Reply to DC condo: $900k in 2017 -> $770k in 2025

Forum Index » Real Estate

Reply to "DC condo: $900k in 2017 -> $770k in 2025"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Here’s a new construction condo in the same area, similar size, with much lower HOA fees. https://redf.in/eNbjw4
[/quote]

Watch out though because low HOA fees can just mean they’re not preparing adequately for the future when they will need to replace elevators, roofs, windows etc etc. Then they will dramatically hike the fees and/or do a big assessment. [/quote] That is exactly my point. The HOAs on this new construction are likely artificially low because the developer is trying to make it more desirable and artificially inflate the buyer pool that can qualify for a loan. I suspect that the original condo listed on this thread had similar HOA fees when it was first built. The annual HOA fee increasing from 300 to 1000 would be capitalized into the property value and reduce the value of the property by around 5%. [/quote]

HOA fees will continue to increase year after year. It’s not like insurance premiums are going down, or maintainence costs. [/quote]

HOA fees (for condos) increase faster than the overall inflation rate. There is a collective action problem with HOAs because the preventative maintenance is split between multiple owners. The other problem is that the ownership structure for condos creates a situation where it is incredible difficult to sell the entire building for demolition and redevelopment. Condos building tend to stick around much longer than their economically useful life with high HOA fees because it’s difficult to get a supermajority of members to agree to sell. 
[/quote]

I imagine most condo HOA boards are severely mismanaged too. Who wants to actually take on more work?[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics