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Does anyone have any insight into why HOA fees around areas of Lake Sunapee and specifically New London are so high (>$700/month) Why do some condo communities would have buy-in fees (?$4000)? Any help appreciated in understanding.
I refused to even consider any home in a HOA when moving to NH
When I was house shopping, the first thing I told my agent was to not even mention to me any house which was had a HOA attached to the deed, even if inactive.
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Originally Posted by Retired2021
Does anyone have any insight into why HOA fees around areas of Lake Sunapee and specifically New London are so high (>$700/month) Why do some condo communities would have buy-in fees (?$4000)? Any help appreciated in understanding.
Are they on the water with shared frontage or a launch? Some HOAs offer much more services (plowing, landscaping, shared water well) and common areas (clubhouse, pool, etc) than others.
There is some logic to buy-in (aka "initiation") fees, especially in a co-op or condo that wants to give the appearance of exclusivity and has significant shared elements to maintain or otherwise wants a plush "reserve fund".
New London is an upscale second-home town with a lot of waterfront in a low-inventory market. All those things drive up not only the purchase price of real estate but HOA fees as well, especially with a lot of services, as mentioned above, and/or if they're free-standing units. Then there's the general effect of inflation and the fact that plow companies, landscapers, repairmen, etc have all raised their prices significantly in the past 6-8 months.
The HOA fee is $735 per month. The only items mentioned in the listing included in the HOA are cable, landscaping, plowing and trash. The unit currently on the market is priced under $300K. No waterfront and attached. I have seen others away from the lake that similarly high HOA fees. I don't know the financial status of this particular development, nor do I know if the fees have always been this high. I'm just trying to understand in general how they can justify such high fees and wondered if anyone has insight .
Cable = $100/mo. Another $100 for internet if that's packaged with cable. I'm paying $400+/month for driveway plowing...The price has doubled this year because, like a lot of other businesses, plow companies' employees quit and wages went up, followed by the price of gas and manufactured sand. My yard guy's prices went up by 1/3 for the same reasons last summer. Services like these have become very expensive due to wage increases, increased costs for supplies, and higher demand due to the huge influx of people into NH in the past year.
If you're looking at an attached unit, I'd be surprised if some exterior maintenance isn't included as well. How big is the development?
Looks like about 25 units in different clusters so you are probably correct that exterior maintenance may be some of it. Development looks to be built in 1971.
The HOA fee is $735 per month. The only items mentioned in the listing included in the HOA are cable, landscaping, plowing and trash. The unit currently on the market is priced under $300K. No waterfront and attached. I have seen others away from the lake that similarly high HOA fees. I don't know the financial status of this particular development, nor do I know if the fees have always been this high. I'm just trying to understand in general how they can justify such high fees and wondered if anyone has insight .
That property is on 55 acres and made up of clusters of small groups of units. They also have many plantings and a lot of lawn and private roadways to maintain. I would ask to look at the operating budget to see what is built into the budget. With separate roofs, wooden siding, and other expensive maintenance and replacement items it's not inconceivable that a hefty contribution to reserves is being made to avoid large future special assessments. I would also ask about the buy-in fee and it's purpose. Check to see if the Association had a reserve study recently too.
When it comes to condominiums many Associations are pressured to keep the fees low and as a result fail to account for the true cost of ownership. I would be especially concerned if the reserves are meager. Many banks are now looking for budgets that allocate 10% of the annual budget to reserves as a condition of providing loans to the Association or approval of individual mortgages.
Larger buildings with many attached townhouses in an apartment-type arrangement on a smaller piece of property can be maintained more efficiently and offer a lower HOA. However, the property you are referring to is more of a home-like arrangement.
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I refused to even consider any home in a HOA when moving to NH
