The documents from the developer that built my neighborhood called for forming an HOA. That was almost 20 years ago and we have no HOA lol. I can’t imagine the folks in this neighborhood having an HOA - we’re all perfectly happy to leave each other alone! That’s why we moved to the woods in Maine!
Yea I have an HOA, there’s a commons pool, club house, Tennis courts, (all residents only) a ton of foliage throughout the streets, multiple parks with playyards. It’s all maintained by the HOA. 59 a month. We get driven security patrolling the streets too. Works for me. Some HOAs are completely insane.
The minute the realtor mentioned HOA when atempting to show us a house, we opened both doors and jumped out. What I'm learning at my age is that I'm really getting too old to be jumping out of a moving automobile. HOA is a Non Starter. I've lived in my house for 37 years and I still haven't met most of my neighbors. I like it like that.
It is not necssiary to jump out of your realtor's car. If they are worth anything just tell them Do not show us anything in an HOA. Worked for my realtor.
This is why telling young people to buy a townhome or condo for their first home is a horrible idea. We just moved out of a townhome community to an old house that will be a money pit...but I prefer that over living in an HOA that constantly threatens you that the dues will be doubling and neighbors right next to you who are horrible. I will always tell people who are trying to buy a house to just keep saving until they can get a small single-family home.
My HOA fined me because my tenant had a ladder rack and connected tool box on his truck, and he's a painter so he needs those things lol, currently fixing up the place and putting it on the market, HOAs are awful
The very instant someone says "Oh,BTW,there's an HOA that goes with the property", RUN....Run fast and far away. Those things are an abomination that should be outlawed in all respects.
Lol. And it’s no secret that Municipalities push new Development towards HOAs because it relieves them of financial responsibilities for Infrastructure.
@@TonyCox1351 I sure hear you,but,there's HOA's that are an uncontrolled, totally corrupt entitiy unto themselves ,usually full of control freaks that do stuff because they can, not because they should.and then there's condo boards of directors who are elected by owners, are fully accoutable to the membership and can be removed by a full vote if they screw up. When buying any property,it's incumbent on the buyer to exercise due dilligence to determine whic kind you may need to deal with. All I'm saying is if it's the former and not the latter,don't get involved. Buy elsewhere.
@@TonyCox1351 then change it to a condo fee these make sense in a condo you are owning an apartment so you paying mantience fee monthly verse owning a home that is not attached. now in unattached places I would say no to an hoa in a condo I would expect it change it to a condo fee for name sake and people would be less applaud if you ask me.
Omg. I was a security guard for an HOA community that thrived during summer rentals. What a pain in the ass. How people live in a place where you have to pay to be told how to live in your home?
It is apparently possible to have an HOA run by competent,reasonable, well intentioned people. The trouble is, there's no way to make sure it stays that way, and there's no recourse when it doesn't.
Yes there is. You can run for a seat on the board yourself. Pull other like-minded people into your process and have a bunch of you run for seats on the board. The reality though is, that most people would rather complain than attempt to be on the board, as being a board member is all thankless volunteer work. Been there done it.
That’s like saying it’s possible to have a competent, reasonable, and well intentioned people run the government. Maybe possible, but extremely unlikely.
My HOA is run by competent people now. However, up until two years ago it hadn’t been for over 20 years. Now the current Board has been stuck cleaning up the mess left by previous board members.
One way to ensure the Board is being run by competent people is to ask for financial reports and bank statements. You have a legal right to look at the books even before you buy the property.
Seriously! Ours is $50! We don't have a community pool and we have just a couple community activities and landscaping of the common area and a couple playgrounds. That's all we need!
This is why I’d never buy a condo. You’re only buying the space inside the walls. and you have a zillion fees and you hardly get any equity. Stay away from them.
All about choices. Do what works for you. I’m completely debt free. The combined fees of my two condos are about $900/mo. Paid off 15 years ago. Equity is 1.2 million. Total monthly primary home household living expenses are around $1200/mo. 100% of beach condo total living expenses paid with investment dividends.
@@raymond_sycamore Not sure because condos are one of the most overpriced places to live. But even if you found a 100K condo, which is probably one that is 300 square feet, the HOA fees are the ones that really kill you.
This is a real problem for people wanting to get into a house. It's easy to say "never buy a house in a HOA area," but we also have a shortage of housing. In some areas, most of your options are going to be in HOA areas... I'm so glad I've never been in one, and don't ever plan on being in one... But I feel sorry for people wanting to buy nowadays because there are so many of them...
Some cities are requiring an HOA to give the builder a building permit. The voting populace won't let then raise taxes (I wouldn't either I pay enough in taxes)
in my city EVERY new build is in a little neighborhood with HOA. It's hard to buy not in HOA and they have to be in place 20 years before they can legally be disbanded if people vote for it. I'm blessed my house is newer but it was build before they legally formed the HOA so everyone around me is HOA and pays for my trash but I don't pay HOA fees and I'm not beholden to their rules. It's weird but it's whatever
I would NEVER EVER live in a community or home with an HOA. It's a scam and even John Oliver did an entire episode about his on HBO. She lives in a condo. All condos have an HOA. You should know this going in though.
@@MrBertstare True, but that's why you really have to pay attention to where you are buying. These communist organizations are trying to take over everything, and eventually every where you live will have one.
@@djanderson8953 Sadly that's not completely true. Some states only approve new developments with HOA structures. In many cities anything with no HOA is going to be old and expensive.
The old interest rate matters because the difference between the old and new rates translates to how much more their mortgage payment is going to be per month if they buy a home of similar value.
I own my townhome and have an HOA. I prefer a HOA to take care of the outside maintenance. I can’t do the mowing, snow shoveling, painting, outside repairs, etc. It has its plus and minus, just like other things in life.
I purchased a townhouse in Irvine, Calif., in 1984. I lived in it for several years and have rented it out ever since. I'm very happy with our HOA. The community is beautifully maintained and has undergone a major upgrade (requiring the only special assessment in 40 years). The monthly HOA fee is a very reasonable $380.00. For what that covers and how nicely maintained the property (including two pools, pool house, and sport courts) is, I'm very pleased.
I've lived in a condo for more than 20 years and I've come to hate the whole HOA thing. And I say that as someone who is on the board and was on the executive board for several years. The problem is when you have people in charge of something like that, they feel as though they need to "do something" at all times. What tends to happen is that the real problems of infrastructure like roads and water mains and sidewalks tend to get ignored while they focus on petty sh*t. I came up with a 10 year plan to bring ALL of the roads, sub-base and water mains completely up to par with a way to fund it all, but they aren't interested in that. What they've done instead is to form an "enforcement committee" to go around and bust people for having five flowerpots instead of the maximum of four on balconies. Stupid, meaningless bullsh*t. Then they banned all grills. Again I looked deeply into the fire codes and laws and found out that we didn't need to ban grills. We just had to use them at least 10 feet away from the building or use the little tailgate grills with the 1-pound cylinders. We have probably 50,000 square feet of courtyards that could easily accommodate the grills. Nope. Had to ban them. And they've also hired a towing company to patrol the lots at all times to grab up cars which don't have the current parking stickers. In 25 years living here, I never once had the slightest problem with parking. Ever. They basically come up with ways to make life more difficult and less pleasant for owners.
I got yelled at for having my trashcan in front of my garage ONE time instead of 10 feet back from the front of the house. It was muddy from rain and I didn't want to put it back in the mud so it sat out front for a couple of days. It happened once and I got in trouble.
My HOA has elderly brittle Board Members that have been on the Board 30+ years and they’ve got nothing to do all day but watch condo owners and not fix our roads that have valleys and are in terrible shape!
@@MsShyla222 Yes that's definitely a thing. There's a couple reasons for that though. You get power hungry people who never want to relinquish a board position for new blood. Oftentimes though it's also a side effect of the fact that many if not most people try to move on from condo living. Maybe they start there and move on to buy a house in their later 30s or 40s. So the only people who stick around long enough to get to know the place on a deep level are old. It's also true that fairly few people want to take on the leadership jobs. For years I was the secretary of our building board, which meant I took minutes once a year for our budget meeting. The lady who was board president held onto the job forever until she moved to an old folks home and I became president and then a member of the big HOA board and part of that executive committee. Not because I was eager to do it or even particularly skilled, but because I was the only one willing who could speak enough English to pull it off. In a couple years on the top committee, I did my best to try to steer things away from petty rule enforcement to substantial infrastructure issues, but I was sort of a voice in the wilderness and ultimately got burned out doing that job.
My last employer was like that. Middle-management was always trying to "do something" to fix things that were not broken. Then they could angle for a promotion because they "did something." So much value destroyed.
HOAs are a great example of redundancy. You are outsourcing a role the local government is meant to be playing anyway. You're supposed to have things like noise ordinance and forced anyway, and you're supposed to make a decision at the local government level about whether or not to allow things like short term rentals, how to handle people living out of their car And so forth. You pay more for less with an HOA while letting your local government be derelict
Depends on the HOA. Ours covers exterior painting, lawn maintenance and mulching, snow removal and landscaping of community entrance all for a very reasonable fee. They do not micromanage the neighborhood or implement restrictive rules
A lot of people don't want heavy enforcement of petty stuff by local government. I don't care how high my neighbor's grass grows, if they have a satellite dish, or if they are working on cars occasionally in the back yard. I also don't care if their plastic garbage bin is left out all week. So some people choose HOAs to keep the undesirables out, and unfortunately on occasion they end up being the undesirables. Then with Condos an Townhouses, you do need some association to run maintenance and manage community rules. Personally, I think the failure in government is in allowing developers so much flexibility in setting them up as well as even allowing CDD fees. It amounts to buying a house and then taking out a 2nd mortgage for all the amenities that the developer should have paid for and included in the price of the home. Then the other failure was by the Supreme Court (I believe) in allowing them almost complete control to run the HOA as they please. There really should be limits. If I'm not allowed to discriminate against people based on age, should a HOA be allowed to have age restrictions?
