Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments. Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.,
It's really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It's a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Jihan Wu! Imagine i invested $50,000 and received $190,500 after 14 days
Some persons think inves’tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why l'm lucky to have seen someone like mr Jihan Wu.
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So, the HOAs kept fees artificially low by deferring maintenance for years and not keeping up a solid reserve fund. Nobody wanted to vote for increased expenses and are now paying the price. You can only defer maintenance for a while until the property becomes dangerous or unusable.
@@robertg1101 Yes for condos. But homes are simply victims of building codes that sucked when they were built. Even today, the building codes have not been updated to address current common threats. If homes need to be concrete and on stilts, so be it. They did stilts in new orleans. Florida will be doing the same. The minimum code for a roof should handle all known hurricanes forces at the very least. Florida needs to get its act together and people need to vote for politicians that want to update building codes to address insurability. The best part of building codes is that as older homes get destroyed, the rebuilt homes have to follow the new code. The new homes will all be insurable and then there will be a market of products and services to update existing homes to gain insurability. It will continue to be nothing but chaos and stupidity until building codes are updated to meet every risk reduction need that would allow for insurance to be affordable.
That is the truth in many Florida condo complexes. You make an excellent point! It's crucial for HOAs to prioritize maintenance and reserve funds to avoid these kinds of situations. It’s a tough lesson for many owners.
@@JerryPinkas I don't think condo owners or HOA's ever realized that buildings will actually fall down and that structural integrity would be a concern (Surfside). I think most people just didn't want to pay for new roofs, air conditioning units, pool upgrades, etc.
Many single family homeowners can’t get insurance and have to replace their roofs even though they are less than 10 years old. HOA are like women, you have good and bad. I own a few properties ranging from single family homes to condos and my HOA condo is my favorite. I’ve owned it for 15 years and my HOA has gone from $330-$525 which is nothing for what I get. Gated community with private security, multiple pools, hot tubs, Beach Cabana with private parking, tennis and pickle ball courts, basketball court, gym, community internet as well as personal cable, internet and phone. 4 golf courses(I pay $25 a round…a non owners have to pay $150 a round). They take care of all external maintenance and includes insurance. The books are solid and we are more than solvent and have a surplus. It’s a great deal. This Condo is in South Carolina.
I sold my single-story Sarasota villa last year, and relocated to another state. The 197 unit complex all had flat roofs, so the Master Insurance company dropped the wind portion of our coverage. Another company offered coverage, but at a 400% premium increase. Not even Citizens would take our complex, which the HOA appealed. I was lucky. I dropped $50k in renovations and got top dollar for my unit. Those same units are now selling for 25-33% less than I sold for. -- It's video's like Jerry's that woke me up to what was happening. Many of my neighbors didn't even know what I was talking about when I asked if they'd heard anything about the current insurance situation.
I wonder when florida will update minimum building codes to address the issues making homes uninsurable. People don't seem to understand that buildings are only uninsurable because the building codes they were built under did not address a concern that matters today. Florida can either update their codes so all buildings can handle hurricanes and floods or it will never make sense for anyone to live there. Its the same thing with fires near los angeles. If california does not come up with building codes that will make it so homes won't catch fire and burn from embers flying around, then anything they rebuild will be uninsurable. This may mean only rich people can afford to build there, but it is what it is. Building anything incapable of surviving all known disasters is a complete waste of money.
Most condo owners prefer to remain ignorant of what is going on in their condo communities in terms of upkeep and finances. I am on the board of directors of my condo community and our unit owners cannot be bothered to attend HOA meetings. The apathy among unit owners is quite alarming. Nobody wants to be involved.
Many Sarasota condos allow for weekly rentals. these are golden times for those lucky enough to have those types of condos. If you were forced enough to buy the building that does not do weekly rentals. Take the money and run like this guy.
What's always fascinated me about condos (the concept of condos) is that regardless of how "luxurious" or large it is . . . it's still just an APARTMENT UNIT. So instead of an apartment manager or owner you now have to deal with the HOA . . . and you're locked in with them because you can't just give 30 days notice and move out. Plus you still have common walls and common areas you have to share with your "neighbors". And this is all BEFORE the rising HOA dues in general, the monster deferred maintenance costs and insurance premiums. What a nightmare!
@@NorthStarPNW The problem is not paying for the maintenance . . . it's DEFERRING paying for maintenance. You're just kicking the can down the road for the next guy to pay it. Kind of like the fed. gov't and the nat'l debt.
Not all condos are equal. I'm in Florida in an extremely well maintained 40 year old 18 unit condo. Since the first floor is halfway below grade due to built on a sloped lot, and there are only 2 stories above. so no elevators. Our monthly fees are only $545. per month. We are self governing with Only resident owners... mostly senior citizens. NO rentals are allowed. we have a heated pool and all have detatched garages. And our reserves are Kept high. Life is extremely comfortable here. Very seldom do we have a unit come available. and they dont last long. For us, prices are still rising and we have passed all the new regulations and inspections.
