Great video, thank you. I live in a town home and just got hit by a 33% HOA rate hike, a 50% hike in my homeowner's insurance, and have been wondering what's going on here. I'm probably just going to bail on property ownership and go back to renting because my insurance/HOA/taxes alone now cost half what an apartment costs to rent, so it doesn't make financial sense to have capital tied up in a condo any more, not when it costs this much on a monthly basis.
I’ve never understood why people think HOA fees do nothing, pay for nothing, or just exist as a payment that someone is siphoning off the top… Yes HOA dues have come up but so has the cost of SFH insurance, so has the cost of regular maintenance of SFHs, so has the cost of utilities, and so has the cost of special maintenance of SFHs. Home prices have sky rocketed and you’d expect that the insurance on that underlying asset will also increase. No free lunches… And just because many people do not actually accrue the true cost of SFH ownership (insurance increases, saving 1% of value of maintenance, saving an additional amount for things like AC/roof/furnace)… doesn’t mean they don’t exist! Your house cost is not just mortgage and insurance premium. A healthy HOA is collecting fees to cover master insurance policy, utilities, maintenance, and reserves for a rainy day. The same that you should (and eventually will) pay for a SFH whether you want to or not! Curious to know your thoughts Sam on the true cost of ownership for attached homes with HOAs vs SFHs w/o HOAs. Would be a good video topic!
Yup, people can go look at the budgets for their HOA at any time. Rents are a good example of a true cost of ownership as you must include the depreciation of all the items in the house. The only key difference is that you wouldn’t include the cost of vacancy (~8%) and you don’t include the cost of profit (0-8%)
Colorado weather for most of the year eliminates the need for grounds keeping and prevents the use of amenities. What's covered? water, trash, indoor pool, structure lol. Your roof is not covered. What's the average annual cost of HOA $6000 Ask a condo owner they can handle it themselves for less than that. I have a 3 bed 3 bath 2200 sq/ft in Georgia with large front and back yard and no HOA I pay less than $6000 annually. I own a 3 bed 2 bath 1480 sq/ft townhouse rental in FL and have a boat of year-round amenities. I pay $123.00 month. HOA is a rip off.
I agree with a lot of your points (not a huge HOA guy overall) but I think you’re off base about Colorado weather. Groundskeeping is in play for a big chunk of the year, and snow removal costs money, too. What’s covered varies greatly by property-some buildings have fantastic amenities, others have next to nothing.
Great video, thank you. I live in a town home and just got hit by a 33% HOA rate hike, a 50% hike in my homeowner's insurance, and have been wondering what's going on here. I'm probably just going to bail on property ownership and go back to renting because my insurance/HOA/taxes alone now cost half what an apartment costs to rent, so it doesn't make financial sense to have capital tied up in a condo any more, not when it costs this much on a monthly basis.
That's loony, and unfortunately, becoming a common sort of pricing hike. It does feel like there's an HOA reckoning on the horizon somewhere.
Nice work Sam. Really appreciate these videos.
Thank you, and glad you’re finding them valuable!
I’ve never understood why people think HOA fees do nothing, pay for nothing, or just exist as a payment that someone is siphoning off the top…
Yes HOA dues have come up but so has the cost of SFH insurance, so has the cost of regular maintenance of SFHs, so has the cost of utilities, and so has the cost of special maintenance of SFHs.
Home prices have sky rocketed and you’d expect that the insurance on that underlying asset will also increase. No free lunches… And just because many people do not actually accrue the true cost of SFH ownership (insurance increases, saving 1% of value of maintenance, saving an additional amount for things like AC/roof/furnace)… doesn’t mean they don’t exist! Your house cost is not just mortgage and insurance premium.
A healthy HOA is collecting fees to cover master insurance policy, utilities, maintenance, and reserves for a rainy day. The same that you should (and eventually will) pay for a SFH whether you want to or not!
Curious to know your thoughts Sam on the true cost of ownership for attached homes with HOAs vs SFHs w/o HOAs. Would be a good video topic!
Yup, people can go look at the budgets for their HOA at any time.
Rents are a good example of a true cost of ownership as you must include the depreciation of all the items in the house. The only key difference is that you wouldn’t include the cost of vacancy (~8%) and you don’t include the cost of profit (0-8%)
Colorado weather for most of the year eliminates the need for grounds keeping and prevents the use of amenities. What's covered? water, trash, indoor pool, structure lol. Your roof is not covered.
What's the average annual cost of HOA $6000 Ask a condo owner they can handle it themselves for less than that. I have a 3 bed 3 bath 2200 sq/ft in Georgia with large front and back yard and no HOA I pay less than $6000 annually.
I own a 3 bed 2 bath 1480 sq/ft townhouse rental in FL and have a boat of year-round amenities. I pay $123.00 month. HOA is a rip off.
I agree with a lot of your points (not a huge HOA guy overall) but I think you’re off base about Colorado weather. Groundskeeping is in play for a big chunk of the year, and snow removal costs money, too. What’s covered varies greatly by property-some buildings have fantastic amenities, others have next to nothing.
@@DenverLivingwithSam yeahhh snow removal alone will cost 6 figures for a decent size HOA