Having been a condo owner for a little more than a year now, I’ve become pretty adept at budgeting for my monthly bills. Cell phone to keep me connected? Check. Cable to keep me entertained? Check. Mortgage to keep a roof over my head? Check. Maintenance fees to keep the building running smoothly? Check.

Maintenance fees (sometimes referred to as condo fees) are a monthly expense, paid by condo owners, that do exactly what the name sounds like — they help maintain the building. More specifically, they help maintain the common areas of the building, like the lobby, the parking garage, the exterior facade and any amenity areas that exist. Some people believe that, because of maintenance fees, condo owners have greater monthly expenses than homeowners, but this is a snare and illusion, for the fees cover many similar costs that homeowners experience, but in a more regular billing cycle. For example, as a homeowner, my mom has a garden to landscape in the summer and a driveway to shovel in the winter. She’s billed for these services in two lump sums, one paid to the landscapers at the first sign of summer, and one paid to the snow-removal service at the start of winter. In my condo, I also have a garden to landscape and a driveway to shovel, albeit on a larger scale, that I share with the 100 or so other owners in the building. The costs of these services are built into our monthly maintenance fees, amortizing them across the year and making budgeting a slightly easier task.

Maintenance fees don’t only cover landscaping and snow removal, they typically also include exterior window cleaning and building facade maintenance, common area utilities and upkeep, common area insurance, garbage removal services and a reserve fund that gets built up to cover large expenses or repairs. A good rule of thumb is that anything outside the walls of your condo unit are part of common expenses (monthly fees) and anything inside the walls of the condo are billed to the individual unit owner. There are exceptions to every rule however, since some maintenance fees will include monthly utilities for the suite, but some will not. My building has individually-metered electricity for the suites (I pay the utility company directly for my usage) but water and gas are included in my monthly fees, so I don’t get billed for them via the utility companies direct. What’s included will vary according to each developer and condominium, so make sure you have a clear understanding of what you’re paying for. Also, remember that the nature of amenities will have a big impact on monthly maintenance fees. The 24-hour concierge service? Those salaries have to be paid from somewhere. The state-of-the-art fitness centre? Those machines aren’t cheap to buy. The seasonal outdoor pool? Huge upkeep necessary for smooth paddling. If you don’t use these amenities, there’s no sense in living in a building where you’ll be paying for them, since condo fees aren’t calculated based on usage, they’re based on percentage of interest.

In simple terms, percentage of interest (or percentage ownership) is calculated based on the square footage of each unit and its relative size compared to all the units in the building. This percentage is then multiplied by the annual operating budget of the condominium (as determined by the condo board in the annual budget) and divided into 12 monthly payments, to give the condo fees for a unit. To illustrate, the wee 650-square-foot space that I call home has a 0.703% interest in the building. With my building’s particular annual operating budget, that works out to $320.07 a month in condo fees, or approximately $0.49 per square foot. When I purchased my unit, the estimated maintenance fees were approximately $0.38 per square foot (which gave me a monthly bill of $247 for about the first year before the building was registered), but an increase in the first year is quite common, as the fees are suddenly based on real budget numbers, rather than an annual budget estimated by the developer. After that initial jump, condo fees usually stay relatively stable, with only minor adjustments for inflation.

On the first of every month, when my fees are due, I let out a small sigh, knowing that my bank account is a little lighter than it was the day before. But whenever I see a cleaner in the lobby, the garbage men loading up the garbage or the landscapers pruning the trees, I smile, free from the everyday logistics of running a house.

If you would like more information about condo fees and what they could include, please contact Matt Richling of the Ottawas Condos Team at 613-286-9501 or Matt@MattRichling.com

When it comes to condos, staying on the cutting edge of style and decor is key. The general perception of what’s hot and what’s not can change daily, so choosing trendy yet timeless decorating styles and furniture pieces is the true challenge for the condo dweller. Always keep resale value in mind when you paint or make upgrades. Chances are, you won’t live in this condo forever and when you do sell, you want the place to be attractive to a wide demographic–rather than simply to those who share the same tastes you do.

