Real Estate

Condo Owners Will Be Paying $2,000 A Month

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  • Sep 15th, 2015 1:05 pm
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Deal Addict
Jan 8, 2006
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Condo Owners Will Be Paying $2,000 A Month

http://www.huffingtonpost.ca/2015/09/11 ... 23634.html

Here in Toronto what I notice that condo management has become biggest scam. Recent immigrant fall in trap to buy old condo with few 100s thousand dollar value and long run pay more. Management & Maintenance companies are making lot under table money. City requires mandatory repair and condo with low cash run into this type of issues.

If you condo owner go to court; court will assign management like Vero and it's even worse.

So quick advice stay away from these condo and rend rather?

What RFDer thinks about this?


:
16 replies
Deal Addict
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Mar 23, 2008
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This story reminds me of Channel Property Management that defrauded condo corporations millions of dollars before fleeing to shrilankla.


I wonder how it got to this point? Were the residents blind for years seeing everything rot and neglected before they took action to complain? I'm sure that before when they maintenance fees were 1200/month someone challenged the property management company and asked for those figures to be justified. Don't they bring these issues up at the monthly board meetings?

For it to get this far, there must be some sort of inside job.
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Dec 19, 2007
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Google that building and you'll see the issue. It's not a new problem.

I live in a larger unit downtown in a 20+ year old building. Fifty or so cents a square foot. Newer buildings (like brand new) in the area that are hundreds of square feet smaller have fees already approaching ours.

People don't research, look at financials, or care is the reality. I would seriously be questioning my a condo is so large and cheap with $1000+ monthly fees (hint, that's the reason).

Condo fees aren't the problem. People who do zero research or get involved when ***** starts hitting the fan are...
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Apr 20, 2011
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If that was in Vancouver they would just issue a special assessment on every unit instead of hiking the monthly fees on every unit to such a number
Deal Fanatic
Jun 27, 2007
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spintheblackcircle wrote: Google that building and you'll see the issue. It's not a new problem.

I live in a larger unit downtown in a 20+ year old building. Fifty or so cents a square foot. Newer buildings (like brand new) in the area that are hundreds of square feet smaller have fees already approaching ours.

People don't research, look at financials, or care is the reality. I would seriously be questioning my a condo is so large and cheap with $1000+ monthly fees (hint, that's the reason).

Condo fees aren't the problem. People who do zero research or get involved when ***** starts hitting the fan are...
So you are paying 500+ and feel good about it? Comparably, any house nearby with similar sq footage pays around twice as less.
Problem is that management companies are acting like insurance cartel - there is official and unofficial rates for the same type of work. Condo management companies are not open about bidding process and end up hiring subcontractors for inflated prices.
Another case in point - why do condo owners pay hydro every month and house owners every other month? Because of administrative fees - $25 per sucker in the world of smart meters when utility company has your consumption in real time. Nice business, and I am sure whoever signed that great deal on behalf of condo management got sweet reward. It's just one example of many...
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Nov 1, 2014
4317 posts
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Toronto, ON
dlhunter wrote: So you are paying 500+ and feel good about it? Comparably, any house nearby with similar sq footage pays around twice as less.
Problem is that management companies are acting like insurance cartel - there is official and unofficial rates for the same type of work. Condo management companies are not open about bidding process and end up hiring subcontractors for inflated prices.
Another case in point - why do condo owners pay hydro every month and house owners every other month? Because of administrative fees - $25 per sucker in the world of smart meters when utility company has your consumption in real time. Nice business, and I am sure whoever signed that great deal on behalf of condo management got sweet reward. It's just one example of many...
I paid every 2 mths for hydro in condo

Utilities in a house is several times more than condo.. Like gas has customer charge regardless..same with water
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Nov 1, 2014
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Toronto, ON
comp_freak wrote: http://www.huffingtonpost.ca/2015/09/11 ... 23634.html

Here in Toronto what I notice that condo management has become biggest scam. Recent immigrant fall in trap to buy old condo with few 100s thousand dollar value and long run pay more. Management & Maintenance companies are making lot under table money. City requires mandatory repair and condo with low cash run into this type of issues.

If you condo owner go to court; court will assign management like Vero and it's even worse.

So quick advice stay away from these condo and rend rather?

What RFDer thinks about this?


:
Don't see anything special about it

You never watch TV shows like Mike Holmes where relatively new homes or homes that have been inspected need several hundred thousands and basically a gut job?

This just happens to be in a condo and there's more ppl and tools to finance and fix the problem
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Jan 27, 2004
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one of the biggest problems in condo management.
There is pressure from the tenants towards the board to keep condo fees down... Theres people on disability, seniors on pension and low income owners. This creates a vicious cycle where theres little money in capital reserves for major maintenance and repair projects... Perhaps this building never fixed the roof in 20 years. Theres also people who join the board in order to keep maintenance fees down. They stay in power b/c like minded people vote them in... But it does nothing for the long term of the building.

