Discussion in 'General Real Estate and Real Estate Finance' started by Mike Kennedy, Apr 20, 2009.
People that earn $250,000 and up are highly motivated people who got there from much lower income levels. They are the ones that create jobs due to their motivation to earn more.
Once the incentive is taken away, whether real or perceived, that spirit of creativity is dampened. Why should I produce more and earn less (as a percentage)? Let the other guy take the risk and the burdens of society. That is how it works in reality when a redistribution of wealth becomes the driving force of government.
A condominium complex was built in 2 different plans. One plan is very small. It has 1 br, 1 ba, 700 sqft gla with occupation capacity for one or two people with 1-2 car parking spaces. Its market value is $200000.
The other plan is very large. It has 5 br, 4 ba, 3000 sqft GLA with occupation capacity of 5-10 people with 5-10 car parking spaces. Its market value is $1000000.
The project has ample amenities with a very expensive costs to operate including pool/spa, gym, sauna, BBQ, free clubhouse, free meeting room, free trash pickup.
You are the president of HOA association and are told to calculate the costs of the project, put it in the by-law and collect it from homeowners.
How do you assign the HOA fees to condo owners? Do you assign each coda owner equally or you assess the larger one, who uses the amenities 5 times more than the smaller units and enjoys 5-10 times from the project amenities and for that reason has a value 5 times more than the smaller one, more?
I belong to a PUD. It is $82 HOA fee for everyone. I don't have the largest lot or the largest house. I am happy with that.
Your example is great to illustrate the thinking of some. However, the frequency of use is a false comparison and has nothing to do with size.
In your example, and in reality of PUDs and Condo complexes, using the amenties is open to all who are part of the HOA with out restriction. You choose to use less, I choose to use more. You don't like it that I get a cheaper $/use? Start using the amenities more. You are wasting your benefits that you paid for.
Makes you wonder how much of this could have been avoided if Ayn Rand had allowed the publisher to produce a reasonably sized version of Atlas Shrugged, one small enough that your average product of the public schools could digest.
Much of the economics is common sense and people don't have to read a book about it.
However, more people are looking to government or anyone to carry their load. It is very appealing to more and more people to receive a benefit that they did not pay for or pay the full cost of it. It is called "life's lottery"; winners and losers. The rules are changed to where the winner pays the loser based upon fairness.
Cut out the rants and it's a darn good book. And half the size. She sure liked to hear herself talk.
I'm re-reading right now. I swear, its like reading the head lines; Pirates and everything. Ayn makes Nostradamus look like a Magic 8- ball.
The different between the costs of maintenance for smaller unit and the larger unit is not a matter of choice, some of it is a matter of need.
The association has to maintain one car space for smaller one, but 5 car spaces for larger one. The roofs and exterior walls of smaller unit that are maintained by the association are 5 times smaller than the lareger unit and cost 5 times less than the larger unit to maintain. There has to be a different fees for each one if they want to be fair to everyone.
My idea is that there should be no charge at all to anyone and make them happy. Let them enjoy the common area for free but if the association cannot handle the cost of maintenance by not charging the homeonwers, then they should ask the homeonwers to vote for two options:
Close down all common areas. No maintenance of exteriors and no common areas and therefore no costs. If someone needs a pool, parking space, roof, exterior paint. Do it themselves and if they don't do the maintenance, they should be charged
Have the necessary public area and condo owners pay according to their size and use of those common areas.
Here's a bulletin: Life is NOT fair!! If it were there'd be NO bad people!! Innocent people would NOT die, A mother of four would NOT die at 39!! Those that screw over others would be "toast" first time they did it!! Hives NOT fair deal with it.
Those that worked harrd took chances & made it. CONGRADULATIONS
Those that worked hard took chances & lost. SORRY!! BUT!! I bet they'll try again.
Those that had it handed to them & others SUCK up to that type I'm NOT sure who is the looser in that example.
Those that just expect someone to take care of them, Don't be looking out the window expecting to see me coming.
Those that need help & don't ask for it, Down on their luck from no fault of their own. Well you may see many like myself coming.
Now IF all of us would stop feeling sorry for ourselves & just go help one other individual just think how much we could improve this MESS>
However Don't WAIT for someone else to FIX your problems,