THIS IS GETTING OUT OF CONTROL - FLORIDA CONDO CRISIS
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- Опубликовано: 15 май 2024
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Florida Condo Crisis: Potential Bankruptcies and New Laws
There's a looming crisis in Florida that could see many condo associations facing bankruptcy. The associations themselves might have to file for bankruptcy, which would lead to even more problems. This situation is crucial for anyone thinking about buying a condo, currently owning a condo, or having loved ones with condos in Florida. Over 1 million condo units in Florida are subject to new rules taking effect on January 1st, 2025. 🏢
Understanding the New Rules
The new regulations require condo buildings to undergo milestone inspections for structural integrity and reserve feasibility studies to ensure adequate funding for required components. These changes to the Florida Condominium Act highlight significant vulnerabilities, especially in buildings around 45 years old. Not all buildings are affected equally-lower and middle-income condos, typically valued under $400,000, are most at risk. Owners of these condos are already listing their properties to avoid hefty assessments and soaring association dues. 📋
Impact on Condo Owners
Many condo associations are not fully funded and have structural issues. As a result, owners are listing their condos en masse, leading to a race to the bottom in prices. This surge in listings has caused a dramatic increase in condo inventory across Florida. The rules mainly apply to buildings three stories or higher within three miles of the coastline, which encompasses a significant portion of Florida's condo market. 🌊
The Role of Investors
Investors might see this crisis as an opportunity. As condo prices drop, investors can buy out majority units, push for further assessments to drive out remaining owners, and eventually redevelop the properties into luxury condos. This trend is particularly noticeable in prime locations like Miami Beach and Siesta Key. Luxury condos, however, remain relatively unaffected due to their affluent owners' ability to cover costs. 💼
Alternatives for Buyers
If you're considering buying a condo, explore alternatives such as two-story buildings, villas, or townhouses. These types of properties are governed by the same laws but are exempt from the stringent new rules for higher structures. 🏘️
Specific Cases and Predictions
There are rumors in Sarasota about a building that failed its structural integrity inspection. Special assessments in some condos have reached over $100,000, and some buildings have had multiple assessments over the years, drastically reducing their market value. If a developer aims to buy out a condo building, they need 95% of the unit owners to vote to terminate the condominium. This situation presents a significant challenge for those who do not wish to sell. 🔍
Final Thoughts
The impending crisis in Florida's condo market is a complex issue with significant implications. If you own a condo, are considering buying one, or know someone affected, it's essential to stay informed and consult professionals to navigate these turbulent times. 🌟
By the way, I'm Maciek Zaremba, a real estate agent in Florida. Today, I'm speaking to you from Phillippi Estate Park in Sarasota. It's a beautiful spot, although rain is expected soon. If you have any questions or need further information, feel free to reach out! ☀️🌴 
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My HOA fee went up $300-$883 a month. On top of being assessed over $17,000. to the tune of paying $27,000 to live here the last year is ridiculous
Ouch, that stings. Hopefully they are now meeting all the requirements for the law. Some peoples mortgage is as much as your HOA fee.
The idea that you could live in a condo with no maintenance or repair costs is erroneous. People who live in single family homes have to replace boilers, burners, roofs, appliances, deal with termites carpenter ants and have to replace retaining walls. It's part of living.
I just had carpenter ants in my house... thankfully I got rid of them quick, but a lot of people let them and the termites eat the property away and then they're screwed with structural damage.
Even if someone gave me a free condo in Florida, I still couldn't afford to live there, especially with the hugh HOA fees, insurance, and property taxes. 😢
Depends which one. If you have no mortgage, with HOA, insurance and property taxes you’re probably close to $1000 a month as long as it’s not beachfront for a two bedroom two bath.
Your 100 % CORRECT ...that's pretty sad😊
It now appears the only affordable housing in Florida are single family homes not in an association and paid for in cash(home insur not req’d). Avoid condos, SFH with HOA’s and mortgages or stay out of FL!
@@floridarealestatetv lol. Too high!
@@FraaaaaankRizzo Frank Rizzo! "Open your ears you fucking jackass". I love those crank calls. Brings me back to my childhood.
Inherited a beautiful ocean front condo from my in laws. The HOA board was tyrannical . The maintenance was slipping and we were warned about salt water intrusion into the local aquifer. Between that and the hurricane damage ,we sold 15 years ago .Not sorry . The winters aren't that bad anymore anyway.
Remember, the Champlain Towers was a wealthy community in Surfside. But, even those owners did not want to spend that kind of special assessments. Should have been condemned
It's true... most people don't want any special assessments, until a catastrophe happens like the Champlain towers.
@@floridarealestatetv as a senior and knowing that I won’t be in the unit forever, look at how much we leave on the table when we leave or sale
@@fredk9999 Costs of selling are not cheap, that's for sure. About 8% of sales price is you pay the buyers agent. I get it...
If this country was on the up and up about the wealthy paying their "Fair Share" they would eliminate EVERY TAX there is and institute the true fair way of funding society - The Wealth TAX.
