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Not a big concern based on 23 years of experience as an owner of multiple condos in several cities. It would be extremely hard to impossible for an assessment on a small condo to "run in several tens or thousands of dollars". If there is a major expense, the HOA may double condo fees for several months, but even that is not done too often. If you can't maintain a small condo any more (which would likely mean you are an assisted-living material anyway), you can always sell it.
What goverment regs are you referring to in FL? I'm not too familiar with FL, I do not intend to ever live there, somehow don't find it interesting (neither FL nor the Caribbean. My personally preferred ocean is the Pacific).
In a few cases I am personally familiar with the condo owners were assessed when a regular repair - a siding replacement in a condo complex uncovered mistakes made years ago by a builder - something about the stairs not up to a fire code - don’t remember details unfortunately
The owner of a small 1200 sq ft condo was assessed at $50K.
It was nearly a half what they paid for it.
It was a big mess, people didn’t have money, had to get an additional mortgage
Some couldn’t qualify, some couldn’t afford to pay it, some were trying to sell but couldn’t: the values plummeted and owners went upside down on their current mortgage - for years - the units were selling at 1/4 to 1/5 of what they were appraised originally.
In addition, the condo started suing the builder - went for years; that cost money too.
That was in Fl.
In another case - up North - a ritzy pricey area the condo board sued the developer as his right of first refusal on the venue he was building had passed in the development.
It added at that time - years ago an additional $700 per month to the monthly condo fee for lawyers - a smallish 2 bedroom.
Again - it went for years. A lot of retired lawyers-owners?!
The new legislation in Fl relates to the condo collapse as it was decided by the government and deemed necessary to have more frequent inspections and a larger reserves for capital repairs.
Generally the owners are trying to keep their fees on the lower side or most of the board members are incompetent in the area of building and construction and neglect certain issues until it is late like in that collapse.
On the other hand - wealthy owners and busy-bodies could decide to “enhance” the property with some frivolous spending of other people’s money: adding a pickleball court or a marble fountain in the lobby or an extensive landscaping, etc
Guess you are lucky you didn’t encounter all that in your condos.
Last edited by L00k4ward; 10-02-2023 at 04:04 AM..
In a few cases I am personally familiar with the condo owners were assessed when a regular repair - a siding replacement in a condo complex uncovered mistakes made years ago by a builder - something about the stairs not up to a fire code - don’t remember details unfortunately
The owner of a small 1200 sq ft condo was assessed at $50K.
It was nearly a half what they paid for it.
It was a big mess, people didn’t have money, had to get an additional mortgage
Some couldn’t qualify, some couldn’t afford to pay it, some were trying to sell but couldn’t: the values plummeted and owners went upside down on their current mortgage - for years - the units were selling at 1/4 to 1/5 of what they were appraised originally.
In addition, the condo started suing the builder - went for years; that cost money too.
That was in Fl.
In another case - up North - a ritzy pricey area the condo board sued the developer as his right of first refusal on the venue he was building had passed in the development.
It added at that time - years ago an additional $700 per month to the monthly condo fee for lawyers - a smallish 2 bedroom.
Again - it went for years. A lot of retired lawyers-owners?!
The new legislation in Fl relates to the condo collapse as it was decided by the government and deemed necessary to have more frequent inspections and a larger reserves for capital repairs.
Generally the owners are trying to keep their fees on the lower side or most of the board members are incompetent in the area of building and construction and neglect certain issues until it is late like in that collapse.
On the other hand - wealthy owners and busy-bodies could decide to “enhance” the property with some frivolous spending of other people’s money: adding a pickleball court or a marble fountain in the lobby or an extensive landscaping, etc
Guess you are lucky you didn’t encounter all that in your condos.
A couple examples? Same has happened to SFHs. It's rare.
You kind of show what you think by saying a pickleball court is frivolous. The fastest growing game, growing in popularity by leaps and bounds, does enhance the property.
You don't move into a condo to have everything your way. The majority rules. Over time the people in the majority change and have different interests than the people that have lived there before.
I searched for a standalone umbrella policy for a long time, but did not succeed in finding one. But some companies offer umbrella policies associated with a very minimal home insurance (such as my policy). Again, my lack of car did not seem to matter with getting an umbrella policy.