What’s Hot:

Clutter-Free Living
The choice to live in a condo generally means one must commit to living clutter-free. Although most condos have a storage locker and at least one closet, the space for storage is quite limited compared to that of other types of homes. That’s why it’s so important to adopt a Zen-like approach to clutter and possessions. If you don’t need it, sell it, give it to charity or throw it out. If you don’t know where you’ll put it, don’t buy it. Life is much easier without too much stuff, and condos are much more attractive when they aren’t packed with useless possessions.

Flowing Decor
When decorating a condo, choose a theme and stick with it. Condos and condo townhouses are generally open-concept and fairly small, and introducing too many colour schemes will overpower the space. When painting, choose a colour that you can repeat–for example, paint your bedroom the same colour as your washroom to give the impression of an ensuite and then chose a lighter or darker version of the shade for the living area and kitchen.

Dramatic Wood Finishes
It’s tempting to go with deep, dark paint colours when seeking to add drama to your condo decor, but particularly in a small space, this is not a great idea. Instead, stain the floors a dark oak or cherrywood finish. Cupboards can be outfitted with dramatic finish as well and furniture in rich distressed black stain is another attractive way to add depth to your decorating.

Streamlined Storage
Maximize closet space by building shelves and installing closet organizers. Make every square foot count–even under the bed! Buy thin plastic storage boxes which slide easily into small spaces and use them to store seasonal clothing, wrapping paper, gift bags and more. Invest in drawer organizers and cupboard shelves, too.

What’s Not:

Garish Paint Colours
Lime green may be your favourite colour–and very in to boot–but that doesn’t mean lime is a wise paint colour choice. If you love it, don’t shy away completely, but don’t make it the main focus of your space, either, as rich colours tend to dominate. Instead, choose boldly-coloured accessories such as blankets, throws, candles and vases. If you simply must paint in a dramatic shade, choose a single wall to adorn with shocking colour.

Fading Floors
Even if you didn’t upgrade your floors, it’s important to keep them in great condition. Laminate floors should not be washed with water, because it can leak through cracks and cause bubbling. Instead, sweep well and spot clean with a damp cloth. If you have hardwood, keep it in mint condition by cleaning and waxing regularly. If you plan to sell, a floor sand and refinish may be a good investment.

Too Much Bulk
You may not plan to live in a condo forever, and thus would rather invest in furniture that will make the transition from condo to house with ease – but big, bulky, house-size furniture just doesn’t compute in a small condo. Choose your stuff wisely, and don’t break the bank on condo furniture. There are bargains to be had, especially on small, streamlined stuff.

If you interested in selling or purchasing a condo in downtown Ottawa, please contact the Ottawas Condos Team at 613-563-1155. Focused on selling condos in the Byward Market, Sandy Hill, Centre Town, Downtown, Westboro, Beechwood, and Wellington Village.

Below is a great article that sheds a little more information on why we are seeing trends of people outside of the typical demographic purchasing condominiums. Not looking to purchase as an investment? Take a second and re-evaluate. This is the largest purchase that (lets hope you will continue to make larger) most people make, so not having a concern for its future is only going to lead you down the rabbit hole.

Young investors, older boomers are driving the condo market across Canada

By Sheila Brady, The Ottawa Citizen

The condo market is hot and getting hotter. And many of the buyers seem to be getting younger.

Consider Andrew Serre, a high school graduate who stood in line for eight hours to be among the first to buy a condo at Soho Lisgar. The 22-year-old already owns a one-bedroom in the Mondrian, a Bank Street condo he bought when he was 19. “This one is bigger,” says the lanky Serre, who had his eye on the B2, a one-bedroom with 619 square feet and a generous balcony facing Cooper Street, while crunching the numbers on his calculator.