Condos were voting on not having reserves and it took one building coming down to wake up and getting things going. Condo Reserves should always have enough cash for their everyday expenses plus any incidentals such hurricanes etc. same as the reserves one must have for upkeep such as things if you owned a home.
I agree, they SHOULD. When you build new, the roof is good for 20 years, so they voted not to save extra reserves for a roof. Which is a mistake. They should take the cost of a roof, divide by 20 years, divide by 12 months, adjust for inflation, and have that mandatory. And the same with the roads, community area, private roads, you name it. But they don't.
Most people are bad with money. Couple that with egotistical and domineering people seeking HOA Board positions and using every underhanded and legal trick to hold on to those positions with no real challenge...you get situations where reserves aren't maintained. I'm experiencing this now with my HOA. Replacing any of the board members is almost impossible due to how the bylaws are set up.
My wife and I were having a discussion on home costs and living costs in general. We have one residence in Florida.we occupy it and have it homesteaded. It is 37 years old with 5,000 sq ft under roof. We pay $6,200 to the local government annually to cover taxes. We paid $3,900 last year for homeowners insurance. We have no mortgage. We have the skill set that allows us to maintain the 2.5 acre lawn and all upkeep on the structure. We have extensive records on expenses of ownership. Everything from costs of plants, fertilizer, paint, electrical and plumbing repairs, appliance replacement, new fans, roof replacement, air conditioner replacement, etc. etc. etc. for a 3 year annual outlay of $10,800. Doing the math it costs $1,741..67 monthly. Remember, this place has no mortgage. So when I hear condo owners whining about $500-800 monthly to maintain these buildings? They say Florida costs are killing them and they have to sell and leave the state. Come on people. When you leave where do you go? Is there a utopia somewhere that provides free shelter? Where air conditioners never break, where roofs never wear out, where plumbing and electrical repairs are nonexistent? Where Santa Claus, the Easter bunny and the tooth fairy rule?
If you qualify you need to either try to qualify for Section 8 Housing, live in a camper or join the homeless in tents in San Francisco. There is no such thing as a free lunch.
How true this statement is. The cost of ownership is real... which is why a lot of people don't upkeep, don't irrigate or fertilize, don't repair, and eventually investors like myself can buy a wedge deal due to all the deferred maintenance. Even in communistic countries you need to pay for your home.
Let them eat CAKE!
Agreed, but, the cost of theft and excessive administration is a deal breaker for me. I do not wish to cooperate with other owners and controlling factions. I have a hard enough time dealing with the city.
Fools are just paying too much money
What shocks me as a European is, that you PAY nearly 10000$ per year on tax and insurance on your OWN, paid home 😱. This property tax amount is insane! What would it cost if not homesteaded? I can see the insurance being more than 3 times than ours here but that adds up, too. And here I was complaining to my hubby over the couple hundreds of property tax we have to pay 🙈
I live in a cougar (senior village) the was build in the late 1984 to 2000 and its in a gated community we have over 8,500 mix condos from small to large Studio, 1/1,1.5, 2/1, 2/1.5.2/2 small (inter units) and 2/2 end units bigger ones and a rare 3/2 in Pembroke Pines Broward FL. Condo Fees vary from $500 to few thousands maxs $3,000 monthly most these senior are in a fix income. Now our President wants to raise it over $5,000 to $15,000 this is NOT Boca Rotan FL or West Plam Beach FL you can do that UGH!
That is CRAZY. Even the $3000 monthly fee is crazy. I think we might end up in a renters economy in 20 years if we don't have changes happen.
I don’t know if they are really new rules but the existing rules will now be enforced? I bought a condo in Nassau County in 2010. It was a six unit building with mostly part time residents who rented them out. No one wanted to active in association management. I took over and updated everything including the reserves. Nothing had been done for years and no authority was watching over things.
This is SB4, senate bill 4. It's for condos 3 stories and higher, within 3 miles of the coastline. Two stories or one story condos like villas don't qualify for this new law.
Okay bro,even you own an house it comes with a lot problems also.roof,cabinet,tile,electrical,plumbing,front and back yard .everything in florida is very expensive.i mean condo owners and homeowners ,they have both same issues.
Being alive in America is expensive. And it’s all relative to the value you bring to society and how much society rewards you for your service. I don’t think it’s cheap anywhere, and I do admit Florida is one of the more expensive places to be.
My family owned the Cadillac hotel in Miami Beach through the 1950s. Do you have any idea how much money Marriott has put into redoing the hotel twice to keep it in shape ? The condo owners were murdered in that collapsed condo from years ago now. All condos need adequate reserves wherever one lives.
A big chunk of those problems are excessive realtor commissions and insurance attorneys like John Morgan.
Guess where those costs show up...Taxes, insurance, condo fees, & HOA fees.
@@blindspott1060 I don't know what realtor commissions have to do with the condo crisis... it's an insurance problem. And John Morgan and other attorneys definitely have inflated costs SO MUCH. They also changed the law that the person suing has to pay for their attorney. Not sure how that will work out though, it prevents people from filing lawsuits because not everybody has money to pay an attorney.
