common fees on real estate

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nikotromus
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common fees on real estate

Post by nikotromus » Mon Sep 11, 2017 1:48 pm

Hola,

I'm looking at houses from the Santiago area to Santo Domingo to Vina Del Mar. Everything I am looking at has monthly condo/community expenses, which are not insignificant. Even Olmue, which is a tiny town has them. Is there any way to get away from these expenses, or is it just a part of life in Chile?

Thanks in advance...

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Re: common fees on real estate

Post by Donnybrook » Mon Sep 11, 2017 2:02 pm

Condo fees exist everywhere. If you live in a condo or flat there are added expenses to cover what everyone living there uses: electricity, water, pool upkeep, shared areas, staff etc. Everyone benefits so everyone pays a share. Smart buildings also have a saving fund for big things like painting shared areas, lift maintenance etc. The more infrastructure a building has, the higher the cost. This can be extras like a gym or pool, 24 hr staffed entrance, party rooms, more than one lift (elevator). The only way to cut costs is find somewhere with fewer amenities. If a portion goes toward savings you might argue with an owner to chip in for that portion but it isn't customary. If there is no saving fund and a big cost comes up, replacing a lift, painting the building) then the owner should pay those costs. Best to put it into your contract so it is clear to both sides.

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nikotromus
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Re: common fees on real estate

Post by nikotromus » Mon Sep 11, 2017 2:12 pm

I live in a condo now and pay common expenses. That makes sense. However, I am looking to buy a home not condo. I wasn't expecting to see them there as well.

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Re: common fees on real estate

Post by snobrd4life » Mon Sep 11, 2017 3:31 pm

nikotromus wrote:I live in a condo now and pay common expenses. That makes sense. However, I am looking to buy a home not condo. I wasn't expecting to see them there as well.
Are you looking at gated communities?
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Re: common fees on real estate

Post by Gloria » Mon Sep 11, 2017 8:35 pm

One way would be buying a lot and build your own or buy an existing house but you'll have to shell out money to fix it....the rest are mostly condos with outrageous fees.
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Re: common fees on real estate

Post by nikotromus » Mon Sep 11, 2017 11:20 pm

Thanks Gloria.

Yep it looks rather difficult to try to avoid.

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Re: common fees on real estate

Post by HybridAmbassador » Tue Sep 12, 2017 1:51 pm

Even detached house can have home owner's association fee .. Those fees are assessed if the house sits in one of gated communities as snobrd4life mentioned. Now if you buy a house in a non gated place, of course it should be no home owner's association fees imposed but you never know in Chile?
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Re: common fees on real estate

Post by paladin » Tue Sep 12, 2017 8:07 pm

nikotromus wrote:Hola,

I'm looking at houses from the Santiago area to Santo Domingo to Vina Del Mar. Everything I am looking at has monthly condo/community expenses, which are not insignificant. Even Olmue, which is a tiny town has them. Is there any way to get away from these expenses, or is it just a part of life in Chile?

Thanks in advance...
As others have said, you only pay such fees if you live in a condominio, or gated community. There are many many houses around that are not in such places and hence have no monthly fees. We moved into a condominium 5 years ago, for security and are very happy to pay these fees to be able to live without worries of burglaries or portonazos.

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Re: common fees on real estate

Post by mem » Wed Sep 13, 2017 6:00 am

Werd...the security issue with the banditos all glorying in their ability to be a chilean ninja.

We've been looking for a new rental for months and months now. Sure there are houses to be had without any fees, but all of them are ether packed in like sardines with other houses and they see ya coming and they see ya going.

There actually are some places without fees, that are also safe. For instnace we found some places out in the country that are actually in a gated community (not a small one, but like a huge one with several dozen homes on land anywhere from a half to 2 hectares each) where through some annexation or clerical issue some houses are not "a part of the condo" and therefore pay no fees...even though they have to pass through the 24h human guarded gate to get to the house.
Aside from those anomalies there are places that are out in the country, not surrounded by poor/subsistent people, but generally more affluent people that actually are safe without the 24h guard/gate. Only one way in/out, etc

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Re: common fees on real estate

Post by eeuunikkeiexpat » Wed Sep 13, 2017 9:50 am

Just because a detached house is in a gated condo does not mean it is secure. MikieO has a friend near El Tabo who lives in one and they had a wave of break-ins.

I also have a contact that lives in a non-condo decent size property in the hills of Algarrobo and they have had no break-in problems as mem puts it "without the 24h guard/gate. Only one way in/out".
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Donnybrook
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Re: common fees on real estate

Post by Donnybrook » Wed Sep 13, 2017 1:25 pm

When renting you have shared expenses, when buying you have property tax. Always check how much that is before buying.

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Re: common fees on real estate

Post by admin » Wed Sep 13, 2017 5:29 pm

You still have shared expenses as an owner. All depends on the charter of the community, title, bunch of ither things.

Where i live we have a yearly (low) amount for maintence, fixing the water pump, etc. No security included, beyond volenteer cordination between neighbors to keep an eye out.

We are not even incorporated, so in theory we dont have to pay. Also in theory any neighbor could sue any other neighbor for not paying the expenses. Long messy story, but point is common expenses come in all forms. In well structured communities, they do go to court, sieze properties, and auction them to pay large unpaid debts.

So far our rather informal system works pretty good for our community, for over 20 years; but i would not recomend anyone else try it.
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