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

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 …

Early Returns: How U.S. Markets Reacted to the Presidential Election

Smith0035

On November 8, 2016, Republican candidate Donald J. Trump won a closely contested election for president of the United States. Late on election night, when it became evident that Trump was likely to win, despite consistently trailing in the polls, …

America: Worthy of Our Trust

moore-sobelnewmug

By Samuel Moore-Sobel My friend and I sit in a bar near our office. He is upset, bags under his eyes due to lack of sleep. Thursday, our weekly night to meet is usually a happy hour filled with intellectual …

South Riding

South Riding

I should have known that this one would take me far from my contemplative, Zen-inspired comfort zone; after I’d traversed more construction projects than I wanted to tally, competed with hurried, coffee-driven commuters with no time for mere existence, and …

Support Group Help Needed

drmikenewpic

Dr. Mike, My son was diagnosed with ADHD two years ago, and his pediatrician at that time recommended we try a social skills group for his “immaturity” and “impulsivity.” We did that, and our experience was horrible. The kids in …

The State of Corals

Figure 3 close up view of healthy coral polyps. [9]

(Presented to the Board of Supervisors December 6, 2016) “Events as severe as the 1998 event, the worst on record, are likely to become commonplace within 20 years.” – Ove Hoegh-Guldberg, 1999 [4] Tony Noerpel

Reply to Nicholas Reid – What is Science

noerpel_new

“The word “cult” has always been controversial because it is (in a pejorative sense) considered a subjective term, used as an ad hominem attack against groups with differing doctrines or practices, which lacks a clear or consistent definition.” “[Dogma] is …

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

December 2016
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
November 28, 2016 November 29, 2016 November 30, 2016 December 1, 2016 December 2, 2016 December 3, 2016

Holiday Open House

Notaviva Vineyards - Bluegrass Jam - FREE event

December 4, 2016

Holiday Open House

December 5, 2016 December 6, 2016 December 7, 2016 December 8, 2016 December 9, 2016

Christmas Market and Trolley Tours

December 10, 2016

Holiday Open House

13th Annual Purcellville Christmas Parade

Barrel Tasting Event Saturday

December 11, 2016

Christmas Market and Trolley Tours

December 12, 2016 December 13, 2016 December 14, 2016 December 15, 2016 December 16, 2016 December 17, 2016 December 18, 2016
December 19, 2016 December 20, 2016 December 21, 2016 December 22, 2016 December 23, 2016 December 24, 2016 December 25, 2016
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

Current Print Issue:
Sign up for our email newsletter:

Recent Comments

Steady and NoBull

Lifestyle

Farm Bureau President Hopes for Immigration Reform

5 Dec 2016

pvllehorsefarm

Virginia Farm Bureau President Wayne F. Pryor told county delegates at the organization’s annual convention in Hot Springs that immigration reform “is an issue that has been delayed too long.” He noted that: “Work will begin on the 2018 Farm Bill next year. This is the most complex federal legislation farmers face, and it typically takes at least two years …

(Be the first to comment)

Northern Virginia Chamber To Host Congressional Roundtable

5 Dec 2016

blueridge2

The Northern Virginia Chamber will host its annual Congressional Roundtable on Monday, December 12, from 3:00 to 5:00 p.m. at the Northern Virginia Chamber in Tysons (7900 Westpark Drive, Suite A550). The dialogue will cover several issues at the intersection of federal policy and business – federal spending, energy, trade policy, the sequestration and the effect on Northern Virginia, transportation, …

(Be the first to comment)

Ugly Christmas Sweater Fad Keeps Growing

30 Nov 2016

uglysweater

Since 2012, the Re-Love It consignment shop, at 138 N. 21st Street in Purcellville, has developed the reputation as the place to get your Ugly Christmas Sweater in the Metro D.C. area. In that time, Re-Love It has sold more than 3,000 vintage Ugly Christmas Sweaters.

(Be the first to 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

Warner Introduces Bill To Help Wells Fargo Victims Get Their Day in Court

blueridge2

U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Banking Committee, introduced legislation to give Wells Fargo customers who were victims of a fraudulent account scheme their day in court. The bank was involved in a scandal this year after it was revealed that Wells Fargo employees secretly …

(Be the first to comment)

History’s Holy Places: Four Local Sites Worth Exploring This Fall

outandaboutloudoun

The Journey through Hallowed Ground is a 180-mile long, 75-mile wide trek from Gettysburg to Monticello, encompassing nine presidential homes and places, 18 national and state parks, and thousands of small and large historical sites. Dozens and dozens of these sites and related museums are short ride from just about …

(Be the first to comment)

Land Trust Receives Large Donation

land trust

On August 22, The Land Trust of Virginia received a $10,000 gift from the Sharon D. Virts Foundation, based in Herndon. The presentation of this grant was part of the Foundation’s official launch event, held at Selma Plantation in Leesburg. Notable speakers included Sharon D. Virts, FCiFederal Founder and Chair, …

(Be the first to comment)

Sports

Accepting Applications for Sports League Funding

30 Nov 2016

basketball

Purcellville is accepting applications from local organizations for its annual sports league funding program. Organizations must serve the Town of Purcellville area, have citizens of the Town of Purcellville as players, and provide a letter to the Town from the IRS confirming the organization’s tax exempt status in order to …

(Be the first to comment)

Woodgrove High Student Will Pursue Track and Field at George Mason

30 Nov 2016

woodgrove

Puneet Kaur of Woodgrove High School has signed a National Letter of Intent to continue her track and field career at George Mason University. Kaur has held the school record in shot put since her sophomore year and is looking to throw shotput, hammer, discus and maybe even the javelin …

(Be the first to comment)

Archives

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