Saturday, March 10, 2012

&^%* HOA Fees

Those HOA fees will kill you!
Huguette M. Clark

New York - "Huguette M. Clark, the mysterious copper heiress who became the subject of public fascination and police investigation after a century of life as a recluse, died Tuesday morning at age 104, registered under a fake name at a hospital in New York City according to several news organizations."  MSNBC

Huffington Post reports that her property holdings in New York City, alone, are believed to be valued in excess of $55 million.  Impressive!  But, even more impressive is that she was paying over $235,000 per year in HOA fees.  Cha ching!

According to the National Association of Realtors, the average Homeowner Association (HOA) fees range from $100-700 per month, nationally.  But, then again, when has NYC ever been considered cheap?

A few other "outliers" in the HOA world certainly deserve mention.....

San Francisco, California
In 1924, Conrad Meussdorffer completed this Beaux Arts apartment building in Pacific Heights.  Each of the 11 apartments comprises an entire floor of the building and are approximately 5500 sq ft. 

The views alone make it one of the most spectacular buildings in San Francisco in an area sometimes referred to as Billionaires Row.

This apartment, recently featured in Architectural Digest, is owned by a tequilla entrepreneur and his wife.  It sold, privately, for between $8.5 and $12 million, in 2009.
HOA fees:  $4,907.85  (PER month)

While in the Bay Area, the St. Regis hotel now features a Penthouse Apartment for sale. 
22 foot ceilings in the living room.
A photo of one of the four terraces.
And, yes, it can be yours for the bargain basement price of $61 million... not including the HOA fees of $5020 per month.
Just for fun, a 20% downpayment is $14,000,000 a jumbo loan at 7.5% (today’s rate) gives $391,560 in monthly payments.
So basically, you have to choke up about $12,900 (mortgage) + $2,400 (property taxes) DAILY! + a twenty each time a valet parks one of our cars.
Assume you pay cash, it’s still $6,400 (amt over 30years) + $2,400 (taxes) daily. How much would such a place rent in daily, weekly or monthly fee? more than $8,800 a day? $61,000 a week? $240,000 a month?

Miami, Florida.
Penthouse A at the Setai in South Beach

This little gem holds the title of being the most expensive condo sold in Florida.  The selling price was $21.5 million and the HOA fees are only $3025 per month.  Not bad for all of that sunshine!

New York City, NY
The Time Warner Center
"In 2008, the most expensive apartment in North America, the 78th floor penthouse of the Time Warner Centre in Manhattan, entered the market with a staggering $65 million price tag or approximately $7,831 per square foot... Monthly maintenance fees and taxes for the pad is a jaw-dropping $30,000 a month...." 

Oh, that brings up the point..... real estate TAXES!!!!!  It is estimated that our late copper heiress was paying between $450,000 and $600,000 per year for her $55 million investment.   In NYC, apartments are taxed at 13.053% of their assessment value. 

Sweet Jesus!!!!!!   Robin Leach's Lifestyles of the Rich and Famous....... indeed!

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