Market changes to come to Condo sales (Miami, Sarasota: real estate, to rent)

[Alfiehurt]

Originally Posted by DovieHarding

Rule ONE is never purchase a condo in The State of Florida. Want to know why? simply read about the granted powers given to most condos put into Statute. If you READ and understand these powers, you might not ever, ever buy one, and certainly not pay cash for one.

What practical difference would it make paying for it in cash, if you have the money and don't need to apply for a mortgage? Paying in cash may actually give the buyer more leverage to negotiate some concessions?

Also, some buyers will put up with paying maintenance/HOA fees because they do want to deal with the upkeep associated with owing a house

[DovieHarding]

duh....you can get your money faster and easier out of a SF house than a condo - buyers can finance a SF house better than most ANY condo- also refi's and or helocs are super expensive on a condo - sinking all cash in a condo is stupid - they have a smaller pool of buyers to boot - sinking cash in a stupid condo when the housing market contracts will result in a higher loss and/or LTV... It's bad enough sinking all cash in a dumb house - cash on hand is 50 times better, not in an illiquid dumb house. Condos will FEE you to death - HOA's are bad enough in Florida. Condos are a disaster waiting to happen

[MortonR]

These questions are relevant for anyone purchasing a property that has an HOA, especially if there are common areas or community "assets" like a pool or clubhouse.

One of my homes is in a country club community, which has done a really lousy job when it comes to budgeting. They just did a reserve study that shows some substantial expenditures that will be required over the next 10 years. This is mainly due to poor management in my opinion, but still, it means that the potential for some major special assessments are in the future.

RM

[DovieHarding]

Problem is that most effusive giddy newcomers/foreigners don't ever, ever ask for financials lol good for them I say.

[Alfiehurt]

Originally Posted by DovieHarding

duh....you can get your money faster and easier out of a SF house than a condo - buyers can finance a SF house better than most ANY condo- also refi's and or helocs are super expensive on a condo - sinking all cash in a condo is stupid - they have a smaller pool of buyers to boot - sinking cash in a stupid condo when the housing market contracts will result in a higher loss and/or LTV... It's bad enough sinking all cash in a dumb house - cash on hand is 50 times better, not in an illiquid dumb house. Condos will FEE you to death - HOA's are bad enough in Florida. Condos are a disaster waiting to happen

Now, how stupid is to get into a 20/30 year 7% mortgage rights now, if you have cash tp pay for it? unless you're guaranteed a fixed investment rate over that 7%, why would you want pay interest in a mortgage? you generalize that financing and refinancing a home is "better" than financing and refinancing a condo? take into consideration also teh buyer's credit score...and yes, you're right, condos will imposes fees on you on everything...but again, some people who can afford it won't want to have to deal with the upkeeping on a pool, or yard, or even having to travel to go the gym, so they'll pay the fees, even some seniors

[DovieHarding]

it's about as stupid as paying CASH for a condo, any condo, any time

[DovieHarding]

just whatever you do, stay away from those crappy condo conversions done years earlier like Garden Walk (built as apartments not condos) that were sold to fools who wanted a part time place or a rental, lol (for other pt fools). I think when they were converted they could have been purchased for about 40-60 but were still garbage (even now lol)

[Alfiehurt]

Originally Posted by DovieHarding

it's about as stupid as paying CASH for a condo, any condo, any time

So you really think it is smarter to get on a 7% or so interest rate mortgage, closing costs included, even if you have the cash to pay for it? better to have that cash handy although it devaluates with time and inflation regardless of how much you're paying a bank in interest charges? just take a chance investing the cash in bonds maybe? but keep the cash handy even if you end up paying more for it by the time you want to get out of it?

[DovieHarding]

USING OPM is better 8 times out of 10. People can walk away from a condo, hand them the keys, and say good bye if they need too, and still have money squirreled away. Never sink your cash in a structure to eat and sleep in. Forgive me, I just enjoy OPM.

[Eda_Pimentel]

Unfortunately I made one of those mistakes already.