The problem with some hoa in my experience is nobody good wants to fool with running it. So you end up with busy body's with nothing to do. I've lived with crazy hoa but also seen a neighbor pretty much running junkyard/ meth lab and had no recourse in just regular old neighborhoods.
If the poor installation of the foundation and roof was caused by a crummy contractor, insurance wouldn't cover it and isn't a free legal service for the policyholder. Your only hope is suing the contractor which isn't cheap or quick.
Something similar happend locally. HOA builder, and insurer all ended up pointing fingers at each other after a problem caused damage in the walls and all the exterior walls needed to be worked on. The HOA had to eat the extra costs and pass it along as a special assessment because owners were told they needed condo insurance ( inside only ) and the master plan only covered up to the foundations because they saw them as townhomes. Millions in losses passed along to the residents.
A pipe burst in the clubhouse in my old neighborhood and flooded the whole thing. Since the bathrooms designed for the pool were in the closed clubhouse, the pool was closed until the clubhouse was reopened. You would have thought that insurance would cover rehabbing the clubhouse but apparently the HOS was paying for rebuilding with HOA dues. It was going on 4 years being closed when we sold and moved away. 3 years of paying HOA dues with no clubhouse or pool to use.
It’s a special assessment for hoa repairs. The hoa takes a loan to make repairs then adds it to monthly fees. Pretty common unfortunately and the risk you take in an hoa that is responsible for common-area maintenance whether that be roofs, swimming pool, siding, clubhouse, etc. Amenities are nice until they need repair
Something I learned during the last housing crash: There were some neighborhoods where 33% of the homes went delinquent on paying their dues and the remaining owners had to absorb the cost just to perform the basic functions.
Yep. We have a local HOA community and the number of homes in that community for sale is skyrocketing. I wonder if something is up with the HOA since people seem to be fleeing otherwise nice homes in a lakeside community.
I was going to rent a huge mobile home until I found out that you have to pay an HOA fee if 400.00 a month. The fee is for management and not for any kind of upkeep. Renters should not have to pay an HOA fee. They are not the owners of the property.
That’s not how rent works. The landlord offsets the cost of the property to the tenant and ads a little on top to put into an account for repairs etc. why the hell would an owner eat the HOA fees when that’s part of the cost of running that property?
Right!? Ours is $450 for the year! And we have two well maintained parks, and tennis courts and a bathroom. Lots of HOA haters here, but we love ours. Been in our home 17 years, rates have only gone up one time by $5/mo.
@kristenrafferty5520 the money isn’t the main reason I’m against HOA’s. It’s because I’ll be damned if some busybody gets any authority to tell me what I can and can’t do with MY property that I paid for with MY hard earned money. If anyone claims it’s to keep property values up, then they bought for the wrong reasons. If my property value doesn’t drastically increase, then my property taxes don’t either That’s why I live in the country. I want more than financial peace. I want true peace
HOA's make no sense. Its no different than renting & sometimes even more restrictive. You buy an house, so its yours, not yours and some HOA's. Not to mention in some HOA's in today's world, the HOA board gets a stipend. So for all intents you are still paying a landlord.
It makes sense for condos to have an HOA. Board members volunteer and are voted in by homeowners. Condo board members don't get paid unless its in the bylaws. Never seen or heard of a condo with paid board members yet.. It's really no big deal since you are supposed to read the rules/bylaws and know what you're buying beforehand like anything else in life.. I know nothing about these housing communities and subdivision with HOAs. Just know they look nice.
@@blackworldtraveler3711 The board members don't get paid, but if you have a lot of units they usually hire professional management who certainly do get paid and who tend to hijack the board to get control of the money.
HOAs are textbook small-scale Kafkaesque authoritarianism. They are quick to enforce absurd rules, slow to enforce reasonable rules, and quickest to charge fees for anything they deem necessary.
@@alanj9978 Of coarse we have a professional property manager. We have an nice office on the gated property for this. The voluntary board members are mostly retired and have a life too you know. Property manager is not part of the board. She works for us and we pay her a salary. We also have security at the gates and 4k cameras everywhere with maintenance workers as well among other things. This is all in the rules,bylaws, and financials to read before buying a condo.
When we were looking for our current home the first thing that we told our Realtor is that we would look at ABSOLUTELY NO home with an HOA or a list of restrictive covenants. We temporarily lived in an HOA community once for 6 years and it worked out well for us financially, but we would NEVER live in an HOA community again.
I live in said HOA, and am also facing a similar decision. To provide a bit of context, the HOA is a townhome HOA, so structural repairs not caused by personal damage are either covered by HOA insurance or the HOA itself. Because it's long term defects that were originally missed in original building instead of new damages, the insurance doesn't cover it. So the HOA is responsible for the costs of the repair. Due to poor management(both by previous volunteer board and management company) our reserves are depleted, and we are running in deficit. (This was not specifically hidden by the previous board, but they also weren't transparent). According to bylaws, means it's split up evenly by all homeowners. The estimated cost per unit will be about $25,000 to get out of our deficit and fund the repairs. If the HOA pulls out a 15 year loan, that will come out to about 250 to 300 per unit per month. The HOA is waiting until a new management company takes over later this summer before starting the project, so there is time to sell before fees go up. But rumor is already out. People are already losing their equity. That being said, the HOA is hoping to give options for payment. The monthly payment plan added to the HOA fees would include interest on the loan. They are hoping to give individual homeowners the option to pay off their portion right from the get-go, or pay off the remainder of their portion when selling the house. (To allow the new homeowner to have a lower HOA fee, and hopefully save some of the equity in the home.) @the Ramsey show highlights. If selling, would it be better to use our equity to pay off the remaining portion of our cost for the loan, or let the house sell at a lower cost?
Yeah I don't know that I would sell strictly for that reason. At least not without getting more information. Like what is the debt exactly and how long is the increase projected to last?
This happens more then people know, I knew a woman they lived alone and made great income. Her HOA fee was $300. They sky rocketed $900 for the next 6 months so they could do repairs around the community. Makes you never want to live somewhere where there is a HOA.
We live in an HOA for 25 years , no they can’t sell your house if you break a rule, they have a board that makes sure eveytthing is maintained. You have a chance to fix whatever wasn’t followed in the by laws. The appreance of our homes are maintained and the neighborhood always looks good Our home valves have continued to increase over the years. Just know what you’re getting into before you buy !
@donnaruswinkle4396 i live in one, yes some can if I refused to do what they wanted. Not worth it work when you don't need to do anything to get much better value for your home in none HOA area. a house with HOA worth less than a house with HOA assume they are in the same area of the town. You can find video on people didn't know they HOA sold their house in youtube as well.
When the first homeowner association was created, the Devil smiled. You get to pay all this money for a home and fees to the homeowner association so they can tell you what to do with the home.
This HOA rules connected to a house seems like communist rules where everybody is controlled by the association with which color on the bind, garden plants, if it's allowed to have a pet. I thought usa was the land of the freedom not the land of rules and regulations about my pet, how many people to have inside my house.
Good advice. The key to your statement is don't buy. Please don't complain about the HOA AFTER you decide to buy a house with full knowledge of the HOA.
Who wants to pay a mortgage, taxes AND an additional 9 grand a year to live some place? There is no upside to an HOA. You can pay someone to mow you lawn, paint your house, and plow your driveway. You pay way more when the HOA does it, than it's worth. Plus you don't have to deal with all the other HOA b.s. I agree with the overwhelming majority of the comments. You hear HOA, run away.
You don't need an HOA for good amenities. I got a hiking trail controlled by the DNR nearby. Yes, an HOA loving clown might argue the guy next door to me has a lots of cars outside his home & is devaluing my home value but to me he is actually one of my homes best hidden asset. My neighbor has them cars because he runs a mechanic & plowing business out of his garage. When my car brakes down, its very convenient having an affordable mechanic next door. Also, since I'm first in line when he plows during the winter, I'm generally his first customer who gets there driveway plowed. $25 a shot during the winter mounths I imagine is drastically less $ then most HOA fees. I also don't have to worry about my neighbor telling me what I can & can't do on my land.
It's clear - lots of people prefer to live in HOA communities. Look at Florida, it's the most moved to state and almost all the new developments have HOAs. The HOA trend has caught fire in recently years, especially in the sunbelt, and I don't see it slowing anytime soon.
The former owner put $40K down, $180K mortgage 3 years later Attempted to short sell for $135K, after 5 months the deal fell through, went to the courthouse steps, $36K Cash Rents for $2300/mo, almost $550K.
Our first condo and last was such a mistake. They didn't keep it up, tennis court/pool was not kept up, this happened over 5 years. Wasn't educated enough, was too young but you live and learn.
@@ruthirwin8222 An HOA is a Home Owners Association. You pay fees, and they do things like maintenance, keep the pool going, fix the streets, stuff like that. But they are also the ones who tell you that you can't paint your house a different color, you can't park in your driveway, you can't have a flag, your grass can't be over 2", etc. I refuse to pay some morons to tell me what I can't do with my own house.
The insane part of this is that almost all new residential developments have an HOA. So over time it's going to be harder and harder to find a place to live that's not in an HOA community. I currently have an HOA (I'm the Chair of it, actually - mostly to keep the crazies at bay) and will never buy another house with one. I'm genuinely worried that the price for non-HOA houses will start to rise as more and more people realize how terrible HOAs are for everyone.
Space rent and HOA fees are not the same. Space rent means someone wons the property any you rent a space on it. HOA is homeowners association, meaning residents own their property and collectively any other amenities in the community.
I consider the existence of an HOA to be a deal-breaker. I would NEVER buy a house in a community with an HOA As buyers catch on to the abuses of HOAs, the value of these properties will decline
MISLEADING TITLE that will lead to tons of criticism towards HOAs. Number one, this is a condo and nearly all condos have CONDO fees i.e. HOA fees. Number two, sounds like the bad guys are the construction company who built these condos with lots of construction problems!!
