Another reason to not buy sight unseen (Hawaiian Paradise Park: homeowners association, condo)

[CyberCity]

Another reason to never buy sight unseen: you want to be able to check out the house/lot, neighborhood, and roads. Here on the Big Island, you'll find many subdivisions that are private roads. The county nor state take care of the roads in those subdivisions, it is up to the owners. When you visit in person, you can assess the condition of the roads, how (or if) they are being taken care of, if repairs are ongoing (thus long-term financially managed), etc.

For example, Hawaiian Paradise Park is facing looming problems due to not being current on roadways:

The Hawaiian Paradise Park Owners’ Association is proposing a special $500 annual assessment for the next five years to be levied against all lot owners to cover the cost of paving all roads in the Kea`au subdivision.

It’s estimated that the proposed fee would raise $20 million, which would be used to pave all the roads in HPP over the next five years. The special assessment fee is seen as a response to the Department of Health’s recent citing of the association for fugitive dust.

Some subdivisions do work on keeping roads up to a minimum standard, while others ignore it. Finding a subdivision that has a history of awareness of the need to repair roads, even minimally, can save you as a new buyer in the long run. It is usually a better investment to buy in to an area that has been working on roads for a while, than to buy in to one that has not been proactive.

VISIT your potential new purchase BEFORE you buy. Is there an active homeowners association? Do they collect dues? Ask to see their annual budget. Ask about CC&R, by-laws, etc. Ask about their plans for community owned roads, parks, etc.

That super-cheap lot, which you find so attractive due to its low price, might not be a solid investment if you think you can build on it, resell it someday, and recoup your costs (let alone make a profit).

[whtviper1]

Wow, a $500 annual assessment to keep up roads - what a bargain. I got hit with a $10,000 assessment last year for legal fees against the developer of my downtown condo. (And I only have a half floor - most assessments were $20,000 to $40,000 range.)

[CyberCity]

That shows the importance of making sure an association (be it community, or condo , or etc) has a decent fund for emergencies. Large emergency assessments often show a lack of planning by the board(s) in years gone by. Your bad experience of needing to cover the developer gives further proof of another reason to not buy in to an association without doing research including the books, deeds, restrictions, etc. I'd not like being hit up with a $10k nor $2500 assessment.

[whtviper1]

It is a brand new building Cyber. No reserves or track record to follow. The good news is the $10K assessment turns into a $20K settlement or more depending on size of unit.

[CyberCity]

Your story needs to be noticed, it shows that it is hard enough to keep on top of surprises even when you are already living HERE .... so it makes it more evident that those "sight unseen" buyers really are taking a chance!

[oregonwoodsmoke]

I agree wholeheartedly with investigating the HOA, but I have to say, I'd be thrilled to tears to have all the roads in my area paved for only $2500 out of my own pocket.

I suspect that the HOA is being unrealistic about costs. Paving is really expensive and collecting those extra fees from everyone is not going to be all that easy.

But I'm watching them now and if HPP can get all the roads paved without incurring monstrous debt, I will seriously consider buying in there. I am sick to death of living on dirt roads with all the endless dust and extra house cleaning it causes.

For the owners in there, if the HOA can really get every road paved for only $2500 per property owner, that should increase property values by more than the $2500 per property. There is a huge difference between marketing a property on a paved road and marketing a property on roads with mud holes deep enough to bury a Volkswagen.

[CyberCity]

Not all "paved" roads are actually paved in what we might traditionally think of as pavement. Many so-called paved roads are just rock/gravel with oil, or covered with a thin layer of asphalt that will not last long. I have property in a subdivision that has spent the past half-decade reworking the old private roads. I happily know that with each newly resurfaced road, the property values increase.

Someone PM'd to me another reason to check out land "in person" prior to buying is so that you can see if the terrain has lava tubes or pukas (holes) that might affect the ability to have the property graded. Great point!

[oregonwoodsmoke]

The best reason I can think of to look before you buy is so that you don't inadvertently buy across the street from a pig farm or sewer treatment plant. I also don't want to end up with next door neighbors who raise 3,000 fighting roosters.

The listing agents never include photos of problem neighbors in their listings. Buyer must go and look for themselves. Then go again at night to assess coqui noise level.

[Jungjohann]

I love it when someone posts, "We've googled it on Google Earth sooooo much!!! Even used google to drive around the neighborhood!! We feel like we're already living there!!!" Then,,, NO ONE SAID ANYTHING ABOUT THE CANNIBALS DOWN THE STREET!!!!!!!!! Makes for some good laughs..

Cannibals?? I thought it was 'more cowbells?'

[1freespirit]

We bought our home sight unseen... and are extremely happy. We have been to the area before though and new somewhat. Got lucky we have no regrets not one! We are now looking for an investment property but we are here to look at any of those before we make any type of offer.