UnThreaded | Threaded | Whole Thread (33) | Ignore Thread Prev Thread | Next Thread
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 63080  
Subject: intercst a Homeowner Date: 10/14/2012 2:49 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 21
I just bought a 2-bed, 2-bath, 1-car garage condo for about 6 times its annual rent. I paid cash, but if I assume a monthly payment on a 3.5% mortgage, mortgage + property taxes + HOA fees = 1/2 the monthly rent on a neighboring unit. That's what it takes to get me to put up with the burdens and hassles of owning a home.

Unit was a Fannie Mae foreclosure. They put new cabinets in the kitchen and bathroom vanities, new carpet and paint. Place was in move-in condition

I believe this marks the turn in the real estate market.

intercst
Print the post Back To Top
Author: ariechert Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45825 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 2:59 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
"I just bought a 2-bed, 2-bath, 1-car garage condo for about 6 times its annual rent. I paid cash, but if I assume a monthly payment on a 3.5% mortgage, mortgage + property taxes + HOA fees = 1/2 the monthly rent on a neighboring unit. That's what it takes to get me to put up with the burdens and hassles of owning a home. Unit was a Fannie Mae foreclosure. They put new cabinets in the kitchen and bathroom vanities, new carpet and paint. Place was in move-in condition I believe this marks the turn in the real estate market." - intercst
--------


Mmmmm? Pretty interesting. I wonder if this revelation might be enough to get lindytoes to buy a condo after she sells her house? She said she is tired of owning a home and upkeep. I think taking care of her giant yard has gotten to be difficult for her at this stage also.

And I guess since it's a condo that means no yard to take care of? No mowing, raking, pruning, etc.? What about when you travel? Can you turn off the heat/air conditioning and just go off and leave it during the summer (if it's in Houston, TX which is what I'm assuming?) if you decide to go to Connecticut to visit?

Art

Print the post Back To Top
Author: sykesix Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45826 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 3:11 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Congratulations. I like the feeling of owning as opposed to renting. It might not be fully rational, but the feeling is real enough.

What motivated you to pay cash as opposed to borrowing at 3.5%?

Print the post Back To Top
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45827 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 3:27 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
sykesix asks,

What motivated you to pay cash as opposed to borrowing at 3.5%?

It cost less than the price of a new lexus. It wasn't worth filling out all the extra forms and paying the fees to take out a mortgage. Also, I had ready cash earning 2% in a short-term bond fund and the mortgage interest and property taxes won't be enough to exceed the standard deduction for me.

Art -- as far as traveling, I'll just turn off the water at the meter and I should be good to go.

intercst

Print the post Back To Top
Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45828 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 3:46 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
I'll look forward to intercst report on his attending a Condo Association Board Meeting.


Did you do any research on the Condo Association, intercst? What percentage of their condos are defaulting on paying dues, what kind of reserves has the condo association accumulated against future repairs, and how old is the development?

Personally I found Condo Association meetings to be community meetings well worth attending. A smart board might start grooming intercst as a future Condo Association president.



Seattle Pioneer

Print the post Back To Top
Author: telegraph Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45830 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 5:38 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
a condo or town house can be the way to go.

My parents had a nice deal in FL in Briny Breezes...they paid $3500 a year to the park....all the exterior landscaping maintained.....no grass to cut, no bushes to trim, no trees to trim....done....plus you had all the facilities (pool, ocean house, police protection, security gates on all but main entrance at night, etc0......

I had nice 'fee simple' townhouse in Arlington. Owned the land....but it was a 30 unit affair in 3 units. All the outside was maintained...grass and bushes and trees trimmed...snow shoveled in parking lot and sidewalks but not your own six foot walk....

Nice deal.....you could leave with no hassle and I did...turned off water valve...but you still needed someone to check on heat in winter to be sure it didn't freeze up......had heat at 50...and likely adjacent units provided most of heat...chuckle chuckle..but I was working back then so trips were just 2 weeks or so.

Interior was your responsibility.

So was your roof. Low monthly for 'association'. ....