@@floridarealestatetv Realtor commission inflate the total cost making it more difficult to sell (purchase). Attorneys like Morgan work on an accelerated contingency fee-they collect only if the suit is successful. No cost up front. Contingency fees can run up to 50% depending on claim.
Insurance will be cancelled if EVs are parked in Condos. HOA will have to increase fees by over 50% just to stay in business. Most of the properties built in the 50s, 60s, 70s and were poorly built and will have to be demolished.
I’ve always wondered about the condos and electric vehicles. How the heck are you supposed to charge your vehicle if there’s no stations to charge them at. Condos are starting to add EV charging stations, but then you have to pay for it. I would rather just have it hooked up to my own electric meter.
@@floridarealestatetvMy condo building HOA invited EV owners to install their own dedicated chargers. The more owners who did that then the cost per install was reduced because of efficiency of contractor. Out of 112 units ten opted to install immediately plus a few others chose to have wiring for future but not full install immediately.
@@carylhalfwassen8555 That's awesome! That's the only way it's affordable to drive an EV. When you have to pay 60 cents per kilowatt at charging stations, it's more expensive than gas!
This is no different than not keeping up with repairs on single family homes.
Yes there is a big difference, a home owner does not keep ten of thousand in a bank for future repairs.
If they don't have some savings, they do not at their own peril.
I think the difference is an individual homeowner has more control of maintenance decisions. With a condo you may buy in only to find you're being hit the cost of delayed maintenance. With a single home that'd be a fixer upper and priced accordingly.
@@domfer2540 The homeowners SHOULD do some simple math. If the roof costs $20k to replace, and lasts only 15 years, then $20k divided by 15 years, divided by 12 months = $111 per month for "reserves" of a roof replacement. That should be put into a high yield savings account and start saving for that huge expense. Do the same for an a/c, $6500, pool resurfacing, you name it. Next thing you know, you have $300 of "maintenance" items being saved for every month. But nobody does that. And finally condos are forced to do it. Should have been done a long time ago.
The key to the 95% rule is to ensure you are not in that last 5%. In fact, make sure you are not in the 49% minority position. Too many people live on fantasies and prayers that something will save them, so they hang on to their property for too long. Get out when there is good news or at least a lull in the bad news.
Everyone always tries the time the market, but it is literally impossible to time the market. Good luck doing that. If the returns are adequate, sell and move on.
During the crash of 2008-2016 very few Condominiums filed for bankruptcy protection.
I agree we are at a crossroads and I further agree it’s going to affect older buildings in less affluent areas. You are spot on there.
I do see a spike in condo de conversions happening but it’s a very cumbersome process that is sure to be challenged in court if it becomes prevalent. As a matter of fact a big deconversion case was recently lost by developers.
So what to do? It’s time boards to check their self interest at the door when they convene a meeting. It’s time for them to stop lying to themselves and put together a proper and functioning budget. If there are massive increases in assessments, well, you should have run your condo like a business.
I grew up in NY in a luxury building and 65 years latter it’s still pristine because the landlord knew it was a business. Why can’t condos operate like that?
ruclips.net/video/yKXdWLbAOms/видео.htmlsi=7Kl2wEluXooTZ43V
You're right... run it like a business. The government should try that too!
Our condo is 45 years old. These are generally 2-3 story buildings, either townhouses or garden-style, wood-frame structures. We have plenty in capital reserves and cash after replacing all of the roofs and we're going around replacing shingles right now. The condos that you're talking about seem to be more concrete structures that are fairly tall and it seems like there are far more potential problems with taller buildings than with short buildings. The largest assessment we've had was $3,500 for roof replacement back when we weren't managed as well (we didn't have enough capital reserves), but that was back in the 1990s. So it all comes down to management. The condos up here seem to cost a lot less than they do in Florida which may be a factor and there is little to no inventory up here. We also don't have a lot of major climate risks like hurricanes, tornadoes, earthquakes, wildfires and floods. My understanding is that homeowners insurance is ridiculous right now. It seems to all come down to management. Similar to town government.
I wonder what state are you in? A big problem is Insurance. Even if your roof is sound and does not have any problems, a lot of insurance companies, if not all of them, will not ensure a roof over 15 years old. So then they have you fix some thing that’s not broken. And that was unexpected, so there’s not enough reserves in the bank for it. Also, the cost of roofs have doubled since the end of 2019. I see how much roofs used to cost on all my rentals and all my clients homes and now it’s just absurd. Hurricanes are definitely the culprit for the roof problem in Florida
@@floridarealestatetv We're in New Hampshire and the only major issue with roofs are ice dams forming from heavy snowstorms. So I remove the snow from the roof if we get more than two inches of snow. We have a place near Boston too and the roof on that thing is at least 30 years old and the house is insured. Major wind damage is somewhat rare as hurricanes lose their punch by the time they travel up the east coast. I always thought that living in Florida was inexpensive which is why so many people from New York, Boston and other cold places moved down there; but the prices I've seen lately seem to imply that it's very expensive to live there now. New Hampshire is a fairly empty state though there is building near the cities.
