Everyone wants to be a homeowner. But does everyone want to pay the fees? I'm not talking about mortgage, closing costs, or insurance. I'm talking about the (seemingly) little things that go under the radar. Yes, today we're talking about those three dreaded words:

Homeowners' Association (HOA) Fees

Actually this will be a 2-part series. The first part will concern all the advantages of being part of a HOA, and the second part (yup, you guessed it, you little genius you) will concern all the disadvantages. If you don't already know what HOA is, please click here before continuing.

I wanted to put this little piece together to: 1) educate my audience, 2) educate myself, and 3) gain some feedback; so please feel free to leave your comments below.

The first and foremost advantage of a HOA is the gradual appreciation of your house. A community that is clean and well-maintained will have the appearance of being a nice, friendly neighborhood. This theory is called conformity - home values will be highest when all homes in the area are similar in construction, age, and materials used.

The second advantage of a HOA is the affordability and enjoyment of amenities that otherwise would not be affordable. These amenities are considered property to be shared by the community. Examples include swimming pool, hot tub, club house, playground, park, bbq grill, etc.

[The next three advantages may not be necessarily true of all HOA. They are not distinct advantages of HOA (over non-HOA), but most HOA provide these advantages.]

The third advantage of a HOA (at least in southern California) is the probability that the home will be newer. Since HOA gained popularity only recently, most of these will be in newer built homes. Also, most newly built homes have a HOA. In most cases, everything is new and/or upgraded.

The fourth advantage of a HOA is closer proximity to downtown. Downtown real estate is limited and most homeownership is part of a HOA (condos, lofts, and townhomes).

The fifth advantage is a gated community. An extra sense of safety and security are provided with gated communities (far fewer drive-by incidents).

Forever Investing,

Edwin