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I, for one, prefer to own rather than throw my money away on rent, and condos come with condo (maintenance/HOA) fees.
And houses come with maintenance too - condo fees are just a way to have everyone contribute on an ongoing basis so the money is there when needed and the work can be done, vs. an individual homeowner who has to come up with the money and perhaps delay much needed maintenance if they don't have it. Since a condo has multiple owners, this limits the risk that one owner with limited savings could jeopardize the value of the entire structure if they didn't have money to pay for a roof replacement or some other big ticket item. But not having a condo fee certainly doesn't mean not having to pay for ongoing costs on a home you own.
You seldom get equal value for the condo/HOA fee that you pay each month, IMHO. That's in addition to having no control over it (unless you're on the board, and then it's only partial, possible control plus a headache). It's a necessary evil if you live that lifestyle.
And houses come with maintenance too - condo fees are just a way to have everyone contribute on an ongoing basis so the money is there when needed and the work can be done, vs. an individual homeowner who has to come up with the money and perhaps delay much needed maintenance if they don't have it. Since a condo has multiple owners, this limits the risk that one owner with limited savings could jeopardize the value of the entire structure if they didn't have money to pay for a roof replacement or some other big ticket item. But not having a condo fee certainly doesn't mean not having to pay for ongoing costs on a home you own.
Condo fees are the biggest racket in America. There is no chance a 2 bedroom 1,000 SF condo requires $400/month in maintenance. I understand it also takes care of general areas such as snow plowing, maybe the pool if applicable, street lights etc. And from what I understand if it's a huge figure like a new roof they bump up the condo fees. When you multiply $400/month X the number of units there is no question the fees are higher than the maintenance costs. This is a huge revenue maker for the owners of the building at the condo owner's expense.
Condo fees are the biggest racket in America. There is no chance a 2 bedroom 1,000 SF condo requires $400/month in maintenance. I understand it also takes care of general areas such as snow plowing, maybe the pool if applicable, street lights etc. And from what I understand if it's a huge figure like a new roof they bump up the condo fees. When you multiply $400/month X the number of units there is no question the fees are higher than the maintenance costs. This is a huge revenue maker for the owners of the building at the condo owner's expense.
And when there IS a maintenance issue, you get slapped with an assessment on top of the fees (which fees can be raised at any time without your input). The only way I'd consider one is to be oceanfront in retirement and, even then, only with great trepidation. It's also more difficult to sell a condo than a SFH and...shared walls.
Condo fees are the biggest racket in America. There is no chance a 2 bedroom 1,000 SF condo requires $400/month in maintenance. I understand it also takes care of general areas such as snow plowing, maybe the pool if applicable, street lights etc. And from what I understand if it's a huge figure like a new roof they bump up the condo fees. When you multiply $400/month X the number of units there is no question the fees are higher than the maintenance costs. This is a huge revenue maker for the owners of the building at the condo owner's expense.
If you look at the budget, you should where all the money is going. If you don't feel it's justified, then push back. I've never been on the board of an HOA, but I did go to the budget approval meetings and questioned when I felt it was necessary and I've also been part of a movement where we recalled a board that we felt was not responsive to our questions and trying to spend money that the majority of owners didn't want to spend.
And no, they should not be bumping up the fees or having an assessment to cover an anticipated item like a roof replacement. They should be working from a reserve study and having an adequate enough set aside to cover the replacement at the end of life.
There are well managed HOAs and poorly run ones - but the dollar amount of the fee each month does not tell you which is which.
And by the way, there are no "owners" of a condo building who are making money from it, all the individual owners collectively own the building.
If you look at the budget, you should where all the money is going. If you don't feel it's justified, then push back. I've never been on the board of an HOA, but I did go to the budget approval meetings and questioned when I felt it was necessary and I've also been part of a movement where we recalled a board that we felt was not responsive to our questions and trying to spend money that the majority of owners didn't want to spend.
And no, they should not be bumping up the fees or having an assessment to cover an anticipated item like a roof replacement. They should be working from a reserve study and having an adequate enough set aside to cover the replacement at the end of life.
There are well managed HOAs and poorly run ones - but the dollar amount of the fee each month does not tell you which is which.
And by the way, there are no "owners" of a condo building who are making money from it, all the individual owners collectively own the building.
Yes I realized I misspoke and it was too late to correct. But you will never convince me the HOA fees represent the true costs. I live in a 1900 farmhouse on 5 acres and I don't come close to $400/month in home maintenance, nowhere near that amount. And yes I know friends who had their jacked up big time when a big expense was needed, I think it was a sewer line.
Last edited by DaveinMtAiry; 06-05-2017 at 03:27 PM..
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