That’s why there’s a huge inventory of condos for sale in Florida right now due to the new condo law that’s going to take place January 1, 2025. HOA’s condo associations must have enough money in their reserves to fund all repairs necessary to maintain the structural integrity and to make up that difference, that’s why the monthly HOA fees are going through the roof. Sadly, it’s forcing a lot of people out of their homes.
Our neighbourhood that we rent in has HOA fees. It includes a pool and gym and cafe. Then one day they decided to sell the pool and gym to a school so we no longer have access. And the fees haven’t changed. So yeah we will never buy in an HOA neighborhood
First rule is never to have a HOA or condo association. Second rule is never to live in city limits. Third rule is never buy a house or property next to property that is undeveloped.
So glad I don't live in an HOA. Used to and even though ours was reasonable at the time, they are outta control nowadays. HOAs need to be banned. Let people manage their own homes as most adults do.
I live in an HOA, mostly because we couldn’t find anything in our price range without one. It’s mostly harmless (unlike some neighboring HOAs). Sadly though, we still get nothing back from them, it is just money we pay for those who live on the boundaries of the development to have a nice fence. We have no common areas or amenities, but we still pay $400 a year over basically nothing.
She wants to sell but who in their right mind will buy a condo with $750 HOA fee? I understand inventory is tight but she might have a hard time selling this condo.
Lol no. An inspector isn't going to find a structurally unsound building. Saying don't buy condos is really short sighted. Yes HOA adds some risk but there are lots of applications where people can't buy a SFH. As a simple example, living in an major urban downtown city.
Recommend you buy an older home with no HOA and low special assessments on your property tax bill. Know that you will have upkeep on any house so put $100+ a month away for unknows on your purchase.
Some very good advice stop worrying about your problem and make a decision. I was in this situation last year about when to retire. I watched youtube videos, talked with people and kept worrying. Finally I just decided I would retire on May 31 2024 when my wife turns 65 and we can both sign up for Medicare. I told my boss and VP right away this way they could build it into their business plan. PS Some have advised not to tell your boss early but both my boss and our VP are good guys that I have known for 15 years. They have always treated me right and I felt I owned them. I did get my typical bonus and pay increase last month.
I will rent for the rest of my life before I EVER own property with an HOA. I find it morally reprehensible that I'd be required to pay a fee for someone to tell me what to do and how to do it on property that I own and pay taxes on.
I own a condo as an investment property and it makes me happy to hear people say they will be lifelong renters. It means they will be paying the HOA fee for me 😉
My HOA fees are $300 a month. They don’t do anything except take the money and give out fines for the dummest things! I got behind on my payments in 2004 because my daughter was in college. I’m currently in litigation over late payments since 2004. A lien has been filed against my property , I haven’t had a parking space and I can’t use any of the amenities we have. These HOA’s must be addressed!
See how triggered they get when interest rate is mentioned. Because they’re wrong about the interest rates. If interest rates matter on a car or credit card, how the flip do they not matter on a home purchase?!
@richthepup By paying off the debt they remove the interest that was on it, which transfers over to the new house they will buy (since the interest rate will be larger on the new house than the interest they are paying on their house now). So not much difference as far as paying interest if they were to stay where they are and continue making the debt payments. The only difference is that the interest will be going towards the new house instead of going towards debt if they pay the debt off.
I used to live in a Townhouse, the attractiveness location with low up keep. The big negative are the HOA fees as those would go up every year. For perspective, I'm saving more than half on annual HOAs in a big swim / tennis community with a house
Sounds good until your neighbors do something that brings down the value of your home or harms the peace and tranquility that you may want at your home. I'm all about freedom, but freedom must be balanced with responsibility and respect for others. Since few people have responsibility and respect for others, we have rules and regs, including what you may not be allowed to do with your property!!
I know my personality and I could never live in a HOA development. I’m not paying some DAzz to tell me what to do. It’s usually ridiculous people that have never had any sort of power in their life.
@@karlabritfeld7104 sure for now. The rules are bearable now also but what happens when they raise it or your neighbors all agree to things you don't want and you're stuck. It's not even about the money.
Did you listen to the call? They live in a condo which means the STRUCTURE is everyone's responsibility equally. There are construction issues with it and the condo association tried to sue the contractor but the suit failed. Now ALL condo owners must pay thru their fees to address the issues. What's the problem with that, other than the fact that you just don't like it, lol.
The whole thing with HOA , supposedly , is about preserving home value. But when any potential buyer hears about the monthly HOA fees associated with that said home, they will rightfully RUN! Making the house pretty much worthless.
I hope all of you get the annual financial statements from these "non-profit" HOAs/body corporates and interrogate them. I've found there can be a small, certain crowd who, benefit from these fees personally. I once found that the Care Taker and Chairman were deliberately telling the plumbing companies to set the thermostat temperatures to the highest settings on electrical geysers, which makes the thermostat blow and cause a leak. Ultimately, the plumber comes around, who they are in cahoots with, and says that the entire geyser is blown, and needs to be completely replaced... Instead of just a thermostat. The cost difference between replacing a thermostat and an entire geyser, is R400 vs R6000 respectively. I live in South Africa so these costs would be $20 vs $300 in direct terms. Bottom line is, the guys in the HOA/body corporate, were taking a piece of the pie each time a geyser needed to be replaced. In just 2 years, 48 geysers were replaced. Geysers have 10 year guarantees
Condo living isn't for everyone. Mine has doubled in value so if I move im not sweating it. It's one level so it's perfect for aging into. Just do your due diligence with who is running things, the financials, etc. Where I live it's run better than local government😮
It appears people don't like HOAs. I disagree. Look at me, I live in a neighborhood with the standard 2 car wide driveways. I would never think of parking a big rig in my driveway as I'm sure my neighbors may not appreciate that blocking their view. I would also not put up a chain link fence since my neighborhood is a little more upscale, and my neighbors may not appreciate that. Personally I balance freedom with responsibility and thinking of others. If everyone did that, we wouldn't need so many rules and regs. Since many ONLY think of themselves, I like some rules to keep the riff raff at bay, hence HOAs are OK in my book!
Yep!! You would think it would be common sense to not burn weeds in the middle of a drought several feet from your neighbor's home but yeah this is why we have HOAs😂
@@DavidCYT99Jeez, where do YOU live?? I live in a conservative area but I’ve never seen a post about a black or hispanic person walking. That’s not a conservative thing, you just have racist neighbors.
@@alinatamashevich3354 Yeah I got terminated too (during COVID). I live in a liberal area and I wasn't buying all the nonsense about "I was out walking today and somebody didnt' have a mask on..."
This is exactly why I prefer to rent. Am I losing money to someone else? Sure but I also have the option to move any time I want if things get unaffordable.
Lol I own my home and I'm not chained to it. I can sell at any time and for the right price ANYTHING will sell. And I like knowing I'm NOT making a landlord richer!
@@GAFB1122 The market doesn't always allow you to sell your house right away. Sometimes it can take 6 months or more before you can see a sale. Also tell that to yourself when you're 70 and can no longer look after the home like you're used to. I had this discussion with my parents because they were selling. They are tired of home ownership because of all of the crap that comes with it. Now they're renting an apartment and are much happier.
@@ryanj357 Enjoy renting for the rest of your life. I'll keep my paid off home till I feel like selling and moving on. I could also give my home (or equity) to my daughter if I pass on, etc. You will not get me to reject home ownership for renting. There is a reason someone rents to you and trust me, it's not because they like you, lol.
I have 2 friends that talk smack about HOA neighborhoods… one has dead chickens in his coop that he’s to lazy to remove, the other has 15 boats in his front yard that he works on as a side hustle…
@tryingtowalkthepath683To each his own. I always scoffed at the idea of residing in an HOA community.. But after doing it for 14 years… I now view it as a necessary evil. You can’t choose your neighbors..
@tryingtowalkthepath683Agreed live and let live and mind your own damn business. People are so judgmental. Freedom is way more important to me. Variety is the spice of life. Many people are OCD on grooming their stupid yards and control freaks on other people’s shit.
@@focojeepr I think it’s a great thing to have the anti HOA folks living together and pro HOA folks living together… if you don’t like the rules, live somewhere else… if you like everyone playing by the rules, live where people are held accountable for their actions, or lack of action… ultimately the choice is YOURS. Nothing wrong with either side.
💯- currently living in an HOA community - my first and last!! It’s been an unpleasant experience. But been there 5 years now and first year I realized real quick to remove myself from the community fb groups! 😂
Key to this solution, is to stay out of debt. Feels great to have 0 debt, but unless you’ve sacrificed considerably, and maybe they have, to get to $0 debt, it’s easy to underestimate the value of being debt free. Sadly, I learned this in a dumber way
Indeed. Some laughed at me for paying off my 30yr mortgage in nine years. Since paying off my home in 2008 the $1500/mo. has been going into savings and investment until I retired in 2020. Even boosted my Roth 401k contributions to over $45k/yr.. Being debt free even with my primary condo HOA dues,insurance,and property tax included my total household living expenses are less than $1300/mo. in an upper middle class zip code. People in my area are paying $1800 to over $3k a month just for the mortgage alone.
There are some good with HOA, i dont want to be in a neighborhood where people dont keep their yards and house up to par. Im in a single family home community and love the fact that everyone has to keep their yards etc in place.
@@aorg9793 because that's your local government at work. Backlogs, not enough manpower, not enough resources, people lying who are causing the problems so it drags everything out. Get one little old lady who is retired and she takes care of it in a day lol.
