Home » Uncategorized » Currently Reading:

What Are the Pros and Cons of an HOA

June 1, 2011 by Contributor filed under Uncategorized No Comments
Doug Frank Photo

Dear Doug: What are the pros and cons (and hidden costs, if any) of buying a home in a subdivision or area that has architectural standards and homeowners dues (versus many older neighborhoods that do not have these)? KR

Dear KR,

I get comments on that question a lot. The “pros” of having an HOA- Home Owner Association- are that it helps keep the neighborhood consistent in appearance. The HOA’s have rules that vary considerably. They also vary in the way they are enforced or not enforced. Some have rules governing exterior paint colors, storm door styles, front fence rules, lawn height rules, flag rules, basketball hoops in driveway rules, no commercial vehicle parking rules, and on and on. This does help keep the neighborhood in good shape and consistent in appearance, which in turn can help the resale of the homes. On the other hand, some people can not stand being told what colors they can paint their doors, or the front of their houses. And, if their favorite team is playing, they want to fly that team’s flag. Can’t do that in a strict HOA. Can’t have the plumbing company truck you drive parked in your driveway, either. So, HOA’s do take away some personal choices,but chances are very good that your neighbor won’t be painting his home pink anytime soon, devaluing your property!

Overall, most people seem to like the HOA idea, when written and enforced in moderation. The rules tend to protect the good of the whole. Of course, when buying a home, you have to ask yourself if you can live by the rules of the HOA of any particular neighborhood that you are considering.

One final point; when you make an offer on a home in an HOA and it is accepted–you have certain rights. Your purchase is contingent on you getting a copy of the HOA rules and regs, and your acceptance, before you complete the purchase. You’lll be delivered the HOA package (same as with a condo doc package), prior to settlement. You then have three days to kill the deal and get your deposit back if you don’t like the rules. You don’t even have to explain why. Good luck!

Dear Doug:I’ve had a rental property for a number of years and have claimed depreciation for taxes. If I sell it, do I have to pay that back? EM

Dear EM,

That depends. The answer, in most cases, is yes.The IRS will “recapture” the depreciation that you took on the rental property when you sell it, and, that will be at a different rate than the capital gains tax which is currently 15 percent. I say “it depends,” because you could sell your rental property using a 1031 Starker Exchange, and take the proceeds, place them with a “qualified intermediary”, and then buy another rental property. You would not have to pay any taxes at that time. You would be basically trading a house for a “like kind” property, and delay paying taxes, and delay paying any recapture of the depreciation that you took. To take it one step further, after a year or more renting it out, you could move in it, convert it to your primary residence, and not pay any capital gains tax for up to a $250,000 gain–or a $500,000 gain, if married. However-the bottom line answer is: I know enough about tax strategies to be dangerous, so consult a tax adviser. Ask me about bricks and mortar, and values and “comps”. I know enough to know that I don’t know enough to advise you. So, please consult a tax adviser..then call me when you need to do that 1031 Tax-deferred exchange, and find a “like kind” replacement property!

Douglas Frank holds a BA degree in English from Rutgers University and is a licensed realtor with over 20 years experience. Doug works with Prudential Carruthers Realtors in Fairfax, Virginia. He also has his Home Improvement License and owns a number of investment properties including houses, townhomes, and condos . Doug and his wife and two sons live in Fairfax, Virginia. (Opinions expressed here are … only opinion!)

Comment on this article


By commenting, you agree to abide by our Terms of Service.


 

 

 

 

 

 

Columns

The Trump Effect

noerpel_new

“Corals are marine magicians. As colonies of the tiny ocean organisms grow, they transform the calcium that circulates in seawater into enormous limestone reefs. These reefs—which can extend for more than 1,000 miles and provide homes for crabs, eels, sea …

Six Tips To a New Year and a New You in 2017

drmikenewpic

By Michael Oberschenider, Psy.D. Research has shown that as many as 45 percent of us make New Year’s resolutions, but only about eight percent are actually successful in achieving them. And it seems that age is a factor: about 39 …

Investing in the Family Stock

Smith0035

Family relationships are usually not considered under the rubric of “investments”. Yet, the personal gain and loss from family relationships is much more significant than economic return from stocks and bonds. Taking time out to relate to a person without …

