Why an HOA is NOT Beneficial to you, the homeowner!

 
Happy Wednesday!
 
Last week we gave you the benefits of living in a community with an HOA. This week we will go over why it is not beneficial for you to own a home with an HOA.
 
Here we go:

1. Not Tax Deductible

Though many costs of owning a home are deductible on your income taxes, the IRS does not allow HOA fees to be deducted. Once your payment hits the HOAs account it’s gone.

2. Waste of Money 

Now this is just an opinion, but in some situations the HOA could be a waste of money. Lets assume you love taking care of your yard’s landscaping, but the HOA requires the landscaping to be done by their hired company. You could be stuck paying the fee for a service you would enjoy doing yourself.

3. Neighbor Disputes

Typically the association will handle disputes on your behalf, they may even create them. Your neighbor could complain to the HOA stating that you aren’t following the regulations. If you complain to the HOA regarding your neighbor he could get mad at you for calling the HOA on him.

4. Foreclosure 

Many HOAs may have the ability to foreclose on your home if you can’t pay the fees. These regulations may vary from state to state. Although HOAs generally foreclose only in rare cases, this is definitely something to think about.

5. Fees 

Fees differ based on the amenities and services the association provides but sometimes they can be pretty extreme. Some fees may even be as high as $700. That may be too expensive for the everyday homeowner.

6. Property Maintenance 

The associations rules and regulations often require the property to be maintained by the homeowner on a regular basis. This can be troublesome due to the homeowner not having enough time to spend on the appearance of the home and adding lack of funds to hire a maintenance company can discourage the homeowner from purchasing a home in an HOA.

Thank you for taking the time to read our blog! If you are interested in buying or selling a home, give us a call at (602)354-5404 for a Free consultation with one of our real estate professionals. Be sure to check back every Wednesday for a new blog update!