@@aorg9793 because that's your local government at work. A little old lady who is retired can get something done in 1 day that takes local government a minimum of 5 months to do. Lol
It really depends on where you live. Some people won’t keep their yards neat without an HOA, but other people will. I’ve been in 2 neighborhoods without HOAs and both have been very nice. Even now, without an HOA, I don’t have trouble with neighbors not keeping up with their yards. It just depends on the type of people in the neighborhood.
HOA reform law idea: 1) HOA bylaws can only change by majority of HOA members (not the board but the actual home owners) 2) Any time the bylaws are changed, any home owner can withdraw from the HOA. But their property taxes may increase because HOAs are sometimes used to collect monies to maintain and repair roads, sewers and water mains. 3) At any time any single homeowner can call for a vote of confidence on one or all of the board members.
$750/mo for an HOA due is quite a lot, but that's not too abnormal for Chapel Hill where I live. I live in a single family home, but there are townhouses in my neighborhood paying $600/mo right now with no major repairs they're doing. Our HOA squanders the money on landscaping and management fees but the builder put in a clause that prevents the neighborhood from controlling the HOA, we have to by law have a management company. We noticed a trend when my wife and I considered moving a few years ago (wound up refi'ing down our mortgage instead to have a very comfortable housing payment) where HOA fees on single family are getting totally out of hand in central NC. Not uncommon to see $300/mo for single family homes in new developments around RTP.
Paying off high-interest debt should always be your top priority before considering any other investments, including buying a house. So i'll pay off the debt first for sure.
Put it towards the new mortgage, buy below your budget, and hammer away at the other debt . The other debt (car and CC most likely) could be paid off in a much shorter time then a 30 year mortgage
@@teebone2157 As long as you realize that your home is really never yours in an HOA, then it's fine. I live in an HOA and even though my fees are very low, I still feel like they own part of my home. I'm planning on getting out of here before some idiots take over and decide to raise the fees through the roof. Hasn't happened yet, but we all know that it will sooner or later because it happens everyday in these HOA parks.
@vickieclark5931 Same! Our rates aren't bad, but what would we do if we paid off the house and retired here and then the rates went astronomical? You never just own your house if your in an HOA. They can levy fines and take your house from you because someone got sick and didn't pay the fee or mow the lawn or something. Noooo thanks. We are waiting until our kids are out of school and then we are getting the F out.
That's not as easy to do in locations where there are mostly communities. Where I live, it's almost impossible to find a home not in a community with an HOA. even standalone homes are in "Communities" and they all have an HOA. It's so terrible.
@@teebone2157my house doesn’t have HOA and it’s in a REALLY nice neighborhood at a great location. The agent was shocked when we first visited and found out there was no HOA.
All depends on the area. I'm looking for a co-op for my mom in Westchester County outside NYC and the prices are insane. We have considered a 1 bedroom at $335K with an HOA of about $1,000 a month - that doesn't include parking (that's an extra $50 a month), and no amenities, on top of it...a $67/month special assessment for a year and a half. Friends in Brooklyn paid $500K and their HOA is $1,300. Co-ops do include taxes, unlike condos. But the prices of condos in the area are obscene!
Pretty most if not all of the new developments have HOA's and special assessments which over the roof in monthly costs and increases, as if Homeowners insurance these days. Buy older existing home to negate that.
yes, dave didn't factor in the mortgage too, just the difference. I'd compare them sitting tight and paying the extra $350 a month while tackling debt.
Did they consider the mortgage increase with the interest hike? Plus if they buy houses at same value, they will need to have additional principle to cover agent fees. Say $400k loan, 3.5% vs. 6.5%, nearly $750, $800 if they have take out $30k more. and their HOA increase is $350.
So many despise HOAs. I don't. I grew up in a lower income neighborhood where people had chain link fences. Cheap to buy and install but also makes the neighborhood look cheap. The neighborhood I live in now requires wood or composite fencing material. As I always say... rules keep the riff raff at bay. And I know you won't like that. Until you find your property value decreased by the riff raff 3 doors down! I'm not perfect, no one is. But I try to maintain my property, AND I think of others, including my neighbors, because I'd want them to think of me. (Golden Rule)
@MrWick561 Yep another lazy government employee who couldn't make it in the private sector!! Thank the tax payers for your salary! You're definitely no republican that's for darn sure.
I disagree with how dave handled this. Maybe i missed what she said about her debt but her debt numbers absolutely do matter in this situation. Every 100k difference is about a 1k difference in payments for a 15 year. What dave told her to do is debt consolidate. And unless they pay off the house early; they could pay way more on that debt. You need to look at total payoff time in these senarios with realistic payoff plans they can stick to. Debt consolidation can be helpful. But generally it usually is worse. There are situations where dave is right but we need the numbers. And... on a side note all hoas are bad. Every single one. There are no good ones.
HOA's exist because people have low standards (read: you're a slob). And I have the right to live in a community without slobs if I choose to pay a premium to do so.
We bought a house with an HOA. There was no common property, and all single family homes. We voted to disband the HOA and have had no problems.
brilliant! congrats :)
Awesome
Great idea!
The documents from the developer that built my neighborhood called for forming an HOA. That was almost 20 years ago and we have no HOA lol. I can’t imagine the folks in this neighborhood having an HOA - we’re all perfectly happy to leave each other alone! That’s why we moved to the woods in Maine!
Yea I have an HOA, there’s a commons pool, club house, Tennis courts, (all residents only) a ton of foliage throughout the streets, multiple parks with playyards. It’s all maintained by the HOA. 59 a month. We get driven security patrolling the streets too. Works for me. Some HOAs are completely insane.
The minute the realtor mentioned HOA when atempting to show us a house, we opened both doors and jumped out. What I'm learning at my age is that I'm really getting too old to be jumping out of a moving automobile. HOA is a Non Starter. I've lived in my house for 37 years and I still haven't met most of my neighbors. I like it like that.
It is not necssiary to jump out of your realtor's car. If they are worth anything just tell them Do not show us anything in an HOA. Worked for my realtor.
Agreed, please do not jump out of moving vehicles.
Cool, things that never happened...
No HOAs was the very first thing I told my realtor before she even showed me any houses.
@@MJKeenan30 I had the benefit of renting first in the same community where I bought, so I was able to find out those details.
This is why telling young people to buy a townhome or condo for their first home is a horrible idea. We just moved out of a townhome community to an old house that will be a money pit...but I prefer that over living in an HOA that constantly threatens you that the dues will be doubling and neighbors right next to you who are horrible. I will always tell people who are trying to buy a house to just keep saving until they can get a small single-family home.
Buy a home with a foundation and roof problem and same end result.
As someone who bought a 1bd condo in my 20s... I would do it again in a heartbeat. There is no universe where renting is superior to building equity.
Single homes have HOAs too. Avoid those!
A single family home doesn’t in itself mean not having an HOA.
My friend bought a condo, and the HOA is telling her what kind of garbage bags to use! LOL
Mean old Karens with nothing better to do...
My HOA fined me because my tenant had a ladder rack and connected tool box on his truck, and he's a painter so he needs those things lol, currently fixing up the place and putting it on the market, HOAs are awful
probably for a good reason.
My HOA when I owned a condo dictated what color curtains you could hang!!
The very instant someone says "Oh,BTW,there's an HOA that goes with the property", RUN....Run fast and far away. Those things are an abomination that should be outlawed in all respects.
How would you expect to live in a condo without an HOA? Who pays for roof repairs when 4 different families live with the same roof?
Lol. And it’s no secret that Municipalities push new Development towards HOAs because it relieves them of financial responsibilities for Infrastructure.
@@TonyCox1351 I sure hear you,but,there's HOA's that are an uncontrolled, totally corrupt entitiy unto themselves ,usually full of control freaks that do stuff because they can, not because they should.and then there's condo boards of directors who are elected by owners, are fully accoutable to the membership and can be removed by a full vote if they screw up. When buying any property,it's incumbent on the buyer to exercise due dilligence to determine whic kind you may need to deal with. All I'm saying is if it's the former and not the latter,don't get involved. Buy elsewhere.
@@TonyCox1351 then change it to a condo fee these make sense in a condo you are owning an apartment so you paying mantience fee monthly verse owning a home that is not attached. now in unattached places I would say no to an hoa in a condo I would expect it change it to a condo fee for name sake and people would be less applaud if you ask me.
@@TonyCox1351 You don’t buy a condo or townhome. All the bullshit of renting PLUS additional liability.
Omg. I was a security guard for an HOA community that thrived during summer rentals. What a pain in the ass. How people live in a place where you have to pay to be told how to live in your home?
It is apparently possible to have an HOA run by competent,reasonable, well intentioned people. The trouble is, there's no way to make sure it stays that way, and there's no recourse when it doesn't.
Yes there is. You can run for a seat on the board yourself. Pull other like-minded people into your process and have a bunch of you run for seats on the board. The reality though is, that most people would rather complain than attempt to be on the board, as being a board member is all thankless volunteer work. Been there done it.
That’s like saying it’s possible to have a competent, reasonable, and well intentioned people run the government. Maybe possible, but extremely unlikely.
My HOA is run by competent people now. However, up until two years ago it hadn’t been for over 20 years. Now the current Board has been stuck cleaning up the mess left by previous board members.
I tried nothing changed because our bylaws prevented it
One way to ensure the Board is being run by competent people is to ask for financial reports and bank statements. You have a legal right to look at the books even before you buy the property.
$750 monthly HOA fees is highway robbery.
Anybody in Florida would grab it.
Right. I thought mine at $225 A month was,crazy
So is $400
My friend pays $95 for her HOA. $400 is insane.
Seriously! Ours is $50! We don't have a community pool and we have just a couple community activities and landscaping of the common area and a couple playgrounds. That's all we need!
This is why I’d never buy a condo. You’re only buying the space inside the walls. and you have a zillion fees and you hardly get any equity. Stay away from them.
Why'd does Dave constantly claim you can "just go buy a little $100k condo?" 🤔🤔🤔🤔
All about choices. Do what works for you.
