CRAZY Expenses For Condo Owners (Becoming UNAFFORDABLE)
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- เผยแพร่เมื่อ 2 มี.ค. 2023
- A lot of people have been asking me to elaborate further on the condo affordability crisis starting to take hold in Florida. In many cases condo budgets and hoa dues are starting to double or even triple compared to just a year ago and today I'm going to explain in detail why that is.
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I remember when they wanted to rip up the asphalt parking lot and install pavers in the Condo parking lot. Oh the screaming over the $250K cost of the project. Over 20 years the life span it will cost the individual unit owners is $8 a month. Five years later the same people who screamed and yelled over the parking lot paver project, couldn't wait to spend $250K redecorating the "Party" room in 2014. 2020 these same people came back and wanted another $150K to redecorate the Party room again. This was when I realized it was time to get out. September 30 2022 Hurricane Ian put the party room under 10-12 ft of water.
Now that sounds like a fn party!
😅
I feel like this has affected you emotionally.
After Surfside, I would have sold a condo as quickly as I possibly could have. Not because I would worry about the building falling down. It would have been because it was obvious it was about to get really, really expensive to live in a condo.
Insurance is skyrocketing for everyone in the south
I think it was too late unless you sold the day before.
@@trainsandlocomotives Most likely true, but I wouldn't have waited this long either.
@@77jaycube69 yup. I see what you mean though. When stuff like that happens usually changes happen afterwards. It’s probably difficult to sell a condo now that the word is out.
Basically, the lack of proper maintenance artificially reduced the price of the Condos. Kicked the can down the road. Those who got out earlier made a profit and now the remaining owners are holding the bag.
🎯💯
And it's going to be a whole lot of hurt in thoses bags.
Yep. That's like Life 101. Never be the one left holding the bag.
Left holding a bag of hot diarrhea
What s in this "bag"?
Florida has gone insane with home prices. I love the place and its beautiful in most places but property prices are batshit insane. I thought Phoenix was insane, Florida is on an entirely different level of insane.
I wouldn't buy anything in FL.
They have gotten quite a bit better lately lol. But yeah 650k for a bathtub size stucco pink house with 2 bedrooms 1 bath that's 50 years old can be .....off putting.
I've been shocked at some condo fees! My hubs & I were looking at condos, but we changed our minds due to the fees.
Smart
FL is scam land. Condos r okay away from gulf coast...away from hurricane , tornados, floods etc... HOA in Vegas is low
Yep, us too. It's just too much. I really noticed some of the condos I have been following the market on, have had huge increases in the last month. It is hard to find one under $600 now. Sadly, I think we will try and find a single family house in a non-hoa community.
Disaster....wait until new condo law
Better than to be pancaked in your home.
The security company got all their money and pay the guards the minimum, they fell sleep on the night shift and do nothing.
Almost bought near St Pete's Beach, beautiful area, but the pandemic hit and put that on hold to wait for it to blow over. Dodged a bullet
Same here, but i spotted the insurance situation and now the HOA thing before I pulled the trigger. Not sure where I want to retire now
@@johnspelman8976 Buy a nice mobile home and or tiny home possibly and park it somewhere in Florida. Could be an option
Good ideas
@@johnspelman8976 look at ITH tiny homes
I owned a townhome and loved it but I hated not being able to control things like the HOA fees. Yes, you have to maintain a single family home but you have complete control. You can set aside a few hundred dollars a month and still manage your maintenance costs. If you have to get a new hvac for 10k, you can save up if you have notice. If you don't have notice, they offer 0 pct financing. Most other things, like roof, wood rot, windows, etc, you can plan for and shop for good deals and do this a little at a time. It's nothing like having to come up with assessments or an HOA fee going up they way they are now. I hope you sell Michael. Get a single family home and just pay someone to mow the lawn if you don't want to. It's better to be in control of your own money and destiny.
