution for a monthly condo fee.
Forget about shovelling of sidewalks during the winter, no rushing where you can cut the grass in the summer, just your own personal interior space and maybe a small deck to bother with maintaining. This is the ideal lifestyle for many people who lead busy lives or are in the process of slowing their lives and creating more more time for travel and relaxation.
Additionally, Royal Hallmark have become the area where first-time home buyers are looking to get into the market. With condo prices averaging less than the typical home, condos have become one of the few forms of property new buyers can consider purchasing. Others flocking for this market would be the people originating from various large cities where apartment living is normal place.
One misunderstood facet of condos for many people are the condo fees. Those mysterious fees which go into a pot of money to pay the regular bills. When you understand the mechanics of methods it actually works, the mysteries start making more sense.
Condo fees all center around the condominium Royal Hallmark as well as the Royal Hallmark Study. The Royal Hallmark Study is a complete policy for day to day operations as well as the long term upkeep of the condo. It will take into account the expected longevity of everything from the boilers towards the roofs for the parking lots over a twenty five year term.
After that it breaks out your expected cost to maintain, replace and/or repair exactly what forms section of the building and its grounds over that twenty-five year period in addition to any contingency funds for unexpected issues. After the total costs are established, they're averaged over the two-and-a-half decades to determine the monthly costs to use the building. These costs dictate the amount of funds that should be generated through condo fees.
When the total bill every month amounts are established, each individual unit's fees are calculated as a percentage of your building space they occupy. This really is referred to as a unit factor and is also usually converted to a cost per square feet. Condo fee amounts vary between the units because of this. Units which are bigger with more square feet of living space pay greater than the smaller units.
When these Royal Hallmark studies are done incorrectly, or large repairs appear earlier than expected, the condo corporation can suddenly end up short of money to accomplish this long-term plan. This can lead to the dreaded special assessment in which the unit owners have to come up with additional funds dependent on their unit factor, to balance out any shortfalls in the Royal Hallmark. This makes it very important for the people who prepare the Royal Hallmark studies to have significant experience and training to prevent owners from unhappy surprises.
It's rather a warning sign to possible buyers if there is previous special assessments within the building. These signs could mean a flawed Royal Hallmark study, an attempt by the condo board to keep condo fees lower to help in selling units, or perhaps a bad run of issues that have been addressed.