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Originally Posted by WhipperSnapper
Isn't that a product of all the mismanaged condo properties from the 1970s? Special assessments are killers for homeowner and property values alike.
There's quite a few Toronto residential condominiums with 5 or less units in the list I have. Property and construction costs are far too high to expect new triplexes to resolving the missing middle. The unit price will be nearly as much as the original single family home.
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I use to own a strata (townhouse) in Saskatoon about 15 years ago. Purchased when under construction and was the second owner to move in. So ended up on the board.
At the time Saskatchewan required every strata to engage an engineering firm to do a study that defined the maintenance plan with an estimate of what would be required in the reserve fund. I don't remember the interval but the study would need to be periodically updated. During the first few years most repairs were warranty items with the builder. We did have to make significant increases to the strata fees to build up a reserve fund.
My impression was the study was conservative. For example a 25 year roof was expected to replaced every 25 years. In practice it may not last to long beyond that but you may get a few extra years.
I was surprised when moving back to BC. Looking at some of the strata units in Victoria. The requirement for the engineering study was a new thing being phased into BC. Some of the units I looked at had a lot of maintenance issues and a fairly small reserve fund.
I went for a 70s building but stayed away from anything that did not have a good reserve fund and lacked a track record or keeping things in good repair.
BC had the entire leaky Condo phase where the remediation to remove mold and redo the building envelope caused a lot of special assessments. There are a few building like that around that are disasters.