Don’t EVER Buy a Condo
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- เผยแพร่เมื่อ 5 ก.ค. 2024
- The video discusses the current condo crisis in Florida, highlighting the challenges faced by condo owners due to rising insurance costs and special assessments. Many condos, such as those in North Fort Myers and Regency Gardens in Orlando, are experiencing significant financial burdens, with special assessments reaching thousands or even tens of thousands of dollars. This has led to an increase in condos on the market as owners struggle to afford the unexpected expenses. The crisis is exacerbated by new state laws requiring condo associations to be fully funded for potential disasters, further straining owners financially. The video discusses the lack of government assistance and predicts a potential mass exodus of condo owners unable to keep up with the rising costs, urging viewers to be cautious when considering condo purchases.
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Timestamps:
Intro-00:00
Fort Myers, Florida Condo Crisis- 00:31
How can condo owners pay thousands on the spot?- 01:48
Why are condo association fees rising?- 02:31
Why do condo associations have to be fully funded?- 03:50
Orlando, Florida condo crisis- 04:43
How will condo owners pay increased fees?- 06:30
Condo owners forced to sell- 08:30
Retired Florida condo owner priced out- 09:25
Real estate agents can't sell condos- 11:27
Things to keep in mind before you buy a condo- 13:10
Some of the links and other products that appear on this video are from companies which I will earn an affiliate commission or referral bonus from. This is at no additional cost to you. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.
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I used to think condos were so cool, and always dreamt of having one myself. After seeing the way these HOAs treat people, I'm absolutely disgusted by them now.
Especially a high rise condo lol like in the movies used to be the dream 😂
Same here, I once thought just like you! But a few months ago after I began seeing nightmare stories similar to this video topic ...I was like nah I'm good ,( I'll just settle for a nice little town home ). I definetly don't want a house ,dealing with landscaping issues & all.
HOA's Treat People?. HOA's are not people. It is an organization among condo owners. If you own one you are part of the HOA. No Govt. Bail-outs to anyone. Let Free market operate.
I was always turned off about HOA fees anywhere. Condos and townhouses were already through the roof. Let alone the insurance rates if near the water.
@@kelvinhardy6711 i am willing to sell a single family home believe me if it wasn't my husband's job to move or wont sell it because i only pay $52 monthly on HOA . If you are interested i am willing to sell my home by owner I won't use any realtor just go to the tile company and will do the whole work and save me and the buyer 3 %.
its located in maitland FL
posted in zillow FSBO (1074 hamlet Dr )
The HOA fees alone is another rent
It seriously can be. Especially in these cases we discussed in the video. Very sad stuff.
This happened to me a few years ago except it was a $1500 and I was having so many other things at the time. A hail storm ruined the roof. Sick cat, car needed work, needed a new hot water heater. I still owe a family member. It was strange that they wanted it in payments, I couldn't. By the time I got help, I just paid it all at once. Heard no complaints!
And condos in south Florida are nothing but Glorified Apartments
That’s what it seems like
Thats what they are, fl statue 718 calls them condos. Is the legal term
All condos are apartments. The only difference is that you can own the unit instead of renting it.
That's because many were converted from actual rental apartments into condos. That was the flex back in 2012
Lol sounds about right
Squeezing every cent out of the middle class is going to backfire so badly and probably sooner rather than later
Approximate title for a video "Don’t EVER Buy a Condo"!
I would add disband all HOAs in single family home communities. Fire the property management company in single family communities. There's no need for HOAs in single family communities.
I don’t blame you at all!
Let's see if developers end up buying those old condos, leveling them, and put up expensive condos/apartments.
I had not thought about that as a potential plan 👀👀👀👀
That's whats going to happened and it's all part of the plan. That's why property taxes and insurance are up.....
Imagine paying $800 in HOA and having minimal wages.
right? Jobs are barely giving raises. How are people supposed to afford a sudden spike in monthly expenses?
then you do not belong there. That is why there are trailer parks or the state of Montana
@@Ghrainne You just kicking everyone out huh lol
If you have a minimum wage job, you have no business buying a home period.
