Tell Me Again How Awful HOA’s Are?

[Leo]

Years ago, people bought a home and most stayed for a while. Even into retirement once they had it paid for. We have/had several neighbors that did this very thing. Bought/lived/passed in the same house.
These days of refinance schemes people see the house as a piggy bank. Run up the CC's buy a big SUV and when it gets tight pull some money out of the house.

I watched this very thing happen. A woman won a freshly built custom home in the divorce. It had 8 years to pay off. She also got 1/2 of the man's retirement savings, far more than enough to pay off the house. She also got a paid off clean, low mileage Caravan. She should have been set. Nope.
Traded the Caravan for a luxury car. Took her boy friend on an exotic vacation. Bought a bunch of high end furniture, clothing, etc. The nest egg dried up in a year. Her unskilled job could not keep up with the payments. Second mortgage the house to consolidate all the debt. could not make the payments, ended up loosing the house.

I tell people all the time, your house is NEVER an ATM. I don't make money from them either way. The financial people advertise 24/7 the house IS an ATM. They make money from every bad choice. Guess who most follow.

I live in an above average neighborhood, HOA and all. I used to think financial foolishness went away when people have more money. The yuppies here have nice homes and a couple of fine cars, maybe a lake house, but they are a mess financially. The conversation at many patio parties is refinancing / buying stuff with the borrowed money. At least some poor folks remember being homeless and some are afraid of being homeless again. They don't take the chance with the house, even if it is pretty minimal.

 

[jkaetz]

I tell people all the time, your house is NEVER an ATM. I don't make money from them either way. The financial people advertise 24/7 the house IS an ATM. They make money from every bad choice. Guess who most follow.

This is so true. I think the wife and I are both in the ~840 range for our credit scores, we get all sorts of loan offers thrown at us. Only debt we have is the house. I think about how to use the credit and make something off of it but I can never see how it would be beneficial to pay their interest or minimum fees. One of our CCs even has no interest on purchases until November but still has a 0 balance. We'll likely need a bigger vehicle in the coming year or so as we added a 5th family member. Three car seats fit in the back but we're afraid having the kids all in touching range for road trips will be a problem. That debt will suck as we do usually treat ourselves since our youngest vehicle is 11 years old now. I'm just hoping the chip shortage flips and floods the market soon.

 

[DoggyDaddy]

This is so true. I think the wife and I are both in the ~840 range for our credit scores, we get all sorts of loan offers thrown at us. Only debt we have is the house. I think about how to use the credit and make something off of it but I can never see how it would be beneficial to pay their interest or minimum fees. One of our CCs even has no interest on purchases until November but still has a 0 balance. We'll likely need a bigger vehicle in the coming year or so as we added a 5th family member. Three car seats fit in the back but we're afraid having the kids all in touching range for road trips will be a problem. That debt will suck as we do usually treat ourselves since our youngest vehicle is 11 years old now. I'm just hoping the chip shortage flips and floods the market soon.

I refinanced our house last year, going from a 30 year fixed to a 15 year fixed at 2.65%. Got some money when Mom passed away that was enough to pay off my other debts, paid a big chunk to the principle of the mortgage, and still put a good chunk in the savings. Credit scores were good before but they took off like a rocket when those other debts went to zero!

 

[Leo]

I treat debit like poison.

I am sure there are some people that know how to make money with borrowed money but I don't know anyone who did it for the long term. I have seen a few claim they were smarter than anyone else and brag about how rich they were getting on borrowed money. They always had some difficulty and ended up having to move into grandmas basement with their wife and kids.

The simple plan of living under your means means with no debit is not sophisticated, but it works pretty good for most people.

 

[churchmouse]

I treat debit like poison.

I am sure there are some people that know how to make money with borrowed money but I don't know anyone who did it for the long term. I have seen a few claim they were smarter than anyone else and brag about how rich they were getting on borrowed money. They always had some difficulty and ended up having to move into grandmas basement with their wife and kids.

The simple plan of living under your means means with no debit is not sophisticated, but it works pretty good for most people.

And you just nailed it.
Living under your means.
This society has been raised as consumers. They wield debit/credit cards like Luke Skywalkers light saber. It's like they know the house will bail them out. The story's CKW would share in the evening after work. Being a loan officer for a national Morgage company she had clientele in every corner of the country. The re-fi boom was good to her/us. The 0 down borrow up to 110% of the value no escrow the 1st year deals ruined so many people/families. Seems few read the fine print on the 50 or so documents the title company had prepared for them.

I made some seriously bad decisions years ago towards equity but the reasons for those decisions were sound at the time at least to us. Long story and not in the mood just suffice to say it was a real job getting that set right.

 

[BE Mike]

Here's what you can rent in Louisville, KY for $1,200.00 per month. It fits right in with the socialist style government there!

Re-Nu Container Homes unveiled in Phoenix Hill neighborhood

There are now six fully operational Re-Nu container homes on the corner of Jefferson and Wenzel streets.

www.wdrb.com

 

[Ingomike]

Here's what you can rent in Louisville, KY for $1,200.00 per month. It fits right in with the socialist style government there!