You are basically living in a stacked cubicle in which all your actions are governed and individuality is punished, a self funded prison that is very well maintained by the prisoners
I think HOAs are a necessary evil. They keep neighborhoods orderly. No cars in the lawn. No RVs or boats in the yards. You can almost tell if a neighborhood has an HOA . There's almost always a house with crap all over the yards and lawns overgrown. Only takes one or two of them to ruin a neighborhood.
Because of the fees or the rules? Some 2 story townhouse style units that have a $350 per month HOA fee seem fair. If I buy a reasonable house in the Fort Myers area those equivalent costs can be $1000 a month. So there is a value in those instances.
That is precisely the lack of foresight that allows markets to collapse or slowly bleed people, as is occurring in housing. Lack of maintenance can occur in any aspect of society. Or be forced on you.
The strongest message I glean from your video is "Stay Away!". That said, once a 3+ story building has been inspected and found to be in good condition, then its at least worthy of consideration. The higher HOA fees and insurance costs will have to balanced against the asking price of a selling condo, but its fair to assume this will still have a downward impact on pricing. As far as investors go, I find it hard to believe there's an upside here to attract their money. The dust hasn't settled yet to determine how far the market will fall. Anybody who watched the Florida housing market retract after the bubble burst in 2005 will know how bad the fall can be.
I recently sold my condo for $400k and i want to invest the money in the stock market. However, it appears the market is at an all-time high. Should I invest elsewhere or wait for a market correction?
Let's face it, increasing stock and index fund purchases during downturns and bear markets is unnerving. Which makes it very difficult for most people, like me, to do. It's challenging to incur the risk of investing the one million dollars that I have in an S&S.
I agree , I assumed I had a hang of the market at first, I gained $500k one year and I was super elated, not until I stumbled upon a portfolio-adviser whose been guiding me since the market's been sham after the pandemic, to my utmost surprise I netted a whooping $280K during this dip, that made it clear there's more to the market that we just don't know
I definitely share your sentiment about these firms. Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I searched and located her on the web, I sent her an email, and scheduled a call; hopefully, she will reply because I want to start off the new year financially strong.
St.Pete Fl here. Overbuilding is rampant and down town businesses are struggling with lack of customers. A new bar goes up, two close down. Our Southside with its shanty homes now have “condos “ being built next door that start in the “$700’s. It’s madness..
I believe it’s NYorkers and Californians who get top dollar for their homes compared to ours in FL. They come here with a pocket full of money and are destroying our landscape and wildlife.
@michaelanon1968 That’s because the majority of the people who are on your City Council are tied to Real Estate developers and Mayor Ken Welch bows down to the developers also… but this all started with the former Mayor…. Rick Kristeman.
I plan to retire at 62 in another country outside the US that is free, safe and very cheap with a high quality of life. I could fully just rely on only my SS if I wanted to when that times arrives but l'll also have at least one pension, a 403 (b) and a very prolific Investment account with my Stephanie Janis Stiefel my FA. Retiring comfortably in the US these days is almost impossible.
I’m planning on moving to Thailand in the next 5 years if trump’s government doesn’t do anything with the high prices of groceries and taxes What about you??
Just curious...where would you go that has a long history of stability with no risk of nationalization? We've considered Mexico but Mexico is always one election away from that happeing. Farther south? Not so sure that wouldn't be even riskier. The comment below from LP is interesting - Thailand? I know people who have lived there. Past tense, for a reason. and that was Bangkok, which might be better than elsewhere in Thailand. Whatever you decide, good luck!
Submitting a low ball offer to buy a condo that the current owner desperately wants to sell is like trying to catch a falling knife. Who knows how much lower condo values will go? Who knows how hard insurance will be to get or how expensive it will get? Who knows what additional items that also need to be repaired will be discovered once the previously deferred maintenance work begins, resulting in additional assessments?
Trying to catch that falling knife while blindfolded? Now that's a risky sport! Just make sure you have a good first aid kit handy when diving into the Florida condo market! Thanks for taking the time to watch and comment here on this channel. See you in the next video
Property insurance rates are going to go up everywhere in the US. The cost to insurance companies to cover all that is happening in America due to natural disasters is becoming astronomical. From flooding, to hurricanes and the non-stop forest fires will cost us all. When you do your budget for 2025, be sure to increase the amount you set aside monthly to cover properly insurance increases.
@buffycat - bingo. I live in a state where few major natural disasters have hit in the past 20+ years, and am watching property insurance rise exponentially, based on the insurance company 'evening out' costs in high risk parts of the entire country. In spite of my insurer pulling out of Florida/Louisiana/California over unsustainable liability risks, thus removing those risks, premiums continue to rise. As also a landlord - I could reduce the cost of rent by ~ $200/month if property insurance was brought into line.
