Newbie question - which properties do not have hoa fees ?

Question

I am trying to buy my first sfh in Ventura,ca

I used to think that condo's have hoa fees but most of the sfh homes I am finding also have hoa dues.

Can someone explain if there is a general rule to hoa fees ? Does condo's and town homes only have it and they are being misrepresented on mls or there is no such rule and even a sfh can have hoa dues ?

Sorry if this questions sounds silly. I am trying to buy a sfh home to live in and want to get the best deal possible......hence trying to find an experienced realtor who can bid on homes in auctions and negotiate with banks. If someone has any tips on finding such realtor it would be very helpful.
Thanks a lot

Account Closed · Answer

Every home in any kind of association--Home owners association, (HOA) condo owners association,  (COA) Property owners association (POA) water rights owners association, etc, will have fees and dues, rules to live under, and the hoa board has the ability to assess fines for dues not paid, rules not followed, and lien the property and forclose for unpaid assessments. They are/can be very controlling, because it's usually control freaks who run them. Board members are not the only control freaks in the association. Your neighbors may be too, and if they see infractions, they report you to the board.  They CAN be somewhat benign, but that's not often the case. Owners usually have little recourse if the board targets them. 
A reason you are finding so many houses with hoas is that developments --groups of houses all built by the same builder or group of builders- are about all that is available now in some areas. Older houses that are not in associations are somewhat hard to come by. The builders contract with local and state governments  to do certain things such as build the infastructure (so the local government doesn't have to) and they get certain concessions. These developments are incorporated--hence, are corporations, and run like corporations, for the good of only the corporation. The buyers will never own the property they buy in as association. They are not buying a property, they are buying a share in a corporation. 
These "real services" Jon mentioned are provided at cost of both money and loss of property rights. Your local government provides the same services paid for by your taxes, and you don't give up any rights to do with your property as you wish under local government laws, as you do with an association. Ie, if you lived in an association and wanted to put a shed in your backyard, you have to get board approval for it, and follow certain guidelines re size, color, material, oplacement, etc. They may choose to not approve of your choice. You have to do what they say you can do.
Not in an association? Go to the shed place, buy what you choose, and put it pretty much where you want it on your property. I was going to say, probably not in your front yard, but a neighbor up the street built one in his driveway a couple of weeks ago. I think it's to be moved, but I don't know.  :roll:

Jake Kucheck · Answer

Quick rules of thumb:

Condo: HOA fee (sometimes two)
Gated Community: HOA fee
Built after 2000 in Desirable Area: Probably HOA fee (probably also Mello Roos)
Surrounded by Nice Parks/Creeks/Lakes/Swimming Pools: HOA fee

If your goal is to avoid HOA fees, have your Realtor put "$1" in the Max HOA fee portion of the search (or do it yourself on whatever site you use).  You'll still get some properties where there is actually an HOA fee and the agent simply out of laziness or incompetence does not enter it, but this will help weed out a lot of the white noise if that is your goal.

Ivan N. · Answer

Thanks, true I was actually thinking of coop.

Now I understand why most of posters suggest to keep away from condos as a rental property.

Account Closed · Answer

Ivan, I think you are thinking of a coop rather than a HOA.  In coops you own a share and it is much different way to own real estate.

HOAs are non-profit entities established to maintain common areas and grounds in condos.  Builders when creating a subdivision may see value in setting up a HOA for the community as well.

Fees are collected to pay for management, repairs to common areas and other things deemed necessary.

Ivan N. · Answer

Are there any real-life differences between a condo (as a type of ownership where you actually own a property) and a share in a HOA, when you own a share?

I think I am messing some concepts, but I would really like to know if condo association can restrict me to rent it out or charge fines for moving in at Sunday, restrict tenant age, etc like HOAs do.

I know that in Florida you typically see Condo associations and not HOAs.

Gaurav S. · Answer

Thank you everyone. Its unbelievable how much I have learned in just a short period of time.

Thanks all to you guys.

Mitch Kronowit · Answer

According to my very unscientific research, I've found that newer homes tend to have HOA's more often than older homes. One reason I believe is that newer homes, especially in California, are getting built on smaller and smaller lots as land gets scarce. Developers make up for this by setting a couple of lots aside for a community pool or club house and, BINGO, you got an HOA.

But there are many exceptions to this. For example, I live in a house very similar to my parent's house, in a very similar neighborhood, just a few miles away. But we have an HOA and they don't (ours basically maintains the landscape in the common areas and prevents people from painting their houses chartreuse). Now, our community is newer than theirs by a few years, but one of rental properties in a nearby county, also similar to ours, is much newer than ours by over a decade and does not have an HOA.

So as you can see, you can probably select which communities have an HOA with a dart board as accurately as any other method.   :wink:

Jon Holdman · Answer

This may seem like a smart aleck answer, but...

Homes that have HOAs have HOA fees.  Almost always the case with condos, and can be the case with SFRs.  Personally, I'd never buy with an HOA (no, no, really, I wasn't just looking at Miami condos in another window.)  An HOA can be a pain.  They can spend your money and send you a bill and you don't have much recourse.  They can put a lien on your house if you don't pay.  In some cases, they're pretty benign, and provide real services like maintaining a community area and providing trash service.  In other cases they can be very invasive and control how tall your grass can get, what color you can paint your house and whether or not you can park your car in your driveway.

Bill Gulley · Answer

Properties that are owned by individual owners that have common grounds can have HOAs HOAs are to basically maintain common areas and set standards that ensure common benefits for all owners. Single family homes where the owner owns the entire lot could have a HOA for the subdivision, they will generally have neighborhood ammenities, like a pool, club house and other benefits. Most single family homes are not in restricted subdivisions or have HOAs.

To find a good Realtor, there are many tactics, ask people you know, see who has the most listings, call the Board of Realtors and ask who are the best known Realtors in the community (don't ask who the best is, they can't and won't say) when you find some, talk to them, see who you think you can work with the best. Lots of considerations for different types of investors.

Newbie question - which properties do not have hoa fees ?

Most Popular Reply