Minimal wages should be in affordable housing
HOA fee are ridiculous and I would never agree to it. Single family home me!!! In a neighborhood that is NOT gated! I’m not doing HOA I’m good.
I don’t blame you one bit!
it is a rubbish state
A couple of agents told us all we would be able to get would be is a condo or in an HOA. I told them i'll live in a tent first.. I found me house in 21, NOT a condo nor in an HOA.
I'm glad you held out! Classic case of some people trying to force others into what they don't want to do.
@@blackrealestatedialogue IKR. I'm happy with my LOW mortgage, LOW property taxes, will be property tax exempt in 6 years. I'm not going anywhere. lol
@@winniethepoohandeeyore2 that part! I love that you found a scenario that works for you.
@@blackrealestatedialogue Thx! Already knocked years off the life of the mortgage.
Amazing!
Government needs to look into housing fraud with HOA's and condos.
Have the biggest frauds in the world investigate fraud?
This is complete mismanagement of the HOA. The government doesnt need to make up for this management. These HOAs choose and likely voted to keep fees low instead of raising it to stash away for capital reserves.
In addition.... These fees to simply come out of "no where".... It may appear as such, but usually that's due to your own ignorance. This is why it's extremely important to participate in HOA meetings and HOA votes.
I don’t think anyone could have anticipated or prepared for a requirement to be fully funded virtually overnight. That’s not the fault of the owners. Also nobody could have predicted that insurance premiums would sky rocket either. The combination of the two is catastrophic. I do agree it’s important to participate but this all came very suddenly. A staggered increase is more sustainable imo and would let more folks keep their condos instead of being forced to sell.
Or the owners refused to raise the reserve.
I was given this advice when I was 29 and about to buy my first house ,
I thought they were smaller cheaper houses . He explained how much harder they are to sell and all the BS involved with Associations .
I listened and got a single family home and sold it a few years later with over 6 figures in profit and it sold in a week .
Condos in Florida have been kicking the can down the road as far as maintenance for decades. The condo rules are forcing owners to pay for years of deferred maintenance all at once. Insurance companies and mortgage lenders view condos in Florida as a huge liabilities, So they are much harder to sell. This video is 100% spot on, buyer beware!
Thanks for the support! Well said
Damn note to self stay away from condos 😢
be very careful!
Yep, I just silently said the same thing!!!!
That Surfside Apt Collapse was years in the making, that place was sagging, under Ground the buildings concrete was falling apart, the posts were crumbling, cracks in the foundation were getting bigger and it should of been Red tagged 2 yrs before it fell,🥶
I've owned a single-family home in Colorado in a non-HOA neighborhood for 25 years...I'm feeling blessed.....😄😄😄
Excellent content and commentary. New subscriber! ❤🎉❤
I appreciate you! Welcome to the fam!
We can’t keep complaining about higher taxes and then expect the government to step for everything. I feel where you are coming from but part of the issue here is that condo reserve funds were short for years
Is if fair to say the government could have at least given more time than two months for people to come up with tens of thousands? Could there be a better way to reach the same goal? I’m open to your thoughts.
@@blackrealestatedialogue That’s fair to say. It’s never an easy answer to these questions
@@ReefingwithO I hear you. My heart goes out to all those folks down in Florida. Tough situation.
@@blackrealestatedialogue I watched the video again and did some additional googling and I think this could have been phased in over the course of a year or 2 to help ease the burden on people - but then again if a building collapsed you don’t want to wait too long
Proud of you Bro❤
I appreciate you!
The state of Florida ignored and forbade its environmental department never to use the following words, “Global warming & Sea Level Rise.” however the insurance industry using actuaries believes in printable bottom lines, global warming and sea level rise, hence the increase in prices. It's just that simple.
The problem in FL is not just that it’s prime for hurricanes. Of course it is, has always been, it’s in that region. The problem is that local economies (the job market) can’t support the rising costs.