In just 10 years, the water intrusion issues will make Miami Beach impossible
I saw a video talking about Miami’s rising water solution. All Miami does is make the roads higher and higher. This causes more drainage onto the adjacent properties. Not a good solution.
I want ALL real estate to literally CRUMBLE to the bottom. It is waaaay too overpriced and it just causes homelessness and high property taxes.
It is overpriced. When you compare wages and home prices, they didn't go up proportionately. We need a correction, and I'm afraid we won't have one significant enough to make a difference.
There are other reasons for the lack of affordable housing. You won’t hear them, tho, from the media. Look at WHO is buying up our property
Condos will be self insured and not getting insurance
That's an interesting idea... I like it!!!!!!!!!!!!!!!!!
Can’t drop insurance or lenders won’t allow units to be financed.
@@johndrago8370 True.... many units are all cash buyers in my area.
My condos in Clearwater from what I understand we are fully funded. From my time on the board back in 2022 later in the year, I had a reserve study done. We started beefing up our reserves because we saw an influx inflation coming during Covid. We also started on safety measures. Stairs, foundation replacing wood, etc. keeping in mind that we’re only two stories not three which is what my interpretation of the new legislation is but this also places two stories and below in a weird gray area without proper oversight.
I’m also somebody who’s trying to place my condo in the market . Everything you’re saying is absolutely on point. I hope and pray for the people who are on a fixed income that they’re able to find some sort of relief. I actually just wrote a paper on this for my Publix safety class. The infrastructure protocols need to be there however there needs to be proper oversight for the financial aspect of things, and I do see that there are grants such as a grant for Wind Midigation that is being looked at right now.
Thanks for watching. The issues will get resolved, but the short term pain will be real for a lot of people... no everyone, but a lot. There is a condo on Siesta Key that just had two assessments, one being $55K, the other $25K. They're tearing the place apart, jackhammers and all, hard to sell in there, and it's beachfront. The condos are still selling, but the fees are now over $1000/month plus the assessments. It gets worse before it gets better.
@@floridarealestatetv I absolutely agree with you. I’m seeing the brunt of it, as to what the comps are in my area. (Clearwater)
It’s interesting as I was writing my paper yesterday and soon to be a graduate I have to choose a direction that I wanna go, and I’m wondering if maybe my pathway needs to be helping in this field and the nightmare that we are facing. On top of already, horrendous, housing crisis.
@@kristiemiller4752 The housing crisis is not yet horrendous. We will see how things develop, but there is a chance it will explode again and the prices will be even higher than they already are! All depends on interest rates.
@@floridarealestatetv that’s what I’m thinking but I think for condos it’s a mess
@kristie, enjoyed your input! I'm wanting to move back to Dunedin from Marion Co .... boy, do i have bad timing. But also after being a Fla homeowner for 30 yrs, am 'aging' into condo/villa life and again .... bad timing! lol. "...but this also places two stories and below in a weird gray area without proper oversight. " This has always concerned me and now more than ever. I'm leaning more towards a super-downsize but still my own, private shack. Considering ways to sell 'now' but not buy yet. Risky, I don't want to get squeezed out of my SOH Portability!
I hope you DO consider a future on this pathway, it's needed. And either way, congratulations on your pending graduation!
For folks who have a home elsewhere will just walk away from these condos saddled with a special assessment on top of the already expensive HOA fees, insurance, etc. They will take the credit score hit for seven years.
Majority own them free and clear. So they'll just sell for less.
No one is forcing any one to buy a condo or a home with an COA/HOA. In fact, in the State of Florida, a buyer of a condominium or home, once a contract to purchase has been signed, must be provided a copy of the COA or HOA rules and by laws, financial statements, disclosures, and other documents, etc, etc, has 3 days to review to review the documents and, based on their discretion, may cancel the contract, with no penalty and no questions asked.
If the buyer elects to proceed with the purchase they must sign a contractual document acknowledging they have read, understand and agree to abide by the COA/HOA covenants.
This is a deliberate choice condo buyers make when buying a condominium in the State of Florida.
For the Surfside Condo COA membership (unit owners) it was also a deliberate choice to allow the COA Board to constantly defer critical inspections and maintenance needed to ensure the structural integrity of buildings and facilities was maintained.
The COA membership didn’t want to spend the money on needed repairs and kept kicking the can down the road.
And we all know the rest of the story.
This is not legal advice, but you're incorrect in providing documentation about the condo. In a condo contract, the seller is required to provide documentation. However they're not required to provide documentation on the last 12 months of monthly meetings, which is HIGHLY RECOMMENDED since that's when they discuss any possible special assessments. In a homeowners association purchase, the seller is not required, and actually guided not to provide any HOA documents as it created a liability to the seller.