All real estate in the U.S. is way overpriced - about time prices crash down. Hope it comes to a screeching halt and outlaw investors in single family homes and condo buildings.
Remember, the boomers allowed the market to get to this point, so they can feel the pain they created for all the rest of us, as they voted for a real estate con man.... AGAIN!! 🤣😂🤣😂
There is absolutely zero reason to be owning property, almost everywhere these days but especially in Florida. The loaded costs, just for a home and not even considering monthly average cost of living amounts in food, cars, etc., have priced housing out of reach for average plebeian America.
The big long term problem....the abandonment of large numbers of older buildings. I can see desperate owners will to rent to substandard tenants..when this happens, watch out! These tenants can cause all kinds of problems-and eviction are almost impossible.
That will never happen. As Jerry mentioned, companies with deep pockets will buy at bargain prices , raze the building and replace with modern, high end properties.
as someone with no skin in the game this sounds like a slow motion train wreck. I would only consider a property requiring no repairs and having no maintenance debt. Big investors might be able to buy, renovate and resell?
If this video doesn’t show you that the American dream is dead I don’t know what one will. When it comes to retirement Thailand and Europe is sounding more and more appealing these days.
In the meantime, this should make for some great low rental opportunities in those buildings that the people can’t sell. Especially those that are not currently residing in those units.
Some years back a car dealer sold a Ford Mach 1 worth 75$k to an 80+ year old woman, and I saw her crawling out of it to go back and talk to the dealer, who probably said, “Don’t worry… it’s not broken in yet”, and sent her off without her money.
I blame the Boards that were running these condos and the contractors that built them. I’m in a condo in North Palm Beach on the Intracoastal and my taxes went down this year and so did our building insurance. Our reserves are exactly where they are supposed to be. Blame the boards and also blame the owners that fought with the board because they didn’t want to spend the money to have things fixed.
My daughter's 3 story condo association has 12-15 million dollar assessment from the state mandated inspection. This has to be paid for by 100 owners. 150k per owner. Their monthly fees went up 50 percent for this year because of the wind policy cost. They are collectively screwed.
A spokesman for Swiss Re ( a large global reinsurance company) said that it was his opinion that Florida home insurance rates are still not high enough to cover the risk. It seems to me that Florida is so over built that a hurricane making landfall anywhere in the state is likely to cause multi-billion in losses. I believe that it is a free country and that if you want to own in a high risk coastal area that is for choice but the risk should be entirely on you. By laying bare the risk maybe some people will wise up and recognize the risk living near tropical waters during a period of climate change.
I own 7 condos in Orlando. Prices have dropped due to the extreme price increases due to roof replacements needed, but it won't last forever. Prices may drop, but they will come back. Nothing last forever.
Years ago I read a good book on future. It said home ownership, auto ownership, etc would become prohibitive. It advised to divorce yourself of assets in US, which I did, I live in Philippines
You forget the stooge who is the governor ? A real POS In my 55 years I never had a problem with the heat, they have central AC don't they ? NOT as hot as Arizona
I lived in snowy and Dem controlled Connecticut for 55 years and moved here to St.Pete Fl and do not regret one moment of it.. Stay in your tax laden snow belt states please..
I’m retired. I’d love to live in Florida near a beautiful sunny gulf beach but I’m not going to risk losing my life savings in this crazy weather with hotter and hotter ocean temperatures and stronger more violent hurricanes. Nope. It’s a sucker move.
Great video! I can’t believe how many people are dealing with financial issues relating to their high rise condo inspections and assessment. We are hearing of cases where people are considering just walking away because the assessments are so high - Sam
Thanks for your insight, Sam! It’s definitely a tough situation for many condo owners right now. The financial strain from inspections and assessments is really taking a toll. thanks for taking the time to watch and comment here on this channel. See you in the next video!
This is the front end of a massive real estate collapse in Florida statewide. Not just So Florida. There are now a lot of listings in The Villages. And those aren't even condos. Most of the So Florida properties will be purchased by big money developers for pennies on the dollar and demolished for new higher value properties. A lot of people are going to lose everything similar to the 2008 debacle. I expect people to just walk away from many of these units.
Doesn’t matter how cheap you pick a condo up. Any money saved will be spent on hoa fees, fines, law suits. NEVER HOA’s I forgot towing fees. They have so many rules on regards to parking. Btw I’m sure they are getting healthy kickbacks from the tow company they have contracted with.
I'm not buying any of that Florida crap, I'll rather go to Southern CA and buy some cheap or abandoned partially burned out home that needs some major repairs for pennies on the dollar that insurance companies had bailed out of last year
It would be great to see some hard data on numbers and locations of buildings by age. Where are the oldest condos located and the ones that are 25 or 30 years old today they’ll be a whole Nother group of joining that classification soon enough.
