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West Palm Beach - Boca Raton - Boynton Beach Palm Beach County
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Old 02-09-2009, 03:13 PM
 
114 posts, read 449,031 times
Reputation: 68

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In this economic environment, do you think it is worth the risk to buy into an unfinished HOA. I'm concerned that the builder may run into financial trouble and not finish the development. More specifically, the development will have a total of 200 homes, 60 of which are built. Of the 60 built, 40 are sold. The builder will not build more until it clears out the inventory. Looking for all opinions and points of view. Thanks!
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Old 02-09-2009, 05:27 PM
 
148 posts, read 637,537 times
Reputation: 63
The lender has a first lein position on the property so if the developer or your neighbors default on their HOA fees you have to stand in line behind the lender. I would NEVER buy a condo in this market. You are much better off with a detached single family in a non-gated community. For instance, East Boca has none of that and you not dragged into your neighbor's foreclosure disaster.
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Old 02-09-2009, 06:32 PM
 
162 posts, read 679,207 times
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It really depends on the community and their current sales velocity. Most under performing developers are looking to sell their remaining lot inventory to investment funds (or other developers) which will then sit on the lots until market conditions improve. My guess is that they will do the bare minimum in maintenance until they are ready to sell lots. Chances are you're going to get a great price for a new home in this current environment. It might be worth it to buy if you feel the community has a strong upside. If you think its going to take 10 years to absorb the remaining lots, I'd look somewhere else... Also be sure to check for foreclosure filings within the community.
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Old 02-10-2009, 11:19 AM
 
12 posts, read 35,932 times
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I wouldn't do it. There are plenty of foreclosures in Boynton for you to choose from and get a good deal. Why take the risk? I know I wouldn't if I were in your shoes.
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