Hey folks keep in mind I'm a Realtor, I'm not a lawyer or a condo law expert and this channel is for entertainment purposes as well as educational but I never claimed to be an expert on all of these new condo laws. So if there's ever a question about something I said or you know of something that maybe I missed feel free to share it with me.
I looked for months to buy a condo in S. FL. Every one was rejected by the bank because of low reserves and /or lack of maintenance. Owners have been milking these buildings for decades; it's caught up with them.
The rejection of a mortgage in Hollywood is because the buildings were pushed into the flood zones, 7 miles west of the ocean. Condo buildings only kept legal amount of flood insurance on buildings. THAT’S WHY NO LOANS ARE GIVEN TO CONDO BUILDINGS WITH LOW FLOOD INSURANCE. They only have the legal amount of flood insurance and mortgage companies will not give a loan for a building with lower than they require of flood insurance. FACT
Salt water unfortunately eats away everything you own at the beach. There are always repairs every 5 years. That's about how long it takes for the rusting out to take hold. These condo owners should have known what they were getting into before the purchase. Homes on the beach require constant maintenance. The amounts seem excessive, but I guess that's what happens when the board doesn't keep the buildings maintained for decades.
These owners are delusional. It's not like you can buy a single family home, live in it for 40 years, and never have any major repairs. New roof, foundation cracking, new windows, hvac, and on and on... These assessments are accrued deferred maintenance costs, and they are higher because of the extremely corrosive marine environment, and a building built on SAND! These owners, with exceptions, bought these units for reasonable prices and want to enjoy the monster appreciation of the unit, but don't want to pay to maintain it.... Guess what, a potential new buyer doesn't want to pay for your neglect AND the monster appreciation.
It’s not fair to blame the owners. They thought the outside maintenance was taken care of by their high HOA dues. They thought they were paying for upkeep. That’s always been a draw for condo buyers. Lesson learned, but for the elderly owners, it is devastating.
Did you watch the video? Yeah, I'm sure when they bought the condo they were told upfront that it hasn't been properly maintained for 20 years and they would have to pay for all that deferred maintenance at once.
You must not live in a condo or have watched the video. That last story, the owner being assessed $224K.... since they moved in their fees doubled from $1500 to $3000 .... A MONTH. If we take absolute averages, that would have been $270K over the past 10 years. I'd be pretty off if I paid that AND required to pay an additional 224K, bringing it up to nearly $500K total. Sure they paid a reasonable price. And they pay a monthly fee to live there. Yes, there is the idea of maintenance and all, but just tell us what do you think all that money went toward.
@@jamesmorgan5671Whatever, they refused to alliw HOA to raise dues that would be sufficient for repairs, and now they are living inpotential death traps. SAFETY ISSUES, potentially.
I am an architect that specializes in building envelope design. I have sat through condo board meetings and have been screamed at by owners who didn’t want to make necessary repairs. Most people are very shortsighted. This is the result of
Some likely just don’t like an unexpected cost, and for some may not have the money or it’s a hardship. But if in an older building that needs repair….not much else to do, and it needs to be fixed. But many will say “nah…that crack will be fine” or try to delay.
@@vintagejaki751 Is this a serious question? They don’t want to and/or can’t afford to. We live in a country where people are only affording the lifestyle they live because credit (debt) is loosely given out. Paying what it actually cost to own a home would mean they’ll have to cut back in other areas like cars, vacations, dinning out, fancy clothes, Jewelry, shoes, and don’t forget the student loans for themselves & their children. How are they supposed to keep up with the Jones if they don’t have the latest & greatest consumer goods & are going out to show it off?
And these owners pay assessments monthly for what reason? The last story said he was paying 3000 a month. And for what? They're not asking for a free lunch, they should be asking where their lunch money went!
@@deecee901Whose greed? Condo owners who for decades voted against realistic maintenance costs and now woke up in buildings that have no cash reserves?
Not true. He should have opened an LLC then put a 1st lean on the Condo for $275k once you do that you are covered. Think ahead boyz. They cant foreclose without paying 1st lean off, so whats the problem.???
I use to own condo's in Myrtle Beach,,, most of the problems I experienced in Myrtle Beach was that the homeowners were always voting down HOA dues to build up reserves for replacement and upgrades.. Than as year went on and replacement of roof , elevators, concrete repairs all had to be financed by special assessments into the thousands.. One tell sign that your condo is in trouble is when the HOA board members sell their condos before all the assessments start taking place. The newer condos has reserves set up and included in HOA fee.. Owning an ocean front condo is not worth the cost of ownership unless you are wealthy person.
Bingo - my mom and I own a condo in SW FL. For YEARS the board could not get dues increases passed. And the reserves got too low. They finally HAD to do both an assessment and raise the dues. And some owners had to sell and move because of it. Thankfully, only a 2-story building and NOT oceanfront so not subject to the new state laws. And we got lucky in that we were going to have to pay for a new roof, but Ian caused that to be an insurance claim instead, greatly reducing the size of the assessment. In our case, we had insurance coverage for the assessments up to IIRC $25K, so it only cost us the deductible.
Members kept kicking the can down the road, I do not feel sorry for any of these people. They did this to themselves and whining about is not gonna change anything.
@@garyjarvis2730 Absolutely spot on. And I say that as someone who owns three FL condos (thankfully in a 2-story building nowhere near the beach) where the HOA for decades didn't charge enough in dues and had inadequate reserves. I knew that going in and my condos were bought at prices that took into account the looming assessments. Hasn't been too bad in our case, but we got lucky in that Ian caused our roof replacement to be an insurance claim rather than something funded by the HOA. I rent two and my mother lives in the third.
I owned a townhouse on a lake in New Hampshire with 100 units. Now the septic system went out and the leach fields were literally running uphill. The EPA required a 3 million dollar connection to the town sewage line... this was back in 2012 and was 1/5 the value of the condo and I exited at a loss. The HOA fees doubled during construction to pump out sewage by truck. I learned a lot from that experience.
@@discovery781 lowered the price to 75% of what I bought if for 10 years earlier and took the loss (which I made up on renting it out for the last 4 years of ownership). Hard nocks, made me study economics. I was an Austrian school living in a Keynesian world!
I live in a townhome in a HOA community in Texas and we had the same thing happen. Five decades of low assessment fees to make the seniors happy and now bam, all kinds of stuff needs to be fixed. Our issue was the cast iron pipes under that houses that we had not enough reserves to cover the replacement.
I lived in a condo years ago and here's the problem . The condo owners vote every increase down to keep their HOA fee as low as possible . All you ever hear is we don't need this or that and nothing gets approved . Now the state had to step in to make things safe .
Our pension system offers a one-time, lump-sum, payout. A growing number of guys were taking this option and investing in Florida real estate. After 32 years of service, now they're going broke and are worried. They risked that lifetime check to get rich quick.
That's insane. Wise humans buy land at an affordable location rather than follow the herd then pay it off and live on it. (Worked for my, I retired at 47 and my alarm clock is a rooster.)
Terrible Outcomes. I left & sold my tiny home in Ft. Laud retirement section 20 years ago. You couldn't get me to ever live there again! ❤My NYC🗽🏙️My Brownstone paid off, Thank God!
@@jeffdunnell6693 Yes, but if you have a reserve fee built in and good management you can cover the bigger expenses. When you live in a large complex you need to be strict because a lot of people don't give a toss about who pays the bills.
@@bar10ml44 cost money from day one if the reserve is depleted in comparison to the net worth of the building Run. Same holds with Florida retirement villages all it takes is one Hurricane and there goes the value of your investment!!
You are absolutely correct they should have known and the same for houses when people buy them and the same thing goes for renters when the price of rent goes up
I am the treasure for our condo complex board. We recently had our Structural Integrity Reserve Study (SIRS) done and will be raising the HOA dues by a small amount next year as a result. Our complex has always been well funded due to responsible board members and more importantly we have residents who knew that we needed a reserve account that could stand up to most anything. We broke the news to residents yesterday that dues would go up and not a single person complained. At the same time the property management company that we use told us that about 30% of the complexes they manage had 'kicked the can down the road' and have zero in reserves. Those complexes will be facing enormous HOA increases - some as much as 300% increase + a one time special assessment. The condo complexes on the ocean are a great place to live but buyers need to check the financials, and under recently passed legislation you are entitled to financial disclosure.
@@wowzers1069 great business motto I'm not afraid of the condo market I'm searching for 1 now in miami beach!! I know you can find a great condo if you find the the right HOA that's managing the condominiums!!!!! That's what I'm searching for in north or mid beach possibly south beach
Congrats to you and your fellow owners. Your responsible boards saved you. As a facility manager, I toured a lot of these buildings. The folks I gave my input rarely bit the bullet and took the required steps and now it's all coming home to bite them. The reality is, this country is short tens of thousands of capable facility operators. It's never been seen as the high value position it really is.
I’m the Board President of a large condo association in major metropolitan city. Most of these owners are responsible for this because they don’t want any type of an assessment increase and fight it. In my city, a Reserve Study, is required by law. We use it as a guide for financial planning. Each year our assessments increase anywhere from 3 to 8% so that we can pay for capital projects. My building was built in the early 40s and is currently in better shape than buildings that were just built less than 20 years ago. We never defer maintenance and that is the key to a well-managed condominium building. One other thing that owners never seem to understand is that the cost of living and the consumer price index continues to go up each year and often every month. Associations have to keep up with these costs, many of which include the cost of salaries for the staff at a minimum.
Would what you are doing actually keep the values of the condos higher? The building is sound. Reserves are their to meet future needs. I would think that would make a condo an easier sale for a better price. These people that are against assessments seem to not realize the value of their condo relies on the condition of the building? You let the building go no matter how nice the inside of your condo is you are not going to get good money for it.
@@erikthorne The whole point of "kicking the can" is that they think it won't be their problem because they'll either be gone or dead by then. It's the same problem we have with the Boomers and the national debt and lack of Social Security funding. They know it won't be their problem, so they run up the deficit and leave paying for it to the younger generations.
@@erikthorne it is one of many factors in retaining and increasing property value. Unfortunately, so many uneducated condo buyers may look at the monthly assessment for a unit and decide that’s too high. Prospective buyers must look at the finances of a building especially in smaller buildings under 20 units. You should have $5-$10k per unit in reserves for a high rise with several hundred units. In smaller buildings, you should have double of that at a minimum. When I purchased my place 10 years ago, I looked at a beautiful unit in a small building with 30 units. They only had $2k in reserves because they just used all the money to replace a three story outside stair case. The cost was under $40k for that project so I said hell no. You haven’t been planning at all.
@@guyplay that's ideal. I live in a condo in Canada. The board is keeping fees low, and all the stupid owners think this is great, but no Maintenance is behind done, it's criminal.
I lived in Fort Lauderdale area back in the late 1990's and absolutely loved it. I knew a guy, a friend of my now ex husband's who bought a nice 2/1 condo on the beach for $15,000 cash and when we were there for a party one time, he was laughing that he paid only $100 to live there. That's how much the HOA was back then. He sold that place for more than double since then and now owns his house in Delray Beach, I think. Family emergency made me move back to Seattle in 1999. I always wanted to go back to Florida but now that prices have gone to the moon, I won't be able to.
