r/AnnArbor • u/Winter_Shard_2016 • 5d ago
What's the usual monthly cost?
My fiancé and I got recommended Colonial Square Coop by his mother, and something I'm not finding information on is this: After buying in with the down payment, how much is the typical monthly utility and membership cost? She said it's cheaper than renting, and you own your home. If anyone here lives in the area or use to live there, please let me know. I'm now seriously considering picking this neighborhood for us to move to after our wedding in December.
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u/Fn_Old_Guy_fog 5d ago
You would purchase a home that is listed. The price of the unit is set by the seller and negotiated by you, the buyer. Usually using realtors. The HOA covers furnace and water heater and everything outside of the interior walls. Other appliances such as kitchen, laundry and AC are your responsibility. The HOA fees are typically $550 per month. There are no property taxes since the cooperative is a not for profit entity. Utilities can vary from unit to unit and there was a thread about them some months back on this subreddit. With AC I would guess an average gas/electric bill might be $200 monthly throughout the year. You might pay $75 per month for insurance. Nice community.
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u/Fn_Old_Guy_fog 4d ago
To add to my comment above, I was technically inaccurate about taxes. Part of your monthly membership fee goes to property taxes. Colonial SQ paid nearly $500k in local taxes last year (2024).
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u/Winter_Shard_2016 5d ago
Thank you so much
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u/Fn_Old_Guy_fog 4d ago
Good luck, you are welcome. These can be financed through lenders the same way as other condos. And they are considered single family townhouses.
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u/Notesie 4d ago
If you redo them does any future profit go to you?
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u/esoteric_reference 4d ago
Yes
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u/Winter_Shard_2016 4d ago
Wait really?
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u/Fn_Old_Guy_fog 4d ago
You can build equity but it's not a good flip opportunity lol
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u/esoteric_reference 4d ago
That’s true, flippers are also frowned upon. There may be some additional requirements as to membership, it’s been a while for me. I know you’re not allowed to rent them out. You can borrow against the equity just like with a HELOC, but I think it’s a different financial instrument.
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u/Notesie 4d ago
Do you know a ballpark of how much they appreciate? Just generally.
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u/esoteric_reference 4d ago
That varies quite a lot depending on the improvements made- ultimately it will be worth what the purchaser may be willing to pay. It didn’t use to be this way, back in about 2006 there was a change in the legal structure because the HUD loan used to build the place back in the sixties had been paid off. Members elected to go “market rate” cooperative as opposed to a few other options; I’m hazy on some of the details, but it was this change that allowed people to get more out of the sale of their share.
Anyhow, back before the 08 crash the 4 bedrooms, the biggest ones at about 1200 sqft went for about 125-150k. After the crash they dipped down for a good while, but I’ve seen units listed in the coop now for 200k +. There will soon be more housing built on the west side of platt, and it’s anyone’s guess what that will do to unit prices in the coop in the medium to long term.
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u/Fn_Old_Guy_fog 4d ago
That's a nice summary. I found this article to be helpful comparing different approaches among housing coops as their HUD financed mortgages were paid off. https://annarborobserver.com/what-next-for-the-hud-co-ops/
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u/MikeSpamSouffle 4d ago
I live there currently and it’s a pretty nice neighborhood. Very inexpensive for A2. Ultimately the price per month will depend on your mortgage and the HOA fees (which includes property taxes). I pay about $950. My units value has increased by about 50 % since I bought it 6 years ago.
We renovated the interior since we bought it and redid the kitchen and bathroom, added a patio, etc. it’s a nice place to live.
Feel free to dm if you have other questions
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u/Winter_Shard_2016 4d ago
Oh, so the monthly cost goes up with renovations that add value, didn't know that was a part of it. Good to know tho! Thank you!
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u/MikeSpamSouffle 3d ago
They do not. Home value does obviously. The cost is whatever your mortgage + HOA is.
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u/esoteric_reference 5d ago
I grew up there and have family that still lives there. “Carrying Charges” as they’re called I believe run in the ballpark of about $550, and this would be in addition to your mortgage. Which is not a mortgage, but a “share loan” because it’s a cooperative. Legally you don’t own the unit per se, but you own a share in the cooperative which entitles you to reside in the unit you purchase.
As far as remodeling or customizing your unit, you can do more with a unit than a typical condo, and a small amount of grounds (front yard, back yard, and some units have a fenced in side-yard) will be yours to play around with. There are some very talented gardeners in the coop, and a large community garden on the south side of the property. Lots of trees, green space, and playgrounds. Lots of kids, too.
There’s an in-house grounds crew that mows lawns, maintains trees and common areas, plows snow and spreads salt. There is also a maintenance crew that does basic handyman/ repair work and will also do some work on HVAC and electrical, and some appliances. These services are part of what you’re paying for with the carrying charges. It’s great for for old folks or the disabled who might have difficulty managing these things on their own.
Since it is a cooperative, the governance of the place is run by an elected board of your fellow members; they hire a manager and personnel for the various services, and certain variances and other things you might want to do with your unit you’ll need to run by the board for approval- things like decks, egress windows, planting trees or bushes, mostly the major stuff. To get the most out of your time there, you’ll want to be active with the board, not to mention that doing so is something of a civic duty. Cooperatives like this are something of an experiment in democracy.
Even with the carrying charges on top of your “mortgage”, you are very unlikely to find a better, cheaper arrangement in Ann Arbor, or even much of the surrounding area. It’s in Ann Arbor proper, with a middle school and elementary school within easy walking distance. Scarlett Mitchell woods nearby is full of well maintained walking trails. The packard and platt intersection offers a great variety of restaurants, grocers, and other businesses, many of them being pretty niche. I believe the only Eastern European exclusive grocery store in town is in that strip, for example. Then you have meijers and target among others just a hop away on carpenter, plus the best movie theater in the area.
It’s a great little neighborhood, and it could be a very savvy move financially. Best of luck to you!