shades of ‘08?
Every single one of these is simply being appropriately revalued to the accrued maintenance bills.
They were living a financial lie that was physically unsafe.
Doing so many at once is saturating the market, but, they had no problem riding the prices up, either.
40% makes up for part of the monumental rise in prices over the last 5 years
Without dips, it becomes unaffordable for the next generation of buyers. The endless money printer of government helps to destroy market fundamentals.
If $300/month busts a budget then the property isn’t affordable in the first place.
Fact is, many condo’s need the inspections as they are crumbling.
Maybe one should expect a mess if they live in a condom.
It’s Florida’s nature repeating itself. When an economy sinks, second homes are the first to go. The deals after the crash will be epic.
Oh, for eff sake, don’t EVER buy a condo with an HOA!! Good times or bad, you’re buying into a little tyrannical feifdom which is usually protected and supported by even worse state laws! Plus, if you ever get hit with a “Special Assessment”, it takes years, if ever, to get rid of it. Single family homes with HOAs can obviously be pestersome, but they are usually more reasonable - and far less abusive and communistic.
At 40% off, prices would still be way too high.
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.
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.
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.
The 2nd Law of Thermodynamics was never in the budget or the purchase agreement.
Florida has had an influx of newcomers
Maybe overbuilt
this could be a result of the champagne towers collapse a few years ago...
One example: Arkadiy Kats, 71, will be paying $2000 in condo fees to cover the usual plus special assessment for repairs -