There's a huge difference in the level of services that will be provided in each situation

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TORONTO - Condominiums have soared in popularity for a number of reasons, including the chance for empty-nesters to downsize, ideally for a lower price, from a standard house.

But the lower price doesn't tell the whole story since condos have one aspect that houses do not -- monthly fees towards the upkeep of the apartment building or townhouse complex and their common areas.

These payments vary widely according to the size, age and location of a condo and are in addition to property taxes.

"Fees reflect the services that an owner receives in the condo in which they reside, so there's a huge difference in the level of services that will be provided in each individual condo situation." said Canadian Real Estate Association president Dale Rippinger in Regina.

"Certain buildings will be more or less expensive to operate. If you have a newer building as opposed to an older one, things like energy costs and those sorts of things will still vary."

There is also a lot of variance in what these fees will cover.

Some monthly fees will cover heat, cable, water and sewer.

"There will be everything from lots of utilities to none," Rippinger observed.

Fees can also vary widely.

"So if you're getting a penthouse unit, (in a top building) you could be well over $1,000 on maintenance fees," said Jim Rawson, a regional manager with Invis, Canada's largest independent mortgage brokerage firm.

If you don't research fees properly, you would wind up paying as much for fees as you would for your mortgage payment "so it does limit your purchase price depending on what the fees are."

On the other hand, Rippinger noted that there are condos in Regina where fees are as little as $120 a month.

The best thing to do in shopping for a condo is think about the extra services that newer and bigger buildings provide.

Your monthly fees are partly going to maintain niceties such as a pool, spa, fitness centre and other amenities.

And if you're not going to make use of these facilities, why bother paying for them?

"One of the things that your realtor should be advising on is what you are getting in each individual situation," said Rippinger, "so you are able to compare apples to apples -- that the condo fees are $400 more in this building but that's because you're getting this, this and this. And so you can make an informed decision, based on all the information."

It's vital to do research on these fees before you start looking at condos, so your real-estate agent can steer you to properties that you can afford.

The agent will also help you find out other essential financial details about the condo building.

"Whenever you're buying a condo, whether new or old, you really have to take a look at the condo statements," said Rawson.

Your real estate agent should always provide you with the Estoppal or status certificate for the condo, which will have the minutes of meetings of the condo corporation's board, which represents the individual condo owners.

You will want to check the condo's reserve fund and "quite often you will find there will be special assessments coming down on condos and those will be in the minutes of the meeting."

"So for example, if the condo board knows the roof has to be replaced next year, there may be a special assessment for each person in the condo for another $5,000 for next year to have the roof replaced."

Also, it makes just as much sense to have your condo inspected as you would for an individual house.

Ripplinger said the inspection process is less common than for houses "but again that will depend on the age of the building and your level of comfort when you're doing your own investigations, whether or not you're satisfied you think you have all the information you need or not."

He added that it's important for the condo owner to feel a part of the process of running the building.

"As an owner, you have input into what those services are and you have input into the level of comfort you have in your reserve fund," he said.

"A lot of people, they say:'They're going to raise the fees on me'. It's not They. Who are They? And there's no profit motive, no incentive for anyone to arbitrarily raise fees for any reason except that you need the money."