----

Condo in secure facility can be good. You can leave and not worry..have neighbor take in any 'door hangers' or stuff dumped on doorstep. or cobwebs.....

Put some lights on timers....and away you go.



Looks like intercst is settling down.


t.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: CCinOC Big funky green star, 20000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45831 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 6:53 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
telegraph wrote: Looks like intercst is settling down.


Looks like intercst is (finally) getting smart(er).

Print the post Back To Top
Author: ariechert Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45832 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 7:19 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
"It cost less than the price of a new lexus. It wasn't worth filling out all the extra forms and paying the fees to take out a mortgage. Also, I had ready cash earning 2% in a short-term bond fund and the mortgage interest and property taxes won't be enough to exceed the standard deduction for me. Art -- as far as traveling, I'll just turn off the water at the meter and I should be good to go." - intercst
-----------------------


For me there is something psychologically and emotionally satisfying about living in a paid off house. I know it might not make good economic sense but I feel the same way about driving a paid off car. I just like the feeling of not having a monthly payment I'm responsible for. My friend John told me that responsibility rolls off me like water off a duck's back.

We have two payments that we are responsible each year, homeowner insurance and property taxes. Each one is about $840 & $890/year. After they are paid each year it's like a sigh of relief. Like Forrest Gump said "One less thing to worry about!"

One thing I'm curious about - and to be honest don't completely understand - are "condo fees"? How much are they and what if they want to raise them to an unreasonable level? I don't think I'd like the feeling of being held hostage by a condo association? What if they are a bunch of greedy snooty people who aren't as cheap/frugal as I am? I guess the answer to that one is "if I have to worry about it I'd probably best never get myself into that predicament."

One other thing, I love Florida and there are some cheap condos down in Florida. It would be completely within our budget to be able to afford a condo somewhere in Florida but I worry about traveling back and forth and also, again, paying those yearly condo fees. I've always dreamed about retiring in Florida but it probably won't ever happen for me. I have a feeling I'll be stuck in Tennessee the rest of my life.

Art

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: ariechert Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45833 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 7:29 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Funny story:

We've got good friends that live in Tallahassee, Florida. I was talking to D'Lo the other day on the phone and I mentioned to her that I was fascinated and enamored by "The Villages" in Florida ever since watching that CBS Sunday Morning video about the golf carts and the 90 miles of golf cart roads in the Villages.

Anyway our friends are pretty hard core Democrats and she told me "you don't want to live there, it's controlled by Tea Party people!" She said The Villages is like a great big conservative Republican bastion and the whole place is pretty much a Tea Party Republican stronghold and she thought I'd hate living there because of it!

It was pretty funny. She knows my sister, lindytoes, and is facebook friends with her so I guess she assumed I was as politicized as my sister? That it would bother me living around all those Republicans!

Since I'm a conflict avoider I didn't say anything. The truth is that the older I get the less political I am. The less interest I have in it and the more annoyed and bored I get by it all. I hate boxing and wrestling and sports in general and to me politics is very similar to sports.

Art

Print the post Back To Top
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45834 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 8:14 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
SeattlePioneer asks,

Did you do any research on the Condo Association, intercst? What percentage of their condos are defaulting on paying dues, what kind of reserves has the condo association accumulated against future repairs, and how old is the development?

Absolutely! I've rescinded offers on five other condos over the past year after reviewing the HOA financial statements and Board Meeting minutes. The Treasurer of one HOA was renting his garage to the HOA for $360/month -- you can almost get an apartment for that.

This place doesn't have all the amenities that I no longer use like a pool and tennis court, so the HOA fees are just $90/month. Their reserves area little low, so I'm expecting a $30 or $40/month increase in dues on Jan 1st, though I'm sure most homeowners will resist it. Development was built in 2001. About 15% of the units are in arrears on dues. Foreclosures are selling quickly, so I expect that to come down over the next year.

intercst

Print the post Back To Top
Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45835 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 10:35 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
<<Recommendations: 1
SeattlePioneer asks,

Did you do any research on the Condo Association, intercst? What percentage of their condos are defaulting on paying dues, what kind of reserves has the condo association accumulated against future repairs, and how old is the development?

