RE investment options and questions…

[JBurkett19]

They should indeed go to jail, but they don’t. The bottom line is that Housing Associations are essentially small governments. They tax through imposing fees and, in theory, return a service for it. Much like our other governments, the services rendered tend to go down, and taxes tend to go up.

The day always comes when they send a letter to the residents saying something like “…by the way, we miscalculated, or have collectively decided on another avenue for the roof repair…and there’s a special assessment of $2,000 this year for each of you. Pay or we’ll forclose. No discussion.” Now, picture yourself as an older person on a fixed income. What happens when you can’t afford your HOA fees? They forclose and you’re on the street. I’d hate to be homeless over some self imposed housing government. I’d rather live in a house with deferred maintenance, than on the street, any day of the week.

The fundamental point in owning real estate is to one day have it free and clear (outside of unavoidable property taxes). But, with HOA fees, you’ll NEVER have it free and clear.

Anyway-just my humble opinion

[scaredyclassic]

Do I get paid for being on an hoa board?

[scaredyclassic]

Do I get paid for being on an hoa board?

[scaredyclassic]

Do I get paid for being on an hoa board?

[scaredyclassic]

Do I get paid for being on an hoa board?

[scaredyclassic]

Do I get paid for being on an hoa board?

[bearishgurl]

[quote=Ren][quote=JBurkett19]There are indeed special assessments for the roof replacemnt and any other major repair. That is why I dislike HOA’s. They have too much power and the regular monthly fees never seem to go to anything substantial.

Special assessments for major repairs are as real as a heart attack.[/quote]

For major unforeseen repairs, sure. HOA’s know what the major expenses will cost them, they plan for it, and it’s in every HOA’s budget. It’s one reason HOA fees continually go up. If they miscalculate by several thousand, okay. Nobody could be dead on. I could handle a $500-1000 per unit special assessment. But the entire cost of the roof? That would take some serious management ineptitude and corruption.

It’s the reason a housing development only need charge $46/month for a pool, security, and large private park (my ‘hood as an example), while a condo complex will charge $200-300. If an HOA squandered that much cash over decades, someone should be in jail.[/quote]

It isn’t quite like you’re describing here in actual reality, Ren. Often, HOA’s don’t realize until well after the fact that their developers used faulty plumbing parts between the walls, did not grade the site properly (causing water to drain towards the bldgs), installed the sprinkler system shoddily (causing leaks to spring up everywhere), used cheap fake wrought iron w/o powder-coating around the pool (which rusted out in 2-3 yrs), didn’t seal about the pool deeply enough, bought cheap pool heater/filter, didn’t support the balconies properly, didn’t install rain gutters/downspouts … and the list goes on … and on. The HOA land might even be draining onto other public or private property and the Assn may be facing govm’t-imposed fines for this. HOA’s are often mired in unexpected (often emergency) repairs and then legal fees (when they decide to sue their developer and all their subs) for construction defect issues.

When indiv townhome owners eventually rip up their carpets and find cracks in their slabs (due to improper grading and infill), many stop making mtg payments, taxes and/or HOA dues. Hence, an assn’s mgmt is constantly in small claims court obtaining judgments against delinquent homeowners who are in many cases overmortgaged. Due to this factor and the fact that an HOA doesn’t want to own any units, they don’t foreclose their lien(s) and typically don’t get pd until a delinquent unit reverts back to bene and the dues are caught up or they agree to take a short-pay on a short sale (rare??). Some owners are paying their mtgs but NOT their HOA dues.

This is not a “doomsday scenario.” Condo assns are faced with these intractable problems much more often than not.

Also, landscaping mat’ls and labor and well as other trades svcs have increased over the years due to increased worker’s comp premiums. HOA’s can’t hire an unlicensed svc co or individual (relative?) handyman/carpenter (like an SFR owner can), no matter how talented they are, due to liability issues. It’s not uncommon for a special assessment to be more than $2,500 per owner, esp in a small complex.