Have you ever owned a single family house? , It's not like you describe
Are used to own a duplex, which is basically a single-family home with two units and it was a lot of work to maintain that place. So as much as I like to complain about the condo, the best thing about it is, I don't have to do anything besides pay. In the future I will likely still move into my own house. Once my wife is ready to retire, but both styles of living, have their pros and cons that's for sure
Single family houses have HOAs too. The only thing that will get rid of the HOAs is hyperinflation combined with a Great depression scenario. Where the neighborhood Karen's might be more concerned about feeding their families with those backyard chickens and gardens and roosters versus worrying about if looks upscale enough
@@xfhnhhgjbvcfg - Yes, I am on my 3rd single family home. Homes are expensive and a lot of work but I don't like throwing my money away on apartments and I did not like not being in control of my own money in a town home. At least in a single family home, the value always increased, I made money on my homes to be able to purchase the next home and I could control my own budget. Single family homes are a great investment. If you stay long enough and take care of your home, you will get your money back and more.
@@larrys4618 - I live in a single family home with an HOA. I don't really like HOA's but HOA's for single family homes are so much cheaper than a condo and when they go up, it's minimal. For our HOA, we get pools, tennis, golf, pickleball, scenic trails, club houses, meeting rooms, lots of benefits but we don't have to worry about expensive structural damage to a high rise. That is just too unpredictable. We pay about 127.00 a month where I know someone in a 1 bedroom condo that pays about 700.00 a month and they had a 30,000.00 assessment that they had to write a check for (not pay out monthly) in addition to that 700.00 due to some foundation issues. That is insane.
Welcome to South Florida! When you buy a condo it feels like you are making a mortgage payment and at the same time paying rent. Condo fees and assessments can easily be the same as your mortgage payment. In 2005 i was paying $220 today $900!
Absolutely!
HOA's need to have caps on the monthly fees they can charge
@@mamaitaliano9774 supposedly they do have caps and when mine went up 60 bucks a month, I reminded them of that, they just said what can we do, the costs have gone up so much and we need that much more to pay bills. ? Does anyone know the answer? Thanks
@@gypsygirl9 No, there are no laws about how much they can raise the HOA fees. There seriously needs to be some law passed about it. There is a law that your property taxes can't go up more than 2% per year if you are homesteaded.
I'm seeing this in all of the neighborhoods here in Bluffton, South Carolina. My fiancé runs a barn in one of the high end neighborhoods here where celebrities go to get married. They just doubled their HOA. It's wild.
Someone on the condo or HOA board usually is getting a kick back$$ from security and landscaping companies
Exactly..the wrong people rise to control..just like grammar school and hall monitors..
This here is exactly why I bought a house with my own pool. So much of the maintenance I can handle myself and the construction of a Florida house is very simple compared to houses up North. The reason insurance is so high is because of the contractor gouging every hurricane. It’s always best to avoid this by maintaining your property and doing what you can to mitigate potential damage. I didn’t need rip off artist for repairs, I did my own repairs and invested the remaining proceeds into the home.
Overnight, Condos became a money pit trap that is probably going to be hard to get out of.
Flypaper
Like a time share.big mistake
Came so close to buying a condo about 2 years ago, so glad I didn't.....great video, thanks for being honest, not many are nowadays
There are basically no more buyers. Those who wanted to buy a house already bought when interest rates were low. The party is over in my Florida neighborhood price cut after price cut. There is a very loud bird that lives next a house for sale. You have to nuts to buy that house.
Michael! I'm in Miami for a few days, this place is completely insane... for the rich, it's like good times are here forever!
Huge disconnect from the average person's reality...
Unbelievable amount of buildings been built!!!
Girl I visited is a RE agent, says condos in Brickell going like crazy been bought by foreigners! Lots of dirty money!
I here you, welcome to the insanity that is Miami 😄
I've looked into Condo's because when I was starting my real estate journey, they were cheaper, even with the HOA dues. I was aware, even then, that I could not control those costs and they could skyrocket beyond my control, so I elected to buy single family homes, where I could control the costs better.