Let's be honest. What's driving prices down is the overwheming, over-crowdedness and the fact that the "complection" of the state has changed drastically. Anyone who lived in Florida thirty or forty years ago, moved away and goes back for a visit is amazed. The place has gone down hill incredibly.
HOA's are like most everything in life, it can be a good thing to have or a bad thing. It depends on the people. The biggest problem with HOA's are that most people don't want to serve on the boards, so they end up leaving it to a small handful of people who end up being frustrated dictators and try to run the HOA's as a dictatorship. If more people took turns serving on a board, HOA's can be a very good thing. If you don't think so, go to areas that have no rules and see the garbage all over the place, making homes and condo's look like a dump. A well run HOA can prevent that from happening. Condo fees here are under $400 a month and don't go up every year. When they are raised, its around $20 a month.
Agreed. I'm in a very well-run HOA here at the Jersey shore with excellent oversight and low monthly fees for a luxury development. It makes or breaks it to have knowledgeable, experienced board members (based on their occupations in our case) and not those doing it on a lark.
You make some excellent points! The dynamics of an HOA truly do depend on the community and the people involved. A collaborative effort can really make a difference!
You bring up a good point. The same applies in politics. The people with common sense and general intelligence don't run. It's the narcissistic morons that strive to be our rulers.
Old underfunded condos have always been a bad investment that are "too good to be true.". Quality, well managed buildings are solid. Differentiating is the leg work.
@@pault4435 The fires might be the catalyst we needed here in California to get all the liberal elites to finally realize the people running the state are fools.
This is just creating a drama! In Miami we have plenty of well maintained newer buildings. It all depends on who manages them. Our building just passed 25 year inspections without any assessments. Our HOA did not go up and insurance went down. Miami has plenty of beautiful brand new construction buildings. It is your personal choice NOT to come to Florida, but we love it here
My Hotel the Flamingo Inn is in minute 8:52 in this video. We are the last small family owned hotel on Fort Myers Beach after Hurricane Ian and working on rebuilding what is left. Thanks for the info in your video. I always wanted to buy a condo in Miami and use it as a vacation rental. The time might come soon once the market bottoms out.
Thank you Jerry.. a very comprehensive presentation of every aspect. No one ever seems to question contractor fees or inspection fees.. or the integrity of both. I would assume you yourself would not buy a condo but was wondering if you see any light at the end? What is happening in Cal right now is sure to affect insurance rates.. if you can get it.. across the country. Thank yoy again.. well done!
I got a lesson in the condo market when I was a first time homebuyer. I looked at a few and did the math and quickly realized I wouldn’t be any better off if I “bought” an apartment (essentially, that’s what you’re doing) The lack of maintenance is a myth, dealing with the board is challenging, many condos are rentals which is the same as living in a rental because it comes with renters problems. Mostly noise and neighbors that aren’t invested in the community. Once I realized that and saw how the monthly fees can and do change, I lost interest completely. They’re also difficult to sell, condos are a money pit.
Sounds like the condo life is more like a sitcom than a dream home! Who needs TV drama when you have noisy neighbors and board meetings? Not every condo is bad, but it has to do more with what state it is located in, and the old real estate motto...location, location, location. Thanks for taking the time to watch and comment here on this channel. See you in the next video!
So, the only way you can tell if somebody is doing drugs is if they have missing teeth, peels on their face, eyes dilating, if they are wearing sunglasses all the time, if they Spazz out, if they are spazzing out, and how they react to others! Share this all over!
I wanted to buy a condo apartment somewhere around Miami to Sunny Isle in a price range from 1.2 million to 1.8 million. I've been looking on the internet at apartments every day for the last 3 years. Initially I was watching prices increase and for the last year I've been watching prices being continually reduced. One of the apartments I really like was just reduced $250,000 in one shot. Other apartments have had multiple substantial reductions. I did not buy because of insurance and the fear of rising HOA fees and especially because of Real Estate tax. I initially thought that the cost of real estate tax was reasonable when looking at Zillow but what I want to Florida and a broker showed me around I found out that the tax rate is about 1% higher than what Zillow shows. The tax rate is about the same as in New York! Instead of buying an apartment in Florida I decided to spend $400,000 to remodel my house and another $111,000 to buy a Cybertruck. If I see prices come down a lot more over the next two years I might reconsider.
A good friend sold his condo before that Surfside condo collapse. He said the condo association had gotten out of control and was raising the HOA fees before the collapse. His son had bought three condos before the collapse so he he’s probably getting reamed by the HOA.
Engineering problems in high-rise buildings tend to be surprisingly costly, especially some of them, for example ones that involve the facade, windows, elevators. Combine that with not enough capital in reserve, it can become a problem situation that people do not like. However, there is likely to be a lack-of-differentiation between the well built buildings, and ones that are not well built - so maybe a buyer's opportunity in that sense. Some of the buildings are quite well built - that is the good news.