Umbrella policies provide additional liability protection, but nothing for your home or vehicle costs. If you do not own a vehicle, then car insurance would not be a requirement for an umbrella policy. If you own a home, then you would have to have liability insurance on the home, but not storm, fire, etc.
A couple examples? Same has happened to SFHs. It's rare.
You kind of show what you think by saying a pickleball court is frivolous. The fastest growing game, growing in popularity by leaps and bounds, does enhance the property.
You don't move into a condo to have everything your way. The majority rules. Over time the people in the majority change and have different interests than the people that have lived there before.
…
You got it right!
The majority rules! As our everyday life proves.
It isn’t for everyone.. though - like for a minority of 49.9%
We are talking about living on SS amounts here.
40% of SS recipients are living on SS alone, no savings
Living in a condo with the pickleball court is not for a majority of people over 65 -67 even if they are physically capable to enjoy it as the average SS amount is $1666 or so?
Note that average trends higher than median due to high earners so half of the people may have less.
The truth is - it is tough out there and that is why we have a flippers industry - look at some of the houses those low SS recipients leave behind - there is no money even for paint..but it provided a roof over their heads, even when the roof was failing…
There are some government and charities assistance for major repairs in some states for those in the houses or some kind handyman providing a huge discount.
Can’t do that in condo
Condo living is for a wealthier bunch - with monthly fees as another unavoidable expense.
The owners won’t see their capital reserve money in their lifetime most likely or won’t use the amenities due to limitations.
Have more examples of why the condo could be undesirable but not writing a research paper here…
Last edited by L00k4ward; 10-02-2023 at 07:07 AM..
The woman who transferred her 401k to a savings account for "peace of mind" and "easy access" to her money was naive at best. She should have rolled it over to an IRA at Schwab, Fidelity, or any other large brokerage firm. They can get you your cash in 24 hours.
Depends on the dollar amount..........If it was 10K she might sleep better knowing the corner bank has her money.
Not a big concern based on 23 years of experience as an owner of multiple condos in several cities. It would be extremely hard to impossible for an assessment on a small condo to "run in several tens or thousands of dollars". If there is a major expense, the HOA may double condo fees for several months, but even that is not done too often. If you can't maintain a small condo any more (which would likely mean you are an assisted-living material anyway), you can always sell it.
What goverment regs are you referring to in FL? I'm not too familiar with FL, I do not intend to ever live there, somehow don't find it interesting (neither FL nor the Caribbean. My personally preferred ocean is the Pacific).
S FL market has gotten insane after the Surfside condo collapse. That condo was "kicking the restoration can" down the road and the costs exploded and they still didn't start the work then it fell down in the middle of the night killing everyone in the building.
Now the state is inspecting all these old buildings with a microscope and the owners are on the hook for fixing them regardless of their equity or reserves. The insurance market has shrunk significantly (as in how many companies want to insure coastal units) and of course the premiums have jumped multiples of what they used to pay. I have a relative in an ocean front building. This year the insurance jumped 100K, there are 30 units in the building so they each have to pay another $3333 a year on top of whatever it cost them last year. The building is redoing balconies at a cost of 8 million (estimate of course). They had some in reserves but they will have to pay some of it as well.
Gil Dezer develops luxury oceanfront buildings in the Miami area. He said the insurance premium for one of his buildings used to be 5-7 million a year, now its 18-20 million! If the banks keep lending he will keep building and the insurance is the HOA's problem! That's bad math right there.
…
You got it right!
The majority rules! As our everyday life proves.
It isn’t for everyone.. though - like for a minority of 49.9%
We are talking about living on SS amounts here.
40% of SS recipients are living on SS alone, no savings
Living in a condo with the pickleball court is not for a majority of people over 65 -67 even if they are physically capable to enjoy it as the average SS amount is $1666 or so?
Note that average trends higher than median due to high earners so half of the people may have less.
The truth is - it is tough out there and that is why we have a flippers industry - look at some of the houses those low SS recipients leave behind - there is no money even for paint..but it provided a roof over their heads, even when the roof was failing…
There are some government and charities assistance for major repairs in some states for those in the houses or some kind handyman providing a huge discount.
Can’t do that in condo
Condo living is for a wealthier bunch - with monthly fees as another unavoidable expense.
The owners won’t see their capital reserve money in their lifetime most likely or won’t use the amenities due to limitations.
