When purchasing a condo, many buyers focus primarily on the purchase price, but it’s equally important to consider ongoing expenses such as property taxes and condo fees. These additional costs can significantly impact your monthly budget and long-term affordability. Understanding and managing these costs before making a purchase is essential to avoid financial strain.

Property taxes are annual fees paid to the local government based on the assessed value of your property. These taxes vary widely depending on your location, the size and value of the condo, and local tax rates. For instance, urban areas may have higher property taxes due to enhanced services or higher real estate values. Before purchasing a condo, ask the seller or real estate agent for the current property tax rate and the amount paid in the past year. Keep in mind that property taxes can increase annually, especially if the local government reassesses the property’s value. Factor in possible increases when calculating future expenses.

Condo fees (also known as strata fees or maintenance fees) are another important cost to watch. These monthly charges are collected by the condo association to cover building maintenance, amenities, insurance, repairs, landscaping, and more. In some luxury condos or buildings with extensive facilities—such as pools, gyms, or concierge services—fees can be particularly high. Review the condo’s budget and ask for a detailed breakdown of what the fees include. It’s also wise to review the status of the condo’s reserve fund, which is used for major repairs. A low or poorly managed reserve fund may lead to special assessments—large, one-time payments for emergency or deferred maintenance—which can be a financial burden.

It’s important to compare condo fees among similar properties in the area. Sometimes a condo may appear less expensive up front but have much higher fees, making it more costly in the long run. Also, check if any utilities are included in the fees. Condos that cover water, heat, or electricity may offer better value despite higher fees.

Buyers should also review the minutes of recent condo board meetings. These documents can reveal planned increases in fees, upcoming repairs, or any issues with the building’s finances or management. Pay attention to recurring problems or resident complaints, which may indicate deeper issues that could become expensive later.

To protect yourself, work with a real estate agent experienced in condo sales and consider hiring a lawyer to review the condo documents. They can help you understand financial statements, reserve fund studies, and bylaws, ensuring you aren’t caught off guard by hidden costs.

In conclusion, while condos can offer convenient and low-maintenance living, buyers must remain vigilant about property taxes and condo fees. By doing thorough research, understanding all monthly and future costs, and reviewing the financial health of the condo corporation, you can make an informed purchase and avoid unexpected expenses.