But u paid alot more...even more than special assessments... Now with prices falling it's not good to own...pain in the ass... when this gets priced in..condo prices r going to be great
@@danman1287 lol no...
@@fuqutube yes boy. Watch n learn
Many of the older condos aren’t safe at all.
@@oldcat87 in FL always buy newer build. Updated building codes. Lower insurance
I lived in a condo I owned for 10 years, until 2017, when I retired and sold it and to relocate. Having security guards patrolling the grounds is a luxury. It would be cheaper to put security systems on the buildings and put up Neighborhood Watch signs.
This is just a Florida law, but it seems like a lot of other people in different states are commenting about their HOA dues skyrocketing as well. Likely due to the cost of the things, I mentioned security, utilities, salaries, insurance, it all goes up and never goes down.
Miami Beach condo reserves is what the HOA members buy their new Mercedes with.
And also their lawyers that paid from residents' pockets, arrive in limos to the board meetings.
@@missfromsunshinestate we probably live in the same building
Every time I see a cheap condo for sale that looks great, the condo fee is over 1000 dollars a month. Those condo fees don't even cover all of the costs, like electricity. No surprise they dropped the price so much to sell it.
That's ridiculous!
@@SecondTake123 Not if the high fees cover the interest payments for a major renovation
A twenty percent reduction in home prices is not near enough after the recent price increases!
Civil unrest will skyrocket this year be careful of cutting security
Our security is worthless... they won't be protecting anyone here. I can assure you that.
People on a fixed income (esp retirees) are taking a bloodbath with all the price increases of food, maintenance, taxes, insurance, etc.
For sure
True!
Never buy a house or a condo that has an HOA. I can’t believe people are still trying to figure this out.
Isn't it incredible that people are so ill informed? I would never buy in a HOA. Nightmare.
There r condos without HOA lol ??? What world do u live in.
@@mullerk2 if u liv in a golf community or 55+ community gated to keep like u guys out...prob with it
HOAs actually serve a good purpose in properties that share spaces. Running them well it’s a whole other story.
@@robbielara if there were no HOA property would deteriorate. See china apts
When I was on the board of a condo townhouse assoc. ( not in florida) We were given 2 options- pay a lower amount over a longer period to fund the reserve account or higher up front amounts for the first 7 years or so and then let investment returns pick up the rest to complete the funding, similar to how pension plans are funded. FLA condo assoc. Boards should get similar advice from a finance professional on how to build investment returns projections into the funding model to shore up the gap for condo unit holders. These new laws will result in huge pots of cash that need to be managed. Rhe other reco is to engage the services of a fiduciary to hold the assets to prevent fraud. Desperate ppl might get elected to the board just to raid the reseve fund. Good luck getting the $$ back if that happens
I'm looking at condos and noticed that some of them haven't appreciated in years. The problem is that property taxes and common charges have gone up so much it wipes out market value of the unit
Exactly. The same thing in Aventura, Miami Dade, every single older condo value is affected by this factor.
I have always been leery of HOA fees. These sometimes insane monthly costs are simply a way of gouging the condo owners.
Along with extortion, embezzlement, defrauding buyers, theft, and lies and bullshit from people you would prefer not to deal with, in your pockets and privacy, casing your paperwork and property????? A violation of civil rights, adjudged by dozens of courts..?????
The fees are set by each building’s board and reflect the actual cost of maintaining facilities and paying utilities…plus a reserve fund to pay for major upgrades. It’s not gouging when it covers actual necessary expenses. The buildings affected have gotten away with under collecting for future upgrades in the false economy of deferring hard decisions and fee increases. In large part this is due to bad state laws governing condos that have had to be tightened after the disaster last year.
My friend finally sold his condo after he could no longer afford the rising fees associated with hurricanes and forced upgrades to the windows.
South Florida is so done. I’ve been on traffic for 2 hours all week. There’s no thing as traffic hour in miami. More like traffic day. Hate it here.
