Scottsdale Condo Mania

Does an HOA Fee Make Condos a NO for Investors?

When considering your options for real estate investments, you do have to take into account all costs, and one of those inescapable costs for condos and townhomes are the monthly HOA fees.  Depending upon the community amenities, low-rise Scottsdale condo HOA fees usually run between $230-$260 per month, while Scottsdale highrises run significantly more, usually $400 to $700 per month (or more).  So does an HOA fee take condos out of the race for investment money?

What does an HOA fee Pay for?

First, you'll need to examine what the homeowners association pays for.  Let's take luxury highrises out of the equation here, because they usually have a larger percentage going towards staffing for a concierge/door person and more interior community space. Here's an example of how one fairly large "resort style" condo development in the Scottsdale area allocates its funds:

Expense Percentage of total HOA expenditures
Administrative     8.7%
utilities     38%
maint     31%
reserves     21%
   

Some of the administrative expenses are purely costs for an investor, but about half of the administrative costs is for Insurance on the buildings and common areas, which is also a cost for single family homes.  Utilities (water, trash, pool electricity) can lean towards a cost too, unless your tenant pays higher rent because these are costs are rolled in.

The maintenance and reserves replace much of the maintenance that you would have to do in a single family home.  If you've lived in a home, or have investment homes, you know that costs for repairing the roof, termite treatments, re-painting, pool repairs and landscaping repairs (or fixing the landscaping mess your last tenant left) can be significant.  The reserve fee is just a way to "save" for future maintenance costs down the road.  Are you factoring in future maintenance costs when looking at single family homes?  When comparing costs between condos and homes, make sure you are comparing properly. 

The bottom line is not to rule out all condos and townhomes just because at first glance you don't like the HOA fee - a full expense comparison between your choices needs to take proper maintenance costs into account.

Lower HOA fees?

When comparing condos, it generally helps your bottom line to have lower HOA fees, however, during the inspection period, you'll want to make sure the reserves are funded sufficiently.  A costly assessment would wipe out any lower monthly HOA fees you've taken advantage of.

Some condo communities with lower fees are included below.  Contact us to put our expertise to work for you in purchasing an investment condo or townhome in Scottsdale!

 

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Related Links

Community CHATEAU DE VIE
Community VILLAS AT BELLAGIO
Community SIGNATURE
Community WALDEN PLACE
Community MISSION DEL ARROYOS
Category Scottsdale Condos for Investors

 


CHATEAU DE VIE Condos For Sale

Chateau De Vie is a centrally located community with one and two-story townhomes. Cookie-cutter these are not. There are several phases of this large development, and each phase has a different look. Covered parking next to each residence and a private patio is included. Many units have been extensively remodeled.

Chateau De Vie is steps from Indian Bend Greenbelt trail, Chaparral Park and the dog park. Residents are a short drive or bike ride to downtown Scottsdale.


VILLAS AT BELLAGIO Condos For Sale

If being close to everything is appealing, check out the Villas at Bellagio, just a short walk away from the Coronado and Continental Golf Courses. Both Osborn Park and Scottsdale Stadium, spring training home of the Giants, are just a short walk. It's a 1-.5 mile bike ride to Old Town Scottsdale.

Step into the Villas at Bellagio and notice the 9-foot ceilings and crown molding in these two and three bedroom homes, ranging from 1,113 to 1,306 square feet. Granite countertops, ...


SIGNATURE Condos For Sale

Get a load of these amenities - Signature in Scottsdale has two resort style pools with ramadas, and a generous sized clubhouse with workout facility. Plus, there is plenty of green space in the interior of this community. Buildings are 2 or 3 story, with all residences on a single level.

Signature residents can walk to AJ's, Starbucks, Walgreens, Chase bank and restaurants. The community is within a mile of the Scottsdale Aquatic and Fitness center and close to the McDowell ...


WALDEN PLACE Condos For Sale

Cute little community in a quiet neighborhood. Walden Place is a traditional 2 story condo-style, with the first floor units having very generous patios. The 3-bedroom units are larger than most, at over 1400 square feet. Walden Place is next to the new Scottsdale Dog Park, and adjacent to the canal that takes you right in (via bike or walking) to the downtown Scottsdale area.


MISSION DEL ARROYOS Condos For Sale

Mission del Arroyos (also known as Mission De Los Arroyos) has a signature adobe style that sets it apart from most other developments in Scottsdale. Whether you want a condo style on the first or second floor, or the one level casita style with no one above you, these floorplans are a little larger than what you might find at an apartment style development.

Amenities at Mission Del Arroyos include two pools, spas, exercise room and a tennis court. The community is located in a ...

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Information Deemed Reliable But Not Guaranteed. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This information, including square footage, while not guaranteed, has been acquired from sources believed to be reliable.

Last Updated: 2018-11-12 05:46:04