Posted on 12/18/2023 7:36:03 AM PST by devane617
Florida condo owners are about to get hit by the perfect financial storm. With insurance rates already going up as much as 300% for some buildings along with recent changes to the Florida Condominium Act and new changes going into effect in 2025, many are going to face tough times in the coming months and year.
Hey Gov Ron, are you listening?
I know building with something other than wood is blasphemy but here it goes:
One of the disadvantages of condominium ownership is that you surrender your control over many of the financial decisions related to home ownership. If you live in a detached home and the driveway needs to be resurfaced, you can decide to live with it temporarily and defer the work for a year or two. If the condominium parking lot needs to be resurfaced, most states have laws that require the condo board to have the work done immediately.
Not everyone that lives in FL lives in a condo (though there are many).
Some condos on the east coast are top notch and have millions in reserve to deal w/ just about anything.
Unfortunately, some are not.
I do believe HOA fees are going to continue to increase at alarming rates, but as far as property value goes - it’s all about location.
Ditto. Magnify that driveway repair by 1,000x and you get the idea.
Over 80% of sold homes in my hood are cash sales. So, maybe those folks can afford it, but those on fixed incomes which are a big part of the equation can not.
If the value of the property doubles, you should expect the insurance to double.
You mean those usually tall multi-unit buildings built either right on the beach or just across a two-lane road from the shoreline? Akin to building in a flood plain or on the side of a shale-based hill? The hurricanes did that, not the governor.
That’s why God made Lakeland.
I suspect a lot of the buyers are foreigners. Most people with the cash around the globe want to buy some US Real Estate.
To be fair, the parking lot repair is also spread among a large number of residents. And each individual resident is shelling out less than what it would have cost to resurface his own driveway.
I was going to buy something as I am now in semi-retirement mode. Instead, I will continue renting until the rent vs buy analysis favors me purchasing something.
HOA fees are ridiculous for Florida condos. It’s like a separate mortgage payment almost.
Our house on Guam was Earthquake, Tsunami, and Typhoon proof. It looked like a machinegun bunker but was really safe in a natural disaster. Florida and the Gulf Coast could learn a lesson and build their houses of concrete.
And in such cases as repair and maintenance at the condo complex, wouldn’t the condominium board of directors or whoever’s in charge, be compelled to raise “taxes”, or whatever the proper term is for assessments on condo owners?
That really isn’t true at all. A big chunk of the value of a property is its location, and land is generally not insured. Replacement costs of improvements (building, pavement, retaining walls, etc.) are what drives insurance costs.
I’ve been in the same place (not a condo) by the beach for 30 years. In that time, my fees have gone from $550/quarter to $1050/quarter.
Not great, but considering the outside of my building’s insurance is included in that, it’s still sort of a bargain in my mind.
This is the guy I watch. He releases one video a day and it’s very informative...
https://www.youtube.com/watch?v=zxvRFPgh45w
That’s right. Bit well-managed condo association would also have a reserve fund that is sufficient to cover anticipated replacement costs for common elements.
Century Village-Deerfield. The folks are up in arms over that.
In a disaster where are the insurance companies going to come up with the cash? Too many victims.
Later in life I’d own a house free and clear and not buy the insurance. Perhaps $50k’s worth to clean up the mess.
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