According to this article in the Toronto Star, over 7,000 condominium buildings in the Greater Toronto Area have already celebrated their 40th birthday – but over a quarter of them are in need of repairs they can’t pay for because there isn’t enough money in their reserve funds.
If the condominium building is in need of repairs that it can’t afford, the price is passed along to the individual condominium owners. The only upside to this is that once the work is completed, the price of the individual suites may rise dramatically – and owners will be able to profit if they sell their units.
Condominium buildings are able to get owners to pay for these repairs through special assessment notices, but owners can disagree and remove the board if enough of them feel the same way. While it doesn’t cost the owners anything, the repairs aren’t done and the building can fall into a state of disrepair, bringing the value of the units down.
Condominium buyers in Toronto who are looking into buying resale condominiums can avoid these headaches by ensuring they snag a copy of the condominium building’s reserve fund study, which will give buyers a snapshot of the condo’s financial health.
This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.