It's as if no one remembers *the Florida real-estate bubble of the 1920's* - by 2000 we'd reached a point at which those who witnessed or survived that fiasco had died. And so, it started again. Issues then being replicated now: (1) overinflated prices, (2) speculation/financing issues, (3) natural disasters, (4) poor construction, (5) taxes (tied to price increases). The only thing new is how *uninsurability* has entered the picture, caused by high repair costs from ever-worsening weather disasters, and construction that was barely up to code in the first place (with costs of maintenance rising as quickly as prices and taxes, and so not performed as required to fend off the effects of weather).
Yeah, stay out of Florida! You didn’t really like the creepy crawlers anyway. Come up to upstate NY. We have our own ocean( Lake Ontario) and there aren’t any alligators to bite your leg up in there.
We can say this problem is just restricted to Florida condos. But is it really a red flag about Florida's infrastructure and vulnerability to massive storms, flooding, and wind damage? That eventually Florida itself will become a bigger version of what is happening to Florida condos? A state of disasters, out of control insurance costs, and deteriorating values.
This doesn't only happen in FL. I have an investment condo in Canada. Special Assessment was $15k in 2022 and $10k in 2023. Thankfully I'm an investor & it's a tax write off. But i feel bad for actual residents who can't write it off.
The trouble with HOA's is board members think that it's a business function when it's a maintenance function. If you maintain the complex, the reserves take care of themselves. But the uneducated think reserves are primary. When inflation hits, funding reserves must continue, but they also must be spent. Even if you decrease reserves to pay the bills. Unlike a business, the fees still come in each month. Highrise condos do have massive maintenance issues, though. Insurance is turning into a sick joke. But deferring maintenance to fund reserves is a huge mistake, especially during big inflation. A couple of million dollars sitting at 3% while services increase 30% and up over a few years while not rotating cash in and out of reserves is stupid. The time to spend on maintenance is always NOW! Better the reserves are low and no maintenance lag than having have special assessments to cut the grass.
It appears to me, when you are talking a 6%-10% declines that is not realistic, especially since prices are still at historic highs. Any buyer needs to build in a risk discount beyond what the market auction price is so it is possible 20% or more price reductions are possible/realistic.
Crisis brings an extra risk: cascading financial impact to HOAs of delinquent and unpaid dues (esp from foreclosures). Less funds for operations and increased legal expense. And banks deliberately delay foreclosure so they don't take ownership and become liable for dues.
That’s what people have been waiting for for the last four years all the while prices keep increasing. Keep your fingers crossed. Inflation has been making home affordability a challenge.
How & when will the corruption of HOA board members end? There is no oversight. Unfortunately, a family member lost his peace of mind and home. His condominium unit was in shambles, with extensive roof damage and extensive neglect, yet he continued to pay his fees. The monthly fees paid disappeared with no accountability, oversight, or repairs. Believe it or not, some of the owners just called the police. There was an investigation and arrests. Not uncommon.
Thank you for sharing your thoughts! It's important to consider all aspects of a location before making such a big decision. The good news is that many other solid towns, cities, and states are ready for retirement. Thanks for taking the time to watch and comment here on this channel. Truly appreciate you are doing so. See you in the next video
@@JerryPinkas you make South Carolina sound appealing, but eventually you'll hit carrying capacity there, too. Most of the areas covered in your video are urban-suburban. I'd love to see something on "homesteading," or retiring to more rural or smalltown properties where a retiree can keep a flock of chickens, a vegetable garden, and not have multi-story apartment buildings looming overhead. Thanks for all your informative videos!
Good point but you might be surprised to see what FEMA considers to be a flood zone. I had a condo on land 20' higher than a lake but FEMA only saw the shoreline and the building and rated it a flood risk.😮
What about the requirement that to qualify for state run insurance private homes have to be elevated 9 feet higher than the lawn? And insurance companies are leaving Florida in droves? And where do you park your car, or is the garage elevated also? And with the Pacific Palisades wiped off the map, won't insurance companies raise premiums even more?
Why don’t condo boards set up a pool and self insure? Certainly there have to be two or more retired financial ppl in a building that large who could manage such a fund conservatively.
I sold in Miami last year for all the reasons mentioned and although inventory has skyrocketed I have really seen price drops. They’re still well above where they were when I bought in 2018. I wish they would drop but I don’t see it. I see reductions but these are reductions from ridiculously high asking.
Skip buying any Florida real estate on the beach. Between the many condos that are sinking (due to poor foundations) and those that are not in compliance with Florida's newer safety standards and those that are owned by HOA...Florida condos are now a suckers bet.
I keep hearing this (two years or so now) and it may eventually be true. But -6% is not a collapse. And how much have the prices risen in the past five years? Back to five years ago is a paper gain/loss for anyone who isn't a speculator. But anyway, I haven't seen it yet. Note: Insurance is a different thing, and that is real already--HOA maintenance being underfunded depends whether your HOA board was doing its job (which is on you, as a resident).
