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When it comes time to consider a condo in Barrie for sale or condo townhome, there’s one thing many people overlook or may not be aware of if they’ve been homeowners for a while, and that’s how condo fees are factored into your mortgage calculation.

Lenders add half of your condo fees into the debt calculation when you apply for a mortgage, in addition to other monthly carrying expenses such as heat, hydro, property taxes, and interest to determine what is referred to as your Total Debt Service.

Lisa Cuff, AMP (Accredited Mortgage Professional) fromDominion Lending Centres in Barrie, states that the most important finance factor when looking at purchasing a condo vs. a freehold home is your monthly condo payment. For example, for every $50 of monthly condo fees, then that would be equivalent to approx. $10,000 in a mortgage. So a $300 monthly condo fee works out to be a $60,000 mortgage, so if your condo purchase is $60,000 less than what your freehold home purchase would have been, then your monthly expenses for principal, interest and condo fees will be approximately the same in either scenario.

While this may play a factor in your condo suite or Barrie condo townhome choices, knowing what your fixed monthly maintenance expenses are makes it much easier for you to budget, taking away any surprises out of the equation.

Remember that your monthly condo fees cover a variety of different items like the building’s operating costs, service and maintenance of common areas, amenities, parking garage, landscaping, snow removal, plus a reserved portion for longer-term capital expenses.

In an article I wrote earlier in the year, I covered how condo fees are determined. To view more articles on Barrie condos and townhomes, please visit our Facebook page by searching for Barrie Condo Team.

When it comes to purchasing Barrie condo insurance, there’s a lot more that needs to be considered than just ensuring your contents will be covered.

While the condominium corporation has insurance (which you partially pay for out of your monthly fee), that policy usually only covers items that are part of the structure and common areas of the building. You should select a comprehensive insurance plan that protects your unit, belongings, and replacement cost to the condominium building and structures, as well as common areas.

If you’ve invested extra in upgrading your unit’s flooring, carpeting, cupboards, appliances and other comforts, you’ll want to be sure you’re covered for replacement value should anything happen to your condo unit. And, of course, replacement of your contents such as furniture, electronics, and other personal belongings should be included in your policy.

Perhaps most importantly, you need to ensure you’re protected against personal liability in case of injuries to anyone who visits your condo unit, or for accidental damage you may cause to your neighbour’s property or common areas by fire or flood.

Glenn Dusome of Dusome Insurance Brokers in Barrie points out that many Barrie condo unit insurance policies lack coverage for what is called a special loss assessment. You should look for this coverage and make sure that it has an adequate limit to protect the unit owner. More information on special loss assessment can be found online @ the Barrie Condo Team’s facebook page.

In terms of Barrie townhomes, a condo townhome’s insurance may have less expensive premiums since there’s less property to insure than a freehold townhome. Generally, a freehold townhome’s insurance is similar to that of a detached home, but with coverage that will protect against damage to shared elements such as walls, pipes, and so on.

While a freehold townhome doesn’t have a condo corporation running it, you’ll want to ensure the coverage your insurance company is quoting will be sufficient to cover the replacement cost of your unit’s contents and the building your unit’s in, any additional structures such as garages or garden sheds, and provide protection against liability from accidental damage to neighbouring units.

Always check with your insurance company or broker before committing to anything and do your due diligence. Ultimately, your primary concern should be ensuring adequate insurance coverage for your property, belongings and liability, not the lowest-priced premiums.

If you’ve been part of a sales transaction for a detached home in Barrie, you’re probably aware of the inspection that’s completed by a certified professional inspector prior to the purchaser finalizing and accepting the deal. However, you may not be aware that there are inspectors that specialize in condos and townhomes in Barrie, and how they differ from traditional house inspectors.

When buying a condo in Barrie, it is important to make sure you select an inspector that is knowledgeable in condominiums, since there are different areas and elements of condos that may require inspection where a house doesn’t. For example, common areas like recreation centres, swimming pools, patios, stairwells, parking garages, and other areas that are shared by all occupants of the building have special considerations that need to be addressed that someone specializing in detached homes might not be aware of.

Additionally, the very nature of the building and the systems needed to operate multi-unit climate control, water delivery and so on, are not something that a home inspector would necessarily be familiar with. Barrie condo inspectors with a commercial or industrial background or advanced knowledge with these types of building systems can come in real handy where the building systems meets with the condo suite.

To those looking into the Barrie townhome market for the first time, navigating your way around can be a bit confusing. For instance, what’s the difference between a condominium townhome and a freehold townhome? And why are some called ‘townhomes’, while others are referred to as ‘townhouses’?

In order to clarify things a bit for those in unfamiliar territory, here are the basic differences.

First, the easy one: ‘townhome’ or ‘townhouse’? These terms are used interchangeably, and mean the same thing, but the term I prefer to use with my clients is ‘townhome’, because it’s not just a building I’m referring to – it’s your potential new home. This building will become your personal space, where you go to escape, raise your family, and live your life.

Now for the main difference between condominium and freehold townhomes: freehold townhomes are those for which you pay no monthly fees, and are responsible for all maintenance like shovelling snow, mowing the lawn, etc. Condominium townhomes include a monthly maintenance fee, but the trade-off is that you don’t need to worry about cleaning the pool, or maintaining your driveway in the winter or lawn in the summer – it’s all looked after for you.

If you’re a professional or retiree who just doesn’t have the time or interest to invest in the upkeep of a house, a condominium townhome might be a good option for you.

Affordable luxury

Whichever you choose, both freehold and condominium townhomes in Barrie usually offer upgrades and amenities that are often cost-prohibitive when looking at a detached home. Items like ceramic or hardwood floors, upgraded cupboards, granite countertops, and whirlpool tubs are just a few options that generally have a large price tag attached to them in detached homes, but are often more affordable in a townhome. It boils down to value for your money, and the lifestyle you want.

An appreciable investment

Like a detached home, townhomes are an investment that will (or should, depending on the market conditions) appreciate in value. And, again like a detached house, the more amenities and upgrades the townhome has, the higher the resale value.

When it comes right down to it, choosing a freehold or condominium townhome in Barrie is simply a matter of personal choice based on lifestyle and affordability.

Stephanie Adams is a Sales Representative at Royal LePage Barrie (First Contact Realty) specializing in Barrie Condos and townhomes. Stephanie is part of the Barrie Condo Team.