What You Should Know about Homeowners Associations

When you buy a property in a planned development such as a condo, townhome, or subdivision, you are obligated to join the homeowners association, or HOA, of the community. This usually involves paying fees every month, quarter, or year for the maintenance and upkeep of the building and commons areas in it.

Homeowners associations also involve rules and regulations that you and other owners and tenants in the building must abide by. If you are planning on buying a leased land property or a home in a gated community, there are some things that you should be aware of before you sign on the dotted line.

What do HOAs involve?

Homeowners associations involve regulations regarding the property that are set by a board of directors or committee. These rules are then enforced by a management company or even a group of volunteers. The key is to find an HOA with regulations that fit your lifestyle and your own personal requirements. You can even become involved with the homeowners association to let your voice be heard.

While some people are fine with the rules set forth by the HOA, some buyers simply do like the fact that there are regulations that they must follow. They do not care for anyone telling them where they can park on their property or what color they can paint their home. If you are one of these people, you are probably not a good candidate to buy this type of home. There is certainly nothing wrong with wanting the freedom to make your own choices regarding your house! For others, living in an HOA community is something that they prefer. Below you’ll find some of the benefits of an HOA property.

Pros of homeowners associations

There are many reasons that homeowners prefer living in an HOA community. Here are a few:

• Maintenance is low. Tasks such as trash removal and the maintenance of your lawn and common areas are completed by the HOA. This means less work for you as a homeowner.
• Management can handle issues. Problems such as loud music and barking dogs can be handled by the management of the HOA. This means that you avoid getting involved in a shouting match with your neighbor.
• Community appearance is set to high standards. The association must make sure the property and development are maintained and looking fresh. Homeowners will probably not see houses with peeling paint or unmaintained lawns.
• You can enjoy many recreational amenities. Many HOAs have a pool, tennis courts, walking trails, and playing fields that are specifically for residents only.

Cons of homeowners associations

As stated before, living in an HOA community is not for everyone. Here are some reasons why:

• You have to pay HOA fees. These fees can be up to $400 every month depending on how upscale the property is. Some amenities such as the gym could save you money in the long run, but you must determine this before you buy.
• You must follow the HOA rules and regulations. If you don’t like anyone telling you that you can’t paint your house purple, you probably should not live in this type of home.
• The fees could have an impact on your finances. A condo with high HOA fees might end up costing you as much as the house you don't think you can afford.

So if you’re considering buying property that is managed by an HOA, remember to evaluate your temperament, preferences, and lifestyle. Be sure to learn the rules of the HOA before you buy!

Whether you purchase a condo or subdivision, it is a good idea to know the property’s value. Remember, you can always rely on a free home valuation report from Neighborhood IQ to help you in the buying process. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

The Costs of Buying and Owning Investment Property

Buying and owning investment property is a lot like buying and owing a residence. While you want to get a good deal on investment real estate, you should avoid cutting back on the property simply because you are not going to be living there. You don’t want to have unhappy tenants who call you for repairs all of the time. Also, you could very well end up living in the residence yourself. The point is not to skimp.

Before you sign on the dotted line, you should get a professional home inspection so that know every flaw the property has. Whether you are purchasing a house, condo, or small building with a few rental units, you’ll want to get an inspector that specializes in the type of property you want to buy. Remember that the bigger the property, the more potentially expensive problems you may face.

In addition to mortgage and real estate taxes, here are some costs that you may have to pay when you buy and own investment property:

Homeowners association fees and monthly maintenance fees: If the rent you are charging does not cover these fees, they are ultimately your responsibility.

Utilities: While your tenant will pay most of these directly, other utility costs will be included in your tax bill. You also may be responsible for paying the water bill and other costs.

Landscaping: Be sure to list what the tenant is responsible for if you are renting out a single-family house. If you are renting out a condo, the landscaping probably won’t be your responsibility. You’ll pay a maintenance fee every month for the management company to take care of it.

Repairs/maintenance to the exterior and interior: This includes repainting in between tenants, carpet cleaning, and any damaged parts of the unit.

Getting the property in rentable condition: Perhaps the biggest cost of buying and owning investment property involves the repairs that are necessary to get the property in rentable condition. You should take a lot of time to figure out the cost of repairing the unit after getting a professional home inspection.

Be sure to consider the advantages of knowing the true value of your home. You can obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth, especially after your fall and winter home improvements and maintenance projects are completed. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

10 Most Costly House Problems

Every homeowner experiences problems with their home sooner or later. The intensity of these problems depends on the level of maintenance the house has received over the years. Whether you are buying a home or selling your current house, you may want to check for certain problems that have been left unattended to. If you wait until after a home appraiser or inspector flags the issues, it could result in a lot more money out of your pocket. So, don’t wait until closing to fix the problems or address them with the owner.

Some of the following home problems are so common that many homeowners simply learn to live with them. However, the problems can be avoidable by providing proper maintenance and checking out the most common ones periodically.

Here are 10 of the most common problems that homeowners encounter while buying or living in a home:

1.       Problem roofs. The roof of your home is one of those things that you don’t pay much attention to. That is, until you see a leak. The roof can be one of the most costly things to fix, so use binoculars to check for warning signs. Also, get a professional roof inspection before putting your house on the market.

2.       Water in the basement. These problems should be solved as soon as possible to minimize damage that can include mold and mildew.

3.       Deferred maintenance. Keeping your home in top condition is an investment that will return the more you spend.

4.       Flaws in the foundation. Older homes and even newer ones can settle unevenly. Look for sloping floors and cracks in the foundation walls as well as above windows.

5.       Poor ventilation. The effects of poor ventilation on your health are huge, so make sure places like the attic are properly vented in order to avoid mold or roof rot.

6.       Faulty plumbing. It’s crucial to keep a close eye on the water supply system. Trace leaks to sources immediately, and replace corroding pipes.

7.       Defective HVAC systems. If you have just bought a home or you are thinking of selling your current home, it’s a good idea to contact a HVAC contractor for an inspection.

8.       Faulty gutters and downspouts. Constant checking is needed to properly maintain the gutters and downspouts in order to avoid water damage.

9.       Drainage problems. Homeowners often overlook landscaping issues which can which allow water to drain into the house’s basement or crawlspace. Water damage can be costly to repair and lessen the value of your home.

10.   Faulty wiring. Many electrical problems are caused by homeowners who try to do the work themselves or hire someone unlicensed. Look for dangling hotwires, open receptacle boxes, and aluminum wiring.

In the midst of checking your home or home-to-be for common problems, consider the advantages of knowing the true value of the property. Be sure to obtain a free home valuation report from Neighborhood IQ to find out how much a home is worth before you ultimately buy or sell! Also keep n mind that Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm as well as match you with potential lenders who have products that may help you and provide you with a sense of stability.