Theres also maintenance and trade workers who get all these questionable contracts and make tons of money.
I worked in social housing admin for a bit... from what I saw... Property management and the board have so much power. Theres really little that can be done if people wanted to be really shady, or really dumb. I had contractors asking if I wanted to get a tip for contracts... I could have easily got the guy in by recommending it to the board, and they'll just ok whatever. But the code of ethics and my own morals obviously made me decline. But from what I saw... It was so damn easy. IF people really wanted to milk a place dry they could.
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Sep 16, 2012
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Older condo's have higher maintenance fees as companies begin to buy out units and turn them into rentals the pool of available owners dry's up and you have situations like this.
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Jan 8, 2006
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LandKing wrote: Don't see anything special about it

You never watch TV shows like Mike Holmes where relatively new homes or homes that have been inspected need several hundred thousands and basically a gut job?

This just happens to be in a condo and there's more ppl and tools to finance and fix the problem
No I don't watch such TV shows.

But I think there are far major people affected by property management scam in condo than those with house maintenance.
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Jan 8, 2006
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UrbanPoet wrote: They're trying to regulate and licence condo management.
They should fix the condo board system. Theres these people who know nothing about business yet they're in charge of a multi-million dollar building.
These sound good hope this will happen soon. Can't believe how many condos are built in last 10 years in GTA.
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Nov 1, 2014
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comp_freak wrote: No I don't watch such TV shows.

But I think there are far major people affected by property management scam in condo than those with house maintenance.
nope...you just don't hear about it as often since it's more of a story when it's several hundreds in a condo bldg vs several hundred individuals and you can just blame them for not doing due dilligence

e.g. original story in 2012

http://www.yorkregion.com/news-story/14 ... ontractor/

he's still out of his house in 2015 ..more than 3+ years

http://www.thestar.com/news/gta/2015/08 ... verty.html

and countless others that don't make it into media
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Nov 1, 2014
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UrbanPoet wrote: They're trying to regulate and licence condo management.
They should fix the condo board system. Theres these people who know nothing about business yet they're in charge of a multi-million dollar building.
comp_freak wrote: These sound good hope this will happen soon. Can't believe how many condos are built in last 10 years in GTA.
actually it's the old condos that are in trouble..the new condos are better managed since the builders actually give the PM contract to big companies that may cost more but are a lot more accountable and they need to have reserve fund studies and funding plan and etc..

it's the older buildings that are in trouble since they were built when condos weren't as prevalent and it really was managed poorly due to lack of knowledge and less professional management companies with actual RCM and strong corporate governance and rules (e.g. PM can't sign any cheques or issue any payment, all accounting is done by head office etc)

and what happens when people chase low fees and put in charge people who will rather save a buck than proper maintenance and reserve fund.and it was lot easier in the past due to lack of requirements for reserve funds , updates and funding plans
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Jan 8, 2006
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LandKing wrote: nope...you just don't hear about it as often since it's more of a story when it's several hundreds in a condo bldg vs several hundred individuals and you can just blame them for not doing due dilligence

e.g. original story in 2012

http://www.yorkregion.com/news-story/14 ... ontractor/

he's still out of his house in 2015 ..more than 3+ years

http://www.thestar.com/news/gta/2015/08 ... verty.html

and countless others that don't make it into media
Thanks LandKing never heard about this case. I am surprised this case has not been solved yet. City should make legislation a house must gone through home inspection before land/property transfer take place. Just like a car need to pass safety & emission test before transfer to new owner.
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Jan 13, 2012
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Sudbury
LandKing wrote: nope...you just don't hear about it as often since it's more of a story when it's several hundreds in a condo bldg vs several hundred individuals and you can just blame them for not doing due dilligence

e.g. original story in 2012

http://www.yorkregion.com/news-story/14 ... ontractor/

he's still out of his house in 2015 ..more than 3+ years

http://www.thestar.com/news/gta/2015/08 ... verty.html

and countless others that don't make it into media


Read that last article carefully.

Essentially he isn't satisfied with just having it repaired, he wants a brand new house built for him.

Sorry, it doesn't work that way, no wonder he still doesn't have a home to move into.
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Nov 1, 2014
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fuelmizercowboy wrote: Read that last article carefully.

Essentially he isn't satisfied with just having it repaired, he wants a brand new house built for him.

Sorry, it doesn't work that way, no wonder he still doesn't have a home to move into.
I did...


Took more than 4 years of lawsuits for city to finally agree to add the insulation and fix all the while saying the homeowner should've paid to fix themselves

Not like the city admitted their inspectors dropped the ball when this all began 5 years ago

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