The key is to get in early, says Serre, who was second in a lineup that stretched down Lisgar to Bank Street. The condo started at $276,900 on the second floor, rising by $2,000 for each floor and by $3,000 for floors six, seven and eight. He reserved a condo on the eighth floor, and a locker for $3,500. The initial price: $291,000.

Serre was eligible for a two-per-cent discount because he bought on the first day and he got an iPad after finalizing the deal. The developer, Mastercraft Starwood, also gave early buyers free, stainless-steel appliances.

“This is a tangible investment. You can actually see it. It’s not like a stock,” says Serre, who works for ING Bank and estimates he paid $158,000 for his Mondrian condo and it’s now worth $240,000.

“I’m not sure what I am going to do. Move, sell it or rent it out.”

Further back in line, Jean-François Forgues balanced on crutches to take pressure off his ripped Achilles tendon while zeroing in on the same design, but up on the 10th floor. The 28-year-old has already bought two condos. “This is an investment, a smart investment.”

Even further back, Ross Baylin patiently waited as security officials allowed small groups into the slick sales centre. The retired 60-year-old and his wife, Suzan, now live in a rambling 4,200-square-foot house in Cedarhill.

“We don’t have a cottage. I like to play golf and want to spend time travelling to Tuscany,” says Baylin, who spent years sitting on airplanes and staying in hotels, while working in private industry and for the federal government.

“We visited every part of Florida, now I would like to travel more,” says Baylin, who wants to declutter and looks forward to living in an urban, one-bedroom condo. He has checked out several condo sites, but the timing wasn’t right. Soho Lisgar will be ready in three years.

At one point, it seemed earlier buyers snagged his first choice, leaving him to write off the exercise as useful, but unproductive. Then a condo was turned back and he picked it up. “It seems like there’s good karma here,” he said while sipping a celebratory glass of wine.

Across the room, Serre and Forgues were sharing jokes, taking pictures of the model showroom with their cellphones, then sitting down to share wine.

“It’s been a good day,” says Serre.

The condo market is strong in Ottawa, says Ron Desjardins, predicting sales will control 20 per cent of the new home market in 2010. The housing analyst expects 5,500 sales of new townhomes, singles and condos this year, including 1,200 condos. The condo market controlled about 15 per cent of the new sales market last year.

A majority of condo sales are smaller, one-bedroom units or one-bedrooms, plus a den geared to younger buyers, some boomers, women and singles looking to move on after a divorce.

Bigger condos seem tailored to boomers, but these buyers take longer to cash out their homes and to make a decision, he says. This explains why many bigger units in a condo building take longer to sell.

“In fact, 85 to 90 per cent of sales are for condos under 1,000 square feet,” says Desjardins.

Smaller condos are also a popular choice for investors, says David Wex, partner with Urban Capital and the developer behind the hugely successful projects of East Market, the Mondrian and now Central on Bank Street.

It was condo owners buying a second unit or referring friends that drove many of the early sales at Central during a private launch of Phase Two last week.

The following day brokers and the public bought into the site. “We also sold some of the remaining condos in Phase One,” says Wex. Staff also took names for Phase Three.

Over at Soho Lisgar, staff estimate 60 per cent of the buyers were young professionals and investors, while 40 per cent were older boomers.

However, Canada Mortgage and Housing Corp. analyst Sandra Perez Torres says older boomers retiring from public service jobs with indexed pensions will drive condo sales across the city.

“Ottawa has one of the biggest percentages of senior population,” says Perez Torres. “The buyer profile will be trending towards the senior market.

“Ottawa is also still a very affordable market, below the Canadian average.”

The average price for a house in Canada, including condos, is $320,000. In Ottawa, it’s $304,801, she says.

“The average price in Toronto is $396,154 and a hefty $592,441 in Greater Vancouver.”