Do the investors really think they can fill the building if the rent are too high? Even renters insurance will go up it those condos are turned into rentals.
People can't afford to live in Florida anymore. All the rich people from all the lockdown states have flooded to Florida over the last few years. They have made it unaffordable to live here. I know tons of people who are now looking to move out of Florida to a more affordable state. Housing prices have more than double in only 4 years.
Don't buy a condo or properties with HOA fees in South Carolina either, that tumultuous condo market is coming your way too. It will be knocking on folks doors before they know what hit them.
Many markets are experiencing some wild fluctuations right now. But I'm not sure which properties you were looking at in Myrtle Beach SC last year. But in 2025, there are some complexes that are average, and there are others that are solid and way above average. My real estate team has been helping many more retirees who are moving out of Florida. The average price for a one-bedroom condo in Myrtle Beach, South Carolina is around $203,090. However, the price of condos in the area can vary depending on the location and features of the condo. The average price of a two-bedroom condo in Myrtle Beach, South Carolina is around $298,065. The median listing price for all condos in all locations (on the beach, on the golf course, further inland) in Myrtle Beach is $225,000. The average price of a 3-bedroom condo in Myrtle Beach, South Carolina is around $392,295. We are here to help if you have questions, just give our office a call at 843-839-9870
Surely this applies to Condos everywhere? Shouldn't they have the same risk profile in any other state? It must be a matter of time before this applies globally.
The most important difference is that ocean front condominiums are typically exposed to salt water contact from storm surges and wind driven wave spray. Salt and water together are very destructive to steel reinforced concrete structures, so they have a much shorter engineered design life expectancy.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments.
Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.,
It's really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It's a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Jihan Wu!
Imagine i invested $50,000 and received $190,500 after 14 days
Some persons think inves’tin is all about buying stocks;
I think going into the stock market without a good experience is a big risk, that's why l'm lucky to have seen someone like mr Jihan Wu.
Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's
His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.
I'm favoured, 90K every week! I can now give to the locals in my communities and also support God's work and the church. God bless America,, thank you Mr Jihan Wu😊🎉
So, the HOAs kept fees artificially low by deferring maintenance for years and not keeping up a solid reserve fund. Nobody wanted to vote for increased expenses and are now paying the price. You can only defer maintenance for a while until the property becomes dangerous or unusable.
That pretty much sums up the present debacle people are experiencing in Florida in 2025
@@robertg1101 Yes for condos. But homes are simply victims of building codes that sucked when they were built. Even today, the building codes have not been updated to address current common threats. If homes need to be concrete and on stilts, so be it. They did stilts in new orleans. Florida will be doing the same. The minimum code for a roof should handle all known hurricanes forces at the very least. Florida needs to get its act together and people need to vote for politicians that want to update building codes to address insurability. The best part of building codes is that as older homes get destroyed, the rebuilt homes have to follow the new code. The new homes will all be insurable and then there will be a market of products and services to update existing homes to gain insurability. It will continue to be nothing but chaos and stupidity until building codes are updated to meet every risk reduction need that would allow for insurance to be affordable.
That is the truth in many Florida condo complexes. You make an excellent point! It's crucial for HOAs to prioritize maintenance and reserve funds to avoid these kinds of situations. It’s a tough lesson for many owners.
Thats the truth
@@JerryPinkas I don't think condo owners or HOA's ever realized that buildings will actually fall down and that structural integrity would be a concern (Surfside). I think most people just didn't want to pay for new roofs, air conditioning units, pool upgrades, etc.
Thank you for affirming my decision not to buy an HOA anything.
Never
Surf Side scared the Heck out of me. .I couldn't believe what I was seeing...
If you buy a condo, you have to be in an HOA.
HOAs are poison
@@lindacurtis3513what did you see?
Rule number one: Never buy into an HOA.
Rule number two: Never buy into an HOA.
Many single family homeowners can’t get insurance and have to replace their roofs even though they are less than 10 years old. HOA are like women, you have good and bad. I own a few properties ranging from single family homes to condos and my HOA condo is my favorite. I’ve owned it for 15 years and my HOA has gone from $330-$525 which is nothing for what I get. Gated community with private security, multiple pools, hot tubs, Beach Cabana with private parking, tennis and pickle ball courts, basketball court, gym, community internet as well as personal cable, internet and phone. 4 golf courses(I pay $25 a round…a non owners have to pay $150 a round). They take care of all external maintenance and includes insurance. The books are solid and we are more than solvent and have a surplus. It’s a great deal. This Condo is in South Carolina.
Rule number 3: read rules 1&2
Also, you’re not buying the condo you’re buying the association. Make sure their financials are tiptop.
Made that decision 30 years ago and never regretted it.
Made that decision 30 years ago and never regretted it.
Gotta believe something similar coming to Myrtle Beach. Too many buildings built in the 70's and 80's. Salt corrodes everything.
You are so right.
