S1E4 | Homeowners Associations
“The first question that people have to ask themselves when considering a homeowners association is a lifestyle question. Do you want that low stress environment where you might have a little less privacy and a little less control over what you can do to your actual property?”
There is a lot to keep in mind when thinking of buying property that is part of a homeowners association. Here to talk about the pros and cons are Matt Stead, Financial Advisor, Joseph Callahan, Financial Advisor, and Mike Callahan, Partner and member of a homeowner’s association, himself.
Lifestyle should be the deciding factor between a homeowner’s associations’ condos and townhouses, versus the single family home. ‘Condo’ refers to a property type where people are grouped together and share a community, whereas there is much more independence for those who own single family homes. In a single family home, the owner maintains the property alone. Condos have homeowners associations that control the management and the acquisition of the different services that the property community needs.
For those who enjoy a carefree lifestyle and don’t want to be bothered with the outdoor maintenance involved in property ownership, a homeowners association might be a perfect fit. There is less individual control over the property, but all the fees paid towards HOAs take care of the expenses required to maintain the property, as well as a fund that goes towards possible special assessments like roof replacements. Purchasing services as a group HOA may be a cheaper option than procuring all maintenance services yourself. Since HOAs are usually larger communities like apartment buildings, the big con to consider is the lack of privacy that comes along with tighter living quarters and shared management. More independence and control over living spaces are afforded to those with single family homes.
We’re Here to Help
As financial advisors, our role isn’t just to talk about the finances of your lifestyle, but to help you attain your lifestyle goals. Thinking about buying a property within a homeowner’s association? Reach out to our advisors today to discuss how this purchase can help you reach your goals.