Damage is severe because current residents went 25 years without voting for fixing anything. You do that with your own single-family home and see what happens.
They can’t just keep delaying payment deadlines and kicking the can down the road. This condo law came into effect in 2021 which was three years ago. As soon as the law went into place is when condo associations should have been offering easy payment options. Now they waited until just before they are supposed to have full reserves and are crying for more extensions. You had three years. Further extensions will lead to even more deferred maintenance and greater deterioration of these buildings.
Condo associations are the owners of the units its not some mystery company. The problem comes when owners aren't active in the management of the building or are just absent and contract it out to a private company. Our building had a board that wanted to cut the monthly fees, but the residents voted to fully fund reserves and cut the management company costs. However what is happening in Florida is the building insurance costs keep rising without benefiting unit owners. Unless the condos are owner occupied and can be converted to a co-op ownership model the associations are likely lacking the capital to qualify for these loans (to extend the payback period) to repair the buildings
@@blackrealestatedialogue getting rid of the separate management company was the single best decision our condo board made. Now we have three residents and a part time community manager that run day to day operations. This is essentially the same board that has made some poor decisions which has hurt the complex. So it's not a perfect board by any means but it does function. However we have homeowner residents who actively participate in monthly meetings. Actually looking at co-op buildings over condos to get away from the investor and absentee owner element that hurts condos. Condos are still more common (for good reason) than co-ops because of the freedom condos provide.
The owners agree to pay for current expenses (common area maintenance, insurance, utilities, etc) but keep voting down payment into the reserve accounts for capital improvements. This is something they brought on themselves. You either pay over time or at once just like single family home owners. Do I get a bailout when I fail to save for my new roof or AC replacement? Those also costs 10s of thousands of dollars that I would have to pay at once or take out debt to cover. These people must have forgotten they aren't renting. They own a share of the building that they have to pay to maintain just like other property owners. I don't want anyone thinking this only happens to condos.
The reason is it's not necessarily comforting that the seller paid their special assessments is because if the building needs a new roof and your special assessment is paid but only 30% of the people pay their assessments, they'll have to come back to everyone for more money or don't fix the roof
I’d probably buy a 3 bed/2bath condo in Palm beach county for 10k but that’s around the highest I’d pay. But it has to have at least a 3 bedrooms and at least two full bathrooms.
So you think they should give people an extra 10 years to pay it? Do you want to live in a condo that's 40 to 50 years old with no maintenance done. It's a good chance that your building won't be the one or two that collapse next I guess.
Easy Pickens for any developers waiting to pick up entire buildings for pennies on the dollar, its just a matter of time for these buildings. Its a perfect storm that will get exponentially worse next year If KH wins
Condo is a dumb concept. Condo owners are people that don’t want to be landlords because they don’t want to deal with maintenance so they buy a condo and become a multi unit landlord which is much harder than owning a house.
@blackrealestatedialogue good because I didn't. Most people buy condos in that area to live in. Most condo projects limit the rental space so the idea that condos are full of either landlords or renters is incorrect and illogical
@@ashog1426 You should not. It’s basically speculation. No one but a fool would hold them long term. That’s why immediately after it’s sold by the developer the highest value is extracted. Anybody after that loses.
The owners agree to pay for current expenses (common area maintenance, insurance, utilities, etc) but keep voting down payment into the reserve accounts for capital improvements. This is something they brought on themselves. You either pay over time or at once just like single family home owners
This is a childish video. ZERO solutions. Just dozens of questions posed. Look, there is nothing complicated here. There were two classes of owners here. 1. Prior owners of the units that intentionally kept the assessments artificially low knowing they were going to sell soon. On it's own, that might not be castastrophic, the problem is that they kept the unfunded liability secret. IF they had done a general journal entry every month as a liability, just call it "unfunded repairs", there would be transparency. 2.Current owners of the units that refuse to vote for increasing the monthly condo fees to cover long term maintenance. Instead, they let the building deteriorate until it's untenable, and then vote for a special assessment. 3.It's rare, but the opposite also happens. There are some condo associations that are over reserved. So, if somebody should sell their unity they can't back the extra money that they spent over the years for no reason.
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Damage is severe because current residents went 25 years without voting for fixing anything. You do that with your own single-family home and see what happens.
That's a valid point
I've been saying this since I heard about this "crisis". As an SFR owner, I don't get to go on the news when I fail to save for capital investments.
So true, so well said.
They can’t just keep delaying payment deadlines and kicking the can down the road. This condo law came into effect in 2021 which was three years ago. As soon as the law went into place is when condo associations should have been offering easy payment options. Now they waited until just before they are supposed to have full reserves and are crying for more extensions. You had three years. Further extensions will lead to even more deferred maintenance and greater deterioration of these buildings.
You bring up a valid point
I wouldn’t buy a condo in Florida for 50% off
Me neither, I wouldn't even take it for free 🤣
Condo associations are the owners of the units its not some mystery company.
The problem comes when owners aren't active in the management of the building or are just absent and contract it out to a private company.