This is not new.
🥹🥹🥹🥹
Exactly. The folks don’t make the money that’s being demanded of them. It feels intentional to me.
Very informative warning to potential condo buyers and all the questions to ask. Governor DeSantis and the Florida lawmakers need to revise these new condo laws to save retirees and everybody else who came to Florida to retire on a fixed income. Pure insanity that people should be pushed out of their homes!!!!!
Why should the government pay for funding private properties?
If they are gonna require that associations are fully funded and give them two months to have condo owners pay tens of thousands of dollars on the spot it’s the least they could do. Otherwise they should have given a more reasonable timeline that works for people.
What’s your thoughts on it? Is there a better way the funds could be generated? Thanks for the comment.
@@blackrealestatedialogue We agree they should give condo associations more time to raise the funds.
Yeah I honestly can’t believe they made the turnaround time so fast. Makes me feel like it’s intentional like what do they think will happen.
absolutely right. if you want Govt. involvement swim to Cuba.
The reason I'm forced to rent...I can't afford it ..let the govt pay my rent
Phew! I was planning on buying one next year! Not anymore. I’ll just rent
You have to do what’s best for you
Great advise. Greetings from Miami ❤
Nor just condos, my townhome HOA just did a special assesstment for 6k for a roofing project. Stay away from HOA's all together if you can help it.
That’s insane 🤦🏾♂️
This is messed up because you won't even be able to sell 😮😮
exactly, it would make no sense to because why would someone buy it under these circumstances?
I’m a real estate agent, and I own several properties in Kissimmee, Clearwater Beach and Indian rocks Beach. I completely feel everyone’s pain. But we need to understand, that we not need to go after these homeowners associations because I believe that a lot of these associations are artificially keeping HOA fees down and not doing the proper maintenance on the properties. I’m dealing with a termite issue at my Clearwater Beach place and if the community didscheduled tenting throughout the years, we wouldn’t have the issues of $1 million assessment between 34 townhouses
Im so GLAD I didn’t get one. They were so cheap years ago, and my gut was telling me something was wrong. Plus with my research I cpuldnt get a clear answer for HOA fees. I knew they could raise prices. But not that much. It’s crazy.
He said no one saw this coming, what? Everybody paying attention saw this coming.
Do you think it will get worse?
Which is not a lot of people. Don't think bc you know something others do too.
@@blackrealestatedialoguethis is due to amateurs running the hoa
If you are half alive you did
Agreed. The State announced this was coming a few months after the S.S. collapse. That's nearly three years to get ready (or sell). Someone would have to have been living under a rock if they didn't hear about that disaster.
Great info
Why can’t the condo association borrow the money for reserves then collect by increasing hoa slightly over time?
Hmmm this is a good question. I hadn't considered that.
In the beginning HOAs did just that, but now banks have stopped giving loans to the HOAs. HOAs' assets are collectively owned by the community and can't be pledged as collateral. (Source; CommonAreaCredit)
Why have they stopped giving loans? Thanks for sharing
@@blackrealestatedialogue Banks haven't stop giving out loans but alot of financial institutions have been tightening their financial criteria due to data that shows weaknesses in the economy. On top of that, if HOAs could get funding it'll undoubtedly be through commercial lending which doesn't have long fixed rate terms and with rates as high as 8% not many associations could afford the monthly notes without significantly increasing HOA dues.
@@deadcell1 ahhh this is good insight. Thank you
I foresaw this 5 years ago, when the storms started to hit the Florida coast more often. They would evacuate by the thousands towards Georgia, where I live.
SOME MOVE BACK TO THE STATE WHERE THEY CAME FROM. OTHER PEOPLE MOVE TO SOUTH CAROLINA, NORTH CAROLINA, ETC
@@rp7r54 My wife actually tried to talk me into buying a vacation home in Florida 3 years ago. I immediately said, Hell No! And gave her some very good reasons why. She wasn’t happy! But as we can all see…I think it was the right decision 😂
What happened in Surfside is not the fault of every condo owner in south florida. The condo collapsed because of corrupt and incompetent building inspectors.
