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Ren
ParticipantNice – type a long post, save it, confirm it’s there, and… deleted. I’ve lost count of the number of times that’s happened. Time to switch out the Flintstones forum software and/or get a real web host. Not that I’m complaining about a free service.
Anyway, JB and BG are anti-HOA, I get it, nothing wrong with that – but I think the bias is causing you to exaggerate. I can understand a financial catastrophe happening to one in 50 complexes, but with the size and frequency of the assessments you’re talking about, a majority of owners would be dealing with hundreds of thousands of dollars routinely going missing, and just quietly keep paying it. In my experience (limited to a dozen condos owned by friends and colleagues) that just doesn’t happen. I remember one couple getting irritated at a couple hundred dollar assessment, after being in the unit for 14 years.
“Free and clear” is a fantasy because of the aforementioned property taxes. Besides, it’s not about pride of ownership, it’s about cash flow. There’s no way around the math – condos frequently give a better return (significantly cheaper to buy into for similar cash flow) than SFRs, even if we include a few outrageous assessments. The HOA fees/assessments are deductible, and the larger market makes condos easier to rent. The pros outweigh the cons, in my opinion. Given enormous funds, maybe I’d only own SFRs and would pay someone else to manage them, just so I would be able to more accurately predict long-term maintenance costs. I don’t have enormous funds, and I want the best return for my investment.
ParticipantNice – type a long post, save it, confirm it’s there, and… deleted. I’ve lost count of the number of times that’s happened. Time to switch out the Flintstones forum software and/or get a real web host. Not that I’m complaining about a free service.
Anyway, JB and BG are anti-HOA, I get it, nothing wrong with that – but I think the bias is causing you to exaggerate. I can understand a financial catastrophe happening to one in 50 complexes, but with the size and frequency of the assessments you’re talking about, a majority of owners would be dealing with hundreds of thousands of dollars routinely going missing, and just quietly keep paying it. In my experience (limited to a dozen condos owned by friends and colleagues) that just doesn’t happen. I remember one couple getting irritated at a couple hundred dollar assessment, after being in the unit for 14 years.
“Free and clear” is a fantasy because of the aforementioned property taxes. Besides, it’s not about pride of ownership, it’s about cash flow. There’s no way around the math – condos frequently give a better return (significantly cheaper to buy into for similar cash flow) than SFRs, even if we include a few outrageous assessments. The HOA fees/assessments are deductible, and the larger market makes condos easier to rent. The pros outweigh the cons, in my opinion. Given enormous funds, maybe I’d only own SFRs and would pay someone else to manage them, just so I would be able to more accurately predict long-term maintenance costs. I don’t have enormous funds, and I want the best return for my investment.
ParticipantNice – type a long post, save it, confirm it’s there, and… deleted. I’ve lost count of the number of times that’s happened. Time to switch out the Flintstones forum software and/or get a real web host. Not that I’m complaining about a free service.
Anyway, JB and BG are anti-HOA, I get it, nothing wrong with that – but I think the bias is causing you to exaggerate. I can understand a financial catastrophe happening to one in 50 complexes, but with the size and frequency of the assessments you’re talking about, a majority of owners would be dealing with hundreds of thousands of dollars routinely going missing, and just quietly keep paying it. In my experience (limited to a dozen condos owned by friends and colleagues) that just doesn’t happen. I remember one couple getting irritated at a couple hundred dollar assessment, after being in the unit for 14 years.
“Free and clear” is a fantasy because of the aforementioned property taxes. Besides, it’s not about pride of ownership, it’s about cash flow. There’s no way around the math – condos frequently give a better return (significantly cheaper to buy into for similar cash flow) than SFRs, even if we include a few outrageous assessments. The HOA fees/assessments are deductible, and the larger market makes condos easier to rent. The pros outweigh the cons, in my opinion. Given enormous funds, maybe I’d only own SFRs and would pay someone else to manage them, just so I would be able to more accurately predict long-term maintenance costs. I don’t have enormous funds, and I want the best return for my investment.
