Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Even if the everything checks out now, this could all change. All it takes is a group of determined homeowners who get themselves elected to the board and start making decisions that are not in the best interest of the community.
Exactly. Another consideration is age. HOA dues almost never include repair/maintenance/replacement cost of components that last longer than 25 or 30 years because condo reserve studies are not required to include them. So when the condo starts to see degradation in the concrete (i.e. spall), window systems failing (curtain/window walls generally last 30-40 years), plumbing, etc, the cost to repair or replace are almost always borne by owners via special assessments.
Since the condo concept is relatively new (started in the 60's) and most condos are less than 30 or 40 years old, condo horror stories will dramatically increase over the next couple decades.
I would avoid condos if you don't own 100% interest in the physical structure and land beneath it.
Even if the everything checks out now, this could all change. All it takes is a group of determined homeowners who get themselves elected to the board and start making decisions that are not in the best interest of the community.
Very true. My condo is only 5 years old, but regular maintenance gets done at predetermined intervals. The reserve study lists how often and when things are planned out and the expected costs. (roof replacement, street maintenance, pool and clubhouse upkeep. We have regular meetings and quarterly newsletters that go over how every penny is spent. The majority of the monthly condo fee is set aside for future costs down the road. I currently feel very comfortable with how our condo HOA is run. If I didn't, I would join the board at some time, if needed.
Exactly. Another consideration is age. HOA dues almost never include repair/maintenance/replacement cost of components that last longer than 25 or 30 years because condo reserve studies are not required to include them. So when the condo starts to see degradation in the concrete (i.e. spall), window systems failing (curtain/window walls generally last 30-40 years), plumbing, etc, the cost to repair or replace are almost always borne by owners via special assessments.
Since the condo concept is relatively new (started in the 60's) and most condos are less than 30 or 40 years old, condo horror stories will dramatically increase over the next couple decades.
I would avoid condos if you don't own 100% interest in the physical structure and land beneath it.
My condo is like a sfh, but with a single shared wall. End unit with a 2 car garage. Plumbing is 100% my responsibility. In fact, everything on the inside is. Why would a condo association be responsible for the plumbing in your unit? Maybe if you are in a high-rise maybe? Same thing with the windows. Our condo HOA covers the roof, and exterior maintenance, plus landscaping and snow remover...that's it. Everything inside is on the owner.
My condo is like a sfh, but with a single shared wall. End unit with a 2 car garage. Plumbing is 100% my responsibility. In fact, everything on the inside is. Why would a condo association be responsible for the plumbing in your unit? Maybe if you are in a high-rise maybe? Same thing with the windows. Our condo HOA covers the roof, and exterior maintenance, plus landscaping and snow remover...that's it. Everything inside is on the owner.
It's the waterlines between the building and the meter that the HOA is responsible for, not the plumbing inside your home.
Exactly. Another consideration is age. HOA dues almost never include repair/maintenance/replacement cost of components that last longer than 25 or 30 years because condo reserve studies are not required to include them. So when the condo starts to see degradation in the concrete (i.e. spall), window systems failing (curtain/window walls generally last 30-40 years), plumbing, etc, the cost to repair or replace are almost always borne by owners via special assessments.
Since the condo concept is relatively new (started in the 60's) and most condos are less than 30 or 40 years old, condo horror stories will dramatically increase over the next couple decades.
As condo and TH HOAs around the country start to reach 40 and 50 years old, I suspect we will start to see more legal action over HOA's not providing the maintenance they are legally obligated to provide.
Most HOAs keep dues low and don't put nearly enough in reserves for major repairs.
As condo and TH HOAs around the country start to reach 40 and 50 years old, I suspect we will start to see more legal action over HOA's not providing the maintenance they are legally obligated to provide.
Most HOAs keep dues low and don't put nearly enough in reserves for major repairs.
Ours was only like $100 when it first started, because everything was brand new. Then they did the first reserve study and realized they needed to increase it big time. After a pretty big jump, now it's just $5-$10 a year increase. We have a lawyer who attends our meetings who keeps an eye on all this. I can see how older condos can have problems with poor funding.
As condo and TH HOAs around the country start to reach 40 and 50 years old, I suspect we will start to see more legal action over HOA's not providing the maintenance they are legally obligated to provide.
Most HOAs keep dues low and don't put nearly enough in reserves for major repairs.
With a condo you're stuck with a very involved HOA, there's no way around it. But it seems like the older the townhome, the less restrictive the HOA covenants. Mine is 45 years old and I was surprised to find out there are literally no restrictions to renovating, as long as the cinderblock firewall between units isn't damaged. The president jokingly said I could even pop the top and add on another story to the structure. As such everyone is responsible for their own maintenance(roof, brick/siding/gutters/etc) so there's no need for big assessments. This would be another pro for townhomes IMO.
My condo is like a sfh, but with a single shared wall. End unit with a 2 car garage. Plumbing is 100% my responsibility. In fact, everything on the inside is. Why would a condo association be responsible for the plumbing in your unit? Maybe if you are in a high-rise maybe? Same thing with the windows. Our condo HOA covers the roof, and exterior maintenance, plus landscaping and snow remover...that's it. Everything inside is on the owner.
I am talking about condos that have units above and below them. They don't need to be high rises... a 3 or 4 story structure could have units above and below. Only the actual plumbing fixtures, angle shut offs and very short lateral pipes protruding out of the interior walls are the responsibility of each owner. Generally, all the piping inside the walls (including all sewer and drainage piping) are the responsibility of the HOA. And that is the majority of the expensive work since it's much harder to get to this infrastructure.
In my area we have a ton of mid and high rise buildings that are aging (most are over 40 years old). We're starting to see special assessments levied on owners... something that wasn't really that common in the past simply because the buildings weren't old. We've had at least a couple near six-figure (yes, six figures) special assessment on large condo high rise projects this year. Smaller five-figure assessments are becoming very common.
The concept of condo ownership is inherently flawed. Older structures cost more to maintain than new ones. The older a structure gets, the higher the cost to maintain. Virtually all owners will do everything in their power to avoid a special assessment. And they will not increase HOA dues to properly maintain an aging building because there is a direct correlation to lower monthly dues and higher condo valuations. Basically the higher the dues the lower the resale value... and nobody wants that. The only condo projects that will survive the test of time (>60 years) are those in highly desirable locations with very wealthy owners willing to reach deep into their pockets to properly maintain their homes. All other condos will become cesspools of legal battles and disgruntled owners. It's just a matter of time.
Townhomes are different as long as the owners actually own the physical structure and land beneath the structure. That allows for some individual control. I'd like the ability to (on my own dime) tear down an antiquated structure and rebuild a modern one that meets society's requirements in the future. After all, real estate is all about the land - the structure is just a liability.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
