When budgeting for the monthly cost of buying a home, it's common to focus only on the mortgage payment and forget a recurring expense that can be significant: the homeowners' association fee, along with other hidden community-related risks worth checking before you sign.
The ordinary community fee
This is the recurring charge (monthly, quarterly, or annual depending on the community) that covers the building's shared expenses: cleaning, upkeep of common areas, building insurance, utilities for shared spaces, and, where applicable, services like a concierge, lift, or pool. The amount varies enormously depending on the building's services, age, and size.
Why you should ask about pending or planned special assessments
Beyond the ordinary fee, there may be extraordinary special assessments already approved or being considered to fund major works (facade renovation, lift replacement, accessibility upgrades). Before buying, it's essential to ask whether any assessments have already been approved or are under discussion, since they can mean a considerable extra outlay shortly after the purchase.
Check that the seller is up to date with payments
A buyer can, within certain legal limits, end up liable for the seller's outstanding community debts corresponding to the current year and the previous three years. It's essential to request a certificate confirming the seller is up to date with community payments before signing the purchase, to avoid inheriting someone else's debt.
The building's condition: a check that goes beyond your own flat
Even if the flat itself is in good shape, it's worth finding out about the overall condition of the building (facade, roof, shared installations), since structural problems in the property can lead to significant special assessments in the near future, regardless of the condition of your specific flat.
Review the community's recent meeting minutes
Requesting the minutes of recent owners' meetings (if the seller or the property manager provides them) lets you find out firsthand what works have recently been discussed or approved, giving you a much fuller picture than the current monthly fee alone.
Factor this cost into your real monthly budget
When working out how much you can actually afford to spend on housing each month, add the estimated community fee to the mortgage payment, since both are recurring expenses and should be considered together when assessing your ability to pay.
Calculate your mortgage payment as a starting point
Our mortgage calculator lets you estimate your monthly payment, to which you should add the estimated community fee to get a complete picture of your monthly housing costs.