I’m completely debt free.
The combined fees of my two condos are about $900/mo.
Paid off 15 years ago.
Equity is 1.2 million.
Total monthly primary home household living expenses are around $1200/mo.
100% of beach condo total living expenses paid with investment dividends.
I found that out the hard way. Never again lol. Now happily in an apartment community lol
@@raymond_sycamore Not sure because condos are one of the most overpriced places to live. But even if you found a 100K condo, which is probably one that is 300 square feet, the HOA fees are the ones that really kill you.
Untrue. I guess this is why you don't have a financial advice show
This is a real problem for people wanting to get into a house.
It's easy to say "never buy a house in a HOA area," but we also have a shortage of housing.
In some areas, most of your options are going to be in HOA areas...
I'm so glad I've never been in one, and don't ever plan on being in one... But I feel sorry for people wanting to buy nowadays because there are so many of them...
Some cities are requiring an HOA to give the builder a building permit. The voting populace won't let then raise taxes (I wouldn't either I pay enough in taxes)
in my city EVERY new build is in a little neighborhood with HOA. It's hard to buy not in HOA and they have to be in place 20 years before they can legally be disbanded if people vote for it. I'm blessed my house is newer but it was build before they legally formed the HOA so everyone around me is HOA and pays for my trash but I don't pay HOA fees and I'm not beholden to their rules. It's weird but it's whatever
I would NEVER EVER live in a community or home with an HOA. It's a scam and even John Oliver did an entire episode about his on HBO. She lives in a condo. All condos have an HOA. You should know this going in though.
in some places all neighborhoods or even acre plus developments must have a HOA. its been that way since the 80's in Colorado.
@@MrBertstare True, but that's why you really have to pay attention to where you are buying. These communist organizations are trying to take over everything, and eventually every where you live will have one.
Agreed. And there are ALWAYS options outside HOA
@@djanderson8953 Sadly that's not completely true. Some states only approve new developments with HOA structures. In many cities anything with no HOA is going to be old and expensive.
@@MrBertstare Florida is also very bad about only approving new developments with HOAs.
I live in Toronto and so many 1 bedroom condos are $700k-1,000,000 and they all have $1000 a month HOA. It is insane
😳
😮
What in the world?!?
Wth?
Almost speechless
The old interest rate matters because the difference between the old and new rates translates to how much more their mortgage payment is going to be per month if they buy a home of similar value.
HOA's should be illegal!
I own my townhome and have an HOA. I prefer a HOA to take care of the outside maintenance. I can’t do the mowing, snow shoveling, painting, outside repairs, etc. It has its plus and minus, just like other things in life.
I purchased a townhouse in Irvine, Calif., in 1984. I lived in it for several years and have rented it out ever since. I'm very happy with our HOA. The community is beautifully maintained and has undergone a major upgrade (requiring the only special assessment in 40 years). The monthly HOA fee is a very reasonable $380.00. For what that covers and how nicely maintained the property (including two pools, pool house, and sport courts) is, I'm very pleased.
Agree!
@@KathleenMcNereally
@@tommysmith2719 Yes, really.
@@KathleenMcNe I though a Hoa is bad to own
I've lived in a condo for more than 20 years and I've come to hate the whole HOA thing.
And I say that as someone who is on the board and was on the executive board for several years. The problem is when you have people in charge of something like that, they feel as though they need to "do something" at all times. What tends to happen is that the real problems of infrastructure like roads and water mains and sidewalks tend to get ignored while they focus on petty sh*t.
I came up with a 10 year plan to bring ALL of the roads, sub-base and water mains completely up to par with a way to fund it all, but they aren't interested in that.
What they've done instead is to form an "enforcement committee" to go around and bust people for having five flowerpots instead of the maximum of four on balconies. Stupid, meaningless bullsh*t.
Then they banned all grills. Again I looked deeply into the fire codes and laws and found out that we didn't need to ban grills. We just had to use them at least 10 feet away from the building or use the little tailgate grills with the 1-pound cylinders. We have probably 50,000 square feet of courtyards that could easily accommodate the grills. Nope. Had to ban them.
And they've also hired a towing company to patrol the lots at all times to grab up cars which don't have the current parking stickers. In 25 years living here, I never once had the slightest problem with parking. Ever. They basically come up with ways to make life more difficult and less pleasant for owners.
I got yelled at for having my trashcan in front of my garage ONE time instead of 10 feet back from the front of the house. It was muddy from rain and I didn't want to put it back in the mud so it sat out front for a couple of days. It happened once and I got in trouble.
My HOA has elderly brittle Board Members that have been on the Board 30+ years and they’ve got nothing to do all day but watch condo owners and not fix our roads that have valleys and are in terrible shape!
@@MsShyla222 Yes that's definitely a thing.
There's a couple reasons for that though. You get power hungry people who never want to relinquish a board position for new blood.
Oftentimes though it's also a side effect of the fact that many if not most people try to move on from condo living. Maybe they start there and move on to buy a house in their later 30s or 40s. So the only people who stick around long enough to get to know the place on a deep level are old.
It's also true that fairly few people want to take on the leadership jobs. For years I was the secretary of our building board, which meant I took minutes once a year for our budget meeting. The lady who was board president held onto the job forever until she moved to an old folks home and I became president and then a member of the big HOA board and part of that executive committee. Not because I was eager to do it or even particularly skilled, but because I was the only one willing who could speak enough English to pull it off.
In a couple years on the top committee, I did my best to try to steer things away from petty rule enforcement to substantial infrastructure issues, but I was sort of a voice in the wilderness and ultimately got burned out doing that job.
My last employer was like that. Middle-management was always trying to "do something" to fix things that were not broken. Then they could angle for a promotion because they "did something." So much value destroyed.
HOAs are a great example of redundancy. You are outsourcing a role the local government is meant to be playing anyway. You're supposed to have things like noise ordinance and forced anyway, and you're supposed to make a decision at the local government level about whether or not to allow things like short term rentals, how to handle people living out of their car And so forth. You pay more for less with an HOA while letting your local government be derelict
This.
@undlectedleader6494 how would this work for a condo? Their has to be a board of some sort to control communal funds.
Depends on the HOA. Ours covers exterior painting, lawn maintenance and mulching, snow removal and landscaping of community entrance all for a very reasonable fee. They do not micromanage the neighborhood or implement restrictive rules
A lot of people don't want heavy enforcement of petty stuff by local government. I don't care how high my neighbor's grass grows, if they have a satellite dish, or if they are working on cars occasionally in the back yard. I also don't care if their plastic garbage bin is left out all week. So some people choose HOAs to keep the undesirables out, and unfortunately on occasion they end up being the undesirables. Then with Condos an Townhouses, you do need some association to run maintenance and manage community rules.
Personally, I think the failure in government is in allowing developers so much flexibility in setting them up as well as even allowing CDD fees. It amounts to buying a house and then taking out a 2nd mortgage for all the amenities that the developer should have paid for and included in the price of the home. Then the other failure was by the Supreme Court (I believe) in allowing them almost complete control to run the HOA as they please. There really should be limits. If I'm not allowed to discriminate against people based on age, should a HOA be allowed to have age restrictions?
The problem with some hoa in my experience is nobody good wants to fool with running it. So you end up with busy body's with nothing to do. I've lived with crazy hoa but also seen a neighbor pretty much running junkyard/ meth lab and had no recourse in just regular old neighborhoods.
John is gonna ask if the HOA is Safe
Nope. He knows it's not.
Daloney: Take a deep breath. Hold it. Exhale. You feel that? No HOA feels wonderful doesn't it? Say no to HOA.
😂😂😂😂
@@LittleMopeHead 😂
Poor John; leave the man alone 😃😁🤪
For a condo, why didn’t the HOA go through their insurance to have it fight. It sounds like incompetence of the attorney
If the poor installation of the foundation and roof was caused by a crummy contractor, insurance wouldn't cover it and isn't a free legal service for the policyholder. Your only hope is suing the contractor which isn't cheap or quick.
@@Sizukun1yup insurance policy is only going to cover covered perils that were sudden and accidental.
Sounds like the president of the HOA just had a son/daughter graduate from law school and thought it would it be a GREAT idea to take on this case😂😂
Something similar happend locally. HOA builder, and insurer all ended up pointing fingers at each other after a problem caused damage in the walls and all the exterior walls needed to be worked on. The HOA had to eat the extra costs and pass it along as a special assessment because owners were told they needed condo insurance ( inside only ) and the master plan only covered up to the foundations because they saw them as townhomes. Millions in losses passed along to the residents.
A pipe burst in the clubhouse in my old neighborhood and flooded the whole thing. Since the bathrooms designed for the pool were in the closed clubhouse, the pool was closed until the clubhouse was reopened.
You would have thought that insurance would cover rehabbing the clubhouse but apparently the HOS was paying for rebuilding with HOA dues.
It was going on 4 years being closed when we sold and moved away. 3 years of paying HOA dues with no clubhouse or pool to use.
It’s a special assessment for hoa repairs. The hoa takes a loan to make repairs then adds it to monthly fees. Pretty common unfortunately and the risk you take in an hoa that is responsible for common-area maintenance whether that be roofs, swimming pool, siding, clubhouse, etc. Amenities are nice until they need repair
Something I learned during the last housing crash: There were some neighborhoods where 33% of the homes went delinquent on paying their dues and the remaining owners had to absorb the cost just to perform the basic functions.
they call that a PONZI scheme basically......
Happened to me, sold that townhouse after only 8 months. Never again.
Yep. We have a local HOA community and the number of homes in that community for sale is skyrocketing. I wonder if something is up with the HOA since people seem to be fleeing otherwise nice homes in a lakeside community.
