Posted on 05/29/2006 9:35:07 AM PDT by SmithL
An organization that oversees the maintenance and management of common facilities and areas -- such as landscaping, pools, exterior walls and fences -- in townhouse, condominium and other so-called common-interest developments.
Buyers considering a common-interest development should always scrutinize the association's reserve audit and the past 12 months of board minutes, both of which should indicate anticipated repairs and whether there are adequate funds in the reserves to pay for them.
Don't buy a house/condo in a subdivision that has a Homeowners Assc.
Interesting article -- thanks for the post.
That is the very best advice. When I bought my place 20 years ago, that was the first issue that got the house removed from the list...CC's&R.
I can tell you that every few years, we are hit with a large "maintaince" bill--a new roof, a new plastering job for the pool, new landscaping, etc etc.
I can't imagine that it is any different in a condo or townhome. Property has to be repaired and updated. It's a fact of life--and sometimes, these things cost big bucks.
If we put away say $200/month toward some upcoming repair, chances are it wouldn't be enough to cover the cost of a major repair when the time came.
In that way each member of the association pays for the depreciation "consumed" while a member of the association. When selling, buyer should compensate seller pro-rata for the value of the accumulated fund since the seller contributed to the depreciation fund while a member of the association.
Buyers should not then be surprised by large special assessments; but they WILL pay larger annual association dues.
Responsible non-profit institutions such as private schools and churches do this. Why shouldn't homneowner associations?
I think the main objection here is that some "association" is deciding how to spend the "dues" for the "greater good". When a person "owns" property, they don't have to worry about such things. When they buy into one of these communist organizations, then they must abide by the terms of the contract.
I nearly bought a place 10 years ago that was one of 3 units on a lot with a shared driveway. Everything else was perfect but for me, the shared driveway was a deal killer. I ended up with a standalone SFR and have never once regretted it.
"Unfair" is a word that should be put on Humpty Dumpty's flexible language list. It means whatever you choose it to mean. If you buy a condo, house, or duplex in perfect condition, you will most likely pay more money. If you buy a structure that needs repairs, you should get a discount for purchasing a building in less than perfect condition, but SHOULD expect to be out of money in the near future to make those repairs.
If you overpayed for something because you didn't research or have a building inspector, well, guess who's fault that was? Condo owners should also be aware that they're basically joining another government, and this government will frequently affect them far more personally than the city, state or feds.
Oh, tell me his condo hasn't gone up in value at least that amount since he bought it -- especially after the repairs.
Unfortunately most new subdivisions have them. We were among the first to buy in our subdivsion earlier this year, so the HOA isn't active yet. I expect that to eventually change but my plan is to go to the first meeting and shut down the control freaks before they can trample over the rest of us. Our CCRs are pretty minimal, but a control freak can still make life miserable.
One good thing about living in NJ: most of the state is near a border to somewhere else. ;-)
Are you serious?! I just bought a waterfront home in Pensacola, Fl. for 145k. Save your money and move, my FRiend.
If you relocate to Oklahoma, you could find a decent home well under $70,000 and use the remaining $630,000 for some other pursuits.
I can't believe this was a result of competitive bidding.
Have you gotten your NEW insurance bill yet?..
BTW,,,I haven't seen a CA since John LaFleur was doing heli-logging in the Carolinas..
Oh, I got it alright. I wasn't too happy, but I expected it to be more.
The cost of insurance and building materials has skyrocketed. People who properly maintain and insure their own homes in a non-association community are facing the same thing.
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