There are still very reasonable places to live in FL. Just not in a highrise right on the beach. My mother and I own three units in Port Charlotte on the Gulf coast. Not on the beach, but a nice 2bd/2ba unit in our building is $125-150K. One bedrooms are well under $100K. Double what we paid for them six years ago, but still a very good deal, especially if you have a paid for house up north you can sell as we did. Certainly FAR cheaper than Seattle.
Many great places in Florida but I would never recommend the beach or a barrier island. As beautiful as they are, it is too risky. And never a condo. Go rural.
@rosanneshinkle4133 I lived in Florida for 3 years in the 70s. Never did they have the hurricanes or volatility of weather they have had in the last 25 years. Florida is a place to vacation at the right time of year, but never to live there again.
Ain't that the truth. I'd by a mobile home before I'd buy in an HOA or condo down here. At least if you have to walk away from a manufactured home your losses are less. The problem is that so much of the property here is HOA controlled.
You truly believe that owners ARE NOT going to pass-on massive increases in monthly fees or assessments to renters? You're safe until your annual lease expires and your monthly rent is raised by 30-50%. You either pay the increase or you're forced to pack up and move. I hope you saved up money for relocation expenses, even though the basic costs of EVERYTHING have increased DRAMATICALLY in recent years, while our income is basically the same.
Back in 2020, my 24-unit / 4-building condo complex needed new roofing. Bids came in at about $800,000. Condo rules required a vote of all owners for any expenditure over $250K. A majority of owners voted down the new roofing project. The board simply decided to do the project in multiple stages to stay within its $250k spending limit. But that added $200K to the total project. It ended up being five stages over two years to complete project w/ a over $20K in special assessments per unit.
@@glennwatson3313 so you expect people to believe you're smart enough to comprehend and regurgitate an abstract value like that but can't extrapolate meaning from between the lines of a simple sentence? Bless you
@@unpointsword Your post was the perfect combination of disdain and disdain. The beginning was just a straight up, if poorly written, insult, then you finish with the classic, "Bless you." You must be from the South grandma.
@@matthewsmith2362 I'm sure he was. I just found it funny. $800,000 million. I never say a number written like that. I can't figure out if its $8 trillion or $800 trillion.
I was living in the Cricket Club as a renter when that assessment happened. What youre missing here i that the HOA was $3200 a month for a 2 bedroom. Now, where it gets shady is that the board was made up of 80+ year olds who were living there for 40+ years, units paid off, had neglected the fixes for years, and they waited for a new batch of people to buy in at less than $200k per unit. Then they did the assessment but it wasn't just to fix necessary legal repairs. They folded into that assessment upgrades to the tennis court and other recreational features - and then we got a letter taped to our door that accused the board of folding the new expenses into the assessment so it wouldn't require a vote. There was a lot of shady stuff happening. When we moved out in July, there were re agents there every day meeting owners who were trying to get out.
If you have to borrow from your 401k to buy a home then you’re shopping outside your price range. Those senior only mobile home parks in Ft Pierce or Port St Lucie are probably better options.
Can you imagine moving from a condo to a mobile home park? I bet they get depressed once the reality sets in. Watching Matlock in a sardine can will be sad
@@robertneblett4477 I borrowed from my 401k to get a house. It tripled in value, I sold and took proceeds to buy a luxury condo in a gated community. Our property has well over a million in reserves and maintenance is fastidious.
@@RoseanneSeason7 And watching Matlock in a crumbling high rise structure is better? A structure that has lost half its value because of the building condition, lack of contingency fund, and desperate sellers?
In the Tampa bay area (Penillis County) is loaded with old mobile home parks. Many probably been their since the 60's. At some point they will need to be replaced and guess who pays, the owner. Rent in the parks is lower than any condo in south Florida. So I guess Miami condo owners can sell out and relocate the one of those old 'trailer parks'.
Mortgage professional, accoutant and former three time board member. The problem is that buyers and realtors are not qualified to analyse a reserve study or the finances in general. We have appraisers and home inspectors but no one to breakdown the finances of the hoa. Buyers go in blind when purchasing. I suppose you could hire an accountant but good luck in Getting the info from the HOA. Many dont have audited financials and have never done reserve studies. These are million dollar business run by amateur volunteers. Ill never buy a condo or townhome again
It is interesting how real estate has kept going up and then the county raises taxes and says real estate is now worth more. It’s like my mom I remember her saying her real estate taxes went up a lot and her houses hasn’t changed in condition except got older with a roof that now needs to be replaced. It’s worth less but money printing and the government buying mortgages or backing them pushes bubbles higher.
You get the “I under stand monetary policy” award for the day. So many people are so lost as to why everything costs more. Its the dollar buying less is all
Most states require that real property taxes be assessed on the market value of the property each year, not what you paid for it. The tax rate itself may not be going up, but the value of the home does go up and the tax bill increases.
Condos should never be maintained by an HOA. They should be maintained by a division of the city planning department. The HOA is staffed with people that don’t know anything about building codes.
I have no tears for multi millions condos owners, that have benefited of a great life for decades. 79 years old guy, can sell it, and come live in the places 90% of American's are stuck in. Heck some houses are still 150 000$ in many states. Some fantastic houses in cozy towns are 400 000$. They should count their blessing and move.
I honestly don’t understand condo living and why would anyone elect this lifestyle. Why would anyone buy a piece of real estate that clearly is not yours. It’s just a glorified rental with ownership headaches. You own nothing, you are just a renter with your name on the deed. It’s a scam! If the idea is living maintenance-free, just rent or buy a house and contract the maintenance to someone else. How much does it cost a month to maw the lawn? I guarantee you it’s not $3000 a month.
Buying an apartment has never made sense to me. I recently moved into a patio style home. There is about 15 feet between each home, I have an 8th of an acre yard and my own driveway and two car garage. This is as close as I'd ever want to live next to a neighbor. I've never lived in an apartment, but after living in military barracks, I had my fill of neighbors!
I’m a senior and am considering going back to apartment renting in a senior community. After 30 plus years I’m tired of home repairs, dealing with contractors and probably being ripped off a few times on pricing. I’m ready to downsize now and simplify my life.
I don't like hearing any kind of noise from neighbors. Lived in Apts where I couldn't sleep due to rock music blaring above my head. So I bought a house on 3 acres which abuts 2,000 conservation acres. I don't chum with my distant neighbors and I love it that way!
I recently got accessed for a new roof and new hurricane windows in my condo in Jupiter. Luckily it was divided by sq ft of each homeowners property and I had the smallest amount due. Some of the larger properties got hit with crazy amounts.
I've owned a couple of condos in NYC. They were great investments. We live in Florida now. There is no way we would buy a condo or HOA property down here. It's not that thru are all poorly run and poorly funded. The problem is that there are so many badly run condos and HOA communities here, that the good ones suffer because of the generally bad conditions. I'd move into a trailer park before a condo down here. At least if you have to walk away from it, your investment isn't as large.
We were proactive. We knew what was coming and we sold ahead of this storm. With what we sold we bought a brand new house and kept some money. You have to be always on the look out,if not ...the world would eat you!..😮
Comparing a single house to a 100 unit condo is like comparing a butter knife to a chainsaw. A home buyer with some basic sense of awareness can take a good objective look at a perspective house and make a fair assessment of the condition. To fully ascertain the condition of a 100 unit condo you have to hire (or be) a structural engineer to really get a picture of the building.
@@kathleenhazy6126 I'm no expert on the subject but I've heard some engineering firms charge around $10,000 for an inspection. That's alot if you're an individual buyer.
I paid for an inspector to take a look at the building AND the units before we bought. It was about $1K. I also asked some pointed questions of the HOA President, and took a long hard look at the financials. The building was fine, they told us the roof was coming due and my inspector concurred. The financials were less fine, it was obvious that the reserves were low. That factored into my offer(s) - effectively I priced in the assessments that seemed inevitable. I have to think that for these buildings that need many millions of dollars in repairs such that the assessments are over $100K per unit, there would be problems that jump right out to anyone who knows to look for them. And I would never buy in a high-rise building (or on the beach) to start with. My building is only 2-stories, and mixed concrete and frame construction. It is MUCH more like a house than a skyscraper, and has bills that are much more house-sized, even with 50 units. I paid from $62-$70K for the three units my mother and I own. She lives in one, I rent the other two.
I don’t feel sorry for them. Some bought 30 years ago really cheap and watched their property soar in value. They put zero into maintenance. Look at all the money they saved. Now they have to pay for maintenance.
Thanks for the update. I bought a new condo about 10 years ago and 3 years into it we had an assessment done right after the developer sold his last set of units - we found he underfunded the reserve (a typical developer selling tactic). I received an $18K bill to be paid over 18 months. When I went to sell the condo, the sales contract stipulated the reserve was prorated for the 30yr assessment period. I ended up paying about $3300 (18000/30*5yrs I had it). I was lucky as I was told this only worked because I bought a new condo and was only in the first few years of it. That said, we all were warned back in the late 80's early 90's about the hassles of condos. I didn't listen but will never buy another one. Between HOAs, management companies and developers... not worth the headache.
Feel bad for the guy who sold for $110k, but to drain your 401k to buy a condo is dumb in the 1st place. So many people buy homes/condos that can’t afford them. If you can’t afford the repairs, you can’t afford to own a property. Period. I was an contractor for 40 yrs. I ran into countless people who needed say a new furnace ($5000-8000). They didn’t have the money which always blew me away. I thankfully own a 1 story villa in S FLA. no inspections and we have lots of money in reserves. Good show Paul
Depends on how long ago bought the condos, before it's all degenerated into assessments more often and became high assessments, and none of the money paid shows on the property, before the high assessments.
@@davidwelty9763many people that have paid off their homes are taking the gamble and going without. People are moving out of state once it hits a point they can’t afford it. Uninsurable doesn’t always literally mean you can’t get a policy. It can also refer to being out of reach of the average person affording it
One option is to get 80% of the condo owners to sell to a developer who might give you a decent price for your condo. The developer will tear down the building and build a luxury condo tower.
Not all - some of these folks probably were outvoted at meetings regarding increased HOA fee, or repair leading to assessment, not everyone is to blame. The majority that voted down updates, repairs are the guilty
@@amrice62 In seeing that you are perpetually outvoted, I would sell immediately. By staying, you become part of the problem by default. The only ones I would feel sorry for are the ones that just bought the condo and we're not a part of the voting.
So they don't have another collapse? As a rule, buildings don't collapse unless builders don't build correctly....when does the owner of the building itself and/or the HOA fees fit into this situation??
So, what happens if only a few people in a building can pay the assessment and everyone else is foreclosed on? Are the people who paid still at risk of losing their property?
@@ricladouceur6202 well it worked 20 years ago when many of these people bought these properties. I live in MN and we are required to have a reserve but our HOA almost doubled in the past year due to insurance. But some have been since the building were made in 1988.