[bearishgurl]

[quote=Ren][quote=JBurkett19]There are indeed special assessments for the roof replacemnt and any other major repair. That is why I dislike HOA’s. They have too much power and the regular monthly fees never seem to go to anything substantial.

Special assessments for major repairs are as real as a heart attack.[/quote]

For major unforeseen repairs, sure. HOA’s know what the major expenses will cost them, they plan for it, and it’s in every HOA’s budget. It’s one reason HOA fees continually go up. If they miscalculate by several thousand, okay. Nobody could be dead on. I could handle a $500-1000 per unit special assessment. But the entire cost of the roof? That would take some serious management ineptitude and corruption.

It’s the reason a housing development only need charge $46/month for a pool, security, and large private park (my ‘hood as an example), while a condo complex will charge $200-300. If an HOA squandered that much cash over decades, someone should be in jail.[/quote]

It isn’t quite like you’re describing here in actual reality, Ren. Often, HOA’s don’t realize until well after the fact that their developers used faulty plumbing parts between the walls, did not grade the site properly (causing water to drain towards the bldgs), installed the sprinkler system shoddily (causing leaks to spring up everywhere), used cheap fake wrought iron w/o powder-coating around the pool (which rusted out in 2-3 yrs), didn’t seal about the pool deeply enough, bought cheap pool heater/filter, didn’t support the balconies properly, didn’t install rain gutters/downspouts … and the list goes on … and on. The HOA land might even be draining onto other public or private property and the Assn may be facing govm’t-imposed fines for this. HOA’s are often mired in unexpected (often emergency) repairs and then legal fees (when they decide to sue their developer and all their subs) for construction defect issues.

When indiv townhome owners eventually rip up their carpets and find cracks in their slabs (due to improper grading and infill), many stop making mtg payments, taxes and/or HOA dues. Hence, an assn’s mgmt is constantly in small claims court obtaining judgments against delinquent homeowners who are in many cases overmortgaged. Due to this factor and the fact that an HOA doesn’t want to own any units, they don’t foreclose their lien(s) and typically don’t get pd until a delinquent unit reverts back to bene and the dues are caught up or they agree to take a short-pay on a short sale (rare??). Some owners are paying their mtgs but NOT their HOA dues.

This is not a “doomsday scenario.” Condo assns are faced with these intractable problems much more often than not.

Also, landscaping mat’ls and labor and well as other trades svcs have increased over the years due to increased worker’s comp premiums. HOA’s can’t hire an unlicensed svc co or individual (relative?) handyman/carpenter (like an SFR owner can), no matter how talented they are, due to liability issues. It’s not uncommon for a special assessment to be more than $2,500 per owner, esp in a small complex.

[bearishgurl]

[quote=Ren][quote=JBurkett19]There are indeed special assessments for the roof replacemnt and any other major repair. That is why I dislike HOA’s. They have too much power and the regular monthly fees never seem to go to anything substantial.

Special assessments for major repairs are as real as a heart attack.[/quote]

For major unforeseen repairs, sure. HOA’s know what the major expenses will cost them, they plan for it, and it’s in every HOA’s budget. It’s one reason HOA fees continually go up. If they miscalculate by several thousand, okay. Nobody could be dead on. I could handle a $500-1000 per unit special assessment. But the entire cost of the roof? That would take some serious management ineptitude and corruption.

It’s the reason a housing development only need charge $46/month for a pool, security, and large private park (my ‘hood as an example), while a condo complex will charge $200-300. If an HOA squandered that much cash over decades, someone should be in jail.[/quote]

It isn’t quite like you’re describing here in actual reality, Ren. Often, HOA’s don’t realize until well after the fact that their developers used faulty plumbing parts between the walls, did not grade the site properly (causing water to drain towards the bldgs), installed the sprinkler system shoddily (causing leaks to spring up everywhere), used cheap fake wrought iron w/o powder-coating around the pool (which rusted out in 2-3 yrs), didn’t seal about the pool deeply enough, bought cheap pool heater/filter, didn’t support the balconies properly, didn’t install rain gutters/downspouts … and the list goes on … and on. The HOA land might even be draining onto other public or private property and the Assn may be facing govm’t-imposed fines for this. HOA’s are often mired in unexpected (often emergency) repairs and then legal fees (when they decide to sue their developer and all their subs) for construction defect issues.

