Midtown/Downtown condo/ high HOA fees (Atlanta: insurance, condos, loan)

[saviboy]

Hello everyone,

I am interested in buying a 1BR in the Mid/Downtown areas and, as most of you guys know I'm sure, most condo buildings have really high HOA fees. I used to live in Miami Beach where HOA tend to be high as well.
I am planning to live in the condo but naturally, I also consider my futur purchase as an investment.

How does one justify the high monthly HOA fees? Most monthly fee include high speed internet, insurance and up keep of the building but that seems like such a lot of money for not so much in return.
Alternatively, I am thinking of buying a flat in a smaller building with lower HOA fees albeit without the spectacular view one might get in a high rise.

Do owners living in high rise condos, simply consider those high fees as a cost associated to this type of lifestyle (centrally located, view)?

Thanks

[Atlwarrior]

If you have to ask. You not ready to live in one in the city.

[jsvh]

The HOA fees are set by the Condo board and are used to pay for all the upkeep to the building. That is where most of the fess go. All those hallways, elevators, central utilities, common areas, and amenities are expensive to keep up.

You should be able to get a hold of the condo association budget and see the details of what is being spent. You will also want to make sure they have a good reserve too and be aware of the potential for "special assessments" which can easily run five-figures for each owner. Those are to cover things like the unexpected replacement of all the exterior siding of the building or an unplanned remodel of the lobby.

[saviboy]

Originally Posted by Atlwarrior

If you have to ask. You not ready to live in one in the city.

Thank you for a constructive reply. After 17 years in Paris, 12 in Sunny Isles beach and 5 in Dubai marina, and thanks to your brilliant advice, I guess Ill look for a property in farmland Nebraska. Thanks again!

[saviboy]

Originally Posted by jsvh

The HOA fees are set by the Condo board and are used to pay for all the upkeep to the building. That is where most of the fess go. All those hallways, elevators, central utilities, common areas, and amenities are expensive to keep up.

You should be able to get a hold of the condo association budget and see the details of what is being spent. You will also want to make sure they have a good reserve too and be aware of the potential for "special assessments" which can easily run five-figures for each owner. Those are to cover things like the unexpected replacement of all the exterior siding of the building or an unplanned remodel of the lobby.

Thanks for the reply. I own a studio in Miami Beach and the HOA did precisely that.. Increase reserves through a special assesment.
After two years, they are back to a very reasonable $230 per month but the building has nothing fancy... No pool tables, no 24 hrs concierge etc... Just a basic pool and maintenance.
I stayed away from investing in fancy condo buildings because of the high HOA fees.

For example there are several 1br's available in midtown with 600$ of hoa fees. Supposedly including all utilities and high speed internet.
That's probably $50-60 for internet, 50$ for water, heating/cooling -70-80$ per month yearly average?
And insurance maybe another 50$-$100 per month?
So really, when compared to a single family home, it's about $300 for HOA fees related to upkeep , concierge etc...
Am I missing something?

Thanks again.

[jsvh]

Originally Posted by saviboy

So really, when compared to a single family home, it's about $300 for HOA fees related to upkeep , concierge etc...

It all just depends on the condo building. Some include things like internet, trash, gym, pool, etc with the HOA. Some don't.

[turkeydance]

"How does one justify the high monthly HOA fees?"
one can justify just about anything.

[saviboy]

Originally Posted by turkeydance

"How does one justify the high monthly HOA fees?"
one can justify just about anything.

Another great contribution. Thanks!

[saviboy]

Originally Posted by jsvh

It all just depends on the condo building. Some include things like internet, trash, gym, pool, etc with the HOA. Some don't.

Thanks for the reply. I'm realizing that as I research

[ATLTJL]

I've never heard of a condo building in Atlanta issue a special assessment through increased dues for a set amount of time. Usually what they do is make everyone pay a massive lump sum because they want to keep actual dues as low as possible to look better to potential buyers. Around here, once dues go up... They ain't never coming back down. At least that's what I've been told, some buildings may be different. I had one friend who had to take out a $10,000 loan because the parking garage in his building needed some massive repair and they assessed everyone (people in 2 bedrooms l got hit for $20,000, I believe).