buying a condo with $350HOA fees
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Anonymous
| What's the point of buying a condo? I am trying to understand why buy a 1 bedroom apartment/condo? Can you do anything to it? Is it almost the same as an apartment? |
Anonymous
| Home buying is the biggest scam sold to Americans as the American dream. Don’t do it until you really want or have to. |
Anonymous
+1 and NEVER, EVER a condo. |
Anonymous
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I pay close to 150/month just for lawn and weeding care. Some condos even include water and trash pick up in the fee, and then they have a pool for warmer months, maybe some tennis courts.
350 doesn't sound bad. the really expensive ones are those with elevators, they sky rocket. |
Anonymous
| Mine includes all utilities, parking, maintenance. what does the 350 cover? |
Anonymous
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I’m assuming that might cover pool?
It also covers funds that go into savings or reserve funds in case a roof needs replacing etc….. I made money on a Condo in Loudoun. You can do what you want to the inside within reason. It was much nicer, better build and design than the apts in the same area. |
Anonymous
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Most condo fees include water, trash pick up, landscaping and building maintenance, building insurance (you are a co-owner of the building so yes you want insurance on it), sometimes other things. If you've never owned a home before, you may not realize how many expenses like that you have to pay for, so the condo fee might seem like a rip-off. But often condo fees are a deal -- you are sharing costs with your fellow owners that you would otherwise have to pay yourself. The landscaping for our building costs about $6/yr, and that's for a very small amount of outdoor space. I think it's great to only be paying a fraction of that amount and still have nice landscaping. Just as an example.
$350 is not very high for a condo fee. The important thing is to know whether the building is well maintained and managed. I would also want to know the history of special assessments, which is when a condo board forces owners to pay a one-off fee to pay for an improvement. Some buildings go out of their way to avoid these, some rely on them to keep condo fees low and it can screw a new buyer who will suddenly have to pay for delayed maintenance. So I'd be looking at the history of special assessments and also ask to see the financial statement for the building so you understand how building maintenance is currently paid for and managed. As for what you can "do" to a condo, it depends on the condo board restrictions, but usually if it's inside your unit, you can do what you want. Renovate the kitchen, paint, put in a closet, etc. I live in a condo building and have a neighbor who has extensively renovated their unit. As long as it doesn't involve exterior walls or common areas, no one cares. I'm glad to know they are maintaining their unit and would rather have someone upgrading their kitchen than becoming a hoarder. Our condo was new when we bought so we haven't done much -- just painted and changed some light fixtures, and we recently upgraded some appliances. We'll probably do a partial upgrade of the kitchen before we sell (counter tops and cabinets are in great shape, but we'll install new doors and likely replace the dishwasher, and maybe the stove). Condos do not appreciate as fast as SFHs, so if you buy a condo, it's largely a forced savings mechanism you can live in. Ours has appreciated maybe 75-100k in 10 years, which is not horrible but nothing close to how SFHs in the neighborhood have appreciated. But we have about 300k in equity because obviously we've been paying down the mortgage the whole time. That's 300k in equity we would NOT have if we'd been renting. So condo ownership has been pretty great for us. I would just do your research and understanding |
Anonymous
water, poool, maintenance (landscaping,etc) |
Anonymous
| Be very careful and look at the reserves for the building and make sure they are adequate. Also, make sure the Board and property management is good or that $350 will run up significantly due to mismanagement and you as an owner will pay the price. |
Anonymous
| $350 is nothing. Ours is $600 and that’s on the cheap end. We do have a pool, gym, game room and water included. |
Anonymous
| Condos outside of those located in very dense and supply constrained areas (like Manhattan) are not a great idea. Owners fight against HOA increases, the building isn't well maintained after 10yrs of inflation outpacing HOA increases, and then resale values go down. If you're not in a dense location there is a room for a new shiny condo development to pop up down the road from you at any time, compounding resale issues. |
Anonymous
Meh, much like my body, I like having agency over my home and what I can do with it. Sure, there are laws, but as an owner, I am much more free to amend my home to my choosing than as a renter. |
Anonymous
| Thats not a bad condo fee! Living in a SFH comes with a lot of exterior expenses that you dont get in a condo. We live in a sfh and spend $40/wk on lawnmowing + a couple of hundred each for spring and fall lawn cleanups, + a couple of hundred/year to get in-ground sprinklers turned on/off each spring and fall. Our HoA fees are about $100/mo which includes our pool. |
Anonymous
I can explain it to you in one sentence: No one can raise your rent or evict you. There’s other stuff, like being able to remodel the way you want to, and if you choose well, make some money on appreciation (which may not be as high as on a SFH but many people do very well). But in my opinion, the number one advantage over an apartment is stability. |
Anonymous
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We owned a 670 SF 1BR + den (could be considered 2BR) and 1BA in a nice part of DC for around a decade before selling it several years ago. That’s what our fee was, more or less, and it was considered low. The condo was a nice mid-rise with no amenities other than a shared roof top deck that was barely furnished.
The single biggest expense in a no frills building, which nobody here has even mentioned, is the elevator. But a building has to have one or the value of the units plummet even if you’re on the first or second floor. We bought our place in the upper 300s and sold for just over $500k. So we did fine. |