ParticipantNice – type a long post, save it, confirm it’s there, and… deleted. I’ve lost count of the number of times that’s happened. Time to switch out the Flintstones forum software and/or get a real web host. Not that I’m complaining about a free service.
Anyway, JB and BG are anti-HOA, I get it, nothing wrong with that – but I think the bias is causing you to exaggerate. I can understand a financial catastrophe happening to one in 50 complexes, but with the size and frequency of the assessments you’re talking about, a majority of owners would be dealing with hundreds of thousands of dollars routinely going missing, and just quietly keep paying it. In my experience (limited to a dozen condos owned by friends and colleagues) that just doesn’t happen. I remember one couple getting irritated at a couple hundred dollar assessment, after being in the unit for 14 years.
“Free and clear” is a fantasy because of the aforementioned property taxes. Besides, it’s not about pride of ownership, it’s about cash flow. There’s no way around the math – condos frequently give a better return (significantly cheaper to buy into for similar cash flow) than SFRs, even if we include a few outrageous assessments. The HOA fees/assessments are deductible, and the larger market makes condos easier to rent. The pros outweigh the cons, in my opinion. Given enormous funds, maybe I’d only own SFRs and would pay someone else to manage them, just so I would be able to more accurately predict long-term maintenance costs. I don’t have enormous funds, and I want the best return for my investment.
Participant[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.
Participant[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.
Participant[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.
Participant[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.
Participant[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.
Participant[quote=bearishgurl][quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex).[/quote]
I don’t doubt that’s sometimes the case. However, I have a lot of friends that are long-term condo owners, I’ve spent years lurking in landlord forums, and your post is the first I’ve heard of a special assesment for roof, exterior paint, or siding. These are usually built into an HOA budget as “reserve expenses” separate from monthly maintenance. That shouldn’t change without some kind of mismanagement or a large number of defaults.
[quote]As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.[/quote]
Hence my comment about more risk than with SFRs.
Participant[quote=bearishgurl][quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex).[/quote]
I don’t doubt that’s sometimes the case. However, I have a lot of friends that are long-term condo owners, I’ve spent years lurking in landlord forums, and your post is the first I’ve heard of a special assesment for roof, exterior paint, or siding. These are usually built into an HOA budget as “reserve expenses” separate from monthly maintenance. That shouldn’t change without some kind of mismanagement or a large number of defaults.
[quote]As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.[/quote]
Hence my comment about more risk than with SFRs.
Participant[quote=bearishgurl][quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex).[/quote]
I don’t doubt that’s sometimes the case. However, I have a lot of friends that are long-term condo owners, I’ve spent years lurking in landlord forums, and your post is the first I’ve heard of a special assesment for roof, exterior paint, or siding. These are usually built into an HOA budget as “reserve expenses” separate from monthly maintenance. That shouldn’t change without some kind of mismanagement or a large number of defaults.
[quote]As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.[/quote]
Hence my comment about more risk than with SFRs.
Participant[quote=bearishgurl][quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex).[/quote]
I don’t doubt that’s sometimes the case. However, I have a lot of friends that are long-term condo owners, I’ve spent years lurking in landlord forums, and your post is the first I’ve heard of a special assesment for roof, exterior paint, or siding. These are usually built into an HOA budget as “reserve expenses” separate from monthly maintenance. That shouldn’t change without some kind of mismanagement or a large number of defaults.
[quote]As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.[/quote]
Hence my comment about more risk than with SFRs.
Participant[quote=bearishgurl][quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex).[/quote]
I don’t doubt that’s sometimes the case. However, I have a lot of friends that are long-term condo owners, I’ve spent years lurking in landlord forums, and your post is the first I’ve heard of a special assesment for roof, exterior paint, or siding. These are usually built into an HOA budget as “reserve expenses” separate from monthly maintenance. That shouldn’t change without some kind of mismanagement or a large number of defaults.
[quote]As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.[/quote]
Hence my comment about more risk than with SFRs.
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