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My problem with condo fees is that they can go up drastically, so just because you’re OK with the cost now doesn’t mean that you’ll still be OK with it in the future.
So can your property taxes. So can most other things in one way or another. I live in "the county," where there's no municipal trash collection (though our neighborhood is well served by private collectors,) no city water (wells only,) on a septic. I had this argument with my brother, who called me asking to talk to our other brother, who is looking at buying a townhouse. The concept of an HOA was mind boggling to him, "They can just raise your fees!" What's funny to me is that he lives in town, with city water, sewer, etc, in a 100 year old house, that hasn't been meticulously maintained it's entire life (though it's not a shack by any stretch.)
I just don't see it as anything worth getting bent out of shape about. You can slice the salami any which way you like, I've never seen a compelling financial argument one way or another. Sentiments against HOA's? Sure, and valid for some people.
My problem with condo fees is that they can go up drastically, so just because you’re OK with the cost now doesn’t mean that you’ll still be OK with it in the future.
True, but you can always sell (although, granted, it's a bit harder to sell a condo than a SFH) and move.
My problem with condo fees is that they can go up drastically, so just because you’re OK with the cost now doesn’t mean that you’ll still be OK with it in the future.
Well, of course, they are going to go up, because the cost of everything that they cover goes up--insurance, contracts for landscaping, snow removal, etc. Those things go up like everything else does even if you own a sfh. I am not sure what you consider "drastic", but there would have to be a reason they went up. Not sure what scenario you had in mind because you didn't say.
When I bought in 2010, the condo fee was $200 a month. Now it is $285. Not too bad. Most years the increase is $5, some years (like this one and the next one) there was no increase at all.
The most "drastic" was the year we raised the fee by $15. Two things occurred that accounted for the higher fee. One was that our insurance had to be renewed. After the Sandy storm in 2012, insurance had gone up on all wood-frame condo complexes in New Jersey, and there were only four insurance companies willing to insure them. Fortunately, we are six miles inland. There was only ONE insurance company insuring wood-frame condo complexes within two miles of the ocean, and they were naming their price.
The second item was because NJ law dictated that municipalities could not raise their taxes more than 2% unless the residents voted otherwise. The municipality sent around an announcement that unless residents voted to raise the taxes by more than 2%, they would be dropping garbage collection. The increase was voted down, and they went ahead and dropped garbage collection, which meant that the complexes had to procure their own waste removal and recycling services. That got added into the fee.
Neither event could have been anticipated or prevented by the HOA.
The other increases were expected. Obviously, landscaping and snow removal and other maintenance costs were not going to be the same in 2020 that they were in 2010, and it wouldn't make sense not to anticipate such increases.
Well, of course, they are going to go up, because the cost of everything that they cover goes up--insurance, contracts for landscaping, snow removal, etc. Those things go up like everything else does even if you own a sfh. I am not sure what you consider "drastic", but there would have to be a reason they went up. Not sure what scenario you had in mind because you didn't say.
When I bought in 2010, the condo fee was $200 a month. Now it is $285. Not too bad. Most years the increase is $5, some years (like this one and the next one) there was no increase at all.
The most "drastic" was the year we raised the fee by $15. Two things occurred that accounted for the higher fee. One was that our insurance had to be renewed. After the Sandy storm in 2012, insurance had gone up on all wood-frame condo complexes in New Jersey, and there were only four insurance companies willing to insure them. Fortunately, we are six miles inland. There was only ONE insurance company insuring wood-frame condo complexes within two miles of the ocean, and they were naming their price.
The second item was because NJ law dictated that municipalities could not raise their taxes more than 2% unless the residents voted otherwise. The municipality sent around an announcement that unless residents voted to raise the taxes by more than 2%, they would be dropping garbage collection. The increase was voted down, and they went ahead and dropped garbage collection, which meant that the complexes had to procure their own waste removal and recycling services. That got added into the fee.
Neither event could have been anticipated or prevented by the HOA.
The other increases were expected. Obviously, landscaping and snow removal and other maintenance costs were not going to be the same in 2020 that they were in 2010, and it wouldn't make sense not to anticipate such increases.
Very true!
The problem I've had with some of the increases at my place is that we've had turnover among the security staff, which meant that newer staff members were starting at the lower wage. Wages are the biggest part of the budget by far, yet the board still felt the need to increase fees. Looking at the financials, the math didn't make sense, but I get that it's a part of HOA fees.
Actually I would complain about paying for cable. I cut the cord 10 years ago. I have no interest in paying for cable. Our internet is paid for by my husband’s employer. So that’s something else we would be stuck paying for that we wouldn’t want or need. Everyone’s needs/wants in life aren’t the same.
Problem is, like with taxes, these things tend to be a "group rate" type thing. If people are given the option to selectively remove it, then it won't work. For my case, I never used our swimming pool, but I didn't demand they knock off some money very month on our condo fee.
Problem is, like with taxes, these things tend to be a "group rate" type thing. If people are given the option to selectively remove it, then it won't work. For my case, I never used our swimming pool, but I didn't demand they knock off some money very month on our condo fee.
We don't have a pool, but I live in the section of our complex that is on a municipal road, while about half the complex is on a loop that is the condo property only. Therefore, my building is hooked into the municipal sewer line, but that other half of the complex is served by a pump station for sewage for that section, which then in turn goes into the sewer lines in the road.
The pump station required an expensive overhaul and pump replacement since I moved there and requires maintenance when it gets clogged because idiots flush things they shouldn't. It doesn't affect MY part of the complex, but I still have to pay for it because it's a joint ownership situation.
And that's what people have to remember when they buy into a condominium. Its very definition is that it's joint ownership with others of the common components.
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