Wonder if HOA board members are receiving kickbacks for the contracts they give vendors? Is there anyway to stop this fraud? If kickbacks are made in cash, they are untraceable.
a condo i know of a head of the condo association hired all people and contractors they knew .they stole lots of money and then they sold their condo and disappeared and no money left in the bank for the condo . no they were never charged .
@@PalmBeachesPaul Don't be sorry! This was years in the making with everyone in on it. How in God's name can you inspect an ocean side condo every 40 years??!! We're talking about salt air, salt spray, metal and concrete and shady Florida builders. It's a toxic cocktail that exploded. It's maddening. I'm surprised that more Surf Sides are not occuring/
@@deckerdax indeed but did your association vote down reserves over and over? Were you living up in there with 300 to 600$ a month dues? If you paid super cheap for years it’s not totally insane it’s actually right on time.
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of finances and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
Inflation didn’t help matters over the last few years on those assessments, Easily add 20-30 percent materials and labor. Deferred maintenance was really expensive.
I am one of those retired FL condo owners caught in the assessment situation, I am full-time in FL. Some of my neighbors say will not be able to pay. If you can't get a bank loan, I've told them they can sell and move into senior subsidized housing, based on income. There are quite a few nice, average apartments, low rent, some even include a $50 electric credit. Also, 1/2 of the owners in my development own another home "up north", so they're not really going to be homeless.
I would like to see the bill for assessment in writing. What there doing in your apartment for $274,000 assessment. Maintenance i can see but not that much. This is highway robbery. I think they are over charging on assessment...
Hi Paul great channel, lived and worked in Usa back in the 80s and did a lot of walking around..... it's the only way to get around Living and loving Switzerland at the moment, keep up the good work!
We are in the same situation in Bay Harbor Islands FL … $1.5M assessment for 17 units (phase I) to cover roof, walls and impact windows. Lobby and pool area (phase II) not included.
@debrabuckley5011 inventory in an all-time high for condos. The number of units available for sale has doubled what it was a year ago which obviously forces the prices down because there's so much competition
@@SarahBourne-w2b A big chunk of it should be going into reserves for the future. Most condo HOAs barely have dues high enough to pay the current costs of the building. As one example, JUST the building insurance for my 50 unit building is now $150K per year. Almost half of the current monthly dues goes to just that. Then there is cleaners who come in and clean the public areas, the fee that the management company charges, anything that needs immediate repairs that is the Associations responsibility, the portion of the shared amenities (a couple of pools and some grilles) that is my building's responsibility, etc. The dues were way too low for way too long, so we ended up having to do a couple of assessments that went straight into reserves, and we are still going to have to raise the dues considerably over the next few years. And that is with getting lucky and having the roof replacement end up as an insurance claim and not as a capital improvement. The state government should have forced this issue a long, long time ago. Sadly it took a bunch of people dying to cause action to happen. the condo owners have no one to blame but themselves and/or their neighbors who would not vote to increase the dues.
@@siemorjj8081 And how much does it cost YOU out of pocket to replace your roof and other major maintenance on your home? All your HOA probably does is pay for a bit of landscaping and any shared amenities. A Condo HOA has to maintain an entire building, and in the case of these aging concrete highrises right on the salt water beach, that is *incredibly* expensive, especially if it has been allowed to fall into disrepair as so many have.
I bought a condo in CA and the previous owners neglected many things, including roof replacement. When it came down to the assessment, an over-entitled owner refused to dish out money and we were happy to serve him with lien. This Florida situation is absurd however. I hope these seniors find a home.
Contractors are seeing the gravy train and probably charging $$$$$ for repairs. Wouldn't surprise me if there was some kickbacks involved with condo board members. Also, that guy paying $3000 a month for HOA dues will be just fine. He can probably just give the condo away for free and rent an apartment for that $3k a month in an area not quite so ritzy.
I am from NYC. In 1973 I visited Miami during spring break and resolved that I would live in a tropical environment. Came to pass in 1988 but to Saigon where my wife is from. We bought a condo in Saigon 15 years ago. There are no property taxes and the total maintenance fees are roughly 10 dollars per month. We have a corner unit on the 14th floor and no a/c required. Our electric bill runs about 15 dollars per month. Bus fare for the ten minute ride to downtown is 22 cents. Pho (Vietnamese beef noodle soup) costs about 1.50. Banh mi sandwich about 1 dollar. Unfortunately no retirement visa like Thailand but as my wife is a Vietnamese citizen I can live with a residence card as her spouse. The ocean is about two hours away.
So you say no AC does that mean it never gets above 70° and no humidity or do you just live with the fact that you're gonna be sweaty. I've lived in Texas and Florida and both states are extremely hot so I can't imagine ever living anywhere without AC I literally can't sleep if I'm sweating in bed I'll toss and turn all night.
If you have a seeside condo has 2 or 3 bedrooms better have deep pockets. You can't expect to live in a resort style skyscraper that in part has more pools and balconies as many 4 star hotels. You gan not expect that this will cost you just as much as normal rent.
agree. I learned the hard way. Bought a condo in 2008 two weeks before crash. Managed to sell in 2017 but already had a $15k assessment, which realtor got buyer to pay. But I knee there would be a $50-60k one coming in a few years. Realtors should be required to tell buyers this as I had no idea. I am now a very happy renter. My condo was in Seattle. not florida and was jusr an older 600 sq ft. i moved away from fort Lauderdale in 2001
Ouch! That Howard Konetz bought his 1800 square foot condo for $478k in 2014. Ten years later comes an assessment that is approximately half what he paid for it.... This is going to get ugly folks. I have two condos and a duplex and I'm getting out of one of them, even though there is no assessment coming and I have had 100% rental income the whole 12 years I've owned it. Great video!
Poor planning by the hoa boards and management companies in the past and homeowners not smart enough to figure this chickens will come home to roost someday. Fell bad for the owners but you did a lot of this to yourselves by not adequately funding reserves.
A lot of elderly condo owners presumed that they would be long gone by the time the chickens came home to roost. Everyone in Florida knows that oceanfront buildings are in a difficult marine environment and maintenance is a never ending issue.
There is a huge problem with this. You have liscensed engineers doing the evaluation. They don't want to be sued so they will not be conservative on their evaluation.
Much needed. I don't care how many piling you put under 40 story condos on the beach, the sand will shift under a tidal surge. Is it better to die in one collapsing, or wake up and fix them better
My expenses for my under 500k condo are currently around 50k 10k taxes 22k general assessment 12 k 2 special assessments Its never ending These boards get off on it The budget is over a million And they hire more staff and raise salaries Build their little empires It’s unbelievable
Own a home in Florida on the water. The unexpected costs are high. I budget $20k yearly for maintenance. Condos are architecturally more complex. It doesn’t surprise me that the older condos have delayed maintenance.
In Taiwan the government subsidizes assessments heavily, in fact in my building which has high chloride cement damage and is over 30 years old - we are paid to rebuild, we lose no money and the government is even paying our temporary leases while rebuild. We come out ahead big time. This is due to elections, over the years people with good urban redevelopment plans have been elected.
well if we removed our military from S. Korea, which is there to also protect Japan, we could use those billions to help Americans with their assessments. But no, that won't happen.
@@MM-wi5dn Taiwan government is not in debt, in fact it is US$579 billion in reserves. It’s an extremely rich country as it’s always been under threat of war with China so it saves money for such a war chest. The mayors give away money to homeowners in urban renewal projects. We have no sales tax on food and other items and or property taxes are insanely low, insurance is also very low and we have social medicine where everyone is covered That is ranked 1st in the world. So Taiwan is like Saudi Arabia but it’s chips and high tech that brings in the money for the government. Yes, money grows on trees here - microchip fruit trees. We do pay out the ass for cars though, all imports 110% duty so my car worth 50K stateside new I paid 105K.
Buy some nice little one story renovated house in the rust belt for cash and let them foreclose if you can't sell. Bankruptcy at 80? Sure, but one thing is clear, stressing out and risking a stroke is not worth it at that stage of life. If you had five years or more living on the beach that's more than most people get. There are some people at 80 living in some not so nice areas who HAVE to work as a Walmart greeter. Be thankful if you don't have to do that.
I was about to buy a beautiful condo in Lake Worth Beach - 2 buildings. First thing I ask was about the reserves for maintenance and repairs. Minimum reserves. Passed. Nothing good comes of buying without lots of research on the condo finances and Read the condo board meeting. Bought a single family home with no HOA.
Sounds like it’s an issue for the entire building and not just that 79 year old couple. I suspect the only ones who will get paid are the attorney’s that work out a massive settlement on the assessment with the city/state etc
Lawyer's aren't involved in this, so they are not getting paid. He should have served on the board and known what was going on, and could have bailed long before this
The city/state has nothing to do with it. The assessment money goes to fix the building's issues. The only lawyers that will be involved are when the association forecloses on owners who don't pay the assessment.
I owned a condo in Illinois that had higher association fees, but it included replacing roofs, siding, and other maintenance. In the 20 years I lived there was not one special assessment.
In UK we have a thing called "equity release mortgage". Elderly people borrow money on the security of their home, with no monthly repayments required. They live their final years in peace & comfort, take a cruise or whatever, and when they pass away the bank gains ownership of the property. It works pretty well.
@@stevewalker2028 We have that same thing in the USA. It is called a reverse mortgage. However very hard to predict how many more years the person will live so the end result is homeless seniors when they outlive the funds! 😱😭
Would ride my skateboard to Boynton bch holding my surfboard in 1980 as a 12 year old along Boynton beach blvd. I lived in paradise. Nothing like the shit hole it is today. When I-95 was built the place was ruined. Drugs, crime,pollution, people shitting and pissing on one another. I would tell you the amazing place I live now. But I won’t.
Yea all are HOA fee increase have been due to insurance. Also if you have a morgage you must have insurance. So people can be priced out that way. I had a hard time sell my home in FL 13 years ago because even back then home insurance and flood insurance was expensive. Taxes are not cheap either. You get nothing either in FL becaise it so poorly runned.
I will try to be as kind as possible. Have any of these people ever owned a single family home? The upkeep and maintenance is ongoing. A homeowner cannot pay a monthly fee for landscaping and pool maintenance and leave it at that. There will always be repairs and replacements to figure into your budget.
I’ve owned rental property for decades, and I know that you have to plan for future expenses. Most condo owners do not realize that when you buy a condo, those expenses are there, but they are shared and when they are delayed, that only makes it worse. If I were to blame anyone, it would be the management companies who has failed these condo owners. The management companies did not do their jobs because if they had these problems would have been addressed before they became problems. It is up to the management companies to ensure that the condos planned for future expenditures which they did not do.
It's not up to the management companies. And I can assure you that the management company for the condo building I own in was after the board for YEARS to raise the dues due to the reserves not being high enough. The management company has no power to do more than make suggestions, the board has to put it to a vote of the association members, who very much could and did say NO to dues increases beyond the minimum needed to pay the bills. We were only able to get an assessment and increases through when the state finally MANDATED a certain level of reserves. Thankfuly, it's only a two-story building so we are exempt from the new inspection and immediate remediation requirements so ours was not that bad. There is also no requirement to even have a management company involved. Some condos do, some don't. Ours does because we are actually in a nine building development with some things shared among buildings, but each building is a separate association. They are not cheap.
our condo SIRs inspection yielded good results, NO ROOF leaks, no repairs due except for some catwalk cracks.. The Engineer claims our roof that does not leak only has 2 years remaining..and thousands are being assessed for replacement in 20 years...totally nuts.
