With Boston prices soaring 7% in 2012, it is a great time to think about aspects that affect the value of condos in the Boston area. According to recent research conducted by a professor and student at George Mason University, HOA associations can add 5-6% to property values over similar homes in nearby non-association communities. That is a HUGE impact!
Writing in Regulation magazine, the authors say that the increase in home value attributed to community associations is “especially remarkable when one considers that (HOA) residents pay twice for many local services – once in taxes and then again in HOA fees.” When one considers that condo fees help pay for additional services that may not otherwise be offered in a building, it becomes easier to stomach writing the check each month.
Think your condo fee is high? Consider a newly listed property in Manhattan (currently owned by Kelly Ripa and her husband) that is about 9,000 square feet combined indoor and outdoor living spaces. The fee? almost $10,000 per month! At a price of $24.5 Million, we wonder if her value was helped by her property being part of an HOA!