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I joined this site about a year ago when I was anxious about purchasing a townhouse in Carrboro ( in Canterbury townhomes) and despite the many words of encouragement from people here and friends and family; my nerves got the best of me and I backed out of the deal.
A year later I have received a promotion and raise at my job in Chapel Hill (also picked up a car payment which I did not have before though) and feel like owning a place in this area would make sense. I can live there in the short term as I continue with my career and probably keep it in the long term as a rental/investment property (my preference to do this has dissuaded me from taking advantage of the Community Home Trust program that several coworkers have used to purchase newer and nicer homes in Chapel Hill at well below market value; as you are not allowed to ever rent those out).
I was always fully aware that property taxes in Chapel Hill and Carrboro proper were higher than most other areas (1.7% compared to most areas of Wake having taxes under 1%); but I did not anticipate just how high HOA fees at most condo/townhome developments are. I get that you have more maintenance and common areas in condo/th communities and that you don't have to worry about caring for the lawn, shrubs, etc. But I don't understand why some places that don't really even have many amenities (no pool or clubhouse or anything like that) have such high HOA fees. From 1600 at the low end up to 2500 per year; for properties in the 100-120k price range this makes HOA fees about 20% of the monthly payment which seems pretty high. But maybe I'm just naive.
From what I've heard; some of these HOAs cover the maintenance/repairs to the actual structure (i.e....when the roof needs to be replaced/repaired or bricks need to be repointed, siding replaces etc; HOA covers it). Am I overlooking the value in a HOA for a condo/th community? While I realize SFH tend to have lower HOA fees SFH in general are out of my price range.
If you've never owned your own place, you might be surprised how much you would spend as an owner of a single family dwelling in annual maintenance, not even including putting a value on your own time (like time spent mowing the lawn, taking time off work to meet various contractors at your place to get quotes, etc). I've known a lot of home owners who start out with a big DIY money saving plan and end up paying someone else a hundred or two bucks a month or so just to take care of the lawn, so when you figure the cost of roof/siding/paint repairs maintenance etc., plus paying someone to make sure your next door neighbor doesn't neglect their unit and bring the value of yours down, those fees start to make more sense.
. Am I overlooking the value in a HOA for a condo/th community? .
Well, you don't really have a choice in the matter when it comes to a condo or TH. And like pp said, home repairs are a lot more than you're probably imagining. I would be more concerned with making sure the money is being managed properly so that in the event of a major repair, the money is actually there.
But for that kind of money I would want some amenities like pool/gym.
I joined this site about a year ago when I was anxious about purchasing a townhouse in Carrboro ( in Canterbury townhomes) and despite the many words of encouragement from people here and friends and family; my nerves got the best of me and I backed out of the deal.
A year later I have received a promotion and raise at my job in Chapel Hill (also picked up a car payment which I did not have before though) and feel like owning a place in this area would make sense. I can live there in the short term as I continue with my career and probably keep it in the long term as a rental/investment property (my preference to do this has dissuaded me from taking advantage of the Community Home Trust program that several coworkers have used to purchase newer and nicer homes in Chapel Hill at well below market value; as you are not allowed to ever rent those out).
I was always fully aware that property taxes in Chapel Hill and Carrboro proper were higher than most other areas (1.7% compared to most areas of Wake having taxes under 1%); but I did not anticipate just how high HOA fees at most condo/townhome developments are. I get that you have more maintenance and common areas in condo/th communities and that you don't have to worry about caring for the lawn, shrubs, etc. But I don't understand why some places that don't really even have many amenities (no pool or clubhouse or anything like that) have such high HOA fees. From 1600 at the low end up to 2500 per year; for properties in the 100-120k price range this makes HOA fees about 20% of the monthly payment which seems pretty high. But maybe I'm just naive.
From what I've heard; some of these HOAs cover the maintenance/repairs to the actual structure (i.e....when the roof needs to be replaced/repaired or bricks need to be repointed, siding replaces etc; HOA covers it). Am I overlooking the value in a HOA for a condo/th community? While I realize SFH tend to have lower HOA fees SFH in general are out of my price range.
You're not. I'm no realtor and certainly no property expert, but that definitely seems quite high relative to what I am used to. Even more so if the community lacks those extra amenities. As others have said, there is a lot of upkeep involved in owning a home, but that doesn't make those HOA fees any less exorbitant
I pay $1,320 a year ($110/month) in HOA fees in my current townhouse. There are zero amenities but that $110 a month is well spent. I have an annual gutter cleaning, twice a year termite inspection, once a year power washing, the grounds are all taken care of and if the roof or siding ever needs replacement is comes out of the HOA fees. So for me the $110 a month is well worth it to not have to worry about anything.
Check to see if the townhouse HOA covers the exterior of the units.
Our HOA fees at our townhouse in Raleigh were $125/month and they had over $55000 in savings when we sold last year. The money was going towards a future roof replacement or shingle replacement.
Our HOA fees are $88/month for a single family dwelling and ~$125 for a TH. The $125 gets you all exterior maintenance. All HOA fees here cover the use of the facilities (pool, gym, workout facility) and maintenance of all public areas, including snow plowing (��).
A little OT, but if you've picked up a car payment, you may not qualify for that mortgage anymore. I'd suggest consulting with your mortgage brojer before getting your heart set on this purchase.
A little OT, but if you've picked up a car payment, you may not qualify for that mortgage anymore. I'd suggest consulting with your mortgage brojer before getting your heart set on this purchase.
That is definitely on my radar. Car payment comes paired with about a 25% increase in my salary....but I am still not even going to any showings until I talk to the mortgage broker at my realtor's office.
It is a little reassuring to hear that the HOA fees in the range people are discussing here seem to be worth it to them. I honestly don't care about having a pool or clubhouse or anything like that; but built in homeowners insurance for the structure seems plenty worth it.
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