I'm under contract for a Condo in Moraga, Ca. I was wondering if anyone knows how the market is going to be around that area in the next five

Asked by Friscoplayrsf, Moraga, CA Sat Nov 20, 2010

years? I'm thinking about renting my Condo in the future. The address is 2079 ascot unit 139, Moraga, Ca. Anyone know how much I could rent is out for. Two level 1bd 1ba condo. Also the HOA fees re pretty high. Do HOA dues ever decrease?

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Brian Rochford’s answer
Brian Rochfo…, Agent, Moraga, CA
Sat Nov 20, 2010
Hi Friscoplayrsf,
No one has a crystal ball, but as some of the others have stated, your agent should be able to provide you with the historical data trends to show what the market has done in Moraga, but more specifically on Ascot. I would recommend going back to the late 90's through today to see the trends. The HOA dues hardly ever decrease due to the rise in costs to replace items, such as roofs, exterior paneling, driveways, etc. As someone else pointed out, your agent should be able to get you a copy of the HOA docs prior to you removing contingencies and you will be able to see what is (or is not) covered. Some complexes have higher HOA dues than others, but it is usually because they have more amenities or cover more in exterior maintenance. While I am not your agent or adviser, I would suggest verifying that the HOA is in good standing as far as reserves, that there are no special assessments coming down the line, and verify there is no litigation.

As for renting, your agent should also be able to help you in that matter as well. Verify that your HOA doesn't have any rental restrictions. You will then need to figure out what amenities are included in the rent. What kind of security deposit you want, etc. While you can see what rentals are currently going for in Moraga, I would strictly focus on the rentals on Ascot, because it is a different neighborhood location compared to rentals on Camino Peral, the Villas, Miramonte Gardens, Wooddminster, etc.

Well, I wish you the best of luck, and feel free to contact me if you have any other questions regarding the area. I grew up in the area, and I currently manage a few of my clients properties in Moraga.
1 vote
Dan Chase, Home Buyer, Texas City, TX
Mon Nov 22, 2010
I expect lower prices. If the economy really picks up maybe the prices will increase a little bit.
0 votes
The Medford…, Agent, Fremont, CA
Mon Nov 22, 2010
Friscoplayrsf:

Q: I'm under contract for a Condo in Moraga, Ca. I was wondering if anyone knows how the market is going to be around that area in the next five years?
A: I’d love to be able to tell you the answer … problem is, only God knows and he hasn’t told any of us … at least not yet, anyway …

Q: I'm thinking about renting my Condo in the future. The address is 2079 ascot unit 139, Moraga, Ca. Anyone know how much I could rent is out for. Two level 1bd 1ba condo.
A: The best way to determine local rental rates is to check competitive ads on sites such as CraigsList or to contact a local property manager. There are a number of property managers in the Moraga area. Google “Property Managers Moraga CA” for a list.

Q: Also the HOA fees are pretty high.
A: At $425, the fees are high – HOWEVER, there are other complexes with higher fees. The average for the area for the past 6 months is $372.

Q: Do HOA dues ever decrease?
A: Short answer – yes.
A: Long answer – this is really not an easy question to answer. Due to the onslaught of foreclosures, short sales and the like over the past three years, many HOAs have suffered through a significant loss of funding, high turnover of units and substantial increases in the numbers of units purchased by investors for the purpose of renting. In many cases, this has drastically altered the makeup of developments to the point they are no longer financially solvent, no longer qualified for FHA loans and the like. Many HOAs have been forced to respond by (1) raising rates, (2) levying assessments AND (3) changing the rules (and, in some cases, CC&Rs) for owner-occupied status of units.

It differs from complex to complex. I’d recommend that you thoroughly explore the minutes from this development AND call the HOA to see if they have any planned adjustments to their fees.
.
0 votes
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Sun Nov 21, 2010
Hi Friscoplayrsf,

I am sure somewhere, at sometime, HOA fees decreased, but I am also sure that 98% or more of the time, increases occurred. To assure MYSELF these increases were necessary, I volunteered and served our HOA for years, and trust me, it was a real chore to keep the HOA fees as low as possible, but they still had to be raised. Ours went from $34 a month in 91 to $54 a month now. So roughly $1 a year increase. That sounds reasonable, I guess, but it is a check I hate writing...lol.
Now, how will the market be over the next 5 years....wow, tough question! I doubt seriously reviewing the last ten years of data will help much. But, if your mortgage payment is less than rents today, chances are it will be lower than comparable rents in 5 years, and if rates go higher, which most people think they will, your payment will be correspondingly LOWER than the competition, which should position your rental in a great spot.
If you need any help regarding mortgages, or would like to discuss HOA's in general, feel free to contact me!

Jim, HSOA, 703 591 5626 ext 419 C 703 615 4675. Nationwide for 75!
0 votes
Donna DeSino, Agent, Walnut Creek, CA
Sat Nov 20, 2010
Hello Friscoplayrsf-

I can tell you that we can't foresee the future, best advice is to have your Realtor show you the trends over the past 10 years or so. Moraga holds it's value- a very desirable area in the East Bay to live. As far as the HOA's go,
I have not ever seen them to decrease, they always seem to increase as the property will need upkeep.
0 votes
Pacita Dimac…, Agent, Oakland, CA
Sat Nov 20, 2010
If you are planning to rent it out, you should check the HOA documents to find out if this is allowed by your HOA. And it if is allowed, what % of condos can be rented out, and wat % is already rented.

Moraga is a desirable area and holds its own. But who knows what would happen in the next 5years? You can look at the last 5-10 years and see the trends, that may help you gauge the stability of this market.

But as far as how much you can rent for ---- it all depends on the condition, the amenities, the location, the market at the time you decide to rent it out.

BUT again...make sure you can rent it out Otherwise you may want to consider another type of property to purchase, like a single family home.

Good luck!
0 votes
John Souerbry, Agent, Fairfield, CA
Sat Nov 20, 2010
Yes, HOA fees do go up and are unpredictable. If they will talk to you, ask the management company about when the roof was last replaced and other major maintenance items. Often it's not the HOA dues that are the profit killer - it's the special assessments that come along every few years.
Condos are almost always poor choices as investments. They are the first type of property to lose value when a market goes down and the last to go up when a market improves. Moraga is a desirable area, but I wouldn't bet on a lot of appreciation for condos there in the next 5 years.
0 votes
Christopher…, Agent, Methuen, MA
Sat Nov 20, 2010
It is difficult for anyone to predict what will happen 5 years out because there are too many factors that can impact the market. A good way to determine the current rental market is to look at the current inventory and find out what the asking prices are.

http://www.trulia.com/for_rent/Moraga,CA/#for_rent/Moraga,CA…

http://sfbay.craigslist.org/search/apa?query=Moraga&srch…

A local real estate agent could also check for similar homes as yours that were listed on the MLS for lease/rent and tell you what they rented for.

I would recommend that you talk with the HOA about the history of the fees and whether or not they see an increase coming in the future. Also, sometimes there are special assessments if they decide to conduct a major renovation to a common area such as installing new siding or roofs on the buildings, etc.

Good luck!
Web Reference:  http://teamlefebvre.net
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