For years Insurance companies were allowed to collect billions of dollars from homeowners. Then, when a hurricane hits, they declare bankruptcy, leave homeowners holding the bag, as they sail off into the sunset without any consequences from the state.
Florida sucks! The cost of living is on par with California and New York, the jobs don't pay anything because it's a heavily immigrant state, and you're supposed to be happy because Disney World is here!
Ultimately the value of the condo itself will fall to compensate for these increased costs. So basically for years the fees were not high enough to cover once in 25 year expenses like a new roof. Essentially these expenses were deferred for a future owner to pay. Additionally the cost of labor has outpaced inflation as only 2 people are going into the trades for every 5 going out. Furthermore FEMA flood insurance rates historically were too low as they underestimated the risk of floods. So they have increased to commensurate with the true risk. It'll be interesting to see how the market will play out on these condos and single family homes as well.
Very well said. We shall see how it all plays out. Thanks for sharing.
So very wrong! The Association should be ashamed. If nothing changes before the end of the year, people will have to move out. This is the worse story of condo fees that I’ve heard. I hope that the courts can do something to rectify this situation. But, even that may have some type of cost👎🏾!
Lived in Nashville. Owned a condo on the river during the 2010 flood. HOA didn’t have floor insurance, so the HOA assessed all the owners their percentage of flood damage. Came out to $23K spread out over a few years. Refused to pay, sold the condo. Judge only forced me to pay $5K. I was being extorted smh. Never again!
I would suggest, you should put "In Florida" in the title, your video is mainly focused on FL...
It’s mainly focused on Florida in particular the news clips, but the tips I shared regarding what folks should look out for as it relates to condos apply to everywhere. Thanks for your feedback. Florida is also on the thumbnail 😃
I recently met a woman in the office of my optometrist in Toronto. While talking, she disclosed she has a condo in FL and it has cost her $7800 USD/year in insurance and $60K in HOA condo fees. She said it’s a one bedroom about 1200sq and it’s paid off but she said it’s a money pit… I assumed she had money because the exchange between CAD to USD is terrible and she said had she not liked the place so much, she would get rid of it. She visits the condo every other month.
The other interesting thing about it was that her brother in law has a condo in her building and one up the street. She says he has money but also had to find 120K for the special assessment last year for the other place - in addition to the one in her building.
It’s sad but there are many that can absorb such increases in fees … just wonder why they choose to throw money disposable cash into these properties.
1. When u but a house , u get a one time tax assessment bill period.
And u get annual taxes.
2. The govt should step in and fix etc. this is the problem.
The govt don’t have the money. This property taxes go up and ins goes up and etc.
3. The cost is passed on.
4. Where is the govt going to come up with funds to fix this.
5.i would sell to cover the loan and move on.
If I owned it, I will see to cover the
Very understandable perspective. Thanks for sharing!
I purchased a Condo a few years back in North Florida and boy oh boy those my HOA has tripled and I’ve already paid over 12k in assessments fees. 😢… Biggest mistake
Huh. So the law allowed the condo associations to be massively underfunded and now they have to demand money from owners to get up to snuff.
Sounds like a round about way to force people to sell on the cheap. Let's see how many of these condos are bought up by investment firms.
The old saying ..not my problem...just like the outrageous increases every year on my rent
Is this the same for a townhomes.
Do townhouses count as condos?
You can’t really pretend that the residents aren’t at fault. They should be informed to their purchase and be aware that the reason their costs were low was because they weren’t funding the reserves.
I understand your perspective
North Carolina costal areas is where most of them who are chasing the warmer weather will head.
They were already doing that in Wilmington N.C. ten years ago.
But you got a similar issue with flood insurence going up there, it’s just housing is cheaper. Compared to Florida.
If they are not chasing the beach life, then I would guess Texas, for tax reasons and where there are lakes in the state.