When indiv townhome owners eventually rip up their carpets and find cracks in their slabs (due to improper grading and infill), many stop making mtg payments, taxes and/or HOA dues. Hence, an assn’s mgmt is constantly in small claims court obtaining judgments against delinquent homeowners who are in many cases overmortgaged. Due to this factor and the fact that an HOA doesn’t want to own any units, they don’t foreclose their lien(s) and typically don’t get pd until a delinquent unit reverts back to bene and the dues are caught up or they agree to take a short-pay on a short sale (rare??). Some owners are paying their mtgs but NOT their HOA dues.

This is not a “doomsday scenario.” Condo assns are faced with these intractable problems much more often than not.

Also, landscaping mat’ls and labor and well as other trades svcs have increased over the years due to increased worker’s comp premiums. HOA’s can’t hire an unlicensed svc co or individual (relative?) handyman/carpenter (like an SFR owner can), no matter how talented they are, due to liability issues. It’s not uncommon for a special assessment to be more than $2,500 per owner, esp in a small complex.

[bearishgurl]

[quote=Ren][quote=JBurkett19]There are indeed special assessments for the roof replacemnt and any other major repair. That is why I dislike HOA’s. They have too much power and the regular monthly fees never seem to go to anything substantial.

Special assessments for major repairs are as real as a heart attack.[/quote]

For major unforeseen repairs, sure. HOA’s know what the major expenses will cost them, they plan for it, and it’s in every HOA’s budget. It’s one reason HOA fees continually go up. If they miscalculate by several thousand, okay. Nobody could be dead on. I could handle a $500-1000 per unit special assessment. But the entire cost of the roof? That would take some serious management ineptitude and corruption.

It’s the reason a housing development only need charge $46/month for a pool, security, and large private park (my ‘hood as an example), while a condo complex will charge $200-300. If an HOA squandered that much cash over decades, someone should be in jail.[/quote]

It isn’t quite like you’re describing here in actual reality, Ren. Often, HOA’s don’t realize until well after the fact that their developers used faulty plumbing parts between the walls, did not grade the site properly (causing water to drain towards the bldgs), installed the sprinkler system shoddily (causing leaks to spring up everywhere), used cheap fake wrought iron w/o powder-coating around the pool (which rusted out in 2-3 yrs), didn’t seal about the pool deeply enough, bought cheap pool heater/filter, didn’t support the balconies properly, didn’t install rain gutters/downspouts … and the list goes on … and on. The HOA land might even be draining onto other public or private property and the Assn may be facing govm’t-imposed fines for this. HOA’s are often mired in unexpected (often emergency) repairs and then legal fees (when they decide to sue their developer and all their subs) for construction defect issues.

When indiv townhome owners eventually rip up their carpets and find cracks in their slabs (due to improper grading and infill), many stop making mtg payments, taxes and/or HOA dues. Hence, an assn’s mgmt is constantly in small claims court obtaining judgments against delinquent homeowners who are in many cases overmortgaged. Due to this factor and the fact that an HOA doesn’t want to own any units, they don’t foreclose their lien(s) and typically don’t get pd until a delinquent unit reverts back to bene and the dues are caught up or they agree to take a short-pay on a short sale (rare??). Some owners are paying their mtgs but NOT their HOA dues.

This is not a “doomsday scenario.” Condo assns are faced with these intractable problems much more often than not.

Also, landscaping mat’ls and labor and well as other trades svcs have increased over the years due to increased worker’s comp premiums. HOA’s can’t hire an unlicensed svc co or individual (relative?) handyman/carpenter (like an SFR owner can), no matter how talented they are, due to liability issues. It’s not uncommon for a special assessment to be more than $2,500 per owner, esp in a small complex.

