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Old 04-20-2013, 12:30 PM
 
90 posts, read 216,954 times
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Nobody is paying those HOA dues right now, I guarantee it. That's something the new owner will need to look into. They may be responsible for the back dues. And what the heck do you get for $850/month?? I've known some fancy schmancy communities with clubhouses and a police forces, and the dues weren't that high.
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Old 04-20-2013, 12:44 PM
 
Location: Chicago area
11,517 posts, read 6,065,369 times
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What are the comps in the neighborhood? It may be a steal of a deal if the other homes are worth three times the money needed to but it. It might make a good rental.
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Old 04-20-2013, 02:45 PM
 
Location: St. Louis, MO
3,051 posts, read 4,439,843 times
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This is the website of the gated community: Florida Gated Communities | Gated Golf Community Florida | HRYCC. It looks nice, but I still wouldn't pay $850/mo in HOA for it in addition to the mandatory membership equity!

I also noticed that a number of houses in the community are up for sale- priced from $25k up into the $200ks. It also looks like a lot of them have been on the market for 1+ years (one house has been on the market since 2008 and has dropped in price from almost half a mil to $275k). That definitely doesn't bode well and puts up even more red flags!
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Old 04-20-2013, 03:39 PM
 
Location: Lexington, SC
4,281 posts, read 9,600,058 times
Reputation: 3677
While not defending the place, do understand what it is. It is a member owned, private waterfront and a golf community (two courses).

The member equity (buy in) is refundable which means if you resign, you get your equity back when someone buys in. Granted someone has to buy in, hence the $65K or whatever buy in.

If the $850 per month is HOA Dues and golf/yacht club dues then that is not a bad deal to many.

Now I am not saying it is everyones cup of tea, but someones butt fits that seat.





mandatory residential membership community.
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Old 04-20-2013, 03:43 PM
 
2,042 posts, read 4,249,729 times
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Just to be clear- the buy-in is not the issue. Just think of that as part of the house price. The issues are: health of the HOA, HOA fees, and perhaps most of all, viability of being associated with a golf course. Word is there are too many golf courses, even with a fair number of recent failures.

And, of course, it's in Florida. Not my cup of tea.
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Old 04-22-2013, 09:03 AM
 
1,097 posts, read 1,979,939 times
Reputation: 986
Quote:
Originally Posted by mkarch View Post
There's just a hint of irony in "escaping high taxes" to pay $70K equity buy-ins and $14K/yr dues/taxes. The industry itself is forecasting weak/falling demand for these kinds of properties. As it stands now, the # of people desperately trying to unload memberships at all but the best clubs outstrips demand by a wide margin. Now, how do I know this...?
We are looking at this from different geographies. Living on Long Island is one of the most costly experiences in America. We are always at the top of the list or near the top in almost everything bad: highest heating oil prices, highest gasoline prices, highest property taxes, highest utility costs, highest commuting costs and on and on. If you're a golfer and you don't belong to a very expensive private country club, chances are you awake at 3am so you get on line for a tee time at a public course on the weekend.

To a Long Islander ready to retire, the financials for buying into this condo and club look like a bargain on the face of it. Now, whether it's a good investment is another matter. This thread proves that you need to complete your due diligence on any property. The club membership and the location in Florida means you have to do extra homework.
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Old 04-22-2013, 03:10 PM
 
231 posts, read 231,725 times
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Quote:
Originally Posted by AZGal25 View Post
Which begs the question, wouldn't the original owner have already bought in? Shouldn't the membership transfer with the property?
that's not begging the question.
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Old 04-22-2013, 03:32 PM
 
Location: Lexington, SC
4,281 posts, read 9,600,058 times
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It is not uncommon for the buy-in (initiation, bond, etc.) to be refundable meaning when you resign and the next person buys in, they pay the buy-in and yours is refunded. I have even see a bidding war to buy-in when the club limited the amount of members and several wanted in where the bond (and voting rights) sold for more then the original amount. Now this assumes some wants in and therein lies the problem with many places in this day and age.

There was an expensive legal battle in MA when a person bought in and soon after the club lowered the buy-in.
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Old 04-22-2013, 06:01 PM
 
5,076 posts, read 7,171,279 times
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Quote:
Originally Posted by animalcrazy View Post
What are the comps in the neighborhood? It may be a steal of a deal if the other homes are worth three times the money needed to but it. It might make a good rental.
Just the base monthly costs (dues/taxes) are $1200. Factor in maintenance, property management and insurance, and you'd probably have to rent it for $1600+/mo just to break even. The renter wouldn't be a member of the club and likely wouldn't have access to the facilities, defeating the purpose of the $75K buy in. Doubt this pencils out even if the house is free.
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Old 04-24-2013, 05:50 PM
 
Location: Barrington
36,968 posts, read 28,063,365 times
Reputation: 12526
Quote:
Originally Posted by KonaKat View Post
you think that the bank is paying the HOA dues? Ha! don't count on it. Maybe the taxes but even that's probably doubtful.
The bank or in this case, agency, will make good on the HOA fees for the period it has taken ownership- closing of the resale. The HOA will likely write-off the rest as bad debt unless they pursue the former owners in court.
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