Posted on 08/18/2024 6:50:34 AM PDT by dennisw
“Oh, for eff sake, don’t EVER buy a condo with an HOA!! “
It would seem all condos come with an HOA.
“The endless money printer of government helps to destroy market fundamentals.”
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And it virtually guarantees a certain sustained level of inflation.
Looks like Fl has had a runin with the same batch of scam artists that ruined CaCaLand home real estate a couple of decades ago — “inspectors” getting a make-work law on the books.
Single family homes should not have inspections mandated. Buyer only has to call for a thorough inspection (e.g., earthquake, wiring, etc) before closing. Having the state step in is just forcing every sale to be more expensive so that otherwise useless “inspectors” can make up crappola and then walking off after they get paid. It is also a scam to force costly “updates” — construction arsholes love that.
If you don’t trust an aspect (e.g., old copper pipes) get a discount so that you can get extra cover in your insurance.
Mind, such mandated inspections are also one of the reasons that CaCaLand lost most home insurance companies -— no one wants to be forced to cover things made up by inspectors that justify their $$ ONLY if they make up problems.
At the end of the article it says this goes back to the condo which collapsed in Florida three years ago. It looks like the increased regulations from that finally is hitting shabbily maintained condos in the owners’ pockets.
“These condos are just being repositioned to the true market.”
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Another depreciating factor has come into play: a painful inflationary period that has significantly eroded disposable income. With costs rising its harder to come up with money to pay for things outside of the daily necessities of life. Money is no longer freely flowing like it once was.
I never understood the appeal of condos. A buddy of mine has lived in one for near 30 years. He bought the condo he rented for years before buying it. And after buying it his HOA fees were nearly as much as the rent. And then he had a mortgage on top of that.
My wife has a lot of relatives in the MW, who spend their winters in Floriduh.
Now instead of 3-6 months rent, they may become Floriduh condo owners.
I owned an HOA for 20 years. Built a condo complex, owned all of the 4 units. It was a fantastic rental with advantages due to the rules HOAs work under. Two factors at work. HOAs are made up of the OWNERS. Most owners act like the HOA is made up of outsiders. Most owners don’t know what’s needed to keep common areas maintained properly. They just want low monthly fees and that catches up with the entire enterprise eventually, just like people who don’t maintain their cars.
By the way, the first 20 years of any improved real estate are known as the “Honeymoon period”. After that comes the “Hell period” as expenses rise due to things wearing out. That’s why I sold at 20 years.
In real estate you are either the lion or the lamb. Be the lion or don’t get in that business.
Also, with real estate in general the problems don’t start because properties are worth too much. The problems start when the dollar is worth too little.
Interesting. Thanks for posting.
Yes; even if they don’t call it that.
“shades of ‘08?”
Could very well be. Think of all the mortgages under water as a result of this.
Banks are going to be in deep doodoo, and billions in equity evaporated for the owners.
No, shades of the Surfside collapse. Now they’re all being “forced” to do better maintenance and not kill their tenants.
The 2nd Law of Thermodynamics was never in the budget or the purchase agreement.
I sold my condo in Fort Lauderdale three years ago after my husband died.
At the time we were paying $525 in HOA fees. It was a 3 story complex on the intracoastal and very well maintained. A month after he died I got a bill for an assessment with more to come. I sold the condo in 2 weeks for a nice profit.
Right now the condo fees are $1900 a month. No one will be able to sell at this point.
I count my blessings I got out when I did
That’s Miami. Spanish is NOT a requirement in the rest of the state…just like all the other states.
Hey, Miami will only fit so many people. It’s spreading outward.
100%.
When we sold our vacation home, it was the best thing we ever did.
HOA fees are getting ridiculous. I was on condo board in Illinois for 18 years, president for 3 years. I know in detail how management companies waste money.
Just one example, management wanted owners to spend $250,000 for a new roof. I found a roofer who fixed the leaks for $10,000.
I like living in individual home. I only pay $80/month for use of clubhouse with pool & gym and common areas.
And it is quiet, no smokers in building, no dogs barking, no constant car traffic noise.
Florida has had an influx of newcomers
Maybe overbuilt
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