CDD Fees, HOA Fees - What it costs to buy a home in St Johns County
Thinking about buying a home in St Johns County but wondering what CDD fees and HOA fees really mean for to your buying power?
CDD fees are Community Development District fees. Really they are tax free municipal bonds. These bonds are taken out by the developer and used to create community infrastructure, like roads, utilities, and amenities. CDD fees may change over the life of the community because they are not strictly used to repay the bond. Annual CDD fees may also include general maintenance of common areas like pools, tennis courts, parks, play areas and landscaping. CDD fees are not a tax and as a result are not necessarily a tax deduction, although they do typically come as part of your annual tax bill, payable to the County Tax Collector.
HOA fees are Home Owners Association fees. HOA fees typically cover common areas and like CDD fees often pay for the maintenance of areas like pools, community landscaping, clubhouse maintenance, etc. A Home Owners Association is also responsible for keeping home values consistent by maintaining a specific standard of continuity within a neighborhood. Lawn maintenance, house colors, and exterior improvements, like fences or sheds, must meet a standard of criteria, or residents will be fined. Often an outside management company is hired to handle complaints and fines and the HOA fees are used to fund this resource.
That's a question that must be answered individually. Neighborhoods with CDD fees tend to have more amenities. If you are someone that enjoys a community pool, tennis court, or play area, then this extra expense may be worthwhile. Neighborhoods with HOA fees tend to hold a higher value over time because the homes are uniformly cared for. You won't end up living next to the fuchsia and lime green house. Of course, you also may not be able to have the seafoam green front door either.
Remember, when qualifying for a mortgage, you'll need to add in the costs of both CDD fees and HOA fees. To do this, calculate the annual costs and divide by twelve. Make sure you can afford this amount, in addition to your mortgage. If you cannot pay it, a lien may be placed on your home.
Looking for a home with no CDD fees in St Johns County? Click the links below to view information on the neighborhood or see homes for sale.
View No CDD fees St Johns County in a larger map
Want to know more? Call or email me today and I will show you around.... Remember, you should always have agent representation when you tour a new construction neighborhood.
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