[quote=sdrealtor]Not quite 75K. First thrown in the insurance you would have to buy on the structure for an SFR of about $70/month. Then add the water bill of say $40/month plus trash of $20/month. Dont forget maintaining the landscaping of your SFR which is about $100/month. Then there is the value of any amenties you get (pool/spa/tennis/clubhouse/parks/gym if any) which can easily run you $60 to $70/month for a couple/family. We are already pushing close to $300/month. Then you have the costs of exterior maintenance over the life of your house (painting, stucco repairs, roofing etc) and that can easily average another $100 to $200/month over the long haul.
Not to say that HOA fees arent expensive but its not as if you arent getting anything for them. Of course there are benefits of flexibility, peace and privacy one can get with an SFR and not a condo but all these things need to be weighed against each other. Its a folly to say one is simply giving up $75K of purchasing power when there is so much more to consider.[/quote]
Not trying to “nitpick” here, but Allied Waste charges $14 month for weekly pickup of the smallest trash cart (40 gal). Yard waste is $2 mo for unlimited carts/receptacles and recycle pickup is free. Not sure what Edco charges.
It does not cost anywhere near $100 mo (consistently) to “maintain” landscaping unless the homeowner:
1) hires out lawnmowing/gardening svcs;
2) owns at least a dozen producing fruit trees; and/or
2) owns a parcel in excess of 1 AC.
The YMCA is $48 mo for a parent/child and about $70 for two parents/child. Verified low-income households get a $10-$20 mo discount. This includes circuit training, swimming, hot tub and all classes.
All the repairs that a homeowner puts into their property adds to or maintains its value (yes, even a new roof or new hot water heater). The “flexibility” that an owner of an SFR has over a an owner of a condo is a HUGE issue, IMO. For instance, if an SFR owner doesn’t want to repair a cracked pool deck until a better year, they don’t have to. A condo assn will be afraid someone will trip on the crack and sue them, so will specially assess all the owners if they don’t have the reserve funds to pay for the replacement to be done ASAP.
Theoretically, if the homeowner occupying their own SFR is having a bad year financially and their pool pump or lawnmower breaks, they can just drain the pool and let the grass grow in back where no one sees it. If there is no neighborhood HOA, they can seal roof leaks with creosote, even if this method is not as attractive as a new roof. They can also let their stucco and fascia peel, esp. on sides of the house that aren’t visible to the street.
There are always (handy) tenants and/or those with large pets who will rent an SFR that has not been modernized or needs yard work … for a lesser monthly rent or rent credits for labor. For the reason of the lack of control over HOA dues rate hikes, over how the dues are spent and frequency/amount of special assessments and the fact that I see no value (intrinsic or otherwise) in owning a “fractional interest” or “airspace,” I believe SFRs are better investments and financially easier to hang onto for the “long haul” homeowner/landlord.