You have to do your research before buying
See how much the condo association has in their reserve
See if there’s major renovations that need to be done roof ,parking lot, pool etc
If condos crash in Florida
I’ll definitely be picking one up!👍
Also co- op ownership as well
You never own it but you own shares in the cooperation.
I almost brought a unit at the regency I brought next door. And this is too close for comfort. Im.nervous
According to the rule, most houses in Japan are built to be demolished and replaced after three decades. The video provides evidence of this trend through statistics on building replacement rates and average building ages in Japan.
We have 100 year old houses selling for millions.
You're just purchasing an APARTMENT..Sharing walls and floors..Your ceiling is someones floor..😮
Same in Myrtle Beach area.
😫
You are missing something there if you can't pay $900 a month. It's probably better for those people to sell their condo, they will still can't play the rent
😫😫😫😫😫😫
When you purchase a condo you agree to these assessments. The government is just forcing these homeowners to put enough money into their associations to cover maintenance to avoid other deadly collapses and other disasters from occurring because of unfunded maintenance. These homeowners need to maintain their buildings. Period. This isn’t very controversial. Read contracts before you sign and be prepared to pay to maintain your buildings.
Logically I understand and acknowledged that the rationale for being fully funded makes sense, however how is it reasonable to expect folks to come up with five figures basically overnight? It’s even worse when seniors have to potentially find another living arrangement in a fixed income. I think a staggered increase would have made more sense.
@@blackrealestatedialogue that’s the fault of the actual HOA community or management no one else’s
@blackrealestatedialogue but the condo owners are being punished
@@blackrealestatedialogue someone on fixed income shouldn’t purchase a property that includes a clause that allows for these special assessments or uncontrolled increases of HOA fees. I empathize with them but people should read before signing. This is one of the reasons I don’t live in an HOA or condo in Florida. I live in a single family home that isn’t subject to “special assessments.” If I retire in place, I only have to worry about taxes, insurance and my own maintenance costs. I can’t imagine worrying about HOA fees and special assessments on top of that.
He is talking about what they DIDN'T agree to. A sudden $22,000 payment that pops up out of nowhere should NOT be happening.
What happen to HOa helps increase your property value?
Overpriced closets are teetering ..Ive been renting all these years because I couldnt afford these assessment repairs ..so many condos arent truly worth what it would take to repair them
I don’t know why anyone would ever want to buy a condo. Renting a beautiful apartment is way better. Condos always have sucky architecture anyway.
Me neither it sounds like a teap
Thank you, Ron DeSantis! You're the reason Florida is unlivable!
WRONG!!!!!!!
Do what I did & wait til the market goes way down, then:
- Buy a 3 foreclosures, like I did
- Pay 90K on units that were 210k a year earlier, like I did
- Get renters with 7.0 FICA or higher
- pay $4,500mth. & receive $7,500mth.
- Attack 1 mortgage with excess $3,000
Have 3 FULLY PAID CONDOS producing $4,400mth even after assessments & higher HOAs.
(NOTE: I'll buy 3-4 more within the next 2 years)
now I get that this is very unfortunate and stressful on the condo owner, but what are the alternatives? this crisis was a long time in the making, add to the frequent massive multi billion dollar damages hurricanes causing homeowners insurance to already be the highest average in the nation. To the point that the state had to create a fun just to insure them.
I think seniors are going to move to the South Carolina or North Carolina. I don't think the government should help people out with the fees. Like you said they should be looking at all fees from the past.
Totally get you. I’m curious to see if they do end up in the Carolinas instead of florida in the future
Is there a way condo management businesses can go private with individual condo owners being members to escape or reduce impact from unaffordable government regulations 🤔? Not saying some of the regulations aren't good, but seems to have gone to the extreme and making people homeless.
Buying a condo like all real estate is about timing. I bought a few in 2009 and have been killing it.
No association will tell you there are some assessments they think of addng.. thats a dream
🥹🥹🥹🥹🥹🥹
They all voted for DeSatan.
