Association Fees???
So what about the nasty little pesky association fees which can add anywhere from $20 to your monthly payment to upwards to $300 or more. Most master planned communities have association fees as do many Active Adult communities, and of course gated communities.
When purchasing a property, remember that Association Fees go up, they very very rarely come down. Every $6.00 at a 6% interest rate for 30 years can buy another $1,000 in property. So if the Association fee is $180 a month, a home $30,000 more than the home being considered -without an association fee – costs the same amount.
People often want the convenience and ammenities of a home which has an Association fee. But there are others, such as home owners who purchase to have a property to go to in the winter months, who may not want to pay an association fee year round. For the price of the Association fee, a gardener can be hired, and remember, here in Tucson, we don’t mow grass, we rake rocks. Hiring someone to come by once or twice a month to check on the property and trim up the landscaping may be less expensive.
Checking the ammenities offered in a community with an Association fee is an easy task, especially with the help of a Realtor. Some subdivisions are golf course communities, some have heated pools and other have pools, some subdivisions have a rec center and exercise room with new equipment, pool tables, card rooms, cooking classes, bocci, weekly get togethers, and common areas which allow for walking with one’s dog. Take note of what is being offered and run cost comparisions about the different areas.
If there is an Associaiton, the Realtor should check the budget of the Association and determine there are no major capital improvements about to come due, such as a renovation of the Rec Center. An assessment may be placed on all owners so funds are available for the project. Ascertaining there are no lawsuits is also prudent. A buyer doesn’t want to purchase in a new community and immediately get dunned with addiitonal levies.
Some associations will tend to the landscape of the front yard but not the back yard. Check to make sure what is included in the fees. In Townhome communities or condos, often utilities are included. When computing the fee, estimate the dollar amount exterior insurance, water, and electric would be , then deduct that from the fee to get a more realistic number. The homeowner has to pay utilities anyways; paying the fee may be beneficial.
Determine what is offered with the fee, and then judge the property accordingly.
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