Absolutely! I've rescinded offers on five other condos over the past year after reviewing the HOA financial statements and Board Meeting minutes. The Treasurer of one HOA was renting his garage to the HOA for $360/month -- you can almost get an apartment for that.>>


As usual, intercst displays commendable shrewdness in analyzing the Condo Association before buying, rather than discovering there is a mess after the fact.


Condo associations can be fine experiences in self management for condo members, but they can also be disasters waiting to pluck condo owners of their money and equity.


<< About 15% of the units are in arrears on dues. Foreclosures are selling quickly, so I expect that to come down over the next year.

intercst>>


Buying in a turnaround situation can have a lot to recommend it, just like with stocks.

I hope intercst will keep us apprised of his relationship with the condo association from time to time and let us know how things are working out business wise for the condo.


I hope intercst's condo purchase turn out to be a great deal and a good experience for him. There ought to be gales of tears being shed by apartment managers over losing intercst as a tenant.



Seattle Pioneer

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: CCinOC Big funky green star, 20000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45836 of 63080
Subject: Re: intercst a Homeowner Date: 10/14/2012 11:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Art wrote: We have two payments that we are responsible each year, homeowner insurance and property taxes. Each one is about $840 & $890/year.

I pay that much PER MONTH.

Print the post Back To Top
Author: ariechert Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45838 of 63080
Subject: Re: intercst a Homeowner Date: 10/15/2012 1:35 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
"I pay that much PER MONTH." - catherine


As in $840 + $890 = $1730/month? Whew! Way out of my league. That's the thing about spending your life down here, it would be difficult for us to leave and move anywhere where the cost of living is way higher. You can go the other way, from a high cost area to a low cost area, but if you spend your life living and working in a lower income area you are pretty much trapped there for life. Like a person who has lived and worked in New York City, San Diego, or San Francisco after retirement they can move pretty much anywhere in the country they want to.

Art

Print the post Back To Top
Author: sykesix Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45840 of 63080
Subject: Re: intercst a Homeowner Date: 10/15/2012 1:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
One thing I'm curious about - and to be honest don't completely understand - are "condo fees"? How much are they and what if they want to raise them to an unreasonable level? I don't think I'd like the feeling of being held hostage by a condo association? What if they are a bunch of greedy snooty people who aren't as cheap/frugal as I am? I guess the answer to that one is "if I have to worry about it I'd probably best never get myself into that predicament."

The fees pay for maintenance of all the common areas, which usually includes the building exteriors.

You're fears are real in that your fate becomes connected to the condo association board, which is often composed of power mad and irrational people.

Print the post Back To Top
Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45841 of 63080
Subject: Re: intercst a Homeowner Date: 10/15/2012 2:31 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<<The fees pay for maintenance of all the common areas, which usually includes the building exteriors. >>


In a condo it usually includes the whole building and the land, excluding the paint on the interior walls of each unit. It usually includes all the plumbing and wiring and maintenance of the grounds and any other buildings.

It alos includes liability for the actions or failure to act of the condo association, and purchase of liability, fire and other insurance.

And while condo associations can sue homeowners who fail to pay fees and assessments, and sometimes cut off utilities to units if dues aren't paid, when defaults occur they can be difficult to collect, which can cause higher dues to other condo owners to pay bills that need to be paid.

When a major expense such as replacing roofing, siding or plumbing comes along, either the association has set aside reserves over the years to pay for such things or they have to impose what can be large assessments on current condo owners to pay for them.

If the condo association has set aside reserves, that's a big pot of money which can be targeted for theft or diversion to other purposes.

Conodo associations need the attention of condo owners, and very often they don't get it.


\
Seattle Pioneer

Print the post Back To Top
Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45842 of 63080
Subject: Re: intercst a Homeowner Date: 10/15/2012 9:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
skyesix: <<The fees pay for maintenance of all the common areas, which usually includes the building exteriors.