I sold my single-story Sarasota villa last year, and relocated to another state. The 197 unit complex all had flat roofs, so the Master Insurance company dropped the wind portion of our coverage. Another company offered coverage, but at a 400% premium increase. Not even Citizens would take our complex, which the HOA appealed. I was lucky. I dropped $50k in renovations and got top dollar for my unit. Those same units are now selling for 25-33% less than I sold for. -- It's video's like Jerry's that woke me up to what was happening. Many of my neighbors didn't even know what I was talking about when I asked if they'd heard anything about the current insurance situation.
People like to stick their heads in the sand, and not stay well-informed. I left FL in 2020 after living there over 50 years, never to look back.
I wonder when florida will update minimum building codes to address the issues making homes uninsurable. People don't seem to understand that buildings are only uninsurable because the building codes they were built under did not address a concern that matters today. Florida can either update their codes so all buildings can handle hurricanes and floods or it will never make sense for anyone to live there. Its the same thing with fires near los angeles. If california does not come up with building codes that will make it so homes won't catch fire and burn from embers flying around, then anything they rebuild will be uninsurable. This may mean only rich people can afford to build there, but it is what it is. Building anything incapable of surviving all known disasters is a complete waste of money.
@@_PatrickOIt was already just for rich people.
Most condo owners prefer to remain ignorant of what is going on in their condo communities in terms of upkeep and finances. I am on the board of directors of my condo community and our unit owners cannot be bothered to attend HOA meetings. The apathy among unit owners is quite alarming. Nobody wants to be involved.
Many Sarasota condos allow for weekly rentals. these are golden times for those lucky enough to have those types of condos. If you were forced enough to buy the building that does not do weekly rentals. Take the money and run like this guy.
What's always fascinated me about condos (the concept of condos) is that regardless of how "luxurious" or large it is . . . it's still just an APARTMENT UNIT. So instead of an apartment manager or owner you now have to deal with the HOA . . . and you're locked in with them because you can't just give 30 days notice and move out.
Plus you still have common walls and common areas you have to share with your "neighbors". And this is all BEFORE the rising HOA dues in general, the monster deferred maintenance costs and insurance premiums.
What a nightmare!
If you don't believe in paying to maintain the common-area property then you should definitely not buy a condo.
@@NorthStarPNW 100% correct
@@NorthStarPNW The problem is not paying for the maintenance . . . it's DEFERRING paying for maintenance. You're just kicking the can down the road for the next guy to pay it. Kind of like the fed. gov't and the nat'l debt.
Condo owners are the HOA.. they a all fractional owners of the HOA
EXACTLY !
Not all condos are equal. I'm in Florida in an extremely well maintained 40 year old 18 unit condo. Since the first floor is halfway below grade due to built on a sloped lot, and there are only 2 stories above. so no elevators. Our monthly fees are only $545. per month. We are self governing with Only resident owners... mostly senior citizens. NO rentals are allowed. we have a heated pool and all have detatched garages. And our reserves are Kept high. Life is extremely comfortable here. Very seldom do we have a unit come available. and they dont last long. For us, prices are still rising and we have passed all the new regulations and inspections.
I got twenty units in my bld,same situation as you have,but it's still getting very expensive
You are basically living in a stacked cubicle in which all your actions are governed and individuality is punished, a self funded prison that is very well maintained by the prisoners
I was looking at condos in Hawaii. While affordable the deal breaker was HOA fees in the $1,800-2,600 range per month.
$600 a month for nothing. I can get 1 bdr in Berlin for $600 .
No one is going to rent either in a condo.
Those condos are barely worth $70,000. Avoid!
Thank you for your opinion, doctor.
I bought mine for $74,000 1999. Should I sell for $70,000?
Will never buy any home with a HOA.
I think HOAs are a necessary evil. They keep neighborhoods orderly. No cars in the lawn. No RVs or boats in the yards. You can almost tell if a neighborhood has an HOA . There's almost always a house with crap all over the yards and lawns overgrown. Only takes one or two of them to ruin a neighborhood.
I did once, but never again. It was a painful lesson.
Because of the fees or the rules? Some 2 story townhouse style units that have a $350 per month HOA fee seem fair. If I buy a reasonable house in the Fort Myers area those equivalent costs can be $1000 a month. So there is a value in those instances.
Nobody is selling their condo for less than it is worth. It is worth precisely what buyers will pay. Anything else is just a fantasy or a theory.
That is precisely the lack of foresight that allows markets to collapse or slowly bleed people, as is occurring in housing. Lack of maintenance can occur in any aspect of society. Or be forced on you.
Jerry your condo info is so informative and helpful. Best vids on UA-cam pertaining to all housing.