Our building had a board that wanted to cut the monthly fees, but the residents voted to fully fund reserves and cut the management company costs.
However what is happening in Florida is the building insurance costs keep rising without benefiting unit owners.
Unless the condos are owner occupied and can be converted to a co-op ownership model the associations are likely lacking the capital to qualify for these loans (to extend the payback period) to repair the buildings
Very insightful explanation, thanks for sharing this perspective!
@@blackrealestatedialogue getting rid of the separate management company was the single best decision our condo board made. Now we have three residents and a part time community manager that run day to day operations.
This is essentially the same board that has made some poor decisions which has hurt the complex. So it's not a perfect board by any means but it does function.
However we have homeowner residents who actively participate in monthly meetings.
Actually looking at co-op buildings over condos to get away from the investor and absentee owner element that hurts condos. Condos are still more common (for good reason) than co-ops because of the freedom condos provide.
I understand what you mean, appreciate the insight!
The owners agree to pay for current expenses (common area maintenance, insurance, utilities, etc) but keep voting down payment into the reserve accounts for capital improvements. This is something they brought on themselves. You either pay over time or at once just like single family home owners.
Do I get a bailout when I fail to save for my new roof or AC replacement? Those also costs 10s of thousands of dollars that I would have to pay at once or take out debt to cover. These people must have forgotten they aren't renting. They own a share of the building that they have to pay to maintain just like other property owners. I don't want anyone thinking this only happens to condos.
Appreciate you sharing your perspective 💪🏾
The reason is it's not necessarily comforting that the seller paid their special assessments is because if the building needs a new roof and your special assessment is paid but only 30% of the people pay their assessments, they'll have to come back to everyone for more money or don't fix the roof
Very fair point
I’d probably buy a 3 bed/2bath condo in Palm beach county for 10k but that’s around the highest I’d pay. But it has to have at least a 3 bedrooms and at least two full bathrooms.
selling 20% lower my ass i see people trying to sell condos for 300k-400k
You may be right
So you think they should give people an extra 10 years to pay it? Do you want to live in a condo that's 40 to 50 years old with no maintenance done. It's a good chance that your building won't be the one or two that collapse next I guess.
What do you suggest that’s feasible
Easy Pickens for any developers waiting to pick up entire buildings for pennies on the dollar, its just a matter of time for these buildings. Its a perfect storm that will get exponentially worse next year If KH wins
I would take their zero interest loan whether I need it or not. Maybe buy some indoor weed growing products. Ah likes it!
Condo is a dumb concept. Condo owners are people that don’t want to be landlords because they don’t want to deal with maintenance so they buy a condo and become a multi unit landlord which is much harder than owning a house.
I understand what you mean
@blackrealestatedialogue good because I didn't. Most people buy condos in that area to live in. Most condo projects limit the rental space so the idea that condos are full of either landlords or renters is incorrect and illogical
Good point
Condo association make me wanna never invest in a condo
I don’t blame you
@@ashog1426 You should not. It’s basically speculation. No one but a fool would hold them long term. That’s why immediately after it’s sold by the developer the highest value is extracted. Anybody after that loses.
I know just give all these condos to homeless people they can live right on the beach, yeah right LOL they'd rather tear them down
That's why I will never buy anything with a HOA. Imagine paying all that money only for them to do nothing but then turn around and demand more money.
I don't blame you one bit
The owners agree to pay for current expenses (common area maintenance, insurance, utilities, etc) but keep voting down payment into the reserve accounts for capital improvements. This is something they brought on themselves. You either pay over time or at once just like single family home owners
These Condo Associations have too much power and too little oversight!
right!
Manufactured home owners are having a hard time selling too, THOUSANDS of them for sale for pennies all over Florida.
Absolutely terrible
@@blackrealestatedialogue IKR, And costs THOUSANDS of dollars for a buyer to move them
@@winniethepoohandeeyore2 exactly smh
I am not sure why you would buy an MH in this state when you can't even stay in them during hurricanes. They have to be evacuated first
@@winniethepoohandeeyore2 FL is a bubble. All the rising costs are wiping people out.
This is a childish video. ZERO solutions. Just dozens of questions posed. Look, there is nothing complicated here. There were two classes of owners here. 1. Prior owners of the units that intentionally kept the assessments artificially low knowing they were going to sell soon. On it's own, that might not be castastrophic, the problem is that they kept the unfunded liability secret. IF they had done a general journal entry every month as a liability, just call it "unfunded repairs", there would be transparency. 2.Current owners of the units that refuse to vote for increasing the monthly condo fees to cover long term maintenance. Instead, they let the building deteriorate until it's untenable, and then vote for a special assessment. 3.It's rare, but the opposite also happens. There are some condo associations that are over reserved. So, if somebody should sell their unity they can't back the extra money that they spent over the years for no reason.
Thanks for the comment! I'm assuming you missed the proposed solutions I shared at the end.
The questions is actually why I like this channel. I love that he answers most comments too, you need people like that.
I appreciate you!