Evaluate Condo Fees' Worth: You'll Come Out Ahead
[WASHINGTON D.C.]
By Debra Roth
To buy a condo or not to buy a condo-listen to any debate and those siding against will use fees as a reason, wrong as it is, to purchase a single-family home instead.
The buyer of a single-family home won't pay monthly fees, but will pay, even so, for needed or desired services and amenities. Leaf pick-up and snow removal, for example, may come out of county or city taxes, which can rise each year depending on real estate assessments. A community center and pool may also have been financed by taxes with, perhaps, a pay-as-you-go fee. If residents want more frequent leaf blowing or a public hot tub, they'll likely see a raise in taxes. The community will benefit-and houses might appraise higher as a result, but it won't be free. Still, real estate taxes are deductible.
Condo fees are not deductible-one of the main arguments for not purchasing a condo. Condominium owners pay real estate taxes into the community and on top of that, condo opponents say, they must finance their own parking, pool, and whatever else is included in the fee. Prime parking facilities, such as reserved spaces and an underground garage, are desirable and could cause a unit to appraise higher, but if a prospective buyer doesn't realize the worth, that buyer could foolishly turn down a valuable property, one maintained like a castle, only to end up with a single-family home with potholes when the county decides to spruce up another street instead.
The median nationwide condo fee for 2005, according to the American Housing Survey, taken every two years by the U.S. Census Bureau, is $196 per month. Condo fees represent operating and maintenance costs of common property. They might include hallway lighting and carpet cleaning, lobby furniture and floor waxing, a lighted parking lot, a concierge and other administrative and management costs, laundry machines, cleaning of the swimming pool, those flowers in pots along each bench, monthly mixers, gym equipment and trainers, etc.
Take a look at what is maintained by the condominium management for the unit you want to buy from what is mandatory to keep the building at the safety level you value whether it be a key-entry gate or a guard to features you covet like a billiard room and wide-screen television. Divided by every resident, if the fee seems reasonable and you like what you'll get in return, then the fee is worth the money.
Some other points to keep in mind when evaluating a condo fee:
* Get a list of everything the fee includes and what you'll get in return. Ask how often the grass is mowed-if it's every other week, though the condo fee might be low, will you be happy with weeds growing outside your door? Find out how late the pool is open-if it’s only till 8 p.m., will membership be interested in paying more for a lifeguard to stay later?
* Never assume you are getting a good deal because the fee is low. If the property has minimal common ground and no health club, costs will, obviously, be less, but make sure upkeep will be what you expect.
* Review the condo's financial audit-see if a reserve is being kept for emergencies like tree removal if one dies.
* Get involved with the board of directors to have a say in costs, management, contracts and purchases.
* New buildings often are initiated with low fees. At that point, everything is new and easy to sustain. As buildings age, lobby floors chip, community kitchens need new refrigerators, receptionists want raises and residents might want to add a service, like Wi-Fi. Keep in mind for your personal budget that your condo fee may need to increase for you to get all you require and want from your condominium as both your home and an important investment.
Washington DC Condos
By Debra Roth
To buy a condo or not to buy a condo-listen to any debate and those siding against will use fees as a reason, wrong as it is, to purchase a single-family home instead.
The buyer of a single-family home won't pay monthly fees, but will pay, even so, for needed or desired services and amenities. Leaf pick-up and snow removal, for example, may come out of county or city taxes, which can rise each year depending on real estate assessments. A community center and pool may also have been financed by taxes with, perhaps, a pay-as-you-go fee. If residents want more frequent leaf blowing or a public hot tub, they'll likely see a raise in taxes. The community will benefit-and houses might appraise higher as a result, but it won't be free. Still, real estate taxes are deductible.
Condo fees are not deductible-one of the main arguments for not purchasing a condo. Condominium owners pay real estate taxes into the community and on top of that, condo opponents say, they must finance their own parking, pool, and whatever else is included in the fee. Prime parking facilities, such as reserved spaces and an underground garage, are desirable and could cause a unit to appraise higher, but if a prospective buyer doesn't realize the worth, that buyer could foolishly turn down a valuable property, one maintained like a castle, only to end up with a single-family home with potholes when the county decides to spruce up another street instead.
The median nationwide condo fee for 2005, according to the American Housing Survey, taken every two years by the U.S. Census Bureau, is $196 per month. Condo fees represent operating and maintenance costs of common property. They might include hallway lighting and carpet cleaning, lobby furniture and floor waxing, a lighted parking lot, a concierge and other administrative and management costs, laundry machines, cleaning of the swimming pool, those flowers in pots along each bench, monthly mixers, gym equipment and trainers, etc.
Take a look at what is maintained by the condominium management for the unit you want to buy from what is mandatory to keep the building at the safety level you value whether it be a key-entry gate or a guard to features you covet like a billiard room and wide-screen television. Divided by every resident, if the fee seems reasonable and you like what you'll get in return, then the fee is worth the money.
Some other points to keep in mind when evaluating a condo fee:
* Get a list of everything the fee includes and what you'll get in return. Ask how often the grass is mowed-if it's every other week, though the condo fee might be low, will you be happy with weeds growing outside your door? Find out how late the pool is open-if it’s only till 8 p.m., will membership be interested in paying more for a lifeguard to stay later?
* Never assume you are getting a good deal because the fee is low. If the property has minimal common ground and no health club, costs will, obviously, be less, but make sure upkeep will be what you expect.
* Review the condo's financial audit-see if a reserve is being kept for emergencies like tree removal if one dies.
* Get involved with the board of directors to have a say in costs, management, contracts and purchases.
* New buildings often are initiated with low fees. At that point, everything is new and easy to sustain. As buildings age, lobby floors chip, community kitchens need new refrigerators, receptionists want raises and residents might want to add a service, like Wi-Fi. Keep in mind for your personal budget that your condo fee may need to increase for you to get all you require and want from your condominium as both your home and an important investment.
Washington DC Condos
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