I’m selling my house due to HOA. I have to ask permission for everything
Yes it’s true HOA CONTROLS EVERYHING
I was going to rent a huge mobile home until I found out that you have to pay an HOA fee if 400.00 a month. The fee is for management and not for any kind of upkeep. Renters should not have to pay an HOA fee. They are not the owners of the property.
That’s not how rent works. The landlord offsets the cost of the property to the tenant and ads a little on top to put into an account for repairs etc. why the hell would an owner eat the HOA fees when that’s part of the cost of running that property?
@@austyn5004 Then, he needs to increase the rent. He needs to deal with the HOA, not the tenant. That is ridiculous.
My parents have lived through the nightmare that is HOA. The stories they could tell...
Had no idea what an HOA was when I went in the market. But Thank God I steered clear, seems like you don't even rlly own your house.
That much for an HOA is insane!
For condos many are $600+ its crazy in Florida.
Paid just a few bucks shy of $900/mo in Chicago.
$800-$2000 a month here in Massachusetts plus another 1500 in taxes per month. It's insanity. But hey the crazy people need a place to go
Right!? Ours is $450 for the year! And we have two well maintained parks, and tennis courts and a bathroom. Lots of HOA haters here, but we love ours. Been in our home 17 years, rates have only gone up one time by $5/mo.
@kristenrafferty5520 the money isn’t the main reason I’m against HOA’s. It’s because I’ll be damned if some busybody gets any authority to tell me what I can and can’t do with MY property that I paid for with MY hard earned money. If anyone claims it’s to keep property values up, then they bought for the wrong reasons. If my property value doesn’t drastically increase, then my property taxes don’t either
That’s why I live in the country. I want more than financial peace. I want true peace
HOA's make no sense. Its no different than renting & sometimes even more restrictive. You buy an house, so its yours, not yours and some HOA's. Not to mention in some HOA's in today's world, the HOA board gets a stipend. So for all intents you are still paying a landlord.
It makes sense for condos to have an HOA. Board members volunteer and are voted in by homeowners.
Condo board members don't get paid unless its in the bylaws.
Never seen or heard of a condo with paid board members yet..
It's really no big deal since you are supposed to read the rules/bylaws and know what you're buying beforehand like anything else in life..
I know nothing about these housing communities and subdivision with HOAs.
Just know they look nice.
@@blackworldtraveler3711 The board members don't get paid, but if you have a lot of units they usually hire professional management who certainly do get paid and who tend to hijack the board to get control of the money.
Your whole way of looking at this falls apart when you have to start dealing with shared infrastructure like roads, sewerlines, water, gas, power.
HOAs are textbook small-scale Kafkaesque authoritarianism. They are quick to enforce absurd rules, slow to enforce reasonable rules, and quickest to charge fees for anything they deem necessary.
@@alanj9978
Of coarse we have a professional property manager. We have an nice office on the gated property for this.
The voluntary board members are mostly retired and have a life too you know.
Property manager is not part of the board. She works for us and we pay her a salary.
We also have security at the gates and 4k cameras everywhere with maintenance workers as well among other things.
This is all in the rules,bylaws, and financials to read before buying a condo.
When we were looking for our current home the first thing that we told our Realtor is that we would look at ABSOLUTELY NO home with an HOA or a list of restrictive covenants. We temporarily lived in an HOA community once for 6 years and it worked out well for us financially, but we would NEVER live in an HOA community again.
I live in said HOA, and am also facing a similar decision. To provide a bit of context, the HOA is a townhome HOA, so structural repairs not caused by personal damage are either covered by HOA insurance or the HOA itself. Because it's long term defects that were originally missed in original building instead of new damages, the insurance doesn't cover it.
So the HOA is responsible for the costs of the repair. Due to poor management(both by previous volunteer board and management company) our reserves are depleted, and we are running in deficit. (This was not specifically hidden by the previous board, but they also weren't transparent). According to bylaws, means it's split up evenly by all homeowners.
The estimated cost per unit will be about $25,000 to get out of our deficit and fund the repairs. If the HOA pulls out a 15 year loan, that will come out to about 250 to 300 per unit per month.
The HOA is waiting until a new management company takes over later this summer before starting the project, so there is time to sell before fees go up. But rumor is already out. People are already losing their equity.
That being said, the HOA is hoping to give options for payment. The monthly payment plan added to the HOA fees would include interest on the loan. They are hoping to give individual homeowners the option to pay off their portion right from the get-go, or pay off the remainder of their portion when selling the house. (To allow the new homeowner to have a lower HOA fee, and hopefully save some of the equity in the home.)
@the Ramsey show highlights. If selling, would it be better to use our equity to pay off the remaining portion of our cost for the loan, or let the house sell at a lower cost?
I'm pretty sure we are in the same HOA and it sounds like the caller is as well.
How old is the building? Is the developer not responsible anymore?
@@genxx2724 They are 12-18 years old. Here there is a 6 year limit on construction defects being discovered.
Doesn’t sound like fun. Good luck all navigating this predicament. Could be worse, look at that seaside condo collapse.
Also selling a home/condo and moving is going to cost them $$. I wish them luck. What a hard situation to navigate.
Yeah I don't know that I would sell strictly for that reason. At least not without getting more information. Like what is the debt exactly and how long is the increase projected to last?
This happens more then people know, I knew a woman they lived alone and made great income. Her HOA fee was $300. They sky rocketed $900 for the next 6 months so they could do repairs around the community. Makes you never want to live somewhere where there is a HOA.
Newer home construction is the worst!
Anyone moving into a community with an HOA that is told to them before they ever buy. If you don't want an HOA, then look elsewhere.
agree, we have to know that HOA owns our house(not us0, they have right the sell our house if you break any rule as well.
@@eile4219break any rule, what do you mean by that exactly?
@kbanghart many HOA communities have set of the rules that you have to follow or they have the right to sell you house.
We live in an HOA for 25 years , no they can’t sell your house if you break a rule, they have a board that makes sure eveytthing is maintained. You have a chance to fix whatever wasn’t followed in the by laws. The appreance of our homes are maintained and the neighborhood always looks good Our home valves have continued to increase over the years. Just know what you’re getting into before you buy !
@donnaruswinkle4396 i live in one, yes some can if I refused to do what they wanted. Not worth it work when you don't need to do anything to get much better value for your home in none HOA area. a house with HOA worth less than a house with HOA assume they are in the same area of the town. You can find video on people didn't know they HOA sold their house in youtube as well.
When the first homeowner association was created, the Devil smiled. You get to pay all this money for a home and fees to the homeowner association so they can tell you what to do with the home.
This HOA rules connected to a house seems like communist rules where everybody is controlled by the association with which color on the bind, garden plants, if it's allowed to have a pet. I thought usa was the land of the freedom not the land of rules and regulations about my pet, how many people to have inside my house.
Under no circumstances EVER buy anywhere with an HOA unless you love having people you hate dictate everything about your home/property.
I love my HOA.
Good advice. The key to your statement is don't buy. Please don't complain about the HOA AFTER you decide to buy a house with full knowledge of the HOA.
Who wants to pay a mortgage, taxes AND an additional 9 grand a year to live some place? There is no upside to an HOA. You can pay someone to mow you lawn, paint your house, and plow your driveway. You pay way more when the HOA does it, than it's worth. Plus you don't have to deal with all the other HOA b.s. I agree with the overwhelming majority of the comments. You hear HOA, run away.
You don't need an HOA for good amenities. I got a hiking trail controlled by the DNR nearby.
Yes, an HOA loving clown might argue the guy next door to me has a lots of cars outside his home & is devaluing my home value but to me he is actually one of my homes best hidden asset.
My neighbor has them cars because he runs a mechanic & plowing business out of his garage. When my car brakes down, its very convenient having an affordable mechanic next door. Also, since I'm first in line when he plows during the winter, I'm generally his first customer who gets there driveway plowed. $25 a shot during the winter mounths I imagine is drastically less $ then most HOA fees. I also don't have to worry about my neighbor telling me what I can & can't do on my land.
It's clear - lots of people prefer to live in HOA communities.
Look at Florida, it's the most moved to state and almost all the new developments have HOAs.
The HOA trend has caught fire in recently years, especially in the sunbelt, and I don't see it slowing anytime soon.
Good luck selling it. The young people are going to love this- at $750, that's more than the house payment on my first house I bought in 1999.
NEVER get into an HOA. Period. I never have and never will.
The former owner put $40K down, $180K mortgage
3 years later
Attempted to short sell for $135K, after 5 months
the deal fell through, went to the courthouse steps, $36K Cash
Rents for $2300/mo, almost $550K.
Our first condo and last was such a mistake. They didn't keep it up, tennis court/pool was not kept up, this happened over 5 years. Wasn't educated enough, was too young but you live and learn.
What is an HOA?
@@ruthirwin8222 An HOA is a Home Owners Association. You pay fees, and they do things like maintenance, keep the pool going, fix the streets, stuff like that. But they are also the ones who tell you that you can't paint your house a different color, you can't park in your driveway, you can't have a flag, your grass can't be over 2", etc. I refuse to pay some morons to tell me what I can't do with my own house.
No way.
The insane part of this is that almost all new residential developments have an HOA. So over time it's going to be harder and harder to find a place to live that's not in an HOA community. I currently have an HOA (I'm the Chair of it, actually - mostly to keep the crazies at bay) and will never buy another house with one. I'm genuinely worried that the price for non-HOA houses will start to rise as more and more people realize how terrible HOAs are for everyone.
Its already too late to "hide" the new HOA fee. It is disclosed to potential buyers.
Those HOA fees are a steal in CA. My mother moved out of her trailer park in the '90s when her space rent went up to $1000.00/mo.
Space rent and HOA fees are not the same. Space rent means someone wons the property any you rent a space on it. HOA is homeowners association, meaning residents own their property and collectively any other amenities in the community.
I consider the existence of an HOA to be a deal-breaker. I would NEVER buy a house in a community with an HOA
As buyers catch on to the abuses of HOAs, the value of these properties will decline
MISLEADING TITLE that will lead to tons of criticism towards HOAs.