   Welcome to a new standard of living. Located in the heart of the downtown core, your new home is steps to everything— work, play, shopping. Treat yourself in the building, featuring an indoor pool, whirlpool, sauna, party room, reading room, guest suite, security, etc. Once pampered, head up to your over 1100 square foot, fully renovated home in the sky. Featuring new flooring, entire new kitchen, new lighting, and fresh paint. The new flooring is just the right amount of character and colour, which provides a beautiful glow. Enter the modern kitchen and be welcomed by the top of the line stainless steel appliances complete with hood-fan! Don’t forget to look down at the stunning tiles, which also greet you at the entranceway. Make your way down the hall to the oversized master bedroom complete with its own en-suite.

   Feel the need for more space? Open the storage room in the unit and the possibilities for extra in unit storage allow the new owner to keep those extra items neatly tucked away and close by.

   For urban living, this is the ultimate! The residence has one underground parking space and visitor parking, but given the great location the new owner may well be walking or cycling rather than driving. A large lower level storage locker is also included.

   The unit is listed on the multiple listing service for $328,700 and is available to accompany a short closing    period. For more information please contact Jeff Mziray and Matt Richling of the Ottawas Condos Team at 613-563-1155 or info@OttawasCondos.com

RE/MAX Mainstreet is the homepage for over 93,338 agents in over 78 countries around the world. This month I am featured as the headline news story about my video marketing and its use in real estate. I don’t intended to post this as a “hey look at me” type deal, but rather to understand how being featured above all agents not only helps you, my client, but connects me with agents around the world who have clients looking for property.

As a seller, you never know where the next offer could come from. Having an agent who is networked with other agents gives you an unmeasurable difference that could be the difference between selling and not selling your property. EXAMPLE - If I have a client who is looking at moving to Vancouver, I am going to ensure that my friend Ian Watt, takes care of there purchase in Vancouver. Now Ian is going to show the clients his listings and hopefully match everybody together. Without the relationship that Ian and myself have, that sale might never of happened.

Every time I am featured on an International level, my network grows. Which means your network grows. Meaning more money in your pocket.

- Matt Richling

Take a look at the new website to showcase the new Besserer street condominium building. GalleriaCondosOttawa.com is to serve anyone looking to get into the building, those currently in the building, and assist with anyone who is looking to rent out their unit.

The site features all units that are currently for sale in the building, which gives you a one-stop-shop for condos in that building. It features a Community Rental Board, which allows anyone (including other real estate agents) to post their for rent ads. As well for those who are already in the building, they can find contact information for condo board staff as well as store and restaurant locations in the area!

Powered by Matt Richling, GalleriaCondosOttawa.com is another website that is added to his already impressive online marketing arsenal. Each website is built and designed in order to funnel buyers who are looking to purchase, in front of your listing.

For more information visit GalleriaCondosOttawa.com or MattRichling.com. If you would like to post your rental information visit the message board or email Matt@Mattrichling.com.

If you would like Matt Richling to sell your downtown Ottawa condo or if you are looking for a unit for sale in Ottawa please contact Matt Richling at 613-286-9501 or by email Matt@MattRichling.com.
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This morning a great article was published in the Globe and Mail that touches on a couple important subjects that every first time condo buyer should think about before purchasing your first condo.

The writer speaks about how condo buyers are allowing emotions to get the best and are not fully prepared for condo ownership. They see short commutes, no maintenance, and the lifestyle that developers are selling, before fully doing the math.

The buyers ‘ass’u'me’ that it is cheaper to live in a condo since you only pay one fee per month and wont have to pay for a furnace, roof or any of the other costs that can suddenly pop-up. But the writer explains that you might still have unexpected expenses that the reserve fund cannot cover and will have to reach out to the unit owners for additional funds. The writer gives some pretty extreme examples, but still very important.

Good little article that might take the wind out of your sail, but rightly so, you should be financially ready to own a home. The last thing I would want to do is help you sell because you cannot afford to live in your dream home.

Do you agree with me/the writer? Do you disagree? Tell me in the comments below or call me 613-286-9501 or email Matt@MattRichling.com.