What some people aren't understanding who lack sympathy for these condo and townhouse owners is that some of them are on fixed incomes and planned out for the HOA cost and other costs that come with home ownership. They were assuming the HOA and building management were doing what needed to be done. Now they're finding out that isn’t the case and are being slapped with a huge special assessment being asked for upfront. Even someone not on a fixed income would have issues paying that.
The Murano at Portofino in Miami Beach owners have the money. The available units are $1.4-7.9 million. What do they expect? I remember when they were $700k.
Elderly owners should take out a max home equity loan. Use proceeds to pay off assessment and use balance to pay off loan. Who cares what equity is left for relatives?
Your math is faulty. You can’t use half the loan to pay the assessment then pay it off with half the amount of the loan. Many of these owners don’t have cash flow to service such a loan.
So you buy condo cash say $190k you put it in an LLC then you put a lean on the Condo for $275k so now property has a first lean holder of $275, you get an assessment bill in the mail & throw it in garbage. Continue to live your life. Whats the problem? If they try to for close they have to pay off the $275k first. You are covered.
"Sees the rotting in the wall..." that's rusting rebar! I think if there is any one thing to learn from the Surfside collapse, it's that you can't really own a high rise condo, you can only lease it for a period of time. But "ownership" is a myth on paper since the reality is you have to keep buying it over and over again.
That is absolutely, positively, no different than owning a house. And unlike renting, in theory when you decide to move and sell the place, you get some money back. Renting is just building someone else's wealth - I know, I am a landlord myself. It is quite a bit more expensive to rent one of my condos than to buy one of your own, but many people simply can't qualify for a mortgage, or don't want to for various reasons. That is a valid choice, but it's not cheaper. The one thing that IS true about a condo, is that you are much more at the mercy of your neighbors being willing to spend the money to maintain the building. I went into buying the three units that I own eyes wide open - I knew from looking at the financial statements that the reserves were low. That was factored into the prices I paid and the amount of money I set aside for the inevitable assessments. And I made sure that my condo insurance had some assessment coverage, which more than paid for itself. I also bought in a 2-story building, though that was somewhat luck as my complex has a couple of three-story buildings that are somewhat caught up in the new state regulations and costing those owners a lot more.
@@Kevin_Rhodes That's ridiculous. While you may have to do some maintenance, you often can put off maintenance for years with no ill effects, and the chance of needing to pay as much or more than the price of the house over again is very slim. But in a high rise condo, that may well be the case.
@@debrabuckley5011 I don't disagree with your point but my point is on a different scale. My point is more comparable to a landslide where after the landslide, your house and the land it sat upon is just not there any more. You own NOTHING.
it's not just south florida, i'm in central florida and we got hit with an assessment too. it would have been $11k for my condo. we had to kick out the scheming board and replace them with actual homeowners so we could figure things out.
I have no tears for multi millions condos owners, that have benefited of a great life for decades. 79 years old guy, can sell it, and come live in the places 90% of American's are stuck in. Heck some houses are still 150 000$ in many states and since he does not work, he has tens of thousands of great locations to choose from. Some fantastic houses in cozy towns are 400 000$ or less. They should count their blessing and move to spots where it's affordable (to their millionaire budget)
I worked as property manager in condominiums for 30 years. Do a reserve study and raise the assessment accordingly. I angered a lot of board members but at least I only had one building that had to do a special assessment
@@davidwelty9763These people that own have benefitted by their property value skyrocketing in the last 5 years. And I don’t own yet, and now at these prices I can’t afford to buy. So I want prices to crash so I can afford something. It doesn’t mean that I will take joy in their pain, but just like someone who had their property value double in five years, doesn’t take joy in the pain of people who can’t afford to buy now, they are still happy that they were on the right side of the increase
Florida is becoming a cess pool high home prices high rent no wonder so many people are leaving Florida and don't forget the sinkhole and it's sinking miserable
There’s a 22 condo who’s listing expired after 365 days on the market. The MM went from $700 to $1318/month because of the MM and assessment hitting the owner. There’s only 6 units in this particular building and those 6 owners had to accept the price of the repairs and replacements on the building. That condo will not sell. No one wants to pay $1318 a month for a condo in a low rent district….. this is in Hollywood. We’ll be seeing more and more of this exact problem with condos. They won’t sell. Foreclosure will be on tap for all these condos with exorbitant expenses… yes. Everyone is being pushed out of their homes. And DeathSantis is making it against the law for homeless to be on the streets. There ya go………. Move to Florida, they said! It’s cheap, they said. Yeah, right. And God forbid you’re forced out of your digs….. You’ll be arrested if you’re living on the street.
I lived in a Houston condo for 35 years, and there never was an assessment. Whatever was done, roofing, gutters, whatever, came out of the monthly fee. The monthly HOA fee and an assessment at any time of thousands, if not 10s of thousands, that's nuts.
Let’s say you are one of just a handful of owners in a building that can afford a big assessment, and you pay it. What happens to the building when everyone else defaults and they foreclose? Sounds to me like a no win situation.
Im on the condo board in a building in Hollywood. The owners have been told over and over what is coming. Some have already prepared. We have approched a bank (after we researched oprions) waiting to hear back about our loan. The building will take on the loan and we will slowly start to assess homeowners on a small 2 larger scale over the next 10 years. We are also in the process of starting the paperwork for a grant.
In Georgia, a foreclosure is sold at auction and the proceeds dispersed to the debt holder(s). But buying foreclosures like that in Florida would be fraught with landmines. You better know about all the outstanding debts against that property. But to your point, what happens when the proceeds from numerous foreclosures aren't close to what the HOA has to spend to fix the buiding? Does the entire property get foreclosed on by the state due to the fines??? This will get very messy.
Hey folks keep in mind I'm a Realtor, I'm not a lawyer or a condo law expert and this channel is for entertainment purposes as well as educational but I never claimed to be an expert on all of these new condo laws. So if there's ever a question about something I said or you know of something that maybe I missed feel free to share it with me.
I looked for months to buy a condo in S. FL. Every one was rejected by the bank because of low reserves and /or lack of maintenance. Owners have been milking these buildings for decades; it's caught up with them.
@@GD-ru7xr exactly!!! They rented them out and pocketing 100% of it with zero maintenance done to the condos.
You are exactly right! Reserves should have been held all along but everyone thought the next generation would have to worry about it.
The rejection of a mortgage in Hollywood is because the buildings were pushed into the flood zones, 7 miles west of the ocean. Condo buildings only kept legal amount of flood insurance on buildings. THAT’S WHY NO LOANS ARE GIVEN TO CONDO BUILDINGS WITH LOW FLOOD INSURANCE. They only have the legal amount of flood insurance and mortgage companies will not give a loan for a building with lower than they require of flood insurance. FACT
@@nancyjarrell4620 typical boomers
@@GD-ru7xr what are "reserves"?
Salt water unfortunately eats away everything you own at the beach. There are always repairs every 5 years. That's about how long it takes for the rusting out to take hold. These condo owners should have known what they were getting into before the purchase. Homes on the beach require constant maintenance. The amounts seem excessive, but I guess that's what happens when the board doesn't keep the buildings maintained for decades.
@@RG-xi3rd
They should have constructed the continuous of either Roman concrete or marine concrete-it lasts forever!
Including cars and appliances. Everything metal related
@@robertmartinez3769 Exactly. Up North I painted about every 5 years.. on the coast in Florida... EVERY YEAR.. with pricy coastal paint.
buy a little more inland, beachfront causes so many issues.
You mean the roofs, parking lots, common areas, and infrastructure of the building don't just fix themselves?
These owners are delusional. It's not like you can buy a single family home, live in it for 40 years, and never have any major repairs. New roof, foundation cracking, new windows, hvac, and on and on... These assessments are accrued deferred maintenance costs, and they are higher because of the extremely corrosive marine environment, and a building built on SAND! These owners, with exceptions, bought these units for reasonable prices and want to enjoy the monster appreciation of the unit, but don't want to pay to maintain it.... Guess what, a potential new buyer doesn't want to pay for your neglect AND the monster appreciation.
It’s not fair to blame the owners. They thought the outside maintenance was taken care of by their high HOA dues. They thought they were paying for upkeep. That’s always been a draw for condo buyers. Lesson learned, but for the elderly owners, it is devastating.
Did you watch the video? Yeah, I'm sure when they bought the condo they were told upfront that it hasn't been properly maintained for 20 years and they would have to pay for all that deferred maintenance at once.
You must not live in a condo or have watched the video.
That last story, the owner being assessed $224K.... since they moved in their fees doubled from $1500 to $3000 .... A MONTH. If we take absolute averages, that would have been $270K over the past 10 years. I'd be pretty off if I paid that AND required to pay an additional 224K, bringing it up to nearly $500K total.
Sure they paid a reasonable price. And they pay a monthly fee to live there. Yes, there is the idea of maintenance and all, but just tell us what do you think all that money went toward.
@@jamesmorgan5671Whatever, they refused to alliw HOA to raise dues that would be sufficient for repairs, and now they are living inpotential death traps. SAFETY ISSUES, potentially.
They thought it was Disneyland 😅😅
I am an architect that specializes in building envelope design. I have sat through condo board meetings and have been screamed at by owners who didn’t want to make necessary repairs. Most people are very shortsighted. This is the result of
What was their reasoning for not paying?
Some likely just don’t like an unexpected cost, and for some may not have the money or it’s a hardship.
But if in an older building that needs repair….not much else to do, and it needs to be fixed. But many will say “nah…that crack will be fine” or try to delay.
@@vintagejaki751 Is this a serious question?
They don’t want to and/or can’t afford to. We live in a country where people are only affording the lifestyle they live because credit (debt) is loosely given out. Paying what it actually cost to own a home would mean they’ll have to cut back in other areas like cars, vacations, dinning out, fancy clothes, Jewelry, shoes, and don’t forget the student loans for themselves & their children.
How are they supposed to keep up with the Jones if they don’t have the latest & greatest consumer goods & are going out to show it off?
@@mlisaj1111There should be nothing “unexpected” about home repairs & maintenance work.
@@xtrey19x I agree that eventual repairs in a building are no surprise….but many people don’t.
Sorry for the unsuspecting, but I pay for maintenance and repairs on my house as I go. There is no free lunch.
yes but do you pay for maintenance on your neighbors' homes as well? People simply don't know this when they buy. I sure didn't.
@@mistiinseattle And your neighbors pay for yours. That's what happens in an HOA/condo community.
@@OtisFlint lol nope. I sold my condo. Never again lol
I will never buy a property with an h.o.a. I will do my own maintenance work
And these owners pay assessments monthly for what reason? The last story said he was paying 3000 a month. And for what? They're not asking for a free lunch, they should be asking where their lunch money went!