The 3 day right of rescission only applies to condos. And I think it's 15 days for new condo builds. Don't quote me on the 15 day...
No buyer signature is needed, they just have to receive it and then the time starts ticking...
As for Surfside condo COA, it's like a LOT of other condos, the unit owners VOTED not to have repairs done (they really voted not to have special assessments or increases of their COA dues), so it was on them and all previous owners.
It was the COA members that did this to themselves, not the actual legal entity of the Condo association.
It was truly a sad situation, and that's what triggered the law to change!!! It's finally where it should have been all along...
@@floridarealestatetv I stand corrected. The HOA must receive the Disclosure Summary, however, the seller is not required to provide the HOA docs. Those docs are available through public record though. Thank you for the reply.
@@jackf.7415 Thanks for the engagement!
My HOA is more than my mortgage. I hate it, but I’m still paying less than 1k a month for a 2 bed two bath.
That's great! What area?
That IS great. In Massachusetts you can’t even rent a room for less than that. I’m also very much aware of a the number of homes/condos being unlawfully taken with forged/fabricated docs in both MA and FL. This has been going on since the TBTF bailout.
Billion dollar surfside settlement was the nail in the coffin.
Damn that’s a lot. But it surely seems like neglect took the prize for that happening.
I bought a condo in California 35 years old,close to the beach.
Our HOA rates went up from 150-300$ over 3 years.The property Manger said:We can't tell you why UNLESS you are on the board.I was voted onto the board only to find out the plumbing was shot =slab-leaks.We didn't have but 100k in our HOA fund...NOT ENOUGH TO FIX 65 UNITS.1 women had black mold growing in her closet.
There are actually two different types of associations. In the State of Florida, Condominium Owners Association (COA) and a Home Owners Association (Home Owners Association) are governed under separate sections of the Florida Statutes.
The new “milestone inspection” and “reserve funding” requirements only apply to COA’s.
That is correct! And also you can look up SB4, the new senate bill that requires condos to comply with these new rules.
My condo on the ocean has been for sale since Oct 23 it's now mid-May lookers but no offers.
What city are you in? A lot of times it’s just about marketing. Did they do a 3-D Matterport scan? Did they do a video? Did they boost the video on Facebook to reach more people? Are they doing open houses? So many questions.
Ron Desantis has been great for Florida, everybody is economically underwater now.
I think that Ron‘s policy of not shutting down during the pandemic did cause a lot of people to move here. The thing is they all went crazy and bought houses for way above asking price. So now everything is kind of unaffordable.
@@floridarealestatetv Question, If you can afford the asking price, how can you finance a home when there is no home insurance available in Florida?
@@garybowler5946 Home insurance is available. It's just expensive. Average is $6000 per year, highest in the country.
Insurances and HOA....you can buy a condo 3 BR 2 Bt for 27.000.00....Condo fees 875.00 per month
Yes, it’s a little crazy sometimes. Some of the condos have fees that are so high, they’re in for a rude awakening when sellers can’t sell and buyers won’t buy.
Thats a great law, we have it in Canada. Buyers can get access to the feasible study and the reserve balance sheet to insure the Condo is in good financial standing. You make it sound awful, whats awful is that this law wasnt in place before.
I absolutely agree that buyers should have access to it. Actually, everybody should have access to it. That way there could be software or people that analyze this stuff, give the condo a health rating for their reserves, another health rating for the structural integrity of the building, and buyers can make much more informed decisions without being financial gurus or, structural gurus.
Wow that's a really happy fish jumping behind you!
Haha. It happens here. Those jumping fish.
Sarasota used to be so nice 50 years ago
I came over in 1992, and it was nice then too!
My wife was better 50 years ago😮
@@FM-ki4dl Bro.. lol
Here's an idea.
Remove all occupants, reduce all condos to rubble, build a serious sea wall using the rubble, covered in sand. Do it all the way down the dune line. This barrier will reduce the potential for catastrophic losses from hurricanes.
The Dutch had the right idea, build a dike.
That’s definitely an idea.
Everyone just wants to buy RE and have it go up in value and take the profit . They don't want to PAY for the building.
That's what they've been doing. Now there is a law that prevents them from doing that.
Think of an HOA board as a Board of Directors for a company. Are they skilled enough to recognize, plan for, and navigate the increasingly complex maintenance of an aging building? Or, where they just voted in because they were interested and likable. Depending on your equity position, you are entrusting a portion of your portfolio to that HOA board (and some of those members practice “insider trading”).
I really like what you said here. It is a bit of a popularity contest. And as soon as an unpopular, but "should be done" suggestions comes through, you're no longer popular and lose the votes. So dumb.
Shows voting red or blue doesn’t help
It’s not government, it’s Insurance that’s one of the biggest problems for condos. But the government made some new rules so that doesn’t help either.
What does bankrupt mean in a condo? The building gets torn down? The bank repo's? The county has a tax lien sale? My acquaintance with condo owners is most are wealthier escapees from New York City. They are used to flim flamery.
Ho hum.
