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Coming up Today ladies and gentlemen in todays video I’m going to give you 5 pro’s and 5 con’s about home owners associations, stay tuned. My name is Michael Hicks, real estate agent and investor and today I’m here to talk about the blessing, or curse, that is a home owners association.
Lets start off the pro’s with all of those great amenities you’ll enjoy. One of the main perks of having a home owners association are all the great amenities. These may include pools, fitness centers having the community be gated, just to name a few. Next on our list, is the sense of community you’ll have with your neighbors. If you decide to be active with your HOA, you definitely get to know everyone in the neighborhood. This could be a pro or a con as you may make some friends or some enemies, however in most cases, it’s a positive.
Number 3 on our list is that your maintenance costs will be shared. Most of the fees for your HOA will go towards community maintenance as well as your amenities. A lot of HOA’s take care of trash pick up, making care your landscaping is taken care of, and other general maintenance. For people who want a hands off living environment, having a HOA is definitely one of the things you want to look for when purchasing a home
That leads me into #4, your neighborhood will look great. In most cases, because maintenance and amenities are ran by the HOA, there is less left up to chance. This is because the one of the main reasons to have an HOA is to make sure that the property value of the community stays as high as possible. You are paying so that you don’t have to have your neighbor paint there house pink or purple and drive down the property value of everybody in the neighborhood.
And last on our list of pros, is mediation. If you are having any type of disagreement with your neighbors, you can contact your HOA board and they can decide for you. It can be any size disagreement, large issues that are explicitly against your HOA or small one like your neighbor parking their car a quarter of an inch across your property line.
Now lets get into these cons, and to start it off we can talk about those pesky dues. HOA dues can vary by a large amount, I’ve seen some communities where dues are under 20 dollars a month and some communities with dues over 500 dollars a month. Each HOA is different with their payment schedule as well, some are monthly, some are bi monthly, some are quarterly, biannual and some annual.
The second con is giving up some of your freedom. Remember me mentioning that the HOA would stop your neighbor from painting their house pink or purple? Well if you want a pink or purple house, you wouldn’t be able to do so. Of course it doesn’t have to be that drastic but the point remains that you must abide by the HOA’s rules and regulations
Which leads me into point number 3, that you will be living with regulations. While you own your home and the land that it sits on, your HOA makes the final say on what goes on there. If you want to make any changes to your property, you need to get them approved by the HOA first. Even if you think whatever updates you want to do are going to improve your property value and the HOA would agree, they may deny your request as they wouldn’t want one house way out of the league of the others
Good Segway into Number 4 on our list, is dealing with HOA board members. While this shouldn’t happen, we’d all be foolish to think that it didn’t, but some HOA board members can take their position a little too serious. I’m not here to judge anyone but some people take their job as a board member on a HOA way too seriously. This person or persons if you are extremely unlucky, can effect the entire neighborhood and make the entire living experience unpleasant.
And last on my list is being blind sided by HOA fees and special assessments. If your HOA is being sued, or caught up in financial issues due to special assessments or any other reason, This financial burden gets passed down to everyone in the community. There doesn’t have to be any notice of this and it can come at any time. And we all know that at the worst times, is when these issues may arise. So as you can see, whether home owners associations are good or bad is really a personal decision. If you think that the good outweighs the bad or vice versa, then all depends on what is important to you and your neighborhood