I feel bad for young families who can’t even afford to buy now, not for millionaires who have to pay for maintenance on their properties.
Why it's equally bad for all. It's greed..
@@deecee901Whose greed? Condo owners who for decades voted against realistic maintenance costs and now woke up in buildings that have no cash reserves?
🎯🎯
@@pawelpap9 well not everybody in a building votes the same.
Most All are not millionaires. Just individual condo owners that worked for a living.
When this man emptied his 401K to buy a condo he sealed his fate 😢
Not true. He should have opened an LLC then put a 1st lean on the Condo for $275k once you do that you are covered. Think ahead boyz. They cant foreclose without paying 1st lean off, so whats the problem.???
@@usiffputz6753 dont pay your HOA and property tax and see what's happen...
@@usiffputz6753 Doesn't work that way. Nice try.
yes, never empty your nest egg to buy a house or buy anything for that matter.
@@wowzers1069 actually, as a corp lawyer , IT DOES, if your smart...
I use to own condo's in Myrtle Beach,,, most of the problems I experienced in Myrtle Beach was that the homeowners were always voting down HOA dues to build up reserves for replacement and upgrades.. Than as year went on and replacement of roof , elevators, concrete repairs all had to be financed by special assessments into the thousands.. One tell sign that your condo is in trouble is when the HOA board members sell their condos before all the assessments start taking place. The newer condos has reserves set up and included in HOA fee.. Owning an ocean front condo is not worth the cost of ownership unless you are wealthy person.
Bingo - my mom and I own a condo in SW FL. For YEARS the board could not get dues increases passed. And the reserves got too low. They finally HAD to do both an assessment and raise the dues. And some owners had to sell and move because of it. Thankfully, only a 2-story building and NOT oceanfront so not subject to the new state laws. And we got lucky in that we were going to have to pay for a new roof, but Ian caused that to be an insurance claim instead, greatly reducing the size of the assessment.
In our case, we had insurance coverage for the assessments up to IIRC $25K, so it only cost us the deductible.
Members kept kicking the can down the road, I do not feel sorry for any of these people. They did this to themselves and whining about is not gonna change anything.
Pay me now or pay me later - and later is already here.
@@garyjarvis2730 Absolutely spot on. And I say that as someone who owns three FL condos (thankfully in a 2-story building nowhere near the beach) where the HOA for decades didn't charge enough in dues and had inadequate reserves. I knew that going in and my condos were bought at prices that took into account the looming assessments. Hasn't been too bad in our case, but we got lucky in that Ian caused our roof replacement to be an insurance claim rather than something funded by the HOA. I rent two and my mother lives in the third.
Soon 50 years from now. Water will be all the rage..
I owned a townhouse on a lake in New Hampshire with 100 units. Now the septic system went out and the leach fields were literally running uphill. The EPA required a 3 million dollar connection to the town sewage line... this was back in 2012 and was 1/5 the value of the condo and I exited at a loss. The HOA fees doubled during construction to pump out sewage by truck. I learned a lot from that experience.
How were u able to sell ?
@@discovery781 lowered the price to 75% of what I bought if for 10 years earlier and took the loss (which I made up on renting it out for the last 4 years of ownership). Hard nocks, made me study economics. I was an Austrian school living in a Keynesian world!
You want luxury, care free life but don't want to pay the cost
Who buys a condo without seeing the reserve fund is healthy!
Lots of people and many don;t care about the reserves because they think nothing will ever happen. Its not just a SoFLA thing either.
All say it's super HEALTHY!!😅😅😅
Humans are fallible
Who types out a question without using a question mark? Same people.
I suspect the majority don't even know (or care) what a Reserve Fund is, until it's too late.
I live in a townhome in a HOA community in Texas and we had the same thing happen. Five decades of low assessment fees to make the seniors happy and now bam, all kinds of stuff needs to be fixed. Our issue was the cast iron pipes under that houses that we had not enough reserves to cover the replacement.
Salt water very corrosive. In most cases the owners have refused for years to fund repairs
Yup, IGNORANCE! Free entitled ride up until payback time, then crying poor boy tears. Their feet don’t stink.
@frankd3505 Very much the problem. It doesn't save money to be short-sighted or postpone repairs.
It doesn't save money to be so short-sighted and postpone repairs.
I lived in a condo years ago and here's the problem . The condo owners vote every increase down to keep their HOA fee as low as possible . All you ever hear is we don't need this or that and nothing gets approved . Now the state had to step in to make things safe .
Our pension system offers a one-time, lump-sum, payout. A growing number of guys were taking this option and investing in Florida real estate. After 32 years of service, now they're going broke and are worried. They risked that lifetime check to get rich quick.
That's insane. Wise humans buy land at an affordable location rather than follow the herd then pay it off and live on it. (Worked for my, I retired at 47 and my alarm clock is a rooster.)
Yes.
I WOULD NEVER BUY A DAMN THING IN FLORIDA, U R TRULY WASTING YOUR MONEY.....
Actually they did, guys in my trade did the same thing and ended up broke
@@odettetenney409 You’re wasting your money if you don’t know what you’re doing. I recommend that you stay put.
Terrible Outcomes. I left & sold my tiny home in Ft. Laud retirement section 20 years ago. You couldn't get me to ever live there again! ❤My NYC🗽🏙️My Brownstone paid off, Thank God!
Don’t people realize that buying a condo in a high rise is buying the entire building maintenance costs.
@@jeffdunnell6693 Yes, but if you have a reserve fee built in and good management you can cover the bigger expenses. When you live in a large complex you need to be strict because a lot of people don't give a toss about who pays the bills.
@@bar10ml44 Unfortunately.. in bad times MANY people stop paying their condo fees.
@@bar10ml44 cost money from day one if the reserve is depleted in comparison to the net worth of the building Run.
Same holds with Florida retirement villages all it takes is one Hurricane and there goes the value of your investment!!
All homes require maintenance
You are absolutely correct they should have known and the same for houses when people buy them and the same thing goes for renters when the price of rent goes up
I am the treasure for our condo complex board. We recently had our Structural Integrity Reserve Study (SIRS) done and will be raising the HOA dues by a small amount next year as a result. Our complex has always been well funded due to responsible board members and more importantly we have residents who knew that we needed a reserve account that could stand up to most anything. We broke the news to residents yesterday that dues would go up and not a single person complained. At the same time the property management company that we use told us that about 30% of the complexes they manage had 'kicked the can down the road' and have zero in reserves. Those complexes will be facing enormous HOA increases - some as much as 300% increase + a one time special assessment. The condo complexes on the ocean are a great place to live but buyers need to check the financials, and under recently passed legislation you are entitled to financial disclosure.
@@wowzers1069 great business motto I'm not afraid of the condo market I'm searching for 1 now in miami beach!! I know you can find a great condo if you find the the right HOA that's managing the condominiums!!!!! That's what I'm searching for in north or mid beach possibly south beach
Congrats to you and your fellow owners. Your responsible boards saved you. As a facility manager, I toured a lot of these buildings. The folks I gave my input rarely bit the bullet and took the required steps and now it's all coming home to bite them.
The reality is, this country is short tens of thousands of capable facility operators. It's never been seen as the high value position it really is.
I’m the Board President of a large condo association in major metropolitan city. Most of these owners are responsible for this because they don’t want any type of an assessment increase and fight it. In my city, a Reserve Study, is required by law. We use it as a guide for financial planning. Each year our assessments increase anywhere from 3 to 8% so that we can pay for capital projects. My building was built in the early 40s and is currently in better shape than buildings that were just built less than 20 years ago. We never defer maintenance and that is the key to a well-managed condominium building. One other thing that owners never seem to understand is that the cost of living and the consumer price index continues to go up each year and often every month. Associations have to keep up with these costs, many of which include the cost of salaries for the staff at a minimum.
Would what you are doing actually keep the values of the condos higher? The building is sound. Reserves are their to meet future needs. I would think that would make a condo an easier sale for a better price. These people that are against assessments seem to not realize the value of their condo relies on the condition of the building? You let the building go no matter how nice the inside of your condo is you are not going to get good money for it.
@@erikthorne The whole point of "kicking the can" is that they think it won't be their problem because they'll either be gone or dead by then. It's the same problem we have with the Boomers and the national debt and lack of Social Security funding. They know it won't be their problem, so they run up the deficit and leave paying for it to the younger generations.
@@erikthorne it is one of many factors in retaining and increasing property value. Unfortunately, so many uneducated condo buyers may look at the monthly assessment for a unit and decide that’s too high. Prospective buyers must look at the finances of a building especially in smaller buildings under 20 units. You should have $5-$10k per unit in reserves for a high rise with several hundred units. In smaller buildings, you should have double of that at a minimum.
When I purchased my place 10 years ago, I looked at a beautiful unit in a small building with 30 units. They only had $2k in reserves because they just used all the money to replace a three story outside stair case. The cost was under $40k for that project so I said hell no. You haven’t been planning at all.
@@guyplay that's ideal. I live in a condo in Canada. The board is keeping fees low, and all the stupid owners think this is great, but no Maintenance is behind done, it's criminal.
@@Jacquie_Kirk_111 run for the board and make some changes.
I lived in Fort Lauderdale area back in the late 1990's and absolutely loved it. I knew a guy, a friend of my now ex husband's who bought a nice 2/1 condo on the beach for $15,000 cash and when we were there for a party one time, he was laughing that he paid only $100 to live there. That's how much the HOA was back then. He sold that place for more than double since then and now owns his house in Delray Beach, I think. Family emergency made me move back to Seattle in 1999. I always wanted to go back to Florida but now that prices have gone to the moon, I won't be able to.
There are still very reasonable places to live in FL. Just not in a highrise right on the beach. My mother and I own three units in Port Charlotte on the Gulf coast. Not on the beach, but a nice 2bd/2ba unit in our building is $125-150K. One bedrooms are well under $100K. Double what we paid for them six years ago, but still a very good deal, especially if you have a paid for house up north you can sell as we did. Certainly FAR cheaper than Seattle.
Their first problem was that these people chose to buy a condo. Second, it was in Florida.
Many great places in Florida but I would never recommend the beach or a barrier island. As beautiful as they are, it is too risky. And never a condo. Go rural.
@rosanneshinkle4133 I lived in Florida for 3 years in the 70s. Never did they have the hurricanes or volatility of weather they have had in the last 25 years. Florida is a place to vacation at the right time of year, but never to live there again.
That's interesting because I have lived here for 30 years and have never lost a single item to a storm @@janruss3729
@PalmBeachesPaul I'm glad for you. You've been lucky or put a lot of thought as to where you live in Florida. 😊
Ain't that the truth. I'd by a mobile home before I'd buy in an HOA or condo down here. At least if you have to walk away from a manufactured home your losses are less. The problem is that so much of the property here is HOA controlled.
It’s great that these unsafe buildings are being forced to fix deferred maintenance that they have refused to do for decades.
Renting suddenly does not seem so bad.
Better read that rent contract real go. Now people are adding clauses to allow increases for bla,bla, bla
wait till they put the rents up dummy!