Have more examples of why the condo could be undesirable but not writing a research paper here…
That's a weird thing to say. I am 65 and living in a condo townhouse complex, not a senior community. We're not a "wealthier bunch" here; in fact, it's quite the opposite. Some people live here because it's cheaper than a sfh. I'm a retired procurement manager from the public sector. Next door on one side is a retired mail carrier and his wife, retired from a civil office position at a nearby Army base. On the other side of them is a teacher and a nurse. To my right are a guy who makes sushi at a local restaurant and his wife, a hostess at the same restaurant. On the other side is a pre-school teacher and a guy who does tech work for podcasts. And a retired paralegal next to him. Middle-class people. In another of our buildings is an 83-year-old friend who lives on only Social Security and the few bucks she makes working for the election board at election times. She's the president of the HOA.
What you pay for in fees are unavoidable expenses even if you own a sfh. Insurance, landscaping/snow removal, pest services (single family homes get wasps and carpenter ants, too), garbage collection, and so forth. Money put aside for big ticket items like roofs and sidewalks.
People with money tend to live in big houses, not condos, with the exception of those a few miles east of me who live in beachfront condo buildings. Those are not people living on Social Security for sure. They do have big expenses. I watched them remove all the metal railings on their balconies, rusted and worn a few short years after the buildings went up.
…
You got it right!
The majority rules! As our everyday life proves.
It isn’t for everyone.. though - like for a minority of 49.9%
We are talking about living on SS amounts here.
40% of SS recipients are living on SS alone, no savings
Living in a condo with the pickleball court is not for a majority of people over 65 -67 even if they are physically capable to enjoy it as the average SS amount is $1666 or so?
Note that average trends higher than median due to high earners so half of the people may have less.
The truth is - it is tough out there and that is why we have a flippers industry - look at some of the houses those low SS recipients leave behind - there is no money even for paint..but it provided a roof over their heads, even when the roof was failing…
There are some government and charities assistance for major repairs in some states for those in the houses or some kind handyman providing a huge discount.
Can’t do that in condo
Condo living is for a wealthier bunch - with monthly fees as another unavoidable expense.
The owners won’t see their capital reserve money in their lifetime most likely or won’t use the amenities due to limitations.
Have more examples of why the condo could be undesirable but not writing a research paper here…
I live in a condo. Owned them for over 40 years. Managed them, served on boards, and taught others how to run condo associations. I don't think you could really tell me anything about condos. They are not for everybody. Especially those that don't read the documents before they buy or think things will never change.
I live in a condo. Owned them for over 40 years. Managed them, served on boards, and taught others how to run condo associations. I don't think you could really tell me anything about condos. They are not for everybody. Especially those that don't read the documents before they buy or think things will never change.
Or go to the meetings or read the budget documents that are sent to every owner every years whether they went to the meeting or not. It isn't for everyone, but people who don't live in them seem not to understand what condos are. Heck, people who DO live in them don't seem to understand what condos are.
Our meetings are only quarterly, yet few people show up. We have 122 units over 14 buildings. We needed a certain percentage of votes, I forget what exactly, but it was 20-something unit owners to vote, in order to have a quorum for the board election. Had to delay the votes to the next meeting because we didn't have enough. We had EIGHT. Five board members and three other people who cared enough about the property they own to vote for the board. Eight out of 122. We got enough by the next meeting through aggressive canvassing of our neighbors. Just enough.
I asked one of my neighbors if he was going to send in his vote. He looked at me with a lopsided grin and said, "I've lived here 20 years and I've NEVER voted. I just throw that piece of paper away." Seemed to have no idea how absolutely inane he sounded. And of course his wife is one of the biggest complainers about everything from the lighting to the landscaping.
Another owner found out I was on the board and scolded me about how shameful it is that we don't have any reserves. I asked what she was talking about, since we have well over half a million in reserves. She looked surprised and said that this is what another homeowner told her. I said, "Since you both get the budget package in the mail every fall, you could have easily found that item on the first page." She just looked confused. I don't know how these types of people even bought a home to begin with. They would have had to fill out paperwork and submit bank statements and such, and they don't seem capable of that level of thinking.
And yet that Board President, who lives on Social Security, who never finished high school, managed to buy her place 24 years ago as a foreclosure and does her damndest to keep the place looking good.
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That's bad math right there.