[bearishgurl]

[quote=Ren][quote=JBurkett19]There are indeed special assessments for the roof replacemnt and any other major repair. That is why I dislike HOA’s. They have too much power and the regular monthly fees never seem to go to anything substantial.

Special assessments for major repairs are as real as a heart attack.[/quote]

For major unforeseen repairs, sure. HOA’s know what the major expenses will cost them, they plan for it, and it’s in every HOA’s budget. It’s one reason HOA fees continually go up. If they miscalculate by several thousand, okay. Nobody could be dead on. I could handle a $500-1000 per unit special assessment. But the entire cost of the roof? That would take some serious management ineptitude and corruption.

It’s the reason a housing development only need charge $46/month for a pool, security, and large private park (my ‘hood as an example), while a condo complex will charge $200-300. If an HOA squandered that much cash over decades, someone should be in jail.[/quote]

It isn’t quite like you’re describing here in actual reality, Ren. Often, HOA’s don’t realize until well after the fact that their developers used faulty plumbing parts between the walls, did not grade the site properly (causing water to drain towards the bldgs), installed the sprinkler system shoddily (causing leaks to spring up everywhere), used cheap fake wrought iron w/o powder-coating around the pool (which rusted out in 2-3 yrs), didn’t seal about the pool deeply enough, bought cheap pool heater/filter, didn’t support the balconies properly, didn’t install rain gutters/downspouts … and the list goes on … and on. The HOA land might even be draining onto other public or private property and the Assn may be facing govm’t-imposed fines for this. HOA’s are often mired in unexpected (often emergency) repairs and then legal fees (when they decide to sue their developer and all their subs) for construction defect issues.

When indiv townhome owners eventually rip up their carpets and find cracks in their slabs (due to improper grading and infill), many stop making mtg payments, taxes and/or HOA dues. Hence, an assn’s mgmt is constantly in small claims court obtaining judgments against delinquent homeowners who are in many cases overmortgaged. Due to this factor and the fact that an HOA doesn’t want to own any units, they don’t foreclose their lien(s) and typically don’t get pd until a delinquent unit reverts back to bene and the dues are caught up or they agree to take a short-pay on a short sale (rare??). Some owners are paying their mtgs but NOT their HOA dues.

This is not a “doomsday scenario.” Condo assns are faced with these intractable problems much more often than not.

Also, landscaping mat’ls and labor and well as other trades svcs have increased over the years due to increased worker’s comp premiums. HOA’s can’t hire an unlicensed svc co or individual (relative?) handyman/carpenter (like an SFR owner can), no matter how talented they are, due to liability issues. It’s not uncommon for a special assessment to be more than $2,500 per owner, esp in a small complex.

[bearishgurl]

[quote=JBurkett19] . . . The fundamental point in owning real estate is to one day have it free and clear (outside of unavoidable property taxes). But, with HOA fees, you’ll NEVER have it free and clear.

Anyway-just my humble opinion[/quote]

I couldn’t have said this any better myself, JBurkett19!

[bearishgurl]

[quote=JBurkett19] . . . The fundamental point in owning real estate is to one day have it free and clear (outside of unavoidable property taxes). But, with HOA fees, you’ll NEVER have it free and clear.

Anyway-just my humble opinion[/quote]

I couldn’t have said this any better myself, JBurkett19!

[bearishgurl]

[quote=JBurkett19] . . . The fundamental point in owning real estate is to one day have it free and clear (outside of unavoidable property taxes). But, with HOA fees, you’ll NEVER have it free and clear.

Anyway-just my humble opinion[/quote]

I couldn’t have said this any better myself, JBurkett19!

[bearishgurl]

[quote=JBurkett19] . . . The fundamental point in owning real estate is to one day have it free and clear (outside of unavoidable property taxes). But, with HOA fees, you’ll NEVER have it free and clear.

Anyway-just my humble opinion[/quote]

I couldn’t have said this any better myself, JBurkett19!

[Author]

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