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

The Condo Buying Checklist

Have you been browsing condo listings in search of your perfect home? Buying a house is one of the biggest milestones in a person’s life. Because this is such an important step,......

read more

CityFront Terrace San Diego Market Updates

CityFront Terrace – Market Updates CityFront Terrace is located at 500 West Harbor Drive in the Marina District. Built in 1993, CityFront offers 13 stories and over 300 residences, which include one,......

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

8 Pros of Condo Living for Millennials

Millennials are reshaping the housing market with their unique preferences and lifestyles. One prominent choice among this generation is condo living, which offers a myriad of advantages perfectly aligned with their needs......

read more

Park Blvd East/West San Diego Market Updates

Park Blvd East – Market Updates Park Boulevard East, located on the southeast corner of Park Boulevard and Island Avenue, features a great location in the center of the East Village and......

read more

Downtown San Diego May 2014 Events

Barrio Logan Grand Prix Health Fair May 3 This health fair offers FREE screenings for cholesterol, blood pressure, and diabetes; plus vision, dental, and pregnancy testing. There’s music, refreshments, a jumper for......

read more

Why Loft Condos Are a Real Estate Trend to Watch

Real estate is dynamic, but certain trends emerge not just as passing fads but as transformative shifts that redefine the way we envision home. One such trend that has been steadily gaining......

read more

Cortez Blu San Diego Market Updates

Cortez Blu – Market Updates Cortez Blu, a condominium development located on the southeast corner of Eighth Avenue and Ash Street, features 67 residences and 20 stories. The one to five residences......

read more

Atria San Diego Market Updates

Atria – Market Updates Atria condos are located at 101 Market and encompass the entire city block bounded by First & Second Avenues and Market & Island. Atria is conveniently located in......

read more

Cortez Hill San Diego Market Updates

Cortez Hill – Market Updates This historic district was named after its feature attraction, the El Cortez Hotel. Located on a hill, the Cortez District overlooks picturesque downtown San Diego, Balboa Park......

read more

Get Listings and Articles Delivered Straight to your inbox

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