Role of the HOA in the purchase of your Downtown San Diego Condo

July 6th, 2015

“When buying a Downtown San Diego condo, we are all seduced by the decor, the ambiance, the view, and other visual effects, when we should really be checking something else that is not visual!

The Home Owners Association (HOA) often plays a very nondescript part in the whole process of choosing a condo – especially for first-time condo buyers. However, the HOA can play a very large part in using up your finances if you hit an unlucky situation after moving in.

In order to avoid a surprise, ask a few pertinent questions about the HOA. One of the important factors would be ‘who is running the show?’ In a very small condo complex it may be run by residents, but a professional management company is preferable, especially in a condo of any size.

Professional management companies do charge for their services, but they can often save this fee by obtaining lower quotes for repairs, because they will use the same company many times. There is also less chance of the company using their influence on resident votes, so they may be construed as more fair. Finally, it is a business to them, and it the HOA will be run as such, instead of as a part-time rush before each meeting is due!

Always ask to see the rules of the HOA, the financial report, the by-laws and the minutes of the last several meetings. The conditions, covenants and restrictions (CC&Rs) will affect your lifestyle, so make sure they ‘fit in’ with it.

The financial report will tell you if there are any big increases in the fees coming up, or if there are any ’emergency’ fees due soon. This raises the important question, what will happen if there is a big emergency? How is it paid and how much money is in the HOA kitty?

The maintenance reserves will be important; there will hopefully be approximately one third of the gross annual fees charged to all residents in the reserves.

Another aspect that the HOA manages is the percentage of rental units allowable. Under 20% is passable, but any more and the re-sale of the condos becomes risky. Renters often do not have the same respect for property or neighbors, so they decrease desireability.Also mortgage companies are aware of this and are reluctant to give out mortgages to high-rental complexes.

Once you have ironed out all these questions, you can consider whether you would like to get a professional inspection done. These inspections include the common areas as well as the condo you are interested in. Once all these precautions are in place, you will feel more secure to go ahead and make an offer.

The Latest Headlines

Discovery San Diego Market Updates

Discovery – Market Updates Discovery is located on Beech Street between Eighth and Ninth Avenues. One block from the former El Cortez Hotel, this community was architecturally designed to compliment the historic......

read more

Common Risks Involved with Downtown San Diego Real Estate Investing

While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they’ve probably lost a few fortunes in real estate......

read more

Doma San Diego Market Updates

Doma – Market Updates Doma consists of two distinct buildings in historic Little Italy, and is bounded by Kettner Boulevard and Fir, Date and California streets. The architecture, as seen in the......

read more

Timing is great for buying San Diego Condos

It looks like everything is becoming brighter and more promising this coming year. This includes buying downtown San Diego condos. You already physically inspected your prospect units. You still gone through everything......

read more

Columbia Place San Diego Market Updates

Columbia Place – Market Updates Columbia Place, located at 655 Columbia Street and 620 State Street is a 4-story, 103-unit development built in 1989 by the Great American Development Company. The smallest......

read more

Breeza San Diego Market Updates

Breeza – Market Updates Breeza Condos are in a prime location, well situated in the heart of Little Italy. April 2015 Breeza Market Update View the Breeza Market Update February 2015 Breeza......

read more

2012 Top Sales Associates

2012 was a great year for Gregg and Debbie Neuman; out of a list of ten, Prudential California Realty named them the top team in production. And that’s not all-the Luxury Real......

read more

Downtown San Diego Home Selling Tips and Terms

Effective home selling in Downtown San Diego requires real estate know how. Here are some key terms that you should know: A 1031 Exchange is a tax aspect of the Internal Revenue......

read more

Sapphire San Diego Market Updates

Sapphire – Market Updates Completed in 2008, Sapphire Tower is divided into three different low density designs – the Cosmopolitan Series, the Sapphire Series, and the Penthouse Series. This condominium tower is......

read more

Downtown San Diego August 2014 Events

North PB Sip N Stroll Aug. 3 A community street fair in Pacific Beach showcases local businesses and provides patrons with an opportunity to sample beer & wine. In addition, there will......

read more

Get Listings and Articles Delivered Straight to your inbox

  • This field is for validation purposes and should be left unchanged.