My HOA on Condo #1 is going up again!
November 21st, 2006 by KenricI’ve had Condo #1 for almost 2 years. Within the two years I’ve had my HOA dues go up three times! This is one reason why I don’t like investing in high rise style condos. The HOA dues are just so unpredictable.
- June 2003 – HOA $158 (pre-construction estimate)
- Jan 2005 – HOA $161
- Jan 2006 – HOA $223
- Jan 2007 – HOA $261
I don’t know how they keep spending more and more money. You would think that in 2006, they would have gotten the budget correct after having gone through 2005. But somehow, they underestimated it by 12%.
I will probably be selling this condo in May 2007. This condo from an investment standpoint has been a nightmare. Ironically, it is also the easiest to rent and gets the most amount of rent for a one bedroom. As HOA prices go up, the value of the condo goes down. Also, the HOA restrictions make the condo less attractive to investors which limits the buyer pool, in turn keeping prices down again.
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