Choosing a Different Lens

moore-sobelnewmug

We have all heard, “A picture’s worth a thousand words,” maybe even said it aloud while perusing old photo albums or scrolling through Facebook timelines. Sometimes words fall short of adequately describing an emotion encapsulating a distinct moment. Pictures fill …

Freedom Park

freedom park

A great name for a great place, this public space shows us – in my opinion – what’s best about Leesburg, Loudoun County and our country. Freedom Park – just off the Dulles Greenway on the South side of Town …

The Grim Reaper and the Great Barrier

grimreaper

(to be presented to the Board of Supervisors in January) “The recent frequency and intensity of mass coral bleaching are of major concern, and are directly attributable to rising atmospheric greenhouse gases.” [1]

Pearl Harbor

flag

By Nicholas Reid Seventy-five years ago this December 7, to quote President Franklin D. Roosevelt, “the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan.” It will have been 75 …

Student News

Congratulations, Class of 2016

6 Jul 2016

grads_woodgrove

Woodgrove High School’s Class Of 2016 Graduation – By Amanda Clark On June 16, Woodgrove’s Class of 2016 was the 5th graduating class to walk the stage and accept their diploma. The ceremony was filled with anticipation as the chorus, …

(Be the first to comment)

Buckland Earns Degree In Medicine

6 Jul 2016

buckland

Molly Buckland, D.O., graduated from the West Virginia School of Osteopathic Medicine with a degree of Doctor of Osteopathic Medicine on May 28. While at WVSOM, Dr. Buckland received the Dr. Roland P. Sharp President’s Award and the James R. …

(Be the first to comment)

Adams Promoted To Lieutenant

6 Jul 2016

adamspromoted

Lt. James Adams, from Sterling and a Potomac Falls Halls Graduate, earned the promotion to the rank of Lieutenant. Adams is a Navy Week and Executive Outreach Planner for the Navy Office of Community Outreach in Millington, Tennessee. U.S. Navy …

(Be the first to comment)

Calendar

January 2017
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
December 26, 2016 December 27, 2016 December 28, 2016 December 29, 2016 December 30, 2016 December 31, 2016

Family New Year’s Eve Celebration

January 1, 2017

New Year's Day Musikabend

Restore & Renew

January 2, 2017 January 3, 2017 January 4, 2017 January 5, 2017

Chair Yoga

Yoga for Men

January 6, 2017 January 7, 2017

Core Purpose, Core Practice Yoga

Notaviva Vineyards - Bluegrass Jam - FREE event

January 8, 2017
January 9, 2017

AUDITIONS - SEUSSICAL

January 10, 2017 January 11, 2017

Beale Street Puppets: Dig Those Dinosaurs

January 12, 2017

Chair Yoga

Yoga for Men

January 13, 2017 January 14, 2017

THE IMMORTALS

January 15, 2017

Come Paint with Us at Breaux Vineyards

January 16, 2017 January 17, 2017 January 18, 2017

Virginia Opera: Deep River- The Marion Anderson Story

January 19, 2017

Chair Yoga

Yoga for Men

January 20, 2017

LAST HAM STANDING COMEDY IMPROV

January 21, 2017

DANNY KNICELY CONCERT

January 22, 2017
January 23, 2017 January 24, 2017 January 25, 2017 January 26, 2017

Chair Yoga

Yoga for Men

January 27, 2017 January 28, 2017 January 29, 2017
January 30, 2017 January 31, 2017 February 1, 2017 February 2, 2017

Chair Yoga

Yoga for Men

February 3, 2017 February 4, 2017

CHINESE NEW YEAR EVENT

GALLERY COFFEEHOUSE: Readers Theater

Notaviva Vineyards - Bluegrass Jam - FREE event

February 5, 2017
Current Print Issue:
Sign up for our email newsletter:

Recent Comments

Steady and NoBull

Lifestyle

Upcoming Waterford Concerts Feature St. Lawrence String Quartet and Four Other Acts

18 Jan 2017

waterford

Subscriptions and tickets are now on sale for five upcoming concerts, the Waterford Concert Series announced. All concerts begin at 4:00 p.m. on Sunday afternoons in the Waterford Old School auditorium, 40222 Fairfax Street in Waterford. The concert series begins March 19 with the St. Lawrence String Quartet, known for exalted performances and joyful connection with audiences. First violinist Geoff …

(Be the first to comment)