Haha you said it!
I bet a lot of people wonder why did I do this to myself.
The biggest detriment to security guards doing their job are the actual residents themselves. Guards get screamed at when they ask a resident to show ID or if there’s a problem, or people who are living there, but are not on the list of residency.
“You will own nothing and like it”. Sounds like more paths towards that
your condo is worthless with those current hoa fees and the acceleration for future fees- it's like owning ford pu when diesel is 12 bucks a gallon
Very important topic and nice graphs. I have owed condos in Florida and another serious problem was Condo Association fraud, not getting the required 3 estimates for repairs and hiring family and friends and getting a kickback. Also, I experienced associations charging more for renter background checks and pocketing the difference. And outright embezzlement.
I’d like your thoughts.
Yes, that is still a problem in some cases. The best way to know if fraud is happening in your building is to attend the meetings and know what's happening and if it is, of course, it needs to be reported
The grift is on every level- here in my medium price SWFL neighborhood HOA and the trailer park down the road. It's so obvious too, absolutely maddening, sickening. I guess it's a reflection of our parasitic ruling "elite".
Sadly this law was needed because you don't want deferred maintenance that leads to another building collapse.
Ahh the special assessment!! One of the joys of condo ownership!!!
The examples you mentioned are the reason why I could never live in a condo association. It's takes alot of patience to deal with stupid people. Don't know why anyone would complicate their life this way.
In my condo we had the neighborhood watch. There are a lot of retired people looking for something to do, and the neighborhood watch worked shipshape
Bet the apartments that are high raises..sky rocket the rent. This is just nuts .
I just cleaned clothes out of my closet and donated to Goodwill. Cut the FAT. Right?! Feels good when you pull the trigger.
Michael is back at it again with a great video.
You know it!
Grreat reporting.........makes a lot of sense........thank you
Thank for the great information Michael! Our condo fees have gone up 10% each of the last 3 years and we have a special assessment fee on deck. The association is well over 35K in arrears we've got cast iron drain throughout the complex that been dog patched and needs to be replaced among other things. We're fortunate to have our place paid off but I would so welcome a developer to come calling asking for a respectable buyout. I'm glad you talked about that developer/buyout situation that's occurring in Florida a previous video. Our complex is 40 plus years old and in an excellent location to desirable schools. Maybe I need to make some phone calls!
You're welcome if you're in a desirable location in developer, buyout is a possibility in the next several years
The value of condos that are in buildings of 2 stories or fewer will go up in price like crazy.
What is happening in miami? Developers want it to be an enclave for the very wealthy. Everyone else not welcome and priced out. And all the local politicians who claim to care so much about people are just letting it happen.
The guy Suarez is became a millionaire when he open the door s for the the Tech Company’s.
Good Job Michael. Hope to meet you in July
FOMO - fear of missing out. Nice data . Thx Michael
Thanks Michael 👍
Deals are good. Thanks for explaining the NEW CONSTRUCTION.
Great video
Thanks Dee!
The last year reference and comparison is helpful
My father is the president of his HOA at a large retirement community in Pembroke Pines. To combat insurance costs he is trying to set up a sort of conglomerate of condo communities so they can get a large group policy. One policy for several communities. It's complicated. Everyone needs to be up to date with an engineering inspection from a structural engineer, they need to have substanstial reserves, etc. It's a ton of work, but it could save big $ if he's succesful.
It just means that condo prices need to drop more. It's basically an apartment that you pay for with a lower monthly fee.
In my area, it seems like the HOA controls the price of condos. Lower priced condos have higher HOA fees and higher priced condos have lower HOA fees so it seems to balance out. You kinda think you have a good deal until you find out the HOA fees.
@@trainsandlocomotives thats exactly right!!
Board: we have contractors that have been with us for a long time that we want to continue to support.
Translation: that's where the kickbacks come from.
The Amerikan way
Thanks, Michael!