You're fears are real in that your fate becomes connected to the condo association board, which is often composed of power mad and irrational people. >>

For condos, the HOA fees pay insurance on the building, but not on the interior, for some it includes water and cable service, and as skyesix stated, the maintenance of all the common areas (walkways, roads, greenways, exterior of the buildings, roofs, etc.).

Skyesix, I highly resent your statement regarding "...often composed of power made and irrational people." I have been the president of our 120-unit condo complex since 1992. Believe you me, it is a LOT of work. I am neither irrational nor power mad. However, it is the Board's job to ascertain that the Master Deed and By-Laws are adhered to, as well as the Rules and Regulations of the complex. As a note, the Rules and Regulations were voted on by all the homeowners, as are any Amendments to the Master Deed and By-Laws. In addition, the Board is responsible for ascertaining that the homeowners' money (regime fees) is spent wisely.

In our situation, we have several rental units. One owner of some of the units (14 units) has defaulted, and we have him under foreclosure. So far, he owes over $80K. However, due to the Board's frugality, we have been able to weather this.

Donna

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45843 of 63080
Subject: Re: intercst a Homeowner Date: 10/15/2012 11:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Donna405 writes,

In our situation, we have several rental units. One owner of some of the units (14 units) has defaulted, and we have him under foreclosure. So far, he owes over $80K. However, due to the Board's frugality, we have been able to weather this.

</snip>


What are your prospects of recovering the $80k?. I assume the mortgage debt has seniority over what's due the HOA.

intercst

Print the post Back To Top
Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45844 of 63080
Subject: Re: intercst a Homeowner Date: 10/16/2012 1:15 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
You are right about the existing mortgage debt being a superior lien to the HOA regime fees. We really do not expect to receive anything. However, we would just like the bank to foreclose, but they renegiated the mortgage with the owner, without filing a new mortgage. If they had filed a new mortgage, then our lien would be superior.

We wish to complete the foreclosure process and then one of two things (1) will get a receiver to collect the rents and will pay ourselves or (2) let the lender foreclose against us, at which time we will file a no-trespass order againt the current owner.

You just reminded me...I need to send a e-mail to our attorney to see if he requested a deficiency judgment. This particular owner owns several properties, which I would like our HOA to get its hands on.

Donna

Print the post Back To Top
Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45845 of 63080
Subject: Re: intercst a Homeowner Date: 10/16/2012 2:04 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<<In our situation, we have several rental units. One owner of some of the units (14 units) has defaulted, and we have him under foreclosure. So far, he owes over $80K. However, due to the Board's frugality, we have been able to weather this.

Donna>>


What means do you have available to collect on this, and where are you in collecting on the debt?

Can you cut off utilities to these units? Are they occupied?



Seattle Pioneer

Print the post Back To Top
Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45846 of 63080
Subject: Re: intercst a Homeowner Date: 10/16/2012 9:30 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
We are in the process of cutting cable services to those units. We cannot cut water as that is against state law. In addition, each building has a water meter, not each unit. However, that could be circumvented, and the utility could cut it off to the unit. However, due to statutes, water is considered a necessity, as is heat. Therefore, cutting that off is a no-no.

Right now, we are collecting nothing on the debt. Many of that owner's units are unoccupied. He does not keep them up and no one wants to live in them. In fact, we have another multiple-unit owner, and the tenants in the defaulting owner's units are moving as fast as they can to the additional multi-unit owner, along with others.

SP, in my earlier post, I stated that we have a foreclosure action against the unit owner.

Donna

Print the post Back To Top
Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45847 of 63080
Subject: Re: intercst a Homeowner Date: 10/16/2012 11:27 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hello Donna,


It sounds like you have obtained expert advice and are doing all you can to deal with this debt.

This kind of situation illustrates why it's a mistake to give people too many "rights," since doing so can give abusive people power and make innocent people victims.

I hope your condo association can survive this default without winding up damaging your other condo owners too much. I understand it has caused huge damage to condo owners in other situations where defaults on paying dues have caused collapse of the condo association.