It does not mean the bank repos. The condominium would start to be not maintained and then there would be money missing when a new association gets set up and the fees with skyrocket. It’s truly just a big problem. If it goes on too long, people will want to sell an investors will buy, and then they can tear down and rebuild luxury, depending on the location
So, you knocked the old condo building down. You put up new condos that's 4 * the price of the old one with the same high condo fees. 😂😂😂 Who's going to buy the new ones
There are wealthy people who will buy condos in a new building at a great location
@@chucklumb3500 keep track of the Florida market and watch the wealthy sell. The condos they brought in the 70s and 80 s tax sells. It's going to come around again
There are so many people that will buy the brand new beautiful, extremely expensive condos. Even with China having regulations against buying in the US and other countries like Iran and North Korea and Russians, there’s still so much money out there that we don’t even know about. It’s never a problem selling luxury property For now
If the entire economy goes down the drain, and yes, they will sell. But most of those assets are owned in cash with no financing, so it has to get really bad for people to give up and lose on that investment. He’ll keep paying the HOA fees if they don’t have a mortgage because overtime, real estate goes up in value so they just have to wait it out.
It is inevitable that at least one and probably more hurricanes will hit Fla
In the next 5 years . That simple fact will make it difficult to sell even luxury condos
I told my daughter to travel to Florida for spring break, but she said it's a long way to go "for skin cancer and a Slurpy." Young people today are so much smarter about their habits and health choices than I was. Florida is the "Stink on the Brink." The whole state will look like Fort Myers in 25 years.
The younger people have a lot more information and makes smart decisions. Plus, Florida is not really tailored for younger people unless you’re rich and you go to Miami.
The old folks have sucked the life out of these buildings and paid almost nothing to live there for last 30 years. Now it's time to pay up and surprise surprise! They dont want to pay. Sell the problem to some other sucker, right? That's the boomer way!!!
Those bast booms. I don't even lik them and I'm one of them.
Ouch. That does kind of accurately describe what happened
😂
Florida looks like heaven from outside but the opposite from inside
Off topic did anyone see the big fish jump out of the water behind him. That was awesome
Haha, yeah. It happens here all the time!
selling your condo is not an option, for that you require a buyer.
Sell the building to a developer to fix up and rent out the units.
There are buyers out there... not everybody knows about the issues in florida condos.
The way you describe it, I say America is such a sinister system. Pack your bags.
I didn’t mean to badmouth America. I love living here. I’ve lived in Canada and Poland before. But this is definitely the best place for people like me. People who make things happen and work hard. But there are rules and sometimes there are schemes.
This was a problem many years in the making and was mostly self inflicted due to Florida's short sightedness when they wanted all the northern retirees to move down to FL. Ill take my high NY taxes, thank you very much.
You didn't have to buy a condo, single family homes are always a good investment.
Wow 😮
Condos are a ripoff!🔥💰😈💰💰💰💣
They're not as good of an investment as single family homes or small multifamily, that's for sure. I'm a number cruncher, and I would not buy condos.
I live in the condo buildings shown behind you!
are they raising your rates yet...
Since you bought one of those....could I interest you in a great bridge I have for sale in Brooklyn? I'm selling it cheap.
@@Markham12thcentury I'm very happy with my home. Thank you.
@@jonyjoe8464 Yes. The Association fees have doubled over the past three years. On the plus side, our building has a brand new roof, paint job, and other refreshes -- so we do not expect to see any large charges in the next few years.
Thanks for letting us know. Where are those buildings by the way?
It's the plan behind the plan
There is always a plan behind the plan. Tear down the old stuff, build you more expensive stuff. Make it less affordable, increase the tax basis, increase the insurance costs, and hence you invite more rich people that spend more money in your city.
You said three miles of the coast line, there are condo’s in Orlando making their owners go through the same requirements.
I double checked it. Look up Senate bill for. SB four. It says within 3 miles of the coastline and three stories and higher condos that are I believe over 25 years old.
You’d have to be out of your mind to own a condo HOA.
Realtors even advise not to
It all depends on the goals. There are condos with very affordable fees. They are usually one or two stories. Three or more have a lot of laws now.
@@floridarealestatetv as long as there’s HOA’s, there will be ridiculous bylaws, corrupt boards, and insane assessment fees. Homes with HOA’s statistically depreciate value because they are associated with HOA, which has a very poor reputation..
Think of an HOA board as a Board of Directors for a company. Are they skilled enough to recognize, plan for, and navigate the increasingly complex maintenance of an aging building? Or, were they just voted in because they were interested and likable. Depending on the size of your equity position, you are entrusting a portion of your illiquid portfolio to that HOA board and your only means of influence are a single vote and trying to exit the market.
Thank you.
You're welcome!
Take your example of a 400,000$ condo with a 150,000$ assessment.
What was the price of that condo 3 years ago ?
And by Condo association bankruptcy , what does that mean and what asset is collateral .
Assuming that there are no more special assessments , a special assessment will only reduce the value of that condo by the amount of the special assessment
- Price of that condo was about $250K 4 years ago.
