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Why I Love Paying Condominium Fees

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By : Eshkarvin Kenezer    99 or more times read
When considering the purchase of a first home, many new buyers are told to avoid condominiums in their consideration as the monthly maintenance fees seem like an unnecessary, additional expense which most think is a waste of money.

However, for individuals who have already owned a condominium, the need to contribute to the monthly maintenance fees becomes clear and justifiable. In fact, the costs involved in maintaining a house becomes even more evident for owners of landed properties. Anticipation should be made by homeowners to set aside funds for unexpected repairs, necessary upgrades and routine maintenance. All these can actually come up to thousands of ringgit annually.

In most cases, the bulk of the condominium maintenance fees are directly related to expenses which will naturally be incurred indirectly to any homeowner. For example, banks will normally require that the would-be homeowner purchases insurance coverage of at least one year on the property. On the other hand, a master insurance policy is usually purchased by the management of a condominium already. This master insurance policy already covers most of what is covered by an individual homeowner’s policy, although there might still be a need to purchase additional coverage for the unit’s contents. This master insurance policy is a good example of where the money paid as monthly contributions goes. Payments for municipal water and sewerage charges are another often overlooked expense that needs to be paid if you own a landed property.

Apart from that, the monthly contributions are more often than not set aside into a reserve account known as a sinking fund on a monthly basis. This fund is essential in the event an unexpected expense arises, or for future upgrading and restoration works of the condominium. However, if the association does not have a substantial allocation for this reserve, it would be wise to set aside funds yourself in the event that any rectification is required in the complex. In this case, there will be a special assessment bill and the money set aside will come in handy.

For owners of landed property, other costs to take note of could include money for landscaping, restoration, maintenance and trash collection. However, irrespective of whether your home is a landed property, townhouse or condominium, care should always be taken to perform routine maintenance to ensure that the value of the property can be preserved. Some of the works which make the list include getting a new coat of paint, resurfacing of the driveways, cleaning the gutters, removal of stains, pruning of plants and etc. These works, although seemingly trivial are a critical step in preventing small problems from ballooning, all of which could cost much more in time to come. However, a condo owner would not have to worry much as these would have been taken care of by the monthly contributions.

The maintenance fees are usually dependent on the size and facilities provided in the complex. Facilities such as lifts are expensive to maintain, while other luxuries such as a swimming pool add on to the cost significantly. Other amenities within the development such as a spa, playgrounds, gymnasium and etc. require additional maintenance costs. Apart from that, a management company is usually engaged to oversee the maintenance of the development. By doing so, the burden of taking care of the condominium is taken care of by this party and you, the homeowner can spend more time on work or with the family. Last but not least, most condominiums today are protected with multi-tiered security access cards, ample security personnel, closed circuit televisions and etc., all which provides peace of mind but come at a cost, which is once again borne by the owner through the contribution of maintenance fees.

As a conclusion, maintenance fees for a condominium should not be a deterrent for potential buyers as these are justifiable fees which are part and parcel of the costs involved in owning a property. The key is to perform sufficient and thorough research to ensure that the money contributed is well managed and channeled back to the residents by proper maintenance and looking after of the property. By doing the necessary homework anticipation can be made to prepare you for the rewarding journey of home ownership.
Eshkarvin Kenezer is an avid property investor. He executes highly strategic investment moves by buying at the right time and location and then selling to the right buyer. He owns multiple property websites such as Kelana Mahkota For Sale and Rent website, which is a kind of niche portal for buying and selling specific property projects.

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