Seattle Pioneer

Print the post Back To Top
Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45848 of 63080
Subject: Re: intercst a Homeowner Date: 10/17/2012 12:09 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 5
Thanks, SP.

Let me tell you a couple of stories. First, a few months ago, a drunk driver ran off the road, flew over the drainage ditch at the road and propelled into two of our buildings, causing quite a bit of damage. Then the car propelled into a resident's Cadillac before resting in a position, in which it looked like the propelling car pushed the Caddie out of its parking space. The police officer really messed up, as he did not perform a breathalyzer on the offending driver. When two other police officers arrived, they smelled the alcohol on the driver. It appears the car owner did not have any insurance, and we received no information from the car driver. Push comes to shove, and we sued both drivers in Small Claims Court (up to $10K in SC). It appears the driver had insurance. Now, the state is taking steps against the owner of the car. So, we got all our repair money.

Then, three weeks ago, one of the buildings caught fire and destroyed the entire building (5 units). One of the owners, who rents his units, did not have any insurance to cover his portion of the repair costs or to cover him for lost rent. His property manager told me that they thought they would just take the risk, and they lost. But, one of our Board members is interested in purchasing those 3 units for $5K each, since the owner of the unit is responsible for everything from the inside walls inward, including cabinetry, plumbing, appliances, carpeting, etc. Let's see what happens. We are now in negotiations with our insurance carrier for rebuilding the building. Two of the owners did have insurance, thank goodness.

Fortunately, even with the loss of income from the defaulting owner, we continue to contribute toward the reserve fund. (See what I mean by "frugal?) So, we have enough in reserve to start the construction and pay down the deductible.

Unfortunately, not all condo associations are as well run as ours. We have a very strong board, one who is an expert in construction, me in the legal affairs and business, and 3 others who have varying talents. In fact, since I've been on the Board for 20 years, this is the strongest Board we have ever had. Our management company uses us as an example of how a Board should be run. Alas, many Boards are too egotistical to work together and are only interested in their individual well-being. Our Board puts the association first, including the renters, as well as the owners.

Donna

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: workwayless Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45849 of 63080
Subject: Re: intercst a Homeowner Date: 10/17/2012 1:02 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I just bought a 2-bed, 2-bath, 1-car garage condo for about 6 times its annual rent. I paid cash, but if I assume a monthly payment on a 3.5% mortgage, mortgage + property taxes + HOA fees = 1/2 the monthly rent on a neighboring unit. That's what it takes to get me to put up with the burdens and hassles of owning a home.

Unit was a Fannie Mae foreclosure. They put new cabinets in the kitchen and bathroom vanities, new carpet and paint. Place was in move-in condition



Welcome to the dark side! I bought a condo from FDIC 20 years ago on the cheap. Always said that decision was a big factor in helping me reach financial independence.

Print the post Back To Top
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45850 of 63080
Subject: Re: intercst a Homeowner Date: 10/17/2012 1:55 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
workwayless writes,

Welcome to the dark side! I bought a condo from FDIC 20 years ago on the cheap. Always said that decision was a big factor in helping me reach financial independence.

How has your condo done appreciation-wise over the past 20 years?

When I first moved to Houston in 1981, half the apartment complex I lived in was converted to condos. You could buy a 640 SF 1-bedroom unit for about $45,000. I took a look at that complex today (31 years later) and you can still buy that 1- bedroom unit for $45,000-$50,000. And it's a decent enough place inside the Loop about a mile from the Galleria Mall.

intercst

Print the post Back To Top
Author: FCorelli Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45851 of 63080
Subject: Re: intercst a Homeowner Date: 10/17/2012 11:00 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
So... how do these Non- One-Million-Dollar type condos do as far as NOISE control? I am a condo type person at heart but having lived in several apartments during and just after my Traveling Years I couldn't see paying house or nearly house-level prices just to have to listen to other idiots be pathologically inconsiderate. I know there are usually rules of decorum but I figured, just as in apartments they never enforce them and the animals end up running the zoo, and not being able to afford a Mitt Romney level of condo I'd just be miserable there. At least in an apartment I could leave at the end of the lease. In a condo I'd be stuck and the neighbors would likely hang around longer too. Lose/lose

Print the post Back To Top
Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45852 of 63080
Subject: Re: intercst a Homeowner Date: 10/17/2012 11:00 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
Alas, many Boards are too egotistical to work together and are only interested in their individual well-being. Our Board puts the association first, including the renters, as well as the owners.

