HOA

Hi, As an Australian I have become intrigued by the HOA organisations in the US, as Google picks up on my interests and sends me articles on my tablet.
We have had something similar here (although not common, and usually run directly by the developer) but governments have moved to block their legal power. Much to do with the environment, as some were demanding black roofs (in a hot climate) and no solar panels.
Prior to this another way was to buy the propety in a relative's name then transfer it to yourself. Expensive but it broke any original contract.
Anyway the reason I have put this up is to gauge opinion (from mainly US citizens on the matter), as I find it intriguing in the "Land of the Free" that people would tolerate others telling them what to do on their land?

HOA’s can be unreasonably restrictive at times. However, there's a flip side. But first, you must understand that people buy homes knowing they are governed by an HOA. Some people even prefer that. Even though HOA fees are a little on the high side.

But you've got to understand that HOA’s are there to protect the property values and keep the peace and other intangibles. Take for instance a neighborhood whose houses are color coordinated with bright colors (like in Amsterdam) and then somebody comes along and wants to paint their home all black. Well that would be an eyesore. It would also prevent someone from parking a bunch of broken down cars with parts scattered all about their property causing an eyesore and a decrease in property value. Or someone who wants to put a sofa on their front lawn. Or someone who refuses to mow their lawn. Or someone who wants to raise chickens on their property. Or have a beehive. Or plenty of plants that attract plenty of bees with plenty kids in the neighborhood. Or a pigpen and you have to suffer the smells. Point being, HOA’s are there to protect. It is easy to avoid them if you rather not have one, by just buying a home that has no HOA. Perhaps you don't mind having to occasionally argue with your neighbors. Or more than occasionally. Or for the entire time you own your home. An HOA handles that.

There's the good and the bad. It's not a problem if you live in the country with lots of land. But if you buy a home in a subdivision and your home is yards away from your neighbor’s, things can get testy. And nobody wants testy when buying a million dollar home, or even less.

HOA's should not be a problem in a country where homes are miles apart, where you can't hear your neighbors loud music or their teenaged band members practicing incessantly at all hours of the night. In Australia, you can't hear your neighbors. And you can't see them unless perhaps with a telescope.


BTW, HOA fees are considered to be the first line of defense against undesirables. It oftentimes guarantees "exclusivity."

Thanks for that Penny. I've done a little research and we call them Building Covenants here, and as I have said the government had to trim them back when there was resistance to energy efficiency measures. Mind you no ongoing fees, just a stipulation on the original purchasing contract to follow certain rules. Tended to lead to boring estates that are all the same style.
Couple of points, I grew up on a sheep station with thousand acre padocks, and still live on a few acres. However Australia is weirdly one of the most urbanised countries on earth, with most by far living in about six huge cities, cheek to cheek on small lots.
People with grass growing up through clapped our cars on their front lawn get visits from the local government council, not from anything like the HOA.
Your analogy of someone painting a house differently is interesting, as Australians are more likely to do that just to be difficult. Same with chickens, beehives and such. It would be a brave Local Government Council to tell someone to get rid of them, or what plants to have in their yard.
Your last sentence does illustrate a cultural difference. Often we regard Americans as being just like us, except that they pronounce stuff incorrectly, but things like that do highlight the differences.
We pay taxes to Federal and State governments, and Local Government Council rates. Some other private organisation would get short shift. The exclusivity part is interesting. We find Billionaires next to labourers, to clerks, and to senior military, and glory in that attitude.

Another point I'd add regarding cultural differences. A restaurant here is in real trouble of bad PR. They put out a menu with an automatic 3% tip added to the prices. Unlike the US we have a high minimum wage with various loadings for weekend work and such. Thus if you go out to a restaurant on a Saturday night, the person serving you may be being automatically paid over $40 an hour.
I suspect that the owner wasn't Australian, as they should have known better. I doubt that they will survive. We do occasionally pay a small tip for exceptional service, but more often than that it is refused as an insult.

I suppose I should have included that HOA fees fund repairs and maintenance as well. A penthouse or complex of townhomes have elevators and grounds maintenance, etc.

Daryl wrote:Another point I'd add regarding cultural differences. A restaurant here is in real trouble of bad PR. They put out a menu with an automatic 3% tip added to the prices. Unlike the US we have a high minimum wage with various loadings for weekend work and such. Thus if you go out to a restaurant on a Saturday night, the person serving you may be being automatically paid over $40 an hour.
I suspect that the owner wasn't Australian, as they should have known better. I doubt that they will survive. We do occasionally pay a small tip for exceptional service, but more often than that it is refused as an insult.

Daryl wrote:Another point I'd add regarding cultural differences. A restaurant here is in real trouble of bad PR. They put out a menu with an automatic 3% tip added to the prices. Unlike the US we have a high minimum wage with various loadings for weekend work and such. Thus if you go out to a restaurant on a Saturday night, the person serving you may be being automatically paid over $40 an hour.
I suspect that the owner wasn't Australian, as they should have known better. I doubt that they will survive. We do occasionally pay a small tip for exceptional service, but more often than that it is refused as an insult.

Interesting. $40 an hour as a waiter/waitress? That is amazing!

I've always been a good tipper. I probably tip way too much. But there were restaurants in my lifetime that paid less than minimum wage. Which was three dollars and some change at that point. I think I heard the actual salary was $1.55 an hour then. Then there are some people who leave the wait person a penny. Unbelievable.