Is this too much to spend on a house?

[Anonymous]

You need to keep looking.

[Anonymous]

Yes

[Anonymous]

With no kids you are money!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why is the HOA so expensive?

I definitely hear the point that it’s not deductible, but that HOA amount is pretty normal for a DC condo with standard amenities.

I get the higher HOA for a condo. Many condos include most of your insurance in the HOA fee. IN my DC condo, I need $25K insurance and everything else is provided with my HOA fees (ie. if I cause damage with a broken pipe, I have to pay the $25K deductible for the HOA insurance, then it kicks in. Typically this is paid by the owners insurance, after you pay your deductible to your own insurance. ) So my condo insurance is significantly lower than when I owned a home of similar value.

[Anonymous]

Of all the segments of the real estate market likely to take a bath in the current/coming correction in prices, "1.4m condos with $1000 HOAs in cities with literally tens of thousands of condos available at any moment" has to be in the running for top two, right?

[Anonymous]

We earn about that with a house worth half as much (and no HOA fee). On the other hand, two kids (one in college and one soon to be) are expensive.

[Anonymous]

This conversation about HOA fees comes up again and again. People who own houses also have expenses other than the mortgage that can come out as much as the HOA fee, but people rarely add things up in two columns and actually compare. Utilities, the plumber, landscaping, an alarm system, a new roof, pool maintenance (if you have one), plus the time to arrange all that. And time gets more and more valuable as you get older / your income goes up.

[Anonymous]

Anonymous wrote:Yes you can absolutely afford it without kids.

Our HHI is 300k and We are going to buy a house at 1.5M (with a higher deposit, close to 50%, only because we received inheritance that allows us to go from 20 TPE 50% down payment). Like you we max out retirement but we also have very good 529 savings for our 2 kids and have to deal with their expenses (easily 2k a month with after school, activities and cost of life and we don’t pay for private schools).

I know the inheritance part plays a role but even without we could have done it without being house poor. However, it is about life preferences and what you sacrifice for a nice house. Write your budget down, check how much you spend a month, how much your summer holidays cost etc.. and then decide. Only you will know the right answer.

I don’t buy luxury handbags or fly business or get 500$ spa treatments every months. I have friends who do all those things and yes, they don’t have the extra 3k a month for a bigger mortgage. Priorities.

Thank you for this thoughtful response!

[Anonymous]

Could you just buy a house near a country club? The you could use the $1000 per month for country club dues, instead of that HOA?

[Anonymous]

What is people’s obsession with HOA fees???

$1,000/month for a $1.4 million condo isn’t even that high. I pay $560/month for my $530K MoCo condo in a high-rise building. I get a gym, lovely landscaping, a pool (though I never use it), 24-hour concierge and garage parking - not to mention servicing of basic things like HVAC, etc. Do I wish it cost less? Probably. But I also wish groceries cost less. I’ve never found my HOA fees to be unreasonable or onerous.

And lastly, my parents are about to spend $25,000 on just some minor repairs to their driveway and deck, so it’s not like single-family homes don’t have maintenance and other expenses.

[Anonymous]

The house price itself is fine. The HOA cost is insane.

[Anonymous]

I would rather live in a shack in the mountains than follow HOA rules.

[Anonymous]

At your income and lack of child-rearing obligations you can afford it. Only you can determine if it's worth it to you.

[Anonymous]

HOA fees aren’t all created equal. I’m a condo you are paying for the amenities and the property management. Keep in mind that you will still have to contribute extra if your unit needs a new roof or some such similar thing. The amount you contributed to the HOA covers general maintenance and their could be a budget for extras, but rarely is there much. You just have to decide if you are going to use the amenities enough to feel the $100/ month is justified. Depends on your lifestyle.

You can afford the mortgage so long as you have enough for repairs, etc.

[Anonymous]

Yes, too much. Keep looking.