Why were you highly offended earlier? You are just saying a similar thing that skyesix said.

PSU

Print the post Back To Top
Author: Donna405 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45853 of 63080
Subject: Re: intercst a Homeowner Date: 10/18/2012 12:22 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Skyesix made a broad statement as if his comments applied to all HOA's. That is not true. My statement said "many Boards".

Donna

Print the post Back To Top
Author: workwayless Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45856 of 63080
Subject: Re: intercst a Homeowner Date: 10/18/2012 12:29 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
How has your condo done appreciation-wise over the past 20 years?

I bought it for $21,000. It is 1100 square feet. Not the greatest part of Phoenix--but near the mountain parks and close to the Squaw Peak Parkway with easy access to the airport.

At the height of the housing bubble it was worth $145,000 and I had people leaving notes in my mail box begging me to sell.
Now it's worth ~$60,000. So glad it's still worth more than I paid for it...

Print the post Back To Top
Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45857 of 63080
Subject: Re: intercst a Homeowner Date: 10/18/2012 12:53 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
<<At the height of the housing bubble it was worth $145,000 and I had people leaving notes in my mail box begging me to sell.
Now it's worth ~$60,000. So glad it's still worth more than I paid for it...>>


People USUALLY ignore the most important part of home ownership when they are looking at home ownership as an investment. That's the value of the dwelling as a place to live, which may be similar to the rental value of the property.

So when calculating the investment value of the property, you need to consider the sales price less the purchase price, but also the rental value of the property less the expenses of maintaining the property while you occupied it.



Seattle Pioneer

Print the post Back To Top
Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45858 of 63080
Subject: Re: intercst a Homeowner Date: 10/18/2012 1:58 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
workwayless writes,

I bought it for $21,000. It is 1100 square feet. Not the greatest part of Phoenix--but near the mountain parks and close to the Squaw Peak Parkway with easy access to the airport.

At the height of the housing bubble it was worth $145,000 and I had people leaving notes in my mail box begging me to sell.
Now it's worth ~$60,000. So glad it's still worth more than I paid for it...

</snip>


The foreclosure I bought had a similar trajectory. Owner paid $150,000 in 2007, I paid $66,000 for it in 2012. I hope I do as well as you did in surviving the next down cycle.

intercst

Print the post Back To Top
Author: PSUEngineer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45859 of 63080
Subject: Re: intercst a Homeowner Date: 10/18/2012 11:10 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
Skyesix made a broad statement as if his comments applied to all HOA's. That is not true. My statement said "many Boards".

No, he didn't. Here is his exact statement:

"You're fears are real in that your fate becomes connected to the condo association board, which is often composed of power mad and irrational people. "

What's the difference between "often" and "many"?

Print the post Back To Top
Author: telegraph Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45860 of 63080
Subject: Re: intercst a Homeowner Date: 10/18/2012 11:12 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Just got my tax bill for this year....my appraised value went down 5000. my taxes went down some too. My house is worth about 15% more than I paid for it 22 years ago. Not a great return. Then again, I've been living in it for 22 years and plan to be here for many many more.

It's less than 10% of my net worth, so I'm not sweating it.



t.

Print the post Back To Top
Author: malaoshi Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 45867 of 63080
Subject: Re: intercst a Homeowner Date: 10/20/2012 9:09 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Our rinky dink house in a middle income suburb is worth $900,000 more today than it was worth when we bought it 32 years ago...I just looked on Zillow. ...Aren't Californian prices the pits?

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (33) | Ignore Thread Prev Thread | Next Thread
Advertisement