Condo living: Is it for you?

Now that we are regaining some normalcy after COVID-19, we are beginning to see increases to the real estate market with salesto-new listing ratios on the rise. Vancouver is up by 40 per cent, Calgary 53 per cent and Toronto 58 per cent. Many people soon to enter retirement are still considering the move to a carefree condo lifestyle. But is this what you really want?

Countless older couples and singles believe moving to a condo would be the best answer to downsizing. No more grass cutting, gardening or home maintenance. The ease of just “locking and leaving ” when you plan to go away and not being responsible for repairs to your new residence is something most people long for.

But of course, this all comes at a price, monetarily and psychologically. A monthly condo fee is now something you must add to your retirement budget, but many believe this is a small price to pay for freedom from home

maintenance.

Make sure you can afford this fee, as I have seen many retirees feeling the pinch of this monthly expense on their tight budget as time goes on. It is also necessary to anticipate increases to this monthly fee every year. Many new condo developments keep their maintenance fees low for the first five to six years and then increase the expense substantially to build up the condo reserve fund for anticipated future repairs.

I am not saying condo living isn’t great, and there are many who absolutely love it. But it isn’t for everyone. I have had so many clients over the years excited to move into a condo apartment and then, after a year or so, desperate to move out. Not because of the maintenance fees but sometimes just their inability

to adapt to communal living. There are the obvious aspects to consider such as going up and down the elevator, leashing your pets, noise in the hallways and now replacing your backyard for a balcony.

But that’s not all. The reason most condo apartments look so good and seem so well run is because there are many rules and regulations that all residents must adhere to. And if you are found to be not conforming, you will receive a complaint from the condo board.

Uniformity by all is the key to having a well-run condo building. However, for those new residents who have never lived in an apartment before or maybe only vaguely remember living in an apartment when they first got married, 40 years ago, this tends to be a real culture shock. Whatever you chose when planning your retirement, it goes without saying that you must do your homework and make sure to protect your future finances.

Why not try condo living by renting for a year to see if you like it, especially if you are moving into a new area or busy city centre to have access to more amenities? Start talking to people, friends and others who are in retirement and see what their ideas and views are so you can plan the best path for your new life of not working and instead living like every day is a Saturday. Good luck!

Christine Ibbotson is author of Don’t Panic: How to Manage Your Finances and Financial Anxieties During and After the Coronavirus and the bestselling book How To Retire Debt Free & Wealthy.