U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Florida
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-07-2015, 12:48 PM
 
4,539 posts, read 4,828,306 times
Reputation: 3481

Advertisements

Quote:
Originally Posted by choff5 View Post
I'm glad to catch this thread as this has been a question of mine as well. Much of this I've heard before but my question is how can you find out some of this when you start out looking? I've seen HOA and Condo fees listed but is there a way to find out the other financial information before getting fully invested in a particular condo? While there is the three day period, it seems a lot of information could be very important prior to even getting to that stage.
Find out what fees are going to.

A building that just renovated that has higher fees to re-build up reserve is ok.

A building with higher fees, with loans, arrears and inept board and management is a big issue.

For instance my building maint is an extra 150 month. But we did a huge project in building with a ten year lone in 2008. Come 2018 that is over. Project was all new roofs, cement work, grading, sumppumps, etc all good stuff. No fluff.

Or a building raising maint to build reserve fund or pay for lawyer fees to sue folks in arrears is ok.

High maint due to an incompetent board or an older building with issues or tons of folks in arrears run away.
Reply With Quote Quick reply to this message

 
Old 03-07-2015, 01:25 PM
 
Location: Lakewood Ranch, FL
5,320 posts, read 8,172,031 times
Reputation: 6386
Choff5, sometimes having an agent who is familiar with the area can help since they have seen the disclosures and docs before but no agent is going to be dumb enough to tell you that a particular association is solvent or unlikely to have an assessment. There's just too much liability in making a statement like that. You can visit the property and talk with owners to ask the, what they know or think about things....that sometimes helps. The 3 day thing is your safety net, provided by the state. You can structure your offer so that the inspection period follows the date of your acceptance of the condo docs. That way, you won't need to spend money on an inspection before you know that the association works for you. If you really want to be careful, line up an attorney and CPA who can review everything for you and help you understand the info. That doesn't mean that things can't go south later but at least you'll be OK at the start.

I agree about the financials being dated as the year goes on. However, if the reserves were in good shape at the year end, they are probably OK at the time of purchase. I always contact the management company (or the person in charge if it is self-managed) and I ask them straight out if they are anticipating any assessments. They don't usually spring up out of the blue.
Reply With Quote Quick reply to this message
 
Old 03-07-2015, 04:43 PM
 
Location: Sarasota, FL
2,636 posts, read 1,543,257 times
Reputation: 5005
Quote:
Originally Posted by choff5 View Post
I'm glad to catch this thread as this has been a question of mine as well. Much of this I've heard before but my question is how can you find out some of this when you start out looking? I've seen HOA and Condo fees listed but is there a way to find out the other financial information before getting fully invested in a particular condo? While there is the three day period, it seems a lot of information could be very important prior to even getting to that stage.
So far we've gotten some excellent pointers on this thread!

But, this is really an issue. Is it reasonable to ask an agent to procure some relevant financial info before you commit a lot of time -- and possibly money -- to a particular building? If not, we're not sure that we want to put ourselves thru what sounds like a stressful and risky process.
Reply With Quote Quick reply to this message
 
Old 03-07-2015, 05:50 PM
 
Location: it depends
6,074 posts, read 5,331,639 times
Reputation: 5771
So when we were condo-shopping, we carefully screened the different complexes we looked at for financial health, and we were shopping in the downturn.

Complex #1 was mature (oldest parts were 40 years old), with less than 2% of HOA fees in arrears. Fees were reasonable and did not show any unusual pattern of increases. Less than 5% of the units were on the market. Financials showed that reserves for maintenance and replacement were fully funded.

Complex #2 had about 20% of the units on the market, HOA fees had recently doubled, and there were a ton of foreclosures and lots of delinquent HOA fees.

Complex #3 had a contractors lien filed against it for a major project that had not been paid.

If you know a mortgage loan officer, get the qualification list they go through when underwriting a condo loan. You will find that these rules would screen out #2 and #3 above, and would find #1 acceptable.

Transient rental units (daily or weekly rentals in destination locales), are bad bets. These are what the secretaries from Toledo and teachers from Chicago speculate on, and when a downturn hits, foreclosures result.

WE LOVE CONDO LIVING. Six years into it, bliss. Yes there is an HOA board, and we appreciate that concerned neighbors take time to see that the rules are followed. And yes, there are people that are always raising hell with the board, mainly because they evidently do not know how to read.
Reply With Quote Quick reply to this message
 
Old 03-08-2015, 11:24 AM
 
11,383 posts, read 7,776,816 times
Reputation: 12268
Quote:
Originally Posted by dothetwist View Post
I agree that condos are simply a bad investment, either rent an apartment or buy a house.
I disagree. Renting is throwing money away. Rents will always go up and you have nothing to show for it. Someone also has the keys to your place and can come in when they want. I found my las landlord snooping at my place when I told her she could come and get the rent check that was taped to the inside of the door. She played dumo like she didn't see it and had the door wide open while snooping around and let a rat in.

I went to a legal forum full of vicious nasty people but what they said in a rude way is true. What are your damages?

Eventually if you buy into a good place that is not run down, does not allow renting and has a low HOA it will cost you much less than renting.

