Define Your Needs
Start by listing your priorities. Do you prefer a downtown condo or a quieter neighborhood? What services are essential (elevator, pool, parking)?
Everything You Need to Know Before Buying Your First Condo
As a first-time buyer, it’s essential to fully understand the condo-buying process. From evaluating your budget to analyzing condo fees, discover the key points to consider to make a smart choice.
Buying Your First Condo: A Big Step for First-Time Buyers
Buying your first condo is an exciting adventure, but it can also come with questions and concerns. What should you look for? What expenses should you anticipate? How can you avoid common mistakes? Navigating the real estate market can be complex, but with the right guidance, you’ll be perfectly prepared.
Plan Your Budget
Your budget isn’t limited to the purchase price. Consider additional costs such as taxes, condo fees, and expenses related to the property.
Work With an Expert
Partnering with a broker who understands your needs can make all the difference. They’ll guide your search and help you avoid common pitfalls for first-time buyers.
Condo Fees: Understanding the Costs Associated With Co-Ownership
Buying a condo can be a great option, but it is essential to understand condo fees to avoid any financial surprises. These fees are the monthly charges that co-owners must pay to maintain and manage the building. Here is an overview of the main costs associated with a condo.
Condominium Fees (or Common Charges)
Condominium fees cover the maintenance and management of the building's common areas, such as the halls, elevators, corridors, swimming pool and even parking. These fees generally include:
- Maintenance and repairs of common areas (cleaning, painting, etc.)
- Salaries of maintenance staff (janitor, gardeners, etc.)
- Utilities for common areas (heating, lighting, water)
- Insurance covering the common areas of the building
- Management of the co-ownership (management fees by the co-ownership association)
The amount of these fees varies depending on the size of the condo, the services offered, the age of the building and the location. On average, these fees can range from $100 to $500 per month.
The Contingency Fund
Part of the co-ownership fees is generally allocated to the contingency fund, which is used to finance major or unforeseen work, such as repairing the roof or replacing the boiler. This fund makes it possible to maintain the building in good condition without having to impose exceptional costs on the co-owners. The co-ownership association manages this fund and ensures that it is maintained at a sufficient level.
Condo Insurance
In addition to insurance for common areas, it is important to have individual insurance for your own unit. This insurance covers your personal property, as well as any responsibilities you may have in the event of damage to your unit. It is separate from the building's group insurance.
Other Possible Fees
Depending on the co-ownership, additional costs may be added, such as:
- Parking fees for a private space
- Maintenance costs for special equipment (swimming pool, gym, etc.)
- Fees for additional services, such as waste management or security services
Understand the Costs Before Purchasing
Before purchasing a condo, it is essential to request details of the co-ownership fees from the seller or the condominium association. Check the status of the contingency fund and ensure that it is sufficiently funded to avoid future exceptional contributions. This will allow you to plan your finances well and avoid unexpected costs after the purchase.
Subsidies and Programs for First-Time Buyers in Montreal
- Subsidy from the City of Montreal
Financial assistance to cover certain costs linked to the purchase (notary, incidental costs). The amount can reach up to $10,000, depending on income and type of property. - Home Ownership Plan (RAP)
Allows you to withdraw up to $35,000 (or $70,000 for a couple) from your RRSP without paying tax, to be repaid over 15 years. - Tax credit for purchasing a first home
A federal tax credit of $2,500 for the purchase of an eligible property. - Home ownership loan (PAP)
Low-interest loan or down payment assistance, offered by some banks and financial institutions. - Provincial programs (Quebec)
Financial assistance in the form of attractive rate loans or grants for young buyers.
Choosing Between a Divided and Undivided Property
What’s the Difference Between a Divided and Undivided Property?
When considering a property purchase, it’s essential to understand the differences between divided and undivided properties. These two options have unique characteristics that may influence your buying decision, particularly in terms of down payment, management of common areas, and financial responsibilities. Here’s an overview to help you make an informed choice.
A divided condo is a property where each owner holds exclusive ownership of their unit along with a proportional share of common areas, such as the land or pool. This type of property is more common on the market and provides greater autonomy in managing individual units. Monthly fees, often referred to as condo fees, cover expenses like building maintenance and exterior repairs. Purchasing a divided condo typically requires a minimum down payment of 5%.
An undivided condo, on the other hand, operates under a joint-ownership agreement. All co-owners share ownership of the entire building and are collectively responsible for expenses such as municipal and school taxes. Purchasing an undivided property typically requires a higher down payment of 20%. This type of property is better suited to buyers willing to share building management with other co-owners.
The choice between a divided and undivided condo depends on your priorities: autonomy or shared management, available down payment, and your comfort level with shared responsibilities. Each option offers unique benefits depending on your situation.
Claudya Généreux
Residential and Commercial Real Estate Broker
Claudya Généreux Inc.
- Phone
- Address
3299 rue Beaubien Est
Montréal, Québec, H1X 1G4
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