They actually have a few units pending. Those poor buyers are about to get hit with the assessment fees. 😢
Yep that’s the worse part of this
I lived in florida back in 05-07. I almost bought condo, glad i didnt. I miss the weather and fishing but im glad i moved up north. Seems a little more stable.
The issue is government and we keep paying these ppl to improve nothing
Florida condo owners should have been fully funding reserves all along. Pay now or pay later. It’s pay later time.
So if they don’t pay what happens. Forclose?
yep that’s one of the potential outcomes if they can’t pay
The "government" should bail out condos? You mean taxpayers; hard NO. It's up to potential buyers to do their due diligence.
North Carolina
This crap needs to stop. Assessments should be illegal. If they are collecting fees that should be for repairing their structures.
Trust me I live in Fort Lauderdale. You guys aren't missing out on nothing. Real estate is the damn Wild Wild West Down here. Sickening.
It’s absolutely awful
Never understood the concept of a condo. Why not just rent an apartment?
It seems to me that the assessments should be based on how old a condo development is. A complex that is fairly new and only two stories high is not at risk of collapsing like the Surfside condos did. These condo owners are being put in a position to either lose or try to sell their homes for no sensible reason.
Nice video where are based? What city?
Where are the stories based?
You buy a house to be free from the stress of a Landlord and price increases that are completely out of your control.
HOAs set rules and charges outside your control so you are at the mercy of those sharks who at some point gets drunk by their little power.
Why put yourself through all that stress? Never buy such properties, not worth the stress.
Totally understand what you mean it can get crazy
The responsible HOAs already had the correct amount of reserves before the law. This law weeds out the idiots. Unfortunately the owners of the condos have to pay the price. Sad situation
I am very thankful i speak Spanish so i can move to another country and keep my cost of living extremely low bc its not going to get any better prices for rent, homes, food will continue to rise
but they were all distracted banning books.
No more government money for homeowners who overpaid. They should have been paying those assessments for years. How is it the taxpayers responsibility for those condo owners poor decision-making. Please!
Why should the government, which is me, subsidized condominium units that are suffering because of their fiscal mismanagement.
Do you have a better solution outside of forcing folks to fork over tens of thousands most don’t have in two months? Could they have given them more time?
Govt should help me pay my rent because I was smart enough to know I couldn't afford a condo..because of unforeseen charges
I love my Florida condo right on the gulf.
Dude changing a roof cost 5k . Its tge cost of living in any place
😫😫😫
4:43 - wait…he lives there for 15 years & didn’t realized the reserves funds short over $17M?! Was it all at once or slow growth in reserve fund shortage? Something’s fishy here! 🤨
Corporate interest is the main reason
People seem to think these buildings will last forever. HOA ...barely covering the monthly operating fees
It’s meant to keep colored people out
I wonder if Florida is trying to move the elderly out to make way for a younger non retired population in order to entice more companies to relocate and drive economic expansion
Hmmmm interesting theory
This is criminal
You will own nothing and be happy.
WHO.
That’s the goal they have
Yup
These are poorly run hoa
Many of them def are
Paradise is a reserved package and those who are not millionaires need to move out to make Florida great again. The 2005 Hurricane that missed Mar-A-Lago in send lawn chairs into the air put 17 million in his pocket as he honestly said you don't have to spend it on repairs you can pocket it and his daughter's wedding a week later after their hurricane was a smash success with no damage visible
It's called: living above your means...If a $1000 emergency is going to bankrupt you, you are not handling your cash right....😡😡😡
Tacoma WA
Shoutout to Tacoma!
Lol, Florida made me hate HOAs full stop. I avoid any property under association
30 grand in special assessments last year for me…..
If the unit owners accepted the increases years ago, the reserve would be prepared for emergencies.
Is it fair to say people should get more than two months to pay up?
I think this only happens in US.
Every condo community is jumping on the reserve fee Money 💰 💰 💰 Grab no matter the size. Back in the 70 's, when the condo market crash in Florida. The condos where selling less than half their value.😮
Sadly it might happen again