My pleasure!!
Thank you Mike you talk a lot of sense
My pleasure!
In Canada, strata fees have been exploding, especially insurance. All the small providers are underwritten by larger firms like Lloyds Of London, who insure a larger market overall, so when other costs go up in other sectors, the costs are psssed down accross the spread of insurance clients.
Seems I've really dodged a bullet here. I have a 'condo' I own in the Midwest--a coop arrangement. Means all 26 of us unit owners own the corporation that owns the buildings and land. We rotate on and off the Board, and keep an eye out for getting multiple bids for maintenance projects. Thinking about getting maintenance done now instead of paying for expensive repairs a few years later. Not as glamorous as Florida, but my coop fee, including ins, lawn care, trash, water, gas and heat, comes to $560 a month. In winter, my electric bill is $27 a month. No other utilities.
A Co-op is better!
Watching from Costa Rica.🏖 Thank you for your candid appraisals! Glad I delayed pulling the trigger on my Naples, Florida property purchase!
You are so welcome!
All well said! Truth!
U should sell your condo n move to playa del Carmen Mexico... Bldg concrete rebar... N pocket the extra amount
New construction in FL are built with latest building codes... Lower insurance
I live in Florida, and as of January 2024, our monthly condo association fees went up by $150.00 per month. I am able to get by, but many of the older, retired people who have lived in my building for 2 decades or more are REALLY struggling.
25 years no maintenance is sometimes not a good idea
The banks themselves have zero reserves.
Another quality report!!! And I have the same old question for you, how in the world do you come up with so much information to make a almost daily report. THIS HAS TO TAKE A MAJOR EFFORT AND TONS OF PLANNING. I can see this taking you in new directions. You really have very limited competition in your reporting. Keep pushing on the gas! Keith
I bought during the smart time of early 2020. I definitely didn’t plan on moving any time soon. It’s not worth it with these rates today.
Thanks Mich
Hello Michael these expenses are going to the moon, it might get to the stage to have a new block built ,the people move in and then demolish the old ones .
They sure are I foresee a lot of people selling out of necessity real soon
YEP! thought this would happen!
Never ever buy a condo or townhouse. The HOA fee will eat you up.
its really reasonably cheap in the midwest
You can buy a condo for $175k or a house for $400k.... Takes a long time to spend $225k on HOA..
@@xfhnhhgjbvcfg True
@@xfhnhhgjbvcfg true
Did not miss any of your videos. The assessments are insane. Bringing the buildings up to reserve is going to be murder. I tried warn my brother in law who wants to get a Snow Bird place in Miami. He thinks I have sht for brains already.... I get no satisfaction from being correct. I did my duty. My parents' building here in West Seattle are 100% reserved because they bit the bullet years ago. There is no deferred maintenance. No reserves is absolute insanity.
No reserves means ppl have a lot of faith
And hopium
@@jimcrawford3185 This post wins the dry humor spit-take of the day award.
@@tommorningstar6373
But l was serious, Tom
Excellent report on the future of condo fees!!!
Had a terrible experience with condo board, will never own a condo again!
Always bringing the truth 💯 I’m taking a vacation to south beach next month I’ll be on the look for the guy with the cool shades and camera on hand😂😂
Hey Michael,
A listing in Georgetown Texas near Austin Texas.
A flipper may be losing their
A$$ on this one!
Someone bought a house in my old neighborhood June 2022 relisted July 2022 at $724,900 dropped the price every month and now down to $509,900!
Zillow doesn’t show their purchase price. Probably one that Zillow bought!
Thanks for all you do!
Keep up the great work!
Those guys are just so screwed, and rightfully so. You can find purchase price in public records 👌
Great video..
Thanks for doing what you do!👍
My pleasure!
My family and I are in a condo, the HOA fees are ridiculous!
It's not as much as rent but since you also have to post for all the repairs and new appliances it adds up.
That's why I love my townhouse. Two stories, simple.
Thanks!