- Condo association bankruptcy isn't that the condo is going to be sold at auction or anything, it's that the legal entity that is in charge of that community stops being in charge. The owners have to fend for themselves from the wolves, or they have to create a new association, get it funded, and properly registered, and everything that goes along with that. The reality is that predatory people hear about it, then they buy up a ton of units for super low prices, and then they start to vote in a way to decrease the value even further in order to buy more... until one day they can vote to tear it down and sell to a developer for a hefty profit.
- The value of the condo doesn't go up or down necessarily if there is a special assessment. The price that buyers are willing to pay dictates the value... and the sellers that don't have the money to pay the special assessment lower the price significantly in order to sell and disclose to the new buyer that they will be responsible for paying the special assessment.
The Buildings that passed milestone inspection with have no problems. Inflation, Taxes & Insurance impact ALL property owners.
True! Many are passing.
That's why I didn't like to own condos or townhouses with the hoa's. I have owned one and didn't like it at all.
I used to own two, but I sold those back in the day.
ya, move to Florida, now pay up!! what the hell were you thinking?
Most people who moved here were thinking having their government shut down their local business is a slap in the face! So they left and came to Florida where our governor doesn't punish his residents.
Get rid of middle management!!! Become self insured..and no corporate real state!! Taking over buildings...
Self insurance isn't for everyone. It will also eliminate the possibility of financing any of the units, which by default will lower the prices of units. But that might not be a bad thing.
Will this new law apply to villas in Lake Suzy Fl?
Look up Florida SB4. Senate Bill 4 addresses this law.
@@floridarealestatetv Thanks. Doesn't apply to us.
I wouldn't be near a Lake in Florida ...danger Alligators
That’s funny. That’s not a lake behind me, it’s a creek, saltwater. Way less alligators there.
they are an endanger species so you cant harm them.
You Yankees are silly, alligators will bust their ass to stay out of your way unless you corner or surprise them.
all lakes in Florida are sinkholes
GOOD!
good why.???
Do you want the condo market to crash and burn in Florida?
I was wondering the same thing
@@floridarealestatetv I want ALL real estate to literally CRUMBLE to the bottom. It is waaaay too overpriced and it just causes homelessness and high property taxes.
@@marblox9300 I do think it's overpriced compared to wages. I don't agree that it causes homelessness. There's a lot more to that conversation. And I don't think it causes high property taxes. The government's budget on a local level causes the taxes to be high. Get your government under control!
Entrapment!
Pretty sure you're wrong about the 3 miles from ocean as I've seen this happening in Orlando
I double checked and it’s 3 miles of the coastline. So it’s kind of weird that it’s happening in Orlando.
i sold i sold i sold im free hahahaha. feels good to be out of there
Where did you have a condo in Florida?
@@floridarealestatetv lauderdale near 17th street.
When thinking about buying a condo ... DON'T !!!!
I never liked condos. It’s just way too much to dislike about them.
There is quite a bit to dislike about them. There is a huge convenience, though. You can just buy a place and come visit whenever you want and never worry about any exterior maintenance. Just keep paying all those fees.
Crooked creek HOA is a total mess.
Is that right? I’ve never sold in there. What’s the main problem? Great location, I walk that park all the time.
Is It crooked 😅😅😅😅😅lmfao
409K is lower class....Geez
Lower class in my area would be $250k for housing. The neighborhood for that price is definitely shady
Deferred Maintenance. Otherwise Condos are fine.
Reserves being too low is a future problem...
Sarasota...I'm sure those condos in the background are filled with po folks!
Those condos are not actually in Sarasota. But ours are also expensive as hell. And some people are on a retirement income... so they're the ones who are having problems.
@@floridarealestatetv Condo problems run far beyond those living on retirement...in many cases insurance companies will not touch them period. The prospect of self insuring frightens any and all.
Red Bug Slough Preserve might be a good video location
I've done a few videos there. I love that park. Glad it's finally open again after their renovations.
@@floridarealestatetv I like to park at the back lot on Lockwood Ridge
😂 you got video bombed by a fish at 1:40.
Hahaha, I love it!
Imagine that...
They whine about pricing themselves out of the market....
Waaaaaaaaaaaa..
😂😂😂😂😂
IMO
Everybody has something to whine about.
Everyone wanted artificially low HOA fees. Was easy for the HOA to simply vote to defer. I feel bad for the people who are on a limited budget and who honestly were unaware of the reality, OR where talked into it by aggressive brokers. Kind of like when people were sold low adjustable rate mortgages and were told they could always remortgage when the rate adjusted upwards. It's going to be a bigger mess imo, than people think. Big Problem: Condo owner goes to their bank, " I want to finance a $100k assessment at 123 Beach Drive." Bank: " We are no longer lending to anyone at 123 Beach Drive." So now good luck selling....you need an all cash buyer.