That's the end game. Own nothing and be happy
You truly believe that owners ARE NOT going to pass-on massive increases in monthly fees or assessments to renters? You're safe until your annual lease expires and your monthly rent is raised by 30-50%. You either pay the increase or you're forced to pack up and move. I hope you saved up money for relocation expenses, even though the basic costs of EVERYTHING have increased DRAMATICALLY in recent years, while our income is basically the same.
@@tjmmcd1 Owners will charge as much as the market will bare and not a penny more. The same is rue for you and I.
Back in 2020, my 24-unit / 4-building condo complex needed new roofing. Bids came in at about $800,000. Condo rules required a vote of all owners for any expenditure over $250K. A majority of owners voted down the new roofing project. The board simply decided to do the project in multiple stages to stay within its $250k spending limit. But that added $200K to the total project. It ended up being five stages over two years to complete project w/ a over $20K in special assessments per unit.
$800,000 million? That's $800 billion.
He was trying to say 800 to a million. Like in that range
@@glennwatson3313 so you expect people to believe you're smart enough to comprehend and regurgitate an abstract value like that but can't extrapolate meaning from between the lines of a simple sentence? Bless you
@@unpointsword Your post was the perfect combination of disdain and disdain. The beginning was just a straight up, if poorly written, insult, then you finish with the classic, "Bless you." You must be from the South grandma.
@@matthewsmith2362 I'm sure he was. I just found it funny. $800,000 million. I never say a number written like that. I can't figure out if its $8 trillion or $800 trillion.
Condos do not maintain themselves. Pay the assessment or sell your unit.
a condo fee is for that purpose, larger repairs have to go through a meeting and financed over time and added to condo fee.
I was living in the Cricket Club as a renter when that assessment happened. What youre missing here i that the HOA was $3200 a month for a 2 bedroom. Now, where it gets shady is that the board was made up of 80+ year olds who were living there for 40+ years, units paid off, had neglected the fixes for years, and they waited for a new batch of people to buy in at less than $200k per unit. Then they did the assessment but it wasn't just to fix necessary legal repairs. They folded into that assessment upgrades to the tennis court and other recreational features - and then we got a letter taped to our door that accused the board of folding the new expenses into the assessment so it wouldn't require a vote. There was a lot of shady stuff happening.
When we moved out in July, there were re agents there every day meeting owners who were trying to get out.
Wow, thx for sharing that with us
If you have to borrow from your 401k to buy a home then you’re shopping outside your price range. Those senior only mobile home parks in Ft Pierce or Port St Lucie are probably better options.
Can you imagine moving from a condo to a mobile home park? I bet they get depressed once the reality sets in. Watching Matlock in a sardine can will be sad
@@robertneblett4477 I borrowed from my 401k to get a house. It tripled in value, I sold and took proceeds to buy a luxury condo in a gated community. Our property has well over a million in reserves and maintenance is fastidious.
@@RoseanneSeason7 And watching Matlock in a crumbling high rise structure is better? A structure that has lost half its value because of the building condition, lack of contingency fund, and desperate sellers?
In the Tampa bay area (Penillis County) is loaded with old mobile home parks. Many probably been their since the 60's. At some point they will need to be replaced and guess who pays, the owner. Rent in the parks is lower than any condo in south Florida. So I guess Miami condo owners can sell out and relocate the one of those old 'trailer parks'.
@@RoseanneSeason7 Not to mention a possible buyout of their land by a developer/private equity firm, and then being evicted…
Mortgage professional, accoutant and former three time board member. The problem is that buyers and realtors are not qualified to analyse a reserve study or the finances in general. We have appraisers and home inspectors but no one to breakdown the finances of the hoa. Buyers go in blind when purchasing. I suppose you could hire an accountant but good luck in Getting the info from the HOA. Many dont have audited financials and have never done reserve studies. These are million dollar business run by amateur volunteers. Ill never buy a condo or townhome again
It is interesting how real estate has kept going up and then the county raises taxes and says real estate is now worth more. It’s like my mom I remember her saying her real estate taxes went up a lot and her houses hasn’t changed in condition except got older with a roof that now needs to be replaced. It’s worth less but money printing and the government buying mortgages or backing them pushes bubbles higher.
You get the “I under stand monetary policy” award for the day. So many people are so lost as to why everything costs more. Its the dollar buying less is all
Most states require that real property taxes be assessed on the market value of the property each year, not what you paid for it. The tax rate itself may not be going up, but the value of the home does go up and the tax bill increases.
Condos should never be maintained by an HOA. They should be maintained by a division of the city planning department. The HOA is staffed with people that don’t know anything about building codes.
Feels like some of this is an opportunity for con artists to acquire premium real estate through foreclosure.
not a condo or hoa
I have no tears for multi millions condos owners, that have benefited of a great life for decades.
79 years old guy, can sell it, and come live in the places 90% of American's are stuck in. Heck some houses are still 150 000$ in many states. Some fantastic houses in cozy towns are 400 000$. They should count their blessing and move.
Good comment, you are absolutely correct.
@@drc3po What state? In a small village?
I know it been 5 months. I bought a small house in the foothills west of Denver in 2013 for $162.000. 1000 sq ft. 1.2 acres. It’s now worth $400.000.
I honestly don’t understand condo living and why would anyone elect this lifestyle. Why would anyone buy a piece of real estate that clearly is not yours. It’s just a glorified rental with ownership headaches. You own nothing, you are just a renter with your name on the deed. It’s a scam!
If the idea is living maintenance-free, just rent or buy a house and contract the maintenance to someone else. How much does it cost a month to maw the lawn? I guarantee you it’s not $3000 a month.
I rented in one once for a summer. I felt like a rat in a box.
@@Dbb27you probably are a rat in a box
Buying an apartment has never made sense to me. I recently moved into a patio style home. There is about 15 feet between each home, I have an 8th of an acre yard and my own driveway and two car garage. This is as close as I'd ever want to live next to a neighbor. I've never lived in an apartment, but after living in military barracks, I had my fill of neighbors!
I’m a senior and am considering going back to apartment renting in a senior community. After 30 plus years I’m tired of home repairs, dealing with contractors and probably being ripped off a few times on pricing. I’m ready to downsize now and simplify my life.
I don't like hearing any kind of noise from neighbors. Lived in Apts where I couldn't sleep due to rock music blaring above my head. So I bought a house on 3 acres which abuts 2,000 conservation acres. I don't chum with my distant neighbors and I love it that way!
Seems like this is a simple case of chickens coming home to roost? Crazy to me that this has only been mandated now.
Only because the new law written in blood.
I can’t imagine people not be able to get a job
I recently got accessed for a new roof and new hurricane windows in my condo in Jupiter. Luckily it was divided by sq ft of each homeowners property and I had the smallest amount due. Some of the larger properties got hit with crazy amounts.
Condos are the worst investment, the HOA fees alone should be a huge red flag for prospective buyers.
I've owned a couple of condos in NYC. They were great investments. We live in Florida now. There is no way we would buy a condo or HOA property down here. It's not that thru are all poorly run and poorly funded. The problem is that there are so many badly run condos and HOA communities here, that the good ones suffer because of the generally bad conditions. I'd move into a trailer park before a condo down here. At least if you have to walk away from it, your investment isn't as large.
We were proactive. We knew what was coming and we sold ahead of this storm.
With what we sold we bought a brand new house and kept some money.
You have to be always on the look out,if not ...the world would eat you!..😮
You just passed your wear and tear costs to someone who hasn’t used the condo.
Comparing a single house to a 100 unit condo is like comparing a butter knife to a chainsaw. A home buyer with some basic sense of awareness can take a good objective look at a perspective house and make a fair assessment of the condition. To fully ascertain the condition of a 100 unit condo you have to hire (or be) a structural engineer to really get a picture of the building.
I can’t believe people didn’t do that. You would think before a purchase that big, people would’ve wanted to make sure it was a sound investment.
@@kathleenhazy6126 I'm no expert on the subject but I've heard some engineering firms charge around $10,000 for an inspection. That's alot if you're an individual buyer.
I paid for an inspector to take a look at the building AND the units before we bought. It was about $1K. I also asked some pointed questions of the HOA President, and took a long hard look at the financials. The building was fine, they told us the roof was coming due and my inspector concurred. The financials were less fine, it was obvious that the reserves were low. That factored into my offer(s) - effectively I priced in the assessments that seemed inevitable. I have to think that for these buildings that need many millions of dollars in repairs such that the assessments are over $100K per unit, there would be problems that jump right out to anyone who knows to look for them.
And I would never buy in a high-rise building (or on the beach) to start with. My building is only 2-stories, and mixed concrete and frame construction. It is MUCH more like a house than a skyscraper, and has bills that are much more house-sized, even with 50 units. I paid from $62-$70K for the three units my mother and I own. She lives in one, I rent the other two.
I don’t feel sorry for them. Some bought 30 years ago really cheap and watched their property soar in value. They put zero into maintenance. Look at all the money they saved. Now they have to pay for maintenance.
Thanks for the update. I bought a new condo about 10 years ago and 3 years into it we had an assessment done right after the developer sold his last set of units - we found he underfunded the reserve (a typical developer selling tactic). I received an $18K bill to be paid over 18 months. When I went to sell the condo, the sales contract stipulated the reserve was prorated for the 30yr assessment period. I ended up paying about $3300 (18000/30*5yrs I had it). I was lucky as I was told this only worked because I bought a new condo and was only in the first few years of it. That said, we all were warned back in the late 80's early 90's about the hassles of condos. I didn't listen but will never buy another one. Between HOAs, management companies and developers... not worth the headache.
Feel bad for the guy who sold for $110k, but to drain your 401k to buy a condo is dumb in the 1st place. So many people buy homes/condos that can’t afford them. If you can’t afford the repairs, you can’t afford to own a property. Period. I was an contractor for 40 yrs. I ran into countless people who needed say a new furnace ($5000-8000). They didn’t have the money which always blew me away. I thankfully own a 1 story villa in S FLA. no inspections and we have lots of money in reserves. Good show Paul
I have talked my buyers out of buying more times than I have asked them to buy. I never want one of my clients to buy more than they can afford.
@@tomf9292 plus you pay taxes on the 401k withdrawals
Depends on how long ago bought the condos, before it's all degenerated into assessments more often and became high assessments, and none of the money paid shows on the property, before the high assessments.
My cousin says that the same way in another city in Florida about her best friends condo complex.
They take care of the grounds somewhat and the pool, but that's it.
Southern Florida is uninsurable. Too much risk at this point.
Not in all cases. I have insurance and it hasn't gone up much in the last few years.
@@brains84 and yet it is insured.
@@davidwelty9763many people that have paid off their homes are taking the gamble and going without. People are moving out of state once it hits a point they can’t afford it. Uninsurable doesn’t always literally mean you can’t get a policy. It can also refer to being out of reach of the average person affording it
some people pay for insurance, and they think they are insured,,,,,,,,,,,,,,,, think again
@@GW-gz8jh That's true for home owners. Condos usually have an insurance requirement for individual unit owners.