Really appreciate the super thanks Mariam!
Re the security comment -- trace the connection between the board members to this company. Likely either a personal connection or kickbacks happening.
lived in a condo. some old freaks lived next door they did drugs and got drunk all the time. The old lady and old man used to stalk me around condo complex and cranking thier TV because they can't hear. I mean I should have just knocked them both out but didn't want to goto jail
You're right my brother still owns my Punta Gorda isles condo and the hoa doubled and its going to get worse. I bought a 3 bed home in nearby Port Charlotte. Taxes ready?? $950.00 a year. And I could get a 1/3 discount because I'm a Po boy on paper. No home ins needed I bought cash.
8:20 Another on-point message! Thank you, Michael!
I’ve been renting the condo I live in for almost four years. This place is on their FIFTH property management company, since I moved in. I have witnessed a complete deterioration of facilities and grounds maintenance and management. It’s mind-blowing. Definitely a major factor in why I’m ready to move on to a SFH. This place is going down, and fast. I’m grateful I don’t own one of these units because I would likely be broke, insane, or both. The current company that holds the PM contract doesn’t even have on-site staff any longer. There is a “maintenance” person who appears, maybe once a week. Not sure what he does, other than maybe empty the dog poop station waste cans. There is garbage everywhere, the landscaping crew does an even more horrible job because there is no one on-site to keep an eye on the quality of work they are doing, the breezeways are filled with trash of all sorts. It’s a shame.
Some of these buildings are just so poorly managed its awful because people are paying fortunes for this terrible service.
Your best video thus far.
Thanks!
Get the most recent meeting minutes and know the reserves!
Great walk and talk Michael. Our HOA boards keep tight reigns on our HOA reserves and expenditures in AK and AZ. Always planning in order to keep the maintenance current and avoid special assessments. Definitely miss the single family home life though.
I think about those condo owners living in the Millennium Tower, who were asked for millions of dollars to fix a problem they didn't create.
That's about as much of a disaster situation as it comes when it comes to condos
Might have bought in at 10,000$..
Perfectly explained
Thanks!
Thank you for posting these videos about the UNAFFORDALE HOA'S in Florida. Because of this, I have changed my mind to relocate to Miami beach. The no capped HOA's and the trainweck Desantis running and ruining Florida are major contributing factors to keep my comfortable ass right here in Jersey. I'll just travel back and forth to Miami Beach. You are a rare breed broker with integrity to expose the trends and facts for potential buyers. More blessings and prosperity to you. Keep the TRUTHS coming!
Tell me about it!
I would never buy into anything with an HOA. it's easier to budget in a stick and brick house. plus you don't have to pay for things that you don't want like security
I don't know about new constructions. I've seen stories of terrible build quality during the pandemic.
I literally bought a studio apt early 2021 right before the increases, just sold the condo 2 years later for nearly double. It was also getting expensive with the HOAs and insurance/taxes
This guy is really really sharp!!! Xlnt
Xlnt Video!!! I'm a licensed real estate
Broker of 42 years from Laguna Beach,
Calif. Thanks, Mark
Thanks a lot always appreciate the back up and support from veteran agents like yourself👌
Been waiting to buy a home since 2020. Specifically avoiding any hoa.
1 Hotel went through extensive reno, subsequently sister building Roney Palace did the same starting in 2017,presently almost done and prices skyrocketing right now...don't know for how long considering current market !
I agree with your prediction
I think most states now require now when you set up a HOA for a new multifamily project you must have a reserve study done and the requirements must be in place before any sales can occur. At least that is the requirement in my State.
In chicago if there is a condo with a special assessment 9 times out of 10 the seller pays it off to sell the unit. IF they don't the property goes for a steep discount to account for it.
Hi Michael you all find the HOA will have to allow for much higher litigation costs and Insurance premiums about to sky rocket by at least 100%. Florida is the most concern to the Risk companies, all it will take is a Major storm and you will find properties will not be able to get insurance.