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In some instances, the HOA fees may be overly high in order to keep out the riffraff.
Thats dumb and doubtful thats whats happening here.
I obviously would want to look at the last quarters statements for review before I bought. Both neighborhoods were built around the same time from the same exact homebuilder. I mean the town houses are identical. The HOA that is more expensive did put a gate in a few years ago and the other one does not have a gate, but a $200 dollar difference because of that? Both have pools and both take care of lawn maintenance. Was just mind boggling to me. The townhouses with the higher HOA dues are selling for almost 20% cheaper but the nieghborhoods are both in deisreable areas.
Yes but the HOA with the lower dues may not be funding reserves adequately. As someone else mentioned you need to compare their financials.
If you are buying a condo you not only should look at the financials but read Board Minutes for the last year and letters to the Board for the same period. That will give you a good picture of their issues.
Thats dumb and doubtful thats whats happening here.
I obviously would want to look at the last quarters statements for review before I bought. Both neighborhoods were built around the same time from the same exact homebuilder. I mean the town houses are identical. The HOA that is more expensive did put a gate in a few years ago and the other one does not have a gate, but a $200 dollar difference because of that? Both have pools and both take care of lawn maintenance. Was just mind boggling to me. The townhouses with the higher HOA dues are selling for almost 20% cheaper but the nieghborhoods are both in deisreable areas.
Again, look at the details, what EXACTLY do the fees cover and what percentage of the reserves are funded? Has the cheaper one even had a reserve study and if so are they funding 100%? I think if you get the answer to these two questions you will have your answer.
Actually, gated communities have significantly higher fees. Has to do with maitenance, inspection and related insurance requirements when you have a gated community. In my last home in AZ the HOA considered iinstalling a gate at the single entrance to the community. It would have tripled the HOA fee (which was minimal without the gate). No gate was installed.
Another issue in SOME gated communities is that the HOA becomes responsible for road and sidewalk maitenance inside the gates instead of the city, township or county.
And have you compared the priperty tax rates? If one community is in a higher property tax area, that would increase the HOA fee, too.
Yes but the HOA with the lower dues may not be funding reserves adequately. As someone else mentioned you need to compare their financials.
If you are buying a condo you not only should look at the financials but read Board Minutes for the last year and letters to the Board for the same period. That will give you a good picture of their issues.
This makes perfect sense...thanks!
Quote:
Originally Posted by Jkgourmet
Actually, gated communities have significantly higher fees. Has to do with maitenance, inspection and related insurance requirements when you have a gated community. In my last home in AZ the HOA considered iinstalling a gate at the single entrance to the community. It would have tripled the HOA fee (which was minimal without the gate). No gate was installed.
This could be another explaination, I guess Ill have to look at the financials to know for sure. Thanks for the replies.
Another cause of higher dues is the amenities offered within the complex.
Pools, jacuzzi, landscaping, common BBQ area, and as mentioned earlier, gates at the entrances. The maintanance cost for keeping them working can be expensive. How many light bulbs in the common areas ? They have to be changed when they get burned out.
I had a property manager tell me that places with tennis courts have higher insurance rates because of people getting hurt.
It's not cheap living like you're in a resort.
ALso depends on amenties. Condo near me 20% of owners are in arrears yet maint is not that high.
Why it is a low rise garden apt style condo with no garages just outdoor parkings
Unit owners are responsible their own windows, doors, balconies, HVACs and hot water haters. Also no security guards or cameras. No need since everyone enters own unit direct from outside.
The big attraction is condo is right near a great public beach and there are public tennis courts near by. AKA amenities condo does not pay for.
However, homeowners, flood, BOD insurance keeps rising, legal costs against the owners in arrears are an issue and lawn and snow removal is an issue.
If you have a condo not in a flood zone, with limited common areas and amentities and folks who pay on time maint can be very low. The key also is limited amenties, grand lobbies, underground parking, doormen, pools, golf courses etc are really nice, but you have to reserve to maintaint them and when owners go into arrears look out.
In some instances, the HOA fees may be overly high in order to keep out the riffraff.
Quote:
Originally Posted by middle-aged mom
Oh, that's silly.
It is -- and I've heard that reasoning said by many people who live in condos. However, most of them have no idea that in their dues, they are "saving" for new carpet, new boilers, new swamp coolers, pool and spa and clubhouse redos.... all that stuff is planned YEARS in advance and tiny little dribs and drabs are set aside to pay for them when they are done.
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