HOA fees in Midtown Atlanta (Buckhead: foreclosures, rentals, insurance)

[srnyong]

I am currently in the market for a 2BR/2BA in Midtown Atlanta (with parking attached) and near a Marta station. I'm already living in the suburbs but this commute is turning into a bear and with the condo market the way it is, I am hoping to get a deal.

I've looked at a couple of condo places and the HOA fees are higher than I anticipated. Some places are near $500 per month and don't include any utilities while others are $250/month and do include some utilities. I don't get it. Any insights would be helpful. The only thing I've learned is that the HOA fee is usually in the $500/mo range when the listing agent pretends he/she doesn't know the HOA fee and will [never] get back with you on it.

If you live in a condo in Midtown Atlanta and are willing to disclose your HOA fees and what they include, please do.
Thanks!

[IntownHomes247]

There are a lot of variables that go into HOA fees, which is why the fees can be so different from one building to the next. The type and quality of amenities (pool, fitness, rooftop park, etc.) and special services (like a 24-hour concierge), which utilities and/or special features are covered by the HOA (internet? cable? gas? water?), the age of the building (and need for capital improvements), the number of units (how widely the expenses can be spread), and the square footage of the individual condos (since most HOAs are a certain amount x the square footage of the unit).

In addition to the HOA fees, you need to inquire about current and anticipated special assessments. For example, Cornerstone Village had a huge special assessment not long ago in order to repair the parking structure. But in the same assessment they collected funds to make most anticipated repairs and to build up their reserve fund so anyone buying after that huge assessment (over $20k for the largest units) inherits a significantly healthier building and HOA than the people who bought prior to and had to foot the bill.

[George Chong]

Originally Posted by srnyong

I am currently in the market for a 2BR/2BA in Midtown Atlanta (with parking attached) and near a Marta station. I'm already living in the suburbs but this commute is turning into a bear and with the condo market the way it is, I am hoping to get a deal.

I've looked at a couple of condo places and the HOA fees are higher than I anticipated. Some places are near $500 per month and don't include any utilities while others are $250/month and do include some utilities. I don't get it. Any insights would be helpful. The only thing I've learned is that the HOA fee is usually in the $500/mo range when the listing agent pretends he/she doesn't know the HOA fee and will [never] get back with you on it.

If you live in a condo in Midtown Atlanta and are willing to disclose your HOA fees and what they include, please do.
Thanks!

What? The listing agent does know what the HOA will cover? What does your agent tell you? It should all be detailed in the listing. Don't forget, the listing agent is not working for you. Get your buyer's agent to do their job!

Yes, InTown is absolutely correct that you should review the financials for any and all buildings that you are looking at to make sure that there are no special assessments planned. Also, have your agent submit the Association/Assessment Exhibit with your offer. The form will detail what is included in the monthly HOA fees.

Typically, HOA fees will include exterior liability, fire insurance (exterior), exterior maintenance (can be limited to landscaping and/or include the maintenance of the exterior of the building - more so an option on town homes rather than "stacked" units, garbage, pest control, reserve fund, water and sewer. You will be responsible for everything your walls inward.

Additional expenses could include security (garage gate), concierge, valet and some utilities. If you think $500 a month for HOA fees are high, consider that there is a greater likelihood that the fees will go up rather than come down. It is also something to consider in terms of resale or if you chose to rent the unit out later on. A $500/month HOA fee can make a dent in your monthly budget/profits if you are renting.

[srnyong]

Dear George Chong and InTownHomes, THANK YOU very much for your insights.

Any specific info on monthly HOA fees and/or Special Assessments in the Midtown Atlanta area would be much appreciated.
Thanks!

[noah]

We live in a Midtown condo and pay $508 in a 2/2 1235ft unit in an older building a block from Marta. The dues are high mainly due to the fact that it includes heat and AC. We also have a concierge, pool, workout etc. Even in the newer buildings I think you'd be hard pressed to find too much cheaper even though they don't include your heat/AC generally. The plus is they are modern buildings with the latest amentities. We browsed a 1/1 in a newer building last summer and I believe the dues were around $250 but again it was only a 1/1.

I would look around and narrow it down by what you are looking for. Do you want a highrise or lowrise? Is a concierge important? New or old? How close do you want to be to Marta? Answering those questions should help focus your search.

[nichojo]

I have a 1 bdrm in Metropolis and pay ~$250 but this does not include any utilities.

[offshoreprezi]

Hello to all, I was really considering buying a one bedroom condo in Midtown or the Buckhead area as a rental property. Now, if I put 10% down on a 75k condo at a 5% interest rate and 20 year mortgage, my monthly payment would be $445.00. How drastic would maintenance and HOA fees change this payment when the average condo in these areas are renting for $800 and upward? Any info would be greatly appreciated.

[Mishap]

Originally Posted by offshoreprezi

Hello to all, I was really considering buying a one bedroom condo in Midtown or the Buckhead area as a rental property. Now, if I put 10% down on a 75k condo at a 5% interest rate and 20 year mortgage, my monthly payment would be $445.00. How drastic would maintenance and HOA fees change this payment when the average condo in these areas are renting for $800 and upward? Any info would be greatly appreciated.

Either you're looking at an older building or a very depressed building b/c most go for more than that at auction. If the building is that cheap, there could be unknown assessments or possibly changing HOA fees. Did you factor in property taxes into this which may be ~100 or so? The cheapest I've seen most condo fees is ~200 or so for a 1bdr w/o any utils so you're near $750 already. You also have to make sure you can in fact rent the place legally since many cap rentals at 25%. If there are other units this cheap, you can assume most of the rental slots are taken up w/ better funded people that put down a lot more than $7,500 to make it work toward a positive cash flow.

[ebuch]

Can all HOA fees keep going up as well? Or do some condos have a fixed rate on them no matter what once you buy...

[noah]

Of course they can go up and with sewer rates going up most will increase. Remember the HOA fees are simply the fees paid by owners to cover common expenses and the board is voted in by you and your fellow owners. There may be a clause that states an increase over a certain amount has to be voted on by the association but if enough money is not coming in to pay the bills and keep a reserve then more money will need to be collected.

Foreclosures are causing a lot of stress on HOA's right now as once the bank takes over the unpaid dues from the period the prior owner still was there but did not pay are never recouped and have to be absorbed by everyone else.

Originally Posted by ebuch

Can all HOA fees keep going up as well? Or do some condos have a fixed rate on them no matter what once you buy...