Ways to live
A different approach to homeownership.
What this actually means
Condos and townhomes trade some land and some autonomy for location, efficiency and an association that handles defined parts of the exterior. For many people that is a good trade; the details determine whether it is.
What the association covers differs from community to community. Exterior maintenance handled by an association is not the same as maintenance disappearing — it is a shared cost with rules attached.
What to think about
The things worth checking
- HOA dues
- Monthly dues are part of the ongoing cost of the home, and lenders count them. They can change over time.
- What dues may or may not cover
- Coverage varies: some associations handle roofs, exterior paint, landscaping, water or trash; others cover far less. Ask for the specifics of the community, in writing.
- Governing documents
- CC&Rs, bylaws and rules set out what owners can and cannot do. California transactions generally provide for reviewing these during the transaction — the time to read them is then.
- Reserves
- Associations hold reserves for future repairs. A reserve study indicates how well funded the community is for the work it knows is coming.
- Special assessments
- When a large repair exceeds reserves, owners may be assessed for it. Asking about completed, current and anticipated assessments is reasonable and normal.
- Common areas and parking
- What is shared, what is exclusive-use and how parking is assigned differ by community, and matter daily.
- Use restrictions
- Rules on rentals, pets, exterior changes and similar vary considerably. If something matters to you, verify it for the specific association.
- Insurance
- The association's policy and an owner's policy cover different things, and the boundary between them is defined by the governing documents.
Tradeoffs
What you give up for what.
Every way of living asks for something in return. Knowing which trade you are making is more useful than pretending there isn't one.
- Shared maintenance means shared decisions and shared costs, on the association's timetable.
- Dues are a permanent part of the monthly figure, separate from the loan.
- Location and efficiency usually come at the cost of land and some autonomy.
- Rules that protect the community's consistency can also limit what you may change.
What to talk through with Ardra
Worth a conversation.
- What you want the association to handle, and what you would rather control
- How dues fit alongside the rest of the monthly figure
- Which restrictions would genuinely affect how you live
- What to look for in the documents once you are reviewing a specific property
Ardra can help you know what to request and what to look at. Questions about a particular association's documents or obligations may call for a qualified attorney.
Where to explore next
- Coastal LivingLife closer to the coast.
- New ConstructionStart with something new.
- Single-Family HomesMore space to make your own.
- Distinctive HomesHomes with something exceptional about them.
- Investment OpportunitiesLook at the property — and the numbers.
Still deciding on an area? San Diego Fit works through it question by question.