When a home you are considering buying is part of a homeowner's association (HOA), you will need to carefully look into the way the HOA works. This will include finding out how much the monthly fees are and what the fees cover. By finding this out, you will have an easier time finding a house that fits within your budget. Here are some of the ways living in a community with an HOA can affect your budget.
The Extra Expenses You Will Have
The main extra expense you will incur in a community with an HOA is the monthly dues you will have to pay to live there. There is nothing you can do to avoid paying the dues if you live in a community like this, so you will need to consider this fee a normal monthly expense. The HOA dues you will pay is a set amount that everyone in the community pays. This amount can vary depending on the subdivision you choose, and it will likely be anywhere between $200 to $400 per month. Keep in mind, though, that HOA dues can also be a lot higher than this in certain areas.
The Expenses That Might or Might Not Be Included in Your HOA Dues
As you prepare your budget to determine how much you can afford when buying a house, you should start by calculating the mortgage payment you believe you can afford. Your mortgage payment is likely to be the most expensive payment you have each month, and it is the first thing you should list on your budget. The second thing to list is the amount of the HOA dues in the neighborhood you are considering buying a house in.
After you do this, there are several other things you will want to investigate about the community and the HOA to make sure you fully understand what other expenses you will have if you move to this community. Here are some of the expenses that you should look into.
- Property taxes – Homeowners in HOA communities typically pay their own property taxes, so this is an amount you should look into because you will be responsible for it.
- Insurance – You are also likely to be responsible for paying for your own home insurance on the house you buy.
- Garbage services – In most cases, an HOA will pay for garbage services, but you should still ask about this.
- Utilities – You will be responsible for paying your own gas and electric; however, some HOAs may include certain utilities in the fees. This may include cable, water, and sewer costs.
If you want to buy a house in a community that has an HOA, you should thoroughly analyze all the expenses you will have to pay if you buy a house there. To learn more, contact a real-estate agent today.
Talk to a company like Cornerstone Properties Inc for more information.Share