Click below for the full article! Click to continue »

(The above video might not work through your RSS reader. Pop over to the website to view!)

Almost daily, I get the question about what exactly separates one unit from the other. I took a little trek over to the Mondrian which is still under construction to show what is keeping the elephants out!

Please leave your comments below! And you can also call me direct 613-286-9501 or email Matt@MattRichling.com!

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"pumpkin season" by émiliep on flickr

When you purchase a condominium in Ottawa we include in the offer a condition that allows you to research the condominium and read over its “status certificate” with your lawyer. This also gives you time to get in contact with members of the condo board and talk to them about the following questions. During the process you will learn how responsive and organized its members are. More importantly it will allow you to find out if there are any problems before it is too late.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them.

3. How much does the association keep in reserve? Plus, find out how that money is being invested.

4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs.To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does and doesn’t the assessment cover? Does the assessment include common-area maintenance, recreational facilities, trash collection, and snow removal?

6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building? This will tell you if residents are generally happy with the building. According to research by the Canadian Real Estate Association®, owners of condos in two-to-four unit buildings stay for a median of five years, and owners of condos in a building with five or more units stay for a median of four years.

8. Is the condo building in litigation? This is never a good sign. If the builders or home owners are involved in a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.

I came across a list by NAR (National Association Of Realtors, basically our USA counterpart) and decided to Canadianize the list. You can check out the original list here.

If you  would like to talk about buying a condo here in Ottawa, please contact Matt Richling directly 613-286-9501 or by email Matt@MattRichling.com.

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So it is the middle of the month. PERFECT opportunity to breakdown the current statistics for the Ottawa Condo Market. We are going to talk about three markets - Entire Ottawa, Downtown Core, and West Ottawa North.

ENTIRE OTTAWA

Currently in Ottawa there are 560 condo properties for sale across the entire Ottawa Real Estate board (107 of which are conditionally sold, but not sold firm). The average price for all these listed is $350,101. Over the last month (most accurate current information), the average price listed was $234,115 with the average sale being $230,111 - providing a 98% list to sale price ratio with average of 30 DOM (days on market). Total amount of condominiums sold in Ottawa, year to date is 2,650.

DOWNTOWN OTTAWA CORE

Currently in the downtown Ottawa core (see above map) there are 124 condominium properties for sale (16 which are conditional sold, but not sold firm). The average list price for these units is $543,868, which is high, mainly due to a fair number of new construction buildings listing the penthouse/larger units - in return raises the average). Over the last month (most accurate current information), the average price listed was $335,025 with the average sold price being $333,799 - providing a 100% list to sale price ratio with an average of 13 DOM (days on market). Total amount of condominiums sold in the downtown core, year to date is 375.

WEST OTTAWA NORTH

Currently in the west Ottawa north area (see above map) there are 62 condominium properties for sale (12 which are conditional sold, but not sold firm). The average list price for these units is $439,958, which is high, due to a couple high priced resale listings. Over the last month (most accurate current information), the average price listed was $294,412 with the average sold price being $289,578 - providing a 99% list to sale price ratio with an average of 39 DOM (days on market). Total amount of condominiums sold in the west Ottawa north area, year to date is 221.

RECAP

What does this mean? If you are looking in the downtown core, units are NOT lasting on the market. If you are relying on solely checking the MLS website, *YOU WILL MISS OUT ON PROPERTIES* especially in this market. Get signed up on an auto-notification search through your Realtor. Ensure he/she is sending you the listings asap, not one a one email per day or week setup. Also this data also shows that if you are willing to move outside the downtown core how much you can save. In most cases $40,000 or even up to $100,000 for certain parts of the city. Where do you want to live? What is your pre-approved (through a mortgage broker) amount, and what is your budget (sometimes these are two very separate numbers)?

If you would like more specific data about your area, or would like to talk about selling your home, please contact Matt Richling directly 613-286-9501 or by email Matt@MattRichling.com.

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