It's also cheaper to own than to rent, eventually any way you will not have a mortgage and just have the HOA fee. If your fee is as high as a rent, then look elsewhere. Rents can triple (or more) once your lease is up.

Last edited by LifeIsGood01; 03-08-2015 at 11:34 AM..
Reply With Quote Quick reply to this message
 
Old 03-08-2015, 11:42 AM
 
Location: Lakewood Ranch, FL
5,320 posts, read 8,172,031 times
Reputation: 6386
Quote:
Originally Posted by CapnTrips View Post
So far we've gotten some excellent pointers on this thread!

But, this is really an issue. Is it reasonable to ask an agent to procure some relevant financial info before you commit a lot of time -- and possibly money -- to a particular building? If not, we're not sure that we want to put ourselves thru what sounds like a stressful and risky process.
Think about what you are asking here. This information is private. It is not available publicly so it's not something that can simply be obtained any more than you can obtain the financials for a privately held company. You or your agent can often find some or most of the condo docs online by looking at the clerk of court website for that county, or by looking at the management company's website IF they make that info available but many times it is not. The state provides for the info to be requested, provided, reviewed and accepted or rejected as part of the due diligence time that follows the actual establishment of a contract. So, sure, an agent can call and ask for it but that doesn't mean they have to provide it, or that they will provide it for no charge to you.

Trust the system. Find the place you want, then check the condo docs/financial health, then do an inspection. It works.
Reply With Quote Quick reply to this message
 
Old 03-08-2015, 01:48 PM
 
4,539 posts, read 4,828,306 times
Reputation: 3481
Condo renting can be a great thing. My condo has zero rental rules. The condo has right of first refusal so unless the guy is trying some crazy airbnb or illegal hotel what difference does it make if he moves in or a good tenant.

Plus it cuts down foreclosures as folks who cant sell or even underwater just rent it.

My town only allows monthly rentals so weekly rentals are not allowed. So we dont have the weekly issue.

I rent my place for entire off season and peak season which is 3 months I do one monthly rental than other 60 days I use it. What is big deal. Makes place trendy and cool and fresh blood is good for condo. Folks rent and if they like they buy their own unit.
Reply With Quote Quick reply to this message
 
Old 03-08-2015, 06:27 PM
 
Location: Sarasota, FL
2,636 posts, read 1,543,257 times
Reputation: 5005
Quote:
Originally Posted by bbronston View Post
Think about what you are asking here. This information is private. It is not available publicly so it's not something that can simply be obtained any more than you can obtain the financials for a privately held company. You or your agent can often find some or most of the condo docs online by looking at the clerk of court website for that county, or by looking at the management company's website IF they make that info available but many times it is not. The state provides for the info to be requested, provided, reviewed and accepted or rejected as part of the due diligence time that follows the actual establishment of a contract. So, sure, an agent can call and ask for it but that doesn't mean they have to provide it, or that they will provide it for no charge to you.

Trust the system. Find the place you want, then check the condo docs/financial health, then do an inspection. It works.
I understand that its private info, and condo assoc is under no obligation to provide it. But I would think that if additional sales are in the interest of the condo community, and they are interested in selling another unit, then why not disclose up front?

The due diligence time sounds a bit short to me. The buyer is being asked to read and digest documents that are both important and not easy for the average person to understand in a limited time. As far as trusting the system, based on what I've read in this forum and elsewhere there are both good and bad stories being told. Maybe I'm being overly paranoid about this, but I'm just not sold on the whole idea yet. A lot of people buy time shares too, but that doesn't make them a good investment.
Reply With Quote Quick reply to this message
 
Old 03-08-2015, 06:29 PM
 
Location: Sarasota, FL
2,636 posts, read 1,543,257 times
Reputation: 5005
Quote:
Originally Posted by bbronston View Post
Think about what you are asking here. This information is private. It is not available publicly so it's not something that can simply be obtained any more than you can obtain the financials for a privately held company. You or your agent can often find some or most of the condo docs online by looking at the clerk of court website for that county, or by looking at the management company's website IF they make that info available but many times it is not. The state provides for the info to be requested, provided, reviewed and accepted or rejected as part of the due diligence time that follows the actual establishment of a contract. So, sure, an agent can call and ask for it but that doesn't mean they have to provide it, or that they will provide it for no charge to you.

Trust the system. Find the place you want, then check the condo docs/financial health, then do an inspection. It works.
One more thing -- why is the current owner, who presumably has access to the financial info, not entitled to share this information with a buyer? Is a current owner not allowed to disclose by virtue of the typical condo assoc bylaws?
Reply With Quote Quick reply to this message
 
Old 03-08-2015, 07:14 PM
 
Location: Lakewood Ranch, FL
5,320 posts, read 8,172,031 times
Reputation: 6386
Yes, the current owner should have current copies of everything or provide them at their expense. The state-approved contract addendum for condo associations spells it all out. If you don't close, you are responsible for returning them or paying for them. Again, all part of the process/system. Find an agent you trust and work with them. You already know more than most condo buyers know or care to know.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Florida
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top