NOVA housing values by the end of 2012 (Arlington, Fairfax: foreclosures, rent)

[jillabean]

As for the townhouse fee question. I think some have a maintenance fee and some don't. Mine doesn't--and I have to maintain the exterior of my home. I *do* pay a HOA fee though (everyone in the neighborhood does, including the SFHs). It helps pay for common areas like the pool, playgrounds, running trails, tennis courts, and clubhouse; as well as covering trash pickup, recycling, community lights and mailbox clusters, road maintenance, and snow removal. I pay $93 a month.

[Jenjen391]

Grrrr. I pay 90 a month for my TH HOA fees and we don't have a pool, clubhouse, tennis courts, or playgrounds.

We do have garbage pick-up 2x week and our grounds always look nice, though

I don't know how much appreciation I expect to see in my area of FFX county in the next few years. I hope some. The sales prices have been pretty steady over the last 2 years. 2-3% each year over the next few years would be great.

[oneasterisk]

If you are ready to buy and stay at LEAST 5 years, then I'd recommend a TH over a condo. Getting an FHA loan on a condo is harder because there are FHA guidelines specific to a condo unit. For example a percentage has to be owner occupied, if there are a lot of units used as rentals it will fail and FHA will not write a loan. May not be a problem for you buying, but may cause a headache if you try to sell down the road. You may be stuck with a conventional loan.

Also not a fan of condo fees. They are not tax deductible and they will invariably increase. You can be hit by a special assessment if an unexpected costly repair is needed for the property. Also what happens when there many empty units who are not paying the condo fees, who makes up for them?

As far as asking for opinions on where prices are going, you know what they say about opinions and everyone having one right?

[Cardiff Kook]

my condo fee is $331. i live in a high rise condo.

that includes front desk security, pool, gym, garbage pickup, and all utilities (except cable).

oh yea, i have a FHA loan. your condo just has to have a fully functioning kitchen for it to qualify for FHA

[tysonsengineer]

How would there be empty units? For newly built condos the condo fees are stabilized while the developer retains control usually up to 75% buy out.

After 75% buy out and 100% I guess there is a small chance of short fall, but early on in a building the fees and demands are minimal and its really just saving money up for depreciation costs 15 years down the line. Once it is 100% the only way that there could be an empty unit would be if the bank foreclosed (far less likely than with other types of housing btw). If this happens the bank is required to pay both the condo fee and the taxes.

False information makes the world worse, so please dont suppose things.

Also I agree with everything GMU just said (in fact I might live in the same building as hime). 300 bucks, including security pool gym, utilities, garbage, landscaping, building beautification including window cleanings, yada yada.

He forgot to mention that the home insurance for condos is completely different, instead of paying 80-100 bucks a month its closer to 15-25 bucks a month since the master convenants covers the building itself.

Additionally, most condos are located in TOD areas, which means you dont have to drive 99% of the time because you can take metro etc... now some TH you can do this too, so this is a tough call, but typically TH that are truly in TODs have a 30% upcharge in cost. Otherwise you will be driving every where even if you do drive to the metro station. I have calculated this at 4 dollar gas to save about 300 dollars per occupant per month on average.

Condos save you a butt load of hidden money that isn't included when people do their mortgage budget, which is the shame of it.

[NC211]

Originally Posted by boyd888

So you're paying thousands a year in PMI plus losing another $2000 in extra interest since your down payment is in a CD so that someday you can say "look at the low interest rate on this house" when you sell? Not to mention the money you are losing by pissing it away in PMI vs investing it somewhere that earns more than -100% (like stuff it in a mattress). It seems like you're saying as rates go up, home prices will go down, but yours won't because your rate is "locked in" as low. I don't think that is true. If rates are 7% and yours is 3.75%, will it really sell for more money...or just sell faster due to the attractive rate? If I'm an all cash buyer I don't care what the rate on your mortgage is. Also, if interest rates just so happen to be low when you decide to sell, you've gained nothing! Maybe I'm missing something here I dunno.

What you're missing is the buying power difference. Historical rates are usually in the 7% range. The difference in a 3.75% rate and a 7.5% rate for an average $500k mortgage is nearly $170k. PMI can be dropped in 5 years. So, after 5 years of PMI, the total comes out to something like $35,000. $35K to preserve $170K of buying power that would not be achievable in a hypothetical lending environment of 7%+ rates (remember it wasn't but a few years ago 7%-7.5% was considered a FANTASTIC rate).

You're also missing the advanced amortization schedule, small ($500) transfer fee vs 1% origination fee, and the continuation of the transferable nature. Basically, if I have to sell in the next 10 years, and if rates do indeed go back to normal levels, my $515k house won't be competing for just buyers in the $515K range+. It'll also be competing to buyers of $400k homes that require new financing packages to sell. I'm summaizing here, not percise math. But you see what I'm saying. Also, this will give me a chance to compete against any new construction going on around me as well (assuming i maintain my home).

You can buy a $400k home for the next 30 years. Or you can buy a $515k home for the same payment, for the next 20 years. Plus, the amortization schedule starts to knock down the principal balance faster the closer you get to payoff. Is there value in this? You bet, assuming you're dealing with a buyer that understands it.

To me, the seller, all-cash buyers don't matter to me. I don't really care where you get your money from. I'm more marketable than my conventionally financed neighbor's home at that time.. It's just an insurance possibility, that's it.

If rates stay low, then you're right, I'm wasting my money on PMI. Although, I haven't entered the interest revenue I earn from my CD into the equation. But, it's minimal. I can say this though, if rates are lower than where they are today, in 10 years....we're all in trouble!

[oneasterisk]

I can tell you that when I bought my rental unit as a foreclosure, the bank had not paid for the HOA fees in two years. I was not willing to pay for it to satisfy the lien, so I bounced it back to the bank to pay up or no sale. They relented and paid it then, but the HOA was out of that money for almost 3 years.

Here are some more FHA guidelines on condos: http://www.realtytrac.com/content/ne...do-values-5029

And ignorance seasons crow pie...

[khuntrevor]

51% owner occupied, and no one can own more than 10%. Condo financing is very difficult now, but you can steal one for cash in the right place.

[tysonsengineer]

These are risks if you as an active participant of your condo fee are not making sure that special reserves are being upheld for depreciating assets. Your argument could just as easily be applied to an HOA which does not adequately hold reserves for a community facility. The point is, that BAD COA and HOAs would end up with a problem with special assessments.

Additionally, the bank failing to pay the fee was again, A FAILURE of the COA to follow through and tell them that they were owed money. The bank, by undersigning the original foreclosed mortgage, assured that all taxes and fees would be paid in the case of a foreclosure.

Either way, that article is from 3 years ago and assumes that everyone is buying with an FHA loan. The point is, the real cost of doing business is your monthly operation costs (which is what we were discussing). The cost saving month to month is in favor of condos, and not townhouses. Even just the utilities alone are equal to the 300 dollars mentioned in many cases, if not included with insurance and transportation.

[khuntrevor]

Originally Posted by oneasterisk

I can tell you that when I bought my rental unit as a foreclosure, the bank had not paid for the HOA fees in two years. I was not willing to pay for it to satisfy the lien, so I bounced it back to the bank to pay up or no sale. They relented and paid it then, but the HOA was out of that money for almost 3 years.

Here are some more FHA guidelines on condos: New FHA Rules Doom Condo Values

And ignorance seasons crow pie...

It should be stated in every offer that it comes with dues paid up, taxes and liens, also. Shame on your Realtor.