Re-Nu Container Homes unveiled in Phoenix Hill neighborhood

There are now six fully operational Re-Nu container homes on the corner of Jefferson and Wenzel streets.

www.wdrb.com

Yep, and that is for 720 sq feet in likely a very low rent neighborhood. When the revitalization of Fountain Square started flippers we’re getting the derelict old homes for $2000-$5000,if not less at sheriff sales, now they are lucky to get one at $50k. If that neighborhood gets going these will not rent for that long…

 

[gregr]

We have an HOA, and I`d be good with it, because I don`t see their covenants as an infringement on anyone`s rights. C`mon, you don`t need to, and should NOT be allowed to put a toilet in your front yard. My ONLY gripe with our HOA is that we`re seemingly paying them for nothing. They either refuse to, or, are unable to enforce many of the covenants. I`m not very pleased to be paying extortion for nothing.

 

[Ingomike]

We have an HOA, and I`d be good with it, because I don`t see their covenants as an infringement on anyone`s rights. C`mon, you don`t need to, and should NOT be allowed to put a toilet in your front yard. My ONLY gripe with our HOA is that we`re seemingly paying them for nothing. They either refuse to, or, are unable to enforce many of the covenants. I`m not very pleased to be paying extortion for nothing.

This cannot be true! I was told on INGO that HOA’s are just one step below communist dictatorships. LOL

 

[churchmouse]

We have an HOA, and I`d be good with it, because I don`t see their covenants as an infringement on anyone`s rights. C`mon, you don`t need to, and should NOT be allowed to put a toilet in your front yard. My ONLY gripe with our HOA is that we`re seemingly paying them for nothing. They either refuse to, or, are unable to enforce many of the covenants. I`m not very pleased to be paying extortion for nothing.

It seems they are selective (in my experiences with them) in what they enforce/invent.

And no' neighbor bubba should not add on to the house with particle board and scrape lumber and leave it raw. I get that.

 

[Ingomike]

It seems they are selective (in my experiences with them) in what they enforce/invent.

And no' neighbor bubba should not add on to the house with particle board and scrape lumber and leave it raw. I get that.

In reality, for those that do want a successful HOA, it takes a couple of Karen’s and a couple of jamil‘s to keep the boat from listing too far either way…

 

[gregr]

In reality, for those that do want a successful HOA, it takes a couple of Karen’s and a couple of jamil‘s to keep the boat from listing too far either way…

You`re much more optimistic than I`ve seen the reality of. I`ve questioned the HOA here multiple times about obvious covenant violations and tumbleweeds blow buy with no response...

 

[jamil]

In reality, for those that do want a successful HOA, it takes a couple of Karen’s and a couple of jamil‘s to keep the boat from listing too far either way…

I like being juxtaposed as an anti-Karen.

 

[Ingomike]

You`re much more optimistic than I`ve seen the reality of. I`ve questioned the HOA here multiple times about obvious covenant violations and tumbleweeds blow buy with no response...

Too many jamil’s on your board. Need a Karen badly. LOL

 

[jamil]

Too many jamil’s on your board. Need a Karen badly. LOL

Well, we joke about it. I'm not saying there should be no HOA's. But if you buy into a neighborhood that has one, and they're not enforcing the rules you bought into, that's a problem. But it's also a problem when the Karen's take over and start enforcing rules that don't exist, or seek to get crazy rules into the covenants that they should have no say over. Like forcing people to leave their garage doors open.

I don't like living under an HOA so I choose not to belong to one. And I'd like to continue having that choice.

 

[BugI02]

if you buy into a neighborhood that has one, and they're not enforcing the rules you bought into, that's a problem. But it's also a problem when the Karen's take over and start enforcing rules that don't exist, or seek to get crazy rules into the covenants that they should have no say over.

Sounds like the originalist/living constitution dustup in microcosm

 

[jamil]

Sounds like the originalist/living constitution dustup in microcosm

It sounds very much like a microcosm of the culture war today.

 

[TexasRedneck]

I would not live in a neighborhood of small lots that did not have an HOA to stop this kind of thing. Since he bought in a neighborhood without an HOA it is completely his right to do so.

Me, I like an HOA, which actually is a contract among the owners as to how they will live. One of those typical agreement points is there will be no pink houses.

Reasonable HOA's exist...as do overly intrusive ones. We purposely bought in a non-HOA neighborhood 18 years ago, and don't regret it. I watch the FB comments from the neighborhood next to ours WITH an HOA, and guess what? They have MORE issues because everyone wants a new rule, rather than minding their own business. How's it working out? Well, on average the homes in MY neighborhood are selling faster - and for $40-50/sq ft more - than the HOA side.....and no one tells us how to live on the land WE paid for.

 

[Svanna]

That is what I would like as well. BUT, if I have to live twenty feet from the next house, I want an agreement as to how we will live.

But your avatar says "Freedom"...

 

[Ingomike]

But your avatar says "Freedom"...

Yes it does, apparently the freedom to enter into agreements with other property owners is not a freedom INGO recognizes…