Are you thinking about buying a home in an HOA neighborhood? A homeowners association is a group of people who oversee an area of homes by creating and enforcing rules. They are also in charge of maintaining the grounds and are found with most apartment buildings or planned communities. But when considering an HOA neighborhood, you should first weigh the pros and cons. To help you decide if these types of communities are for you, check out our list of pros and cons of HOA living.
Pros of an HOA Neighborhood
There are many benefits homeowners enjoy from HOA neighborhoods. Here are some of them:
Charming Neighborhoods
HOA communities tend to be very charming because all common areas, such as playgrounds and pools, are maintained by the HOA. This is one of the most significant benefits, as it allows you to use great amenities without any upkeep on your part. Also, HOAs have strict rules on what you can and cannot change about your house, so there’s no worry about a neighbor’s home becoming an eyesore.
Conflict Mediation and Remedy
If you have problems with neighbors, such as loud music being played late at night or a barking dog who won’t stop, the HOA will step in on your behalf and act as a go-between.
This is especially helpful if you’re already attempted to remedy the problem on your own, and it didn’t work.
Can Enhance Your Social Life
Another reason many people prefer HOA communities is because they foster more of a sense of community among the residents. Not only will you have the chance to meet neighbors at HOA meetings, but many of these organizations host social events occasionally. For example, some HOAs host block parties, Bingo nights, etc. But, sharing amenities such as the tennis courts, golf course, or the pool also provides an excellent opportunity to meet other residents.
Cons of an HOA Neighborhood
Most good things in life also have drawbacks, so here are some cons of living under an HOA:
Fees and Other Costs
One of the biggest drawbacks for many is the HOA fees. These fees are paid monthly and are separate from your mortgage. In general, the more amenities a neighborhood offers, the higher the HOA fees.
And you also have to consider that they may make you pay other special assessments, such as costs to maintain or repair roads or even roofs on shared buildings. So, essentially, you’re paying for amenities each month, whether you use them or not.
Increased Regulations
As we mentioned, HOAs usually have many rules, which can be a good thing – but not always. In most HOA neighborhoods, you have less freedom to landscape how you want, are restricted from watering on certain days, and may not even be able to park a vehicle on the street. Other areas that may be regulated include fences, exterior paint colors, hedges, garages, home businesses, swing sets, solar energy installations, sheds, and more.
Foreclosure Risk
If you default on your HOA fees in certain states, your house may be foreclosed upon. For instance, California allows HOAs to foreclose on properties after 12 months or when the amount due is more than $1,800. In other states, there are no limitations to when an HOA can begin foreclosure proceedings on your property. If you are worried about your ability to pay these dues each month, it’s probably best to protect your future and avoid an HOA community.
Ultimately, living in an HOA neighborhood is excellent for some and dreadful for others. So, be sure to carefully weigh the pros and cons of living within this type of neighborhood before you make a purchase.