Number one, this is a condo and nearly all condos have CONDO fees i.e. HOA fees.
Number two, sounds like the bad guys are the construction company who built these condos with lots of construction problems!!
That’s why there’s a huge inventory of condos for sale in Florida right now due to the new condo law that’s going to take place January 1, 2025. HOA’s condo associations must have enough money in their reserves to fund all repairs necessary to maintain the structural integrity and to make up that difference, that’s why the monthly HOA fees are going through the roof. Sadly, it’s forcing a lot of people out of their homes.
I will never live in a HOA or a city. For the same reasons. Screw HOA's
Our neighbourhood that we rent in has HOA fees. It includes a pool and gym and cafe. Then one day they decided to sell the pool and gym to a school so we no longer have access. And the fees haven’t changed. So yeah we will never buy in an HOA neighborhood
wasn't there a vote? Sounds shady and illegal!
Thank god I never had to deal with anything like this. Heck, my monthly house payment was only $479. Paid it off years ago.
Ok boomer
That didn’t include taxes and insurance
First rule is never to have a HOA or condo association. Second rule is never to live in city limits. Third rule is never buy a house or property next to property that is undeveloped.
So glad I don't live in an HOA. Used to and even though ours was reasonable at the time, they are outta control nowadays. HOAs need to be banned. Let people manage their own homes as most adults do.
I live in an HOA, mostly because we couldn’t find anything in our price range without one. It’s mostly harmless (unlike some neighboring HOAs). Sadly though, we still get nothing back from them, it is just money we pay for those who live on the boundaries of the development to have a nice fence. We have no common areas or amenities, but we still pay $400 a year over basically nothing.
She wants to sell but who in their right mind will buy a condo with $750 HOA fee? I understand inventory is tight but she might have a hard time selling this condo.
When I bought back in the mid 80's,
$450/mo OR ~$50K (ten years) one time.
I sold with full paid HOA.
Buy a property in an HOA area only if you are a fan of more government. It's basically just another level of government (with less legal protection)
Dont buy condos, dont buy anywhere with a HOA and certainly dont buy on the realtors word, hire your own independent inspector
Sure.
Inspector of what?
Lol no. An inspector isn't going to find a structurally unsound building. Saying don't buy condos is really short sighted. Yes HOA adds some risk but there are lots of applications where people can't buy a SFH. As a simple example, living in an major urban downtown city.
Recommend you buy an older home with no HOA and low special assessments on your property tax bill. Know that you will have upkeep on any house so put $100+ a month away for unknows on your purchase.
Some very good advice stop worrying about your problem and make a decision.
I was in this situation last year about when to retire.
I watched youtube videos, talked with people and kept worrying.
Finally I just decided I would retire on May 31 2024 when my wife turns 65 and we can both sign up for Medicare.
I told my boss and VP right away this way they could build it into their business plan.
PS Some have advised not to tell your boss early but both my boss and our VP are good guys that I have known for 15 years.
They have always treated me right and I felt I owned them.
I did get my typical bonus and pay increase last month.
Congrats! Yes, easy to get stuck in analysis paralysis. I am basing my upcoming retirement date on my social security full retirement age.
Mine goes up every year, we are around $1000 a year now.
I will rent for the rest of my life before I EVER own property with an HOA.
I find it morally reprehensible that I'd be required to pay a fee for someone to tell me what to do and how to do it on property that I own and pay taxes on.
I own a condo as an investment property and it makes me happy to hear people say they will be lifelong renters. It means they will be paying the HOA fee for me 😉
@@krogdog Lol they won't be renting a condo. They will be renting an apartment. So no mortgage payments for you.
Amen! Well said!
@@krogdogHe didn’t say he will be a lifelong renter, he said he would rather be one then…
Why not buy a house
My HOA fees are $300 a month. They don’t do anything except take the money and give out fines for the dummest things! I got behind on my payments in 2004 because my daughter was in college. I’m currently in litigation over late payments since 2004. A lien has been filed against my property , I haven’t had a parking space and I can’t use any of the amenities we have. These HOA’s must be addressed!
See how triggered they get when interest rate is mentioned. Because they’re wrong about the interest rates. If interest rates matter on a car or credit card, how the flip do they not matter on a home purchase?!
@richthepup By paying off the debt they remove the interest that was on it, which transfers over to the new house they will buy (since the interest rate will be larger on the new house than the interest they are paying on their house now). So not much difference as far as paying interest if they were to stay where they are and continue making the debt payments. The only difference is that the interest will be going towards the new house instead of going towards debt if they pay the debt off.
To add to your comment, I'd be more worried about property taxes
I used to live in a Townhouse, the attractiveness location with low up keep. The big negative are the HOA fees as those would go up every year. For perspective, I'm saving more than half on annual HOAs in a big swim / tennis community with a house
This is why I made sure there was no HOA when I bought my home. That and it's my house & my land, I dont want some HOA telling me what to do with it.
Sounds good until your neighbors do something that brings down the value of your home or harms the peace and tranquility that you may want at your home.
I'm all about freedom, but freedom must be balanced with responsibility and respect for others. Since few people have responsibility and respect for others, we have rules and regs, including what you may not be allowed to do with your property!!
@@GAFB1122no one else is obliged to maintain the value of your property.
Same thing happened in our townhouse community. The HOA is suing the builder and lost now our HOA costs have tripled
No way in hell I would buy property in an HOA.
Why not
@@tommysmith2719 $5,000 A YEAR in your savings account a month JUST IN CASE something comes up. It's a no brainer.
I work for a city and can confirm HOAs are terrible. A disproportionate amount of problems are caused by HOA boards vs other property owners.
HOA is worse than paying a mortgage with a high interest rate..a scam..!
I know my personality and I could never live in a HOA development. I’m not paying some DAzz to tell me what to do. It’s usually ridiculous people that have never had any sort of power in their life.
I'd never buy a home with an HOA and I'd definitely never buy a condo or townhome.
My HOA fee is $300 a year. Easy
@@karlabritfeld7104 sure for now. The rules are bearable now also but what happens when they raise it or your neighbors all agree to things you don't want and you're stuck. It's not even about the money.
Better to buy a home you can afford (townhouse) and sell it for profit later. Than try to be fancy & holy living in a rental lol
See if you can buy an older home without an HOA. Then you can use the 400 HOA money toward that house payment.
It should be illegal to raise HOA rates!the increase is almost 100% from previous too! Thats ridiculous!
Did you listen to the call?
They live in a condo which means the STRUCTURE is everyone's responsibility equally. There are construction issues with it and the condo association tried to sue the contractor but the suit failed. Now ALL condo owners must pay thru their fees to address the issues.
What's the problem with that, other than the fact that you just don't like it, lol.
This is obviously a special assessment. It's not just the regular fee. There are laws that restrict how much those can be raised.
The whole thing with HOA , supposedly , is about preserving home value. But when any potential buyer hears about the monthly HOA fees associated with that said home, they will rightfully RUN! Making the house pretty much worthless.
Never, ever buy a house a in HOA - period!💀💀💀
Holy sh!t. $800 for HOA fees. That's insane. No one will want to buy that condo from them. Who in their right mind would buy a property like that.
After what happened in Florida over the bad Foundation of the condo building I will be surprised if you can sell it at all, good luck
Well, I think Utah probably has more firm land than FL does.
I think they can probably sell it to some company that will end up renting it out.
@@vickieclark5931 it wasn't the land that caused the problem it was poorly built foundation
I hope all of you get the annual financial statements from these "non-profit" HOAs/body corporates and interrogate them. I've found there can be a small, certain crowd who, benefit from these fees personally.
I once found that the Care Taker and Chairman were deliberately telling the plumbing companies to set the thermostat temperatures to the highest settings on electrical geysers, which makes the thermostat blow and cause a leak. Ultimately, the plumber comes around, who they are in cahoots with, and says that the entire geyser is blown, and needs to be completely replaced... Instead of just a thermostat.
The cost difference between replacing a thermostat and an entire geyser, is R400 vs R6000 respectively. I live in South Africa so these costs would be $20 vs $300 in direct terms.
Bottom line is, the guys in the HOA/body corporate, were taking a piece of the pie each time a geyser needed to be replaced. In just 2 years, 48 geysers were replaced. Geysers have 10 year guarantees
Condo living isn't for everyone. Mine has doubled in value so if I move im not sweating it. It's one level so it's perfect for aging into. Just do your due diligence with who is running things, the financials, etc. Where I live it's run better than local government😮
It appears people don't like HOAs. I disagree.
Look at me, I live in a neighborhood with the standard 2 car wide driveways. I would never think of parking a big rig in my driveway as I'm sure my neighbors may not appreciate that blocking their view. I would also not put up a chain link fence since my neighborhood is a little more upscale, and my neighbors may not appreciate that.
Personally I balance freedom with responsibility and thinking of others. If everyone did that, we wouldn't need so many rules and regs. Since many ONLY think of themselves, I like some rules to keep the riff raff at bay, hence HOAs are OK in my book!
@MrWick561 Did I hurt your feelings with my Crack on government workers, lol. 😅
Yep!! You would think it would be common sense to not burn weeds in the middle of a drought several feet from your neighbor's home but yeah this is why we have HOAs😂
Some might consider you the riffraff.
Not sure I agree with Dave. The higher interest payment on the new place needs to be taken into account
.... but they will be paying off credit cards that are probably over 25% interest.... for me id be worrying more about the property taxes
Other than HOA Facebook group, Nextdoor is even worse!
Omg, yes! I was suspended so many times for my comments, I canceled it. That is a cess pool of whiny butt libs.
@@DavidCYT99Jeez, where do YOU live?? I live in a conservative area but I’ve never seen a post about a black or hispanic person walking. That’s not a conservative thing, you just have racist neighbors.
