Time to buy a condo before retiring (Sarasota, Venice: for sale, real estate)

[Orodman]

We just sold our home up north and will be coming down to look in Sarasota , Venice area in September.
We have about 200,00 to spend on a condo or villa. We were thinking maybe Palmer Ranch or similar.Our planned move date is January 2017.
Is is too early to buy now? Our needs are simple 2beds2baths with a nice pool. Pickleball close by biking and cultural activities.

[DragonflyMom]

Check out IslandWalk in Venice. You can search the forums for the name and find some threads about it. We really like it here...lots of activities too.

[duffer47]

Orodman:I have a nice 2br 2 bath condo for sale in Venice, check your inbox for a message I sent you.

[SoFLGal]

I suggested asking the following questions:
• How much money has the complex put into reserves to deal with future infrastructure needs?
• Are there any major repairs that need to be made?
• Have assessments and dues been increasing, and does the complex have plans to do so in the future?
• How many of the units are owned by investors?
• Do any investors control large blocks of units and are there any restrictions on renting?
• Also get a copy of the last 3 or so minutes to the meetings
These are the same questions that a bank will ask to determine whether to lend in a complex.

Banks will not lend in complexes that have not set aside 10 percent of their budgets for reserves. They will not lend when more than 50 percent of the units are rented. They also will not lend where a few owners control too many of the units or where too many owners are in default on their mortgages and dues.

Palmer Ranch- Bella Villino, Serenade and Vintage Grand have all had issues with large parts of the complex being owned by investors. All three are condo conversions.

Plaza de Flores and Pinestone are two other options in that area.

Like Dlking58, I also highly recommend looking at the IslandWalk community. Talon Bay, Charleston Park, Sabal Trace, Stoneybrook Clubside, Heritage Oaks (higher fees) are a few other ideas.

[Sunshine Rules]

Actually the condo financing depends on whether the type of loan calls or a full review or limited review. For owner occupying buyers putting down 10%, 2nd home buyers putting down 25%, there is the possibility of going for a conventional loan with limited review. The condo community still has to meet the requirements of no more than 15% of unit owners delinquent more than 30 days & no single entity can own more than 10% of the units, plus the no ongoing litigation over construction defects still applies, but many of the other full review requirements are not applicable. Also, the condo docs don't have to be reviewed.

If you look at sales stats in conversion condo communities such as Villagio, Serenade, Bella Villino, Las Palmas and a few others over the past year you will see that some buyers purchased with conventional financing.

Totally agree with SFG about the other questions to ask. Would add Roof Responsibility to the question list -- is the association responsible for roof repairs/replacement or the unit owners of a building? Would also strongly suggest before writing any offers to get and read the current budget (including reserves info) and at least the Rules & Regulations of the condo association. Although you can ask for and get a 3 day time period to review the required condo docs in your contract, it avoids a lot of hassle if you look at those items up front to see if the financials and the restrictions of the condo association are acceptable to you as a buyer. Most buyers want to know the restrictions as they pertain to pets, parking, visiting guests and rentals.

Also agree with the suggestions about the Palmer Ranch communities of Pinestone and Plaza de Flores and would add Serenade to the list. Watch in Bella Villino, they have had issues with windows leaking. It is my understanding that the unit owners are responsible for paying for the repairs.

If you are willing to look outside of Palmer Ranch but still in the general south Sarasota area, Stonehaven (almost new construction on Clark just north of Palmer Ranch), Casa del Sol, Ashton Lakes and Centergate are some I would add to the list. Casa del Sol does not allow rentals the first 2 years of ownership.

In Venice, Pelican Pointe, Waterside, Fountain View, Magnolia Park, Gondola Park, Ventura Village, Tuscany Lake to name a few. For new construction, perhaps Gran Paradiso if you don't mind going slightly over budget. Venice has quite a few condo, villa & townhome options in your price range.

You can search a public version of the local MLS at www.myfloridahomesmls.com if you want to become more familiar with current condo listings in our area.

[macrodome2]

The Tempest Harbor Loop section of Stoneybrook at Venice would fit your criteria. They are standalone homes going in the high $100s. Stoneywood Cove are the condos but that is separate from Stoneybrook at Venice.