One option is to get 80% of the condo owners to sell to a developer who might give you a decent price for your condo. The developer will tear down the building and build a luxury condo tower.
@@MCC876 they aren’t right offs
Thats never going to work
@@Jen1112111nope. Happening all over to older waterfront condo buildings
These horrible condo owners refused to pay for maintenance and upkeep. I have no sympathy for them.
Not all - some of these folks probably were outvoted at meetings regarding increased HOA fee, or repair leading to assessment, not everyone is to blame. The majority that voted down updates, repairs are the guilty
@@amrice62 In seeing that you are perpetually outvoted, I would sell immediately. By staying, you become part of the problem by default. The only ones I would feel sorry for are the ones that just bought the condo and we're not a part of the voting.
So they don't have another collapse? As a rule, buildings don't collapse unless builders don't build correctly....when does the owner of the building itself and/or the HOA fees fit into this situation??
Never buy a condo that isn’t FHA approved.
Little harsh but true. This could have been avoided
So, what happens if only a few people in a building can pay the assessment and everyone else is foreclosed on? Are the people who paid still at risk of losing their property?
A condo is no place for someone on a fixed income with no other means of raising money!
@@ricladouceur6202 well it worked 20 years ago when many of these people bought these properties. I live in MN and we are required to have a reserve but our HOA almost doubled in the past year due to insurance. But some have been since the building were made in 1988.
Unfortunately it’s a very common place for retirees living on social security to live. It’s often one of their only options.
Wonder if HOA board members are receiving kickbacks for the contracts they give vendors? Is there anyway to stop this fraud? If kickbacks are made in cash, they are untraceable.
a condo i know of a head of the condo association hired all people and contractors they knew .they stole lots of money and then they sold their condo and disappeared and no money left in the bank for the condo . no they were never charged .
Come to Ft Lauderdale and you wouldn't believe what is happening here. My assessment alone is 130k, it's totally insane.
so sorry
@@PalmBeachesPaul Don't be sorry! This was years in the making with everyone in on it. How in God's name can you inspect an ocean side condo every 40 years??!! We're talking about salt air, salt spray, metal and concrete and shady Florida builders. It's a toxic cocktail that exploded. It's maddening. I'm surprised that more Surf Sides are not occuring/
Lauderdale is crap pan handlers on every corner
@@deckerdax indeed but did your association vote down reserves over and over? Were you living up in there with 300 to 600$ a month dues? If you paid super cheap for years it’s not totally insane it’s actually right on time.
How often do you attend HOA meeting
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of finances and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
Inflation didn’t help matters over the last few years on those assessments,
Easily add 20-30 percent materials and labor. Deferred maintenance was really expensive.
I am one of those retired FL condo owners caught in the assessment situation, I am full-time in FL. Some of my neighbors say will not be able to pay. If you can't get a bank loan, I've told them they can sell and move into senior subsidized housing, based on income. There are quite a few nice, average apartments, low rent, some even include a $50 electric credit. Also, 1/2 of the owners in my development own another home "up north", so they're not really going to be homeless.
I would like to see the bill for assessment in writing. What there doing in your apartment for $274,000 assessment. Maintenance i can see but not that much. This is highway robbery. I think they are over charging on assessment...
More homelessness. It's terrible .
Hi Paul great channel, lived and worked in Usa back in the 80s and did a lot of walking around..... it's the only way to get around Living and loving Switzerland at the moment, keep up the good work!
Want to trade places😂
How do you check to see if the association is keeping up with the Maintenance over the last five years?
I believe it is a way push owners out and transfer the ownarship to a coorporate to rebuild those places again and sell...
We are in the same situation in Bay Harbor Islands FL … $1.5M assessment for 17 units (phase I) to cover roof, walls and impact windows. Lobby and pool area (phase II) not included.
We live in fly-country. Twenty years ago I was ashamed to admit it but now my little corner of the world is pretty cool …
Good luck selling those condos. Nobody wanted to contribute to reserve funds and now they are getting hurt.
do you think with higher insurance costs and maint costs are going to sell the more others learn about this.
@debrabuckley5011 inventory in an all-time high for condos. The number of units available for sale has doubled what it was a year ago which obviously forces the prices down because there's so much competition
I will never live in a condo! Especially in FloriDUH! 😆 Ridiculous, to pay $400+ HOA costs every month, just to have the building fall apart.
400 was on the cheap side for years and years it shoulda been in the thousands every month for these ocean view places
So where is the monthly money going that people pay? These owners are being robbed.
I live in a 2800 square foot home in North Tampa and my HOA is $250 per quarter, or about $85/month. This condo stuff is insane.
@@SarahBourne-w2b A big chunk of it should be going into reserves for the future. Most condo HOAs barely have dues high enough to pay the current costs of the building. As one example, JUST the building insurance for my 50 unit building is now $150K per year. Almost half of the current monthly dues goes to just that. Then there is cleaners who come in and clean the public areas, the fee that the management company charges, anything that needs immediate repairs that is the Associations responsibility, the portion of the shared amenities (a couple of pools and some grilles) that is my building's responsibility, etc. The dues were way too low for way too long, so we ended up having to do a couple of assessments that went straight into reserves, and we are still going to have to raise the dues considerably over the next few years. And that is with getting lucky and having the roof replacement end up as an insurance claim and not as a capital improvement. The state government should have forced this issue a long, long time ago. Sadly it took a bunch of people dying to cause action to happen. the condo owners have no one to blame but themselves and/or their neighbors who would not vote to increase the dues.
@@siemorjj8081 And how much does it cost YOU out of pocket to replace your roof and other major maintenance on your home? All your HOA probably does is pay for a bit of landscaping and any shared amenities. A Condo HOA has to maintain an entire building, and in the case of these aging concrete highrises right on the salt water beach, that is *incredibly* expensive, especially if it has been allowed to fall into disrepair as so many have.
I bought a condo in CA and the previous owners neglected many things, including roof replacement. When it came down to the assessment, an over-entitled owner refused to dish out money and we were happy to serve him with lien. This Florida situation is absurd however. I hope these seniors find a home.
Contractors are seeing the gravy train and probably charging $$$$$ for repairs. Wouldn't surprise me if there was some kickbacks involved with condo board members. Also, that guy paying $3000 a month for HOA dues will be just fine. He can probably just give the condo away for free and rent an apartment for that $3k a month in an area not quite so ritzy.
but he wont because he was one of those who kicked the can down the road
I am from NYC. In 1973 I visited Miami during spring break and resolved that I would live in a tropical environment. Came to pass in 1988 but to Saigon where my wife is from. We bought a condo in Saigon 15 years ago. There are no property taxes and the total maintenance fees are roughly 10 dollars per month. We have a corner unit on the 14th floor and no a/c required. Our electric bill runs about 15 dollars per month. Bus fare for the ten minute ride to downtown is 22 cents. Pho (Vietnamese beef noodle soup) costs about 1.50. Banh mi sandwich about 1 dollar. Unfortunately no retirement visa like Thailand but as my wife is a Vietnamese citizen I can live with a residence card as her spouse. The ocean is about two hours away.
So you say no AC does that mean it never gets above 70° and no humidity or do you just live with the fact that you're gonna be sweaty. I've lived in Texas and Florida and both states are extremely hot so I can't imagine ever living anywhere without AC I literally can't sleep if I'm sweating in bed I'll toss and turn all night.
@@PalmBeachesPaulI’ve been to Vietnam that guy is crazy saying he doesn’t need A/C in Saigon
If you have a seeside condo has 2 or 3 bedrooms better have deep pockets.
You can't expect to live in a resort style skyscraper that in part has more pools and balconies as many 4 star hotels. You gan not expect that this will cost you just as much as normal rent.
agree. I learned the hard way. Bought a condo in 2008 two weeks before crash. Managed to sell in 2017 but already had a $15k assessment, which realtor got buyer to pay. But I knee there would be a $50-60k one coming in a few years. Realtors should be required to tell buyers this as I had no idea. I am now a very happy renter. My condo was in Seattle. not florida and was jusr an older 600 sq ft. i moved away from fort Lauderdale in 2001
Ouch! That Howard Konetz bought his 1800 square foot condo for $478k in 2014. Ten years later comes an assessment that is approximately half what he paid for it....
This is going to get ugly folks. I have two condos and a duplex and I'm getting out of one of them, even though there is no assessment coming and I have had 100% rental income the whole 12 years I've owned it.
Great video!
@@Flies2FLL so sad.
This why people don’t buy condos in nyc unless they can afford them. Or any city. Including palm beach.
Poor planning by the hoa boards and management companies in the past and homeowners not smart enough to figure this chickens will come home to roost someday.
Fell bad for the owners but you did a lot of this to yourselves by not adequately funding reserves.
A lot of elderly condo owners presumed that they would be long gone by the time the chickens came home to roost. Everyone in Florida knows that oceanfront buildings are in a difficult marine environment and maintenance is a never ending issue.
Agreed. Poor planning. Too many condo birds are operated by ego. Teachers and laymen who think they're business men
There is a huge problem with this. You have liscensed engineers doing the evaluation. They don't want to be sued so they will not be conservative on their evaluation.
Many others have the same opinion we will see what happens
Much needed. I don't care how many piling you put under 40 story condos on the beach, the sand will shift under a tidal surge. Is it better to die in one collapsing, or wake up and fix them better
I really feel for these Senior Citizens. This was an excellent video and very informative. I appreciate YOU gave solutions!!!
My expenses for my under 500k condo
are currently around 50k
10k taxes
22k general assessment
12 k 2 special assessments
Its never ending
These boards get off on it
The budget is over a million
And they hire more staff and raise salaries
Build their little empires
It’s unbelievable
Thats insane costs
This is one of the better videos on this situation. Clear and succinct, thanks Paul.
Own a home in Florida on the water. The unexpected costs are high. I budget $20k yearly for maintenance. Condos are architecturally more complex. It doesn’t surprise me that the older condos have delayed maintenance.
Warnings about condo purchases have been around since the 1950’s. So …..
In Taiwan the government subsidizes assessments heavily, in fact in my building which has high chloride cement damage and is over 30 years old - we are paid to rebuild, we lose no money and the government is even paying our temporary leases while rebuild.
We come out ahead big time. This is due to elections, over the years people with good urban redevelopment plans have been elected.
Government bailouts steal taxes from the people.
well if we removed our military from S. Korea, which is there to also protect Japan, we could use those billions to help Americans with their assessments. But no, that won't happen.
Who is actually paying then? Unless money grows on trees in Taiwan?
@@MM-wi5dn Taiwan government is not in debt, in fact it is US$579 billion in reserves. It’s an extremely rich country as it’s always been under threat of war with China so it saves money for such a war chest. The mayors give away money to homeowners in urban renewal projects.
We have no sales tax on food and other items and or property taxes are insanely low, insurance is also very low and we have social medicine where everyone is covered
That is ranked 1st in the world.
So Taiwan is like Saudi Arabia but it’s chips and high tech that brings in the money for the government.
Yes, money grows on trees here - microchip fruit trees. We do pay out the ass for cars though, all imports 110% duty so my car worth 50K stateside new I paid 105K.
