Never Buy a Property with an HOA
Avoid purchasing property governed by a Homeowners Association (HOA). Many people are attracted to the amenities HOAs provide, such as swimming pools, parks, recreation centers, and security, but they often overlook the significant downsides. HOAs can severely limit your rights as a homeowner.
Recent news in Georgia highlights a troubling trend: many people are losing their homes due to late payment of HOA dues. In one egregious case, a homeowner lost their property at auction for just $3.25.
In 2000, my wife and I bought a property with an HOA in Wilderness Ranch, Idaho. We were told the HOA existed for road maintenance and water services. However, as soon as we purchased the property, attorneys informed us that the previous owner had left items on the property that needed immediate removal. Additionally, we owned two parcels and were forced to combine them under threat of a lawsuit. When we built a barn for our horses, we were required to use expensive cedar siding and adhere to a specific color scheme. We even had to remove a gated driveway on our private road to avoid legal action. These experiences taught us the harsh realities of living under an HOA.
Homeowner Associations wield significant power and can make changes at any time with a simple majority vote, including raising dues or approving costly improvements that you must pay for, regardless of your vote. HOAs can dictate your landscaping, house color, parking arrangements, and even whether you can have a boat or motorhome on your property. They can be extremely restrictive and overbearing.
My advice to anyone is to avoid purchasing property with an HOA. Even seemingly benign HOAs can become problematic, as we experienced in Wilderness Ranch. Moving into a new home and being greeted by a team of lawyers instead of a welcoming committee was a shocking and unpleasant experience.
When we moved back to California, we immediately ruled out any properties associated with an HOA. Our experience taught us about the power HOAs can wield over homeowners. You are often powerless against their decisions, whether it’s due increases or new projects, and you will be charged regardless of your agreement. Failure to pay can result in losing your home.
While not all HOAs are as aggressive as those in Georgia, they still have the potential to be. This is especially true in California, where homeowners have limited rights.
If you have experiences or comments about your HOA, please share them below to help warn others about the potential pitfalls of these associations.
Mike, very interesting article. I have always been aware of HOA’s, having the ability to increase your rates
at anytime. I have heard so many people complaining about their rates being increased. I would never buy a property with a HOA agreement.
Don
You are right. They are a bad deal. People do nothing but take your money – those in charge of HOA’s anyway – and they can amend agreements based on a majority vote. If you are the 49% group to bad. Between government regulations and HOA’s you have almost no rights. Look at me in Fire Country. The county wants me to maintain a 2 acre park (my property) or fine me – but they can have property overgrown with brush and trees and that’s okay. HOA’s are big brother with teeth to manage you even at home. It’s sad –