@@DavidCYT99 Lol I live in rural NC and it's conservative. Also about an 80% black population. Huh.
@@alinatamashevich3354 Yeah I got terminated too (during COVID). I live in a liberal area and I wasn't buying all the nonsense about "I was out walking today and somebody didnt' have a mask on..."
@@DavidCYT99 I live in the deep south. A few loud mouth libs.
This is exactly why I prefer to rent. Am I losing money to someone else? Sure but I also have the option to move any time I want if things get unaffordable.
Lol I own my home and I'm not chained to it. I can sell at any time and for the right price ANYTHING will sell. And I like knowing I'm NOT making a landlord richer!
@@GAFB1122 The market doesn't always allow you to sell your house right away. Sometimes it can take 6 months or more before you can see a sale. Also tell that to yourself when you're 70 and can no longer look after the home like you're used to. I had this discussion with my parents because they were selling. They are tired of home ownership because of all of the crap that comes with it. Now they're renting an apartment and are much happier.
@@ryanj357 Enjoy renting for the rest of your life. I'll keep my paid off home till I feel like selling and moving on. I could also give my home (or equity) to my daughter if I pass on, etc.
You will not get me to reject home ownership for renting. There is a reason someone rents to you and trust me, it's not because they like you, lol.
@@ryanj357if it takes six months it's either not priced correctly according to market conditions or it needs cosmetic help. Most of the time anyway
Haha! Some landlords can be worse than HOA's!
I have 2 friends that talk smack about HOA neighborhoods… one has dead chickens in his coop that he’s to lazy to remove, the other has 15 boats in his front yard that he works on as a side hustle…
@tryingtowalkthepath683To each his own. I always scoffed at the idea of residing in an HOA community.. But after doing it for 14 years… I now view it as a necessary evil. You can’t choose your neighbors..
@tryingtowalkthepath683Agreed live and let live and mind your own damn business. People are so judgmental. Freedom is way more important to me. Variety is the spice of life. Many people are OCD on grooming their stupid yards and control freaks on other people’s shit.
What are you doing in that man's chicken coop???
@@sitcomchristian6886 I was visiting for a birthday party and peeked inside to check out the chickens.
@@focojeepr I think it’s a great thing to have the anti HOA folks living together and pro HOA folks living together… if you don’t like the rules, live somewhere else… if you like everyone playing by the rules, live where people are held accountable for their actions, or lack of action… ultimately the choice is YOURS. Nothing wrong with either side.
💯- currently living in an HOA community - my first and last!! It’s been an unpleasant experience. But been there 5 years now and first year I realized real quick to remove myself from the community fb groups! 😂
Key to this solution, is to stay out of debt. Feels great to have 0 debt, but unless you’ve sacrificed considerably, and maybe they have, to get to $0 debt, it’s easy to underestimate the value of being debt free. Sadly, I learned this in a dumber way
Indeed. Some laughed at me for paying off my 30yr mortgage in nine years.
Since paying off my home in 2008 the $1500/mo. has been going into savings and investment until I retired in 2020. Even boosted my Roth 401k contributions to over $45k/yr..
Being debt free even with my primary condo HOA dues,insurance,and property tax included my total household living expenses are less than $1300/mo. in an upper middle class zip code.
People in my area are paying $1800 to over $3k a month just for the mortgage alone.
@@blackworldtraveler3711 I believe, that is what you call WINNING!!! 👊 well done!!
So what happens to the folks who decide to live there and not move? This makes no sense.
There are some good with HOA, i dont want to be in a neighborhood where people dont keep their yards and house up to par. Im in a single family home community and love the fact that everyone has to keep their yards etc in place.
gross
Yep! Otherwise you gotta deal with 20 junk cars up on blocks at the neighbors
@@aorg9793 because that's your local government at work. Backlogs, not enough manpower, not enough resources, people lying who are causing the problems so it drags everything out. Get one little old lady who is retired and she takes care of it in a day lol.
@@aorg9793 because that's your local government at work. A little old lady who is retired can get something done in 1 day that takes local government a minimum of 5 months to do. Lol
It really depends on where you live. Some people won’t keep their yards neat without an HOA, but other people will. I’ve been in 2 neighborhoods without HOAs and both have been very nice. Even now, without an HOA, I don’t have trouble with neighbors not keeping up with their yards. It just depends on the type of people in the neighborhood.
HOA reform law idea: 1) HOA bylaws can only change by majority of HOA members (not the board but the actual home owners) 2) Any time the bylaws are changed, any home owner can withdraw from the HOA. But their property taxes may increase because HOAs are sometimes used to collect monies to maintain and repair roads, sewers and water mains. 3) At any time any single homeowner can call for a vote of confidence on one or all of the board members.
I’m assuming most HOA’s already work like that. Mine works just the way you described, except No. 2. You can’t opt out of the HOA.
High concentration of karens in HOA. Avoid at all cost. Unless your a karen.
$750/mo for an HOA due is quite a lot, but that's not too abnormal for Chapel Hill where I live. I live in a single family home, but there are townhouses in my neighborhood paying $600/mo right now with no major repairs they're doing. Our HOA squanders the money on landscaping and management fees but the builder put in a clause that prevents the neighborhood from controlling the HOA, we have to by law have a management company. We noticed a trend when my wife and I considered moving a few years ago (wound up refi'ing down our mortgage instead to have a very comfortable housing payment) where HOA fees on single family are getting totally out of hand in central NC. Not uncommon to see $300/mo for single family homes in new developments around RTP.
There should be something in the original documents where any changes can be made with a majority homeowner vote ie get rid of the management company.
An HOA is a waste of time, they do absolutely nothing.
False.
Agree HOA are tradh
From what I've seen they keep busy taking peoples money.
Paying off high-interest debt should always be your top priority before considering any other investments, including buying a house. So i'll pay off the debt first for sure.
Put it towards the new mortgage, buy below your budget, and hammer away at the other debt .
The other debt (car and CC most likely) could be paid off in a much shorter time then a 30 year mortgage
Never buy in a house in a HOA
its brings up the value in most instanced and the NICE neighbhoods all have HOA.
@@teebone2157 As long as you realize that your home is really never yours in an HOA, then it's fine. I live in an HOA and even though my fees are very low, I still feel like they own part of my home. I'm planning on getting out of here before some idiots take over and decide to raise the fees through the roof. Hasn't happened yet, but we all know that it will sooner or later because it happens everyday in these HOA parks.
@vickieclark5931 Same! Our rates aren't bad, but what would we do if we paid off the house and retired here and then the rates went astronomical? You never just own your house if your in an HOA. They can levy fines and take your house from you because someone got sick and didn't pay the fee or mow the lawn or something. Noooo thanks. We are waiting until our kids are out of school and then we are getting the F out.
That's not as easy to do in locations where there are mostly communities. Where I live, it's almost impossible to find a home not in a community with an HOA. even standalone homes are in "Communities" and they all have an HOA. It's so terrible.
@@teebone2157my house doesn’t have HOA and it’s in a REALLY nice neighborhood at a great location. The agent was shocked when we first visited and found out there was no HOA.
All depends on the area. I'm looking for a co-op for my mom in Westchester County outside NYC and the prices are insane. We have considered a 1 bedroom at $335K with an HOA of about $1,000 a month - that doesn't include parking (that's an extra $50 a month), and no amenities, on top of it...a $67/month special assessment for a year and a half. Friends in Brooklyn paid $500K and their HOA is $1,300. Co-ops do include taxes, unlike condos. But the prices of condos in the area are obscene!
Hoa's are the devil, along with speed bumps and stairs
Pretty most if not all of the new developments have HOA's and special assessments which over the roof in monthly costs and increases, as if Homeowners insurance these days. Buy older existing home to negate that.
3% to 6% is significantly more than $100 per month.
not on $50k which is the example he used. It is $125.
yes, dave didn't factor in the mortgage too, just the difference. I'd compare them sitting tight and paying the extra $350 a month while tackling debt.
Did they consider the mortgage increase with the interest hike? Plus if they buy houses at same value, they will need to have additional principle to cover agent fees. Say $400k loan, 3.5% vs. 6.5%, nearly $750, $800 if they have take out $30k more. and their HOA increase is $350.
Their analysis was based on them already deciding to move.
So many despise HOAs. I don't.
I grew up in a lower income neighborhood where people had chain link fences. Cheap to buy and install but also makes the neighborhood look cheap. The neighborhood I live in now requires wood or composite fencing material.
As I always say... rules keep the riff raff at bay.
And I know you won't like that. Until you find your property value decreased by the riff raff 3 doors down!
I'm not perfect, no one is. But I try to maintain my property, AND I think of others, including my neighbors, because I'd want them to think of me. (Golden Rule)
@MrWick561Says the guy who's been paid with my tax dollars. You are or were a government employee, lol. Talking about that TSP.
@MrWick561 Yep another lazy government employee who couldn't make it in the private sector!! Thank the tax payers for your salary! You're definitely no republican that's for darn sure.
I disagree with how dave handled this. Maybe i missed what she said about her debt but her debt numbers absolutely do matter in this situation. Every 100k difference is about a 1k difference in payments for a 15 year. What dave told her to do is debt consolidate. And unless they pay off the house early; they could pay way more on that debt. You need to look at total payoff time in these senarios with realistic payoff plans they can stick to. Debt consolidation can be helpful. But generally it usually is worse. There are situations where dave is right but we need the numbers.
And... on a side note all hoas are bad. Every single one. There are no good ones.
HOA's exist because people have low standards (read: you're a slob). And I have the right to live in a community without slobs if I choose to pay a premium to do so.
The pool, tennis courts, soccer fields, ballroom, clubhouse, laundry facilities, in-house shuttle services, security.
Ok karen
@@rabidgoonKaren’s make the world be nice. How is the lack of Karen’s going in the west coast. Childish.