[SandyJet]

Originally Posted by SoFLGal

I suggested asking the following questions:
• How much money has the complex put into reserves to deal with future infrastructure needs?
• Are there any major repairs that need to be made?
• Have assessments and dues been increasing, and does the complex have plans to do so in the future?
• How many of the units are owned by investors?
• Do any investors control large blocks of units and are there any restrictions on renting?
• Also get a copy of the last 3 or so minutes to the meetings
These are the same questions that a bank will ask to determine whether to lend in a complex.

Banks will not lend in complexes that have not set aside 10 percent of their budgets for reserves. They will not lend when more than 50 percent of the units are rented. They also will not lend where a few owners control too many of the units or where too many owners are in default on their mortgages and dues.

Palmer Ranch- Bella Villino, Serenade and Vintage Grand have all had issues with large parts of the complex being owned by investors. All three are condo conversions.

Plaza de Flores and Pinestone are two other options in that area.

Like Dlking58, I also highly recommend looking at the IslandWalk community. Talon Bay, Charleston Park, Sabal Trace, Stoneybrook Clubside, Heritage Oaks (higher fees) are a few other ideas.

Banks are not the ones with these requirements it is Fannie/Freddie to get a conforming loan.

I fill out the Questionnaire for my condo. I have not been asked about major repairs that need to be made. Nor would I answer the question. I would not answer the assessment question either. Nor would I answer the renting question.

What I will answer is current maint, date of conversion, number of units, number of parking spots, any ongoing litigation, percent of owners principal residence etc. Just facts.

I be nuts to take on legal risk and say no assessment is upcoming, we allow renting and then turn around and stop renting. And I only provide info to owner. No realtors, no buyers. The owner needs to contact me.

The current owner has the latest financials and minutes from annual meeting. Up to him and seller to figure out if we have enough reserves and if maint is adequate and buyer gets a building/unit inspector to walk around and inspect.

And I HATE Fannie/Freddie loans anyhow as they have a high default risk with low down payments. We have a few banks that do primary home loans in building at very good rates that require 25% down on a primary and 40% on a secondary. Those loans I like as folks have skin in game and wont default and monthly carrying costs are less for them so less leverage.

[Orodman]

Thank you all for the information. I plan to pay cash so no loan needed.
I will ask the assistance of a real estate professional to help me find my retirement home/condo and ask all the right questions. I will be down in September.

My in-laws live in Venice so I am familiar with the area .
Does anyone recommend an older established complex, it seams prices are more reasonable there.
I know my wife would prefer new, but my max is about $225,000.
I have heard insurance is higher especially prior to 2003?

[Sunshine Rules]

There are quite a few condo communities in Venice built in the 1990's - early 2000's, some were in the short list I mentioned in a previous post. When you start looking at condos older than that you have to weigh the value of paying less for a unit vs the higher insurance costs and likelihood of needing more repairs/maintenance. Older buildings = older electrical, plumbing, roofs, etc.

On insurance, the condo association is responsible for exterior of buildings and common areas (which gets factored into your monthly or quarterly fees), unit owners are responsible for insuring the interior of the units, which generally includes everything from the exterior wall inward, including drywall, electrical, plumbing. The rate you pay for your individual policy will be influenced by the age of the building and especially the building's roof. If the buildings were built before 2003, you'll want to know the age of the current roofs. If they have been replaced 2003 or later, you'll want to know if the condo association has a wind mitigation report for your building. That report can save you $$. Newer buildings equate to better hurricane building codes. Many insurance policies will give some sort of a discount if the community is gated. Some will give a discount if you have a monitored alarm system installed. Rates are also influenced by how far the condo community is from a fire hydrant. Type of construction is also important -- block construction gets better rates than frame construction or frame with stucco over it. Whether the condo community is located within a flood zone or not. You'll pay more if the condo will be your seasonal home vs owner occupying year round.

Many condo associations will require the unit owners to carry insurance as provided in the condo rules and regulations. It also pays to get a copy of the master condo association policy if possible to see what they are actually covering. Some condo association provide more coverage (including liability insurance) than others. Your insurance agent can often work with the condo association to get that info for you.

[Nancy in Nokomis]

Great tips SouthFLAGAL!