Historian Rich Gillespie Speaks on Haunts on the Loudoun Landscape

12 Jan 2017

The Mosby Heritage Area Association announced an event in conjunction with the Purcellville Library on January 29, at 2:00 p.m,. which will feature Rich Gillespie, Historian Emeritus of the Mosby Heritage Area Association, speaking on the “Haunts on the Loudoun Landscape.” The stories are all from the personal experiences of long-time local historian and teacher Rich Gillespie, or from close …

(Be the first to comment)

Help Joseph … and His Amazing Technicolor Dreamcoat

4 Jan 2017

blueridge2

Blue Ridge Middle School’s PTO is seeking help with its drama department, working diligently on the production of Joseph and the Amazing Technicolor Dreamboat. The children in the show are enthusiastic and very talented. And, the school has a long history of first class productions with recent shows such as The Lion King, which won 11 National Youth Arts Awards …

(1 comment)

Editorial

Grief and Greed

blueridge2

By Matthew Parse What would drive a single individual to cause so much emotional stress and financial burden on hundreds, if not, thousands of families? What would drive the Town …

Op-ed

Opinion: Terrorism, Debt, and China: Oh My!

blueridge2.jpg

– By Nick Reid world can be a very dangerous place sometimes, especially for a nation state such as the United States. Although danger is always present, the number and …

Metro Money Mess Pushing West

blueridge2.jpg

– By Delegate Dave LaRock (R-33rd) A local paper recently quoted Loudoun Board Chair Phyllis Randall as saying that in her observation “some of the concerns raised by the people …

Dear Editor

Vote No To the Minor Special Exception

catesbyproposal

We are a group of Loudoun County citizens who will be adversely affected if the board grants a special exception for the Catesby Farm property at your upcoming meeting. You …

It’s Our Right

catesbyproposal

On December 6, the Board of Supervisors is scheduled to vote on a “Minor Special Exception” proposal we submitted earlier this year concerning our Catesby Farm property. Unfortunately, our limited …

View From the Ridge

Broken Promises, Hidden by a Six-Foot Berm

blueridge2

By Andrea Gaines On August 9, 1825 at the age of 69, French military officer the Marquis de Lafayette was honored in Leesburg by former President James Monroe. The French-born …

Around Virginia

Office Building on Capitol Square To Be Named After Civil Rights Pioneer Barbara Johns

image002

Governor Terry McAuliffe announced that the newly renovated state building located at 202 N. 9th Street on Capitol Square in Richmond (currently known as the 9th Street Office Building) will bear the name of civil rights pioneer Barbara Johns. The building, which reopened last year, houses the Virginia Attorney General’s …

(Be the first to comment)

Rep. Comstock’s Key Top Priority Legislation Initiatives

barbaracomstock

Signed into Law in Her First Term Rep. Barbara Comstock, who serves the 10th congressional district in Virginia, recently reviewed the achievements of her first term in office, identifying 17 legislative initiatives that she supported that were adopted. She said: “My staff and I have met with stakeholders, local elected …

(Be the first to comment)

Man Killed Walking To Gas Station on I-95

police_tape

Virginia State Police Trooper M.J. Kryznefski is investigating a fatal pedestrian crash in Prince William County. The crash occurred at approximately 4:10 a.m., on Monday, December 26, on Interstate 95 near Exit 158B. Three males were traveling south on Interstate 95 when their Honda CRV ran out of gas. They …

(Be the first to comment)

Sports

Ida Lee Spring NFL Flag Football Registration Filling Fast

18 Jan 2017

NFL_Flag_Football_at_IdaLee

Deadline for the House League registration is February 13. Registration for the Spring 2017 NFL Flag Football League at Ida Lee is currently open and filling fast. We are excited to offer again two great leagues: Ida Lee NFL Flag Football House League and the Ida Lee NFL Flag Football …

(Be the first to comment)

Woodgrove Grabs First at Glory Days

10 Jan 2017

Woodgrove Gymnastics

The Woodgrove Varsity Gymnastics took first place in the red division of the Glory Days Invitational at Park View High School on Saturday, January 7. Woodgrove competed against Rock Ridge, Potomac Falls, Loudoun Valley and Heritage high schools. Host team Park View came in first in the lower blue division. …

(Be the first to comment)

Archives

  • +2017
  • +2016
  • +2015
  • +2014
  • +2013
  • +2012
  • +2011
  • +2010
  • +2009