This is a question that many buyers don't consider carefully enough when purchasing a condominium. The financial obligations you will have to meet typically include:
- Mortgage payments;
- Property taxes;
- Monthly common expenses, including an amount for the reserve fund;
- Utilities and cable if not included in the common expenses; and
- Depending on how the project is designed, you may also have to pay a heat pump rental, a one time charge for a Reserve Fund Study or Engineering Audit of the building. Every Agreement of Purchase and Sale is different, so you must read it carefully.
You should also consider what the monthly operating costs are going to be. Does the estimate of common expenses you were given seem reasonable? Bear in mind that you are directly responsible for your share of the common operating expenses of the condominium. You and the other owners will have to increase your monthly common expenses to keep up with rising costs. Like everything else, condominium common expenses will tend to increase.