It has crossed my mind that Banks might stop lending on high-rise condos completely. I know you can’t get an FHA loan or a VA loan on a lot of the buildings. They have extra requirements. You can still get conventional loans on many of them. But that could change.
What I from Germany don't understand: why don't the USA built houses as stable as in Germany? It's the same cost and with a cellar. For old important stuff, a friend who visits, party, tornado is a cellar not bad. All together costs the same. Building cists the same, but you don't like strong walls and our more stable windows. Why are slim walls so important for American buyers of condos? All because if the proud if American culture while you see more tornados and floods and burned houses? Why is a house with slim walls out of wood which burn fast and get easy destroyed in heavy stotm so much imoortant to get bankruot when a flood or tornado comes?
Most of the hurricane damage is done by flooding and water. German houses could withstand tornadoes much better but that’s usually not a Florida problem.
To bigger cost of ownership isn’t the building. It’s all the attorney fees that add up when people file a lawsuit because insurance finds a reason not to pay the full amount. The legal system is hurting the insurance rates in America, especially in Florida.
We rarely get tornadoes. But I have seen them before. And you’re right, the damage is definitely from hurricanes and from flooding.
Nora Patterson Bay Island Park might be a good video location
Yep! Check it out. ruclips.net/video/hBQX_gINh2c/видео.html
Why not do away with condo’s and just make them apartments. No HOA, no condo’s.
Because the monthly rent will have to be too high
The damage still has to be addressed... and people want to own, not rent.
More demand for townhouses and single families in FL 🚀 🌙
Very good point. That’s probably why the inventory for single-family homes has not grown as fast as it has for condos. And if you get an agent who educates you like me, then I could be recommending the same thing you just said, depending on your needs and wants.
Kick the can down the road, similar to the National Debt. Just Sayin
Hahaha... EXACTLY
File for bankruptcy or not the reserves required to occupy the homes will not change and would not be reduced by the bankruptcy. Property across the nation needs to go back to 2019 prices. We desperately need a recession. Should have allowed one in 2009 instead of propping up the banksters.
The run up since 2010 has been unhealthy. They should have let a reset happen. Right before the pandemic, in December 2019, the real estate market was in an equilibrium point and I was expecting prices to go down because inventory was rising rapidly. But then they lowered the interest rates drastically to help with Covid and the restless history. Whatever president decides to attack it headfirst will not be a popular president so no one wants to do it.
It has been out of control which is the cause of the problem
Yes, condos kicked the can down the road for FAR too long and now there are repercussions. The governor got sick of it and is making them do it.
Its better to rv in Florida Texas Arizona
Until a hurricane comes!
Florida was cheap back in the 1970s, 80s...what happened?
Ron DeSantis destroyed the state. He(He doesn't even bang his wife anymore).
Lots happened... covid made a lot of people move here since we didn't lock down. And NY and CA decided to move here... population growth is strong every year.
@@floridarealestatetv really...just happened during COVID? OK seems we are getting many crossing over by boat too..but that's another issue that's... off limits..BTW my inquiry was just a spoof
Don’t pay it if you’re of a retirement age and plan to spend the rest of your life there.
Unless you have unlimited funds.
😫
Could be worse though.
Florida is expected to suffer floods and many homes destroyed by hurricanes
So we all will be homeless living in boats
They have been saying that about Florida for ever. Florida has always been inhabited and some people drowned from hurricanes, some people lose everything, but the population keeps increasing.
Going ro see people slammed with 20k assessment like one in orlando
At least! I know of a $70k, a $25k and a $30k assessment. It’s crazy
I’ll never belong to a hoa
It’s Greed plain and simple
It always seems to lead people’s decisions.
Well, these are just your personal views.
These are facts... keep dreaming
Yes they are.
You're a real one Michael S Punich
Angry tenants could revolt
The government in Florida tends to favor the landowners, not the tenants. So I doubt the tenants would get very far except for a one-way trip to jail.
they can revolt straight into the streets, the HOA dont play around, you be in the streets so quick. Its no fun walking the streets with them street girls and alligators.
What are they going to do, organize a midnight naked tickle fight?
couldn't happen to a more deserving state. You want republicans in charge you get this, enjoy.
🤣
What’s so funny?
@@floridarealestatetv The whole idea of living anywhere in Florida......
@@AKPakrat Population keeps growing... there must be something to it.
Many old folks took a gamble and lost.
Don't feel bad for them. Imagine Florida without so many elderly...
I can’t even imagine it! Median age in Sarasota is 59!
@@floridarealestatetv You actually don't look too young yourself sir
Desantis ruined Florida.
Hurricanes ruined the insurance situation.
@@floridarealestatetv Letting developers build where it should have never been allowed created the insurance situation. Hurricanes are not unique to Florida.
Florida condos and trailer parks are all worthless got it worth zero... Because of all the fees it is completely out of control You can't give a trailer away or a condo away in Florida now....
I’ll take it! I would gladly buy almost any sub-to property in Sarasota/Manatee counties if I can break even on the rent.
Floridian women, if you’re listening, stop being chattel property. Vote Blue