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Myth Busters: Maintenance Fees Edition

In this episode of Myth Busters, we’ll tackle the “Maintenance Fee Myth”.

When I meet with first time buyers, there are certain things that I hear almost every time when I ask them, “What are you looking for?” The most common responses are usually

1. Newer building in a great location
2. Lots of light / Big windows
3. Low price per square foot
4. Low maintenance fees

The add-on to the maintenance comment is very often, “I wouldn’t mind living in a building with less amenities because that will mean lower maintenance fees”. When I hear this, little orange flags start going off in my mind as it’s time to bust up another condo myth.

There is a pervasive belief that if you buy at a building with little or no amenities, you will pay significantly less maintenance fees compared to a building that has a pool, sauna, gym, bowling alley, roof top terrace etc. This is simply not true. Maintenance fees at most condo buildings in Toronto, whether they are loaded with amenities or have none at all, tend to settle around 50-60 cents per square foot.

For example, let’s take a look at a couple of listings out on the market today*,

Category 1 – Full Amenities: Pool, gym, party room, 24 hour concierge

• 80 Western Battery Road (Vibe Condos in Liberty Village) – ~55 cents PSF (Hydro NOT included)
• 35 Mariner Terrace (Cityplace) – ~55 cents PSF (Heat and Hydro included)

Category 2 – Some Amenities: Gym, party room, 24 hour concierge

• 438 King (The Hudson) – ~63 cents PSF (Heat and Hydro included)
• 230 King Street (King’s Court) – ~60 cents PSF (Heat and Hydro included)

Category 3 - No Amenities: No gym, no party room, minimal or no concierge

• 25 Oxley (GLAS) – ~55 cents PSF (Heat and Hydro NOT included)
• 10 Morrison (Freed building, originally marketed as 455 Adelaide) – 48 cents PSF (Heat and Hydro NOT included)

The question then is why are maintenance fees NOT any lower in buildings with fewer amenities? The reasons can vary from building to building, but the best answer is simply economies of scale – that is, the buildings that have a lot of amenities tend to be the largest buildings and therefore have a huge number of suites to spread the cost over (400+ suites), whereas the buildings with no amenities tend to be smaller buildings with very few units (less than 200).

There are always exceptions, but in general, there are 2 things that probably influence maintenance fees the most

1. Size of the building (more suites = lower maintenance fees for a given level of amenities)
2. Age of the building (the older the building the higher the fees)

A third factor which I also refer to is how the building is managed, or more precisely, WHO is managing the building. This factor is far more subjective though and hard to directly correlate with the actual maintenance fee rate.

Questions or comments? Please contact me.

*calculations for all buildings mentioned here based on MLS listing data and for units with 1 parking spot

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300 Front by Tridel

300 Front St West coming soon by Tridel. For floor plans and pricing for the VIP sales event, please contact me.

Whenever Tridel launches a new project there is always great fanfare and 300 Front will be no exception. Why? Simply put, Tridel is the best developer in the city and possibly the country when it comes to condominiums. They have consistently put out a quality product at competitive prices and delivered it on time. The buzz has been building for 300 Front for a couple months now and VIP sales starting very soon . As always, my promise to my clients is that I will do everything I can to get you the unit(s) you want at the lowest price possible.

The condo tower that will be known as 300 Front St West will feature a 49 storey building with 672 suites. Occupancy date is roughly scheduled for Spring 2012.  Condos and lofts will start from 445 sq ft is size and go up to 2000 square feet (Signature suites). I have the price sheet in my possession and pricing is coming in around the $550-600 per square foot range.

Click here for 300 Front Street location
Click here for 300 Front Street site plan and amenities
Click here for 300 Front Street features (Gorgeous full colour renderings of 300 Front)

Click here for 300 Front Street floor plans

300 Front Street deposit structure:
- 5% upon signing
- 5% 90 days from signing
- 5% 180 days from signing
- 10% at occupancy

- Maintenance Fees at 300 Front St W is approx. $0.35 per square foot, plus hydro.  (parking and lockers will incur an additional maintenance fee)
- Parking at 300 Front St W is available at  $35,000
Parking available for only 1 bedroom + den and up

Contact me for Pricing for 300 Front.

I will get back to you immediately with the price sheet.

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