Thank you Jean for your hard work bringing us so many consciousness raising conversations.
Buy some nice little one story renovated house in the rust belt for cash and let them foreclose if you can't sell. Bankruptcy at 80? Sure, but one thing is clear, stressing out and risking a stroke is not worth it at that stage of life. If you had five years or more living on the beach that's more than most people get. There are some people at 80 living in some not so nice areas who HAVE to work as a Walmart greeter. Be thankful if you don't have to do that.
I was about to buy a beautiful condo in Lake Worth Beach - 2 buildings. First thing I ask was about the reserves for maintenance and repairs. Minimum reserves.
Passed. Nothing good comes of buying without lots of research on the condo finances and Read the condo board meeting.
Bought a single family home with no HOA.
Sounds like it’s an issue for the entire building and not just that 79 year old couple. I suspect the only ones who will get paid are the attorney’s that work out a massive settlement on the assessment with the city/state etc
Lawyer's aren't involved in this, so they are not getting paid.
He should have served on the board and known what was going on, and could have bailed long before this
The city/state has nothing to do with it. The assessment money goes to fix the building's issues. The only lawyers that will be involved are when the association forecloses on owners who don't pay the assessment.
@@Kevin_Rhodes I doubt anyone will get foreclosed over this. It will be settled for Pennie’s on the dollar.
And it will be in litigation for years
Do these condo associations put the maintenance and repair work up for bids or do they accept the first or only price quote they are given?
I owned a condo in Illinois that had higher association fees, but it included replacing roofs, siding, and other maintenance. In the 20 years I lived there was not one special assessment.
In UK we have a thing called "equity release mortgage". Elderly people borrow money on the security of their home, with no monthly repayments required. They live their final years in peace & comfort, take a cruise or whatever, and when they pass away the bank gains ownership of the property. It works pretty well.
@@stevewalker2028 We have that same thing in the USA. It is called a reverse mortgage. However very hard to predict how many more years the person will live so the end result is homeless seniors when they outlive the funds! 😱😭
Would ride my skateboard to Boynton bch holding my surfboard in 1980 as a 12 year old along Boynton beach blvd. I lived in paradise. Nothing like the shit hole it is today. When I-95 was built the place was ruined. Drugs, crime,pollution, people shitting and pissing on one another. I would tell you the amazing place I live now. But I won’t.
Yea all are HOA fee increase have been due to insurance. Also if you have a morgage you must have insurance. So people can be priced out that way. I had a hard time sell my home in FL 13 years ago because even back then home insurance and flood insurance was expensive. Taxes are not cheap either. You get nothing either in FL becaise it so poorly runned.
I will try to be as kind as possible. Have any of these people ever owned a single family home? The upkeep and maintenance is ongoing. A homeowner cannot pay a monthly fee for landscaping and pool maintenance and leave it at that. There will always be repairs and replacements to figure into your budget.
I’ve owned rental property for decades, and I know that you have to plan for future expenses. Most condo owners do not realize that when you buy a condo, those expenses are there, but they are shared and when they are delayed, that only makes it worse. If I were to blame anyone, it would be the management companies who has failed these condo owners. The management companies did not do their jobs because if they had these problems would have been addressed before they became problems. It is up to the management companies to ensure that the condos planned for future expenditures which they did not do.
It's not up to the management companies. And I can assure you that the management company for the condo building I own in was after the board for YEARS to raise the dues due to the reserves not being high enough. The management company has no power to do more than make suggestions, the board has to put it to a vote of the association members, who very much could and did say NO to dues increases beyond the minimum needed to pay the bills. We were only able to get an assessment and increases through when the state finally MANDATED a certain level of reserves. Thankfuly, it's only a two-story building so we are exempt from the new inspection and immediate remediation requirements so ours was not that bad.
There is also no requirement to even have a management company involved. Some condos do, some don't. Ours does because we are actually in a nine building development with some things shared among buildings, but each building is a separate association. They are not cheap.
it should be illegal for owners of condos to vote against maintenance. so dumb
our condo SIRs inspection yielded good results, NO ROOF leaks, no repairs due except for some catwalk cracks.. The Engineer claims our roof that does not leak only has 2 years remaining..and thousands are being assessed for replacement in 20 years...totally nuts.
Wow that's not good
What some people aren't understanding who lack sympathy for these condo and townhouse owners is that some of them are on fixed incomes and planned out for the HOA cost and other costs that come with home ownership. They were assuming the HOA and building management were doing what needed to be done. Now they're finding out that isn’t the case and are being slapped with a huge special assessment being asked for upfront. Even someone not on a fixed income would have issues paying that.
Costs go up. Cost of living.
The Murano at Portofino in Miami Beach owners have the money. The available units are $1.4-7.9 million. What do they expect? I remember when they were $700k.
Elderly owners should take out a max home equity loan. Use proceeds to pay off assessment and use balance to pay off loan. Who cares what equity is left for relatives?
You are the person of reason
I like that idea, hope some of them are given that advice.
Agree 💯 PCT
Your math is faulty. You can’t use half the loan to pay the assessment then pay it off with half the amount of the loan. Many of these owners don’t have cash flow to service such a loan.
So you buy condo cash say $190k you put it in an LLC then you put a lean on the Condo for $275k so now property has a first lean holder of $275, you get an assessment bill in the mail & throw it in garbage. Continue to live your life. Whats the problem? If they try to for close they have to pay off the $275k first. You are covered.
Well isn't that interesting....🤔
Ok and the lean of $275 k is for what reason ? Renovation ? How do you justify the lean ?
Please explain the steps. Thank you
Are you talking about a common law lien writ of attachment?
@@claudiagarciacabrera-prant6251 Yes I will renovate my belly with steak
I thought in Florida an HOA foreclosure is superior to all but a government tax debt and the purchase mortgage lien...
"Sees the rotting in the wall..." that's rusting rebar!
I think if there is any one thing to learn from the Surfside collapse, it's that you can't really own a high rise condo, you can only lease it for a period of time. But "ownership" is a myth on paper since the reality is you have to keep buying it over and over again.
That is absolutely, positively, no different than owning a house. And unlike renting, in theory when you decide to move and sell the place, you get some money back. Renting is just building someone else's wealth - I know, I am a landlord myself. It is quite a bit more expensive to rent one of my condos than to buy one of your own, but many people simply can't qualify for a mortgage, or don't want to for various reasons. That is a valid choice, but it's not cheaper.
The one thing that IS true about a condo, is that you are much more at the mercy of your neighbors being willing to spend the money to maintain the building. I went into buying the three units that I own eyes wide open - I knew from looking at the financial statements that the reserves were low. That was factored into the prices I paid and the amount of money I set aside for the inevitable assessments. And I made sure that my condo insurance had some assessment coverage, which more than paid for itself. I also bought in a 2-story building, though that was somewhat luck as my complex has a couple of three-story buildings that are somewhat caught up in the new state regulations and costing those owners a lot more.
@@Kevin_Rhodes That's ridiculous. While you may have to do some maintenance, you often can put off maintenance for years with no ill effects, and the chance of needing to pay as much or more than the price of the house over again is very slim. But in a high rise condo, that may well be the case.
a home is the same .you really never own it .don't pay the taxes or water bill and watch how fast they will come for it .
@@debrabuckley5011 I don't disagree with your point but my point is on a different scale. My point is more comparable to a landslide where after the landslide, your house and the land it sat upon is just not there any more. You own NOTHING.
it's not just south florida, i'm in central florida and we got hit with an assessment too. it would have been $11k for my condo. we had to kick out the scheming board and replace them with actual homeowners so we could figure things out.
What would you do if you were hit with a quarter of million dollar assessment? Leave a comment down below.
Move….
Protest ..
Sell and move out of Florida
@@PalmBeachesPaul maybe cheaper to buy a house
I have no tears for multi millions condos owners, that have benefited of a great life for decades.
79 years old guy, can sell it, and come live in the places 90% of American's are stuck in. Heck some houses are still 150 000$ in many states and since he does not work, he has tens of thousands of great locations to choose from. Some fantastic houses in cozy towns are 400 000$ or less. They should count their blessing and move to spots where it's affordable (to their millionaire budget)
I worked as property manager in condominiums for 30 years. Do a reserve study and raise the assessment accordingly. I angered a lot of board members but at least I only had one building that had to do a special assessment
So many people thought it was so cool moving to Florida and buying a condo. Now look. Happy in New England.
@@PatrickFoley-vf3lr freezing in the winter 🥶 is no picnic boring bland restaurants no one envy‘s you
@@PatrickFoley-vf3lrtaking joy in other people’s misfortune is not very becoming.
@@PatrickFoley-vf3lr I bet you stick out like a sore thumb in New England hehe
@@davidwelty9763These people that own have benefitted by their property value skyrocketing in the last 5 years. And I don’t own yet, and now at these prices I can’t afford to buy. So I want prices to crash so I can afford something. It doesn’t mean that I will take joy in their pain, but just like someone who had their property value double in five years, doesn’t take joy in the pain of people who can’t afford to buy now, they are still happy that they were on the right side of the increase
Good stay there. We won’t need more flaming liberals.
Florida is becoming a cess pool high home prices high rent no wonder so many people are leaving Florida and don't forget the sinkhole and it's sinking miserable
There’s a 22 condo who’s listing expired after 365 days on the market. The MM went from $700 to $1318/month because of the MM and assessment hitting the owner. There’s only 6 units in this particular building and those 6 owners had to accept the price of the repairs and replacements on the building. That condo will not sell. No one wants to pay $1318 a month for a condo in a low rent district….. this is in Hollywood. We’ll be seeing more and more of this exact problem with condos. They won’t sell. Foreclosure will be on tap for all these condos with exorbitant expenses… yes. Everyone is being pushed out of their homes. And DeathSantis is making it against the law for homeless to be on the streets. There ya go………. Move to Florida, they said! It’s cheap, they said. Yeah, right. And God forbid you’re forced out of your digs….. You’ll be arrested if you’re living on the street.
I lived in a Houston condo for 35 years, and there never was an assessment. Whatever was done, roofing, gutters, whatever, came out of the monthly fee. The monthly HOA fee and an assessment at any time of thousands, if not 10s of thousands, that's nuts.
It’s the salty air.
Let’s say you are one of just a handful of owners in a building that can afford a big assessment, and you pay it. What happens to the building when everyone else defaults and they foreclose? Sounds to me like a no win situation.
Im on the condo board in a building in Hollywood. The owners have been told over and over what is coming. Some have already prepared. We have approched a bank (after we researched oprions) waiting to hear back about our loan. The building will take on the loan and we will slowly start to assess homeowners on a small 2 larger scale over the next 10 years. We are also in the process of starting the paperwork for a grant.
In Georgia, a foreclosure is sold at auction and the proceeds dispersed to the debt holder(s). But buying foreclosures like that in Florida would be fraught with landmines. You better know about all the outstanding debts against that property. But to your point, what happens when the proceeds from numerous foreclosures aren't close to what the HOA has to spend to fix the buiding? Does the entire property get foreclosed on by the state due to the fines??? This will get very messy.