The strongest message I glean from your video is "Stay Away!". That said, once a 3+ story building has been inspected and found to be in good condition, then its at least worthy of consideration. The higher HOA fees and insurance costs will have to balanced against the asking price of a selling condo, but its fair to assume this will still have a downward impact on pricing. As far as investors go, I find it hard to believe there's an upside here to attract their money. The dust hasn't settled yet to determine how far the market will fall. Anybody who watched the Florida housing market retract after the bubble burst in 2005 will know how bad the fall can be.
It is helpful…No HOAs ever!
I recently sold my condo for $400k and i want to invest the money in the stock market. However, it appears the market is at an all-time high. Should I invest elsewhere or wait for a market correction?
Let's face it, increasing stock and index fund purchases during downturns and bear markets is unnerving. Which makes it very difficult for most people, like me, to do. It's challenging to incur the risk of investing the one million dollars that I have in an S&S.
I agree , I assumed I had a hang of the market at first, I gained $500k one year and I was super elated, not until I stumbled upon a portfolio-adviser whose been guiding me since the market's been sham after the pandemic, to my utmost surprise I netted a whooping $280K during this dip, that made it clear there's more to the market that we just don't know
Can i get a recommendation on who you are working with?
I definitely share your sentiment about these firms. Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I searched and located her on the web, I sent her an email, and scheduled a call; hopefully, she will reply because I want to start off the new year financially strong.
Great summary of the Condo issues, well done Sir.
Thank you! I'm glad you found the summary helpful. It's a complex situation, and I appreciate your feedback! see you in the next video
Houses and Condo Buildings should be Owner Occupied by law.
St.Pete Fl here. Overbuilding is rampant and down town businesses are struggling with lack of customers. A new bar goes up, two close down. Our Southside with its shanty homes now have “condos “ being built next door that start in the “$700’s. It’s madness..
I believe it’s NYorkers and Californians who get top dollar for their homes compared to ours in FL. They come here with a pocket full of money and are destroying our landscape and wildlife.
@michaelanon1968
That’s because the majority of the people who are on your City Council are tied to Real Estate developers and Mayor Ken Welch bows down to the developers also… but this all started with the former Mayor…. Rick Kristeman.
I plan to retire at 62 in another country outside the US that is free, safe and very cheap with a high quality of life. I could fully just rely on only my SS if I wanted to when that times arrives but l'll also have at least one pension, a 403 (b) and a very prolific Investment account with my Stephanie Janis Stiefel my FA. Retiring comfortably in the US these days is almost impossible.
I’m planning on moving to Thailand in the next 5 years if trump’s government doesn’t do anything with the high prices of groceries and taxes
What about you??
Just curious...where would you go that has a long history of stability with no risk of nationalization? We've considered Mexico but Mexico is always one election away from that happeing. Farther south? Not so sure that wouldn't be even riskier. The comment below from LP is interesting - Thailand? I know people who have lived there. Past tense, for a reason. and that was Bangkok, which might be better than elsewhere in Thailand. Whatever you decide, good luck!
Costa Rica
Good video, Jerry. Very informative. Thank you for posting it. Thumbs-up!
Thank you! I truly appreciate you taking the time to watch and comment. :) See you in the next video
Submitting a low ball offer to buy a condo that the current owner desperately wants to sell is like trying to catch a falling knife. Who knows how much lower condo values will go? Who knows how hard insurance will be to get or how expensive it will get? Who knows what additional items that also need to be repaired will be discovered once the previously deferred maintenance work begins, resulting in additional assessments?
Trying to catch that falling knife while blindfolded? Now that's a risky sport! Just make sure you have a good first aid kit handy when diving into the Florida condo market! Thanks for taking the time to watch and comment here on this channel. See you in the next video
Property insurance rates are going to go up everywhere in the US. The cost to insurance companies to cover all that is happening in America due to natural disasters is becoming astronomical. From flooding, to hurricanes and the non-stop forest fires will cost us all. When you do your budget for 2025, be sure to increase the amount you set aside monthly to cover properly insurance increases.
@buffycat - bingo. I live in a state where few major natural disasters have hit in the past 20+ years, and am watching property insurance rise exponentially, based on the insurance company 'evening out' costs in high risk parts of the entire country. In spite of my insurer pulling out of Florida/Louisiana/California over unsustainable liability risks, thus removing those risks, premiums continue to rise.
As also a landlord - I could reduce the cost of rent by ~ $200/month if property insurance was brought into line.
Ir if you're smart, OTOH, self-insure. (Though you shouldn't do this for your rental properties.)
😢
All real estate in the U.S. is way overpriced - about time prices crash down. Hope it comes to a screeching halt and outlaw investors in single family homes and condo buildings.
Remember, the boomers allowed the market to get to this point, so they can feel the pain they created for all the rest of us, as they voted for a real estate con man.... AGAIN!! 🤣😂🤣😂
There is absolutely zero reason to be owning property, almost everywhere these days but especially in Florida. The loaded costs, just for a home and not even considering monthly average cost of living amounts in food, cars, etc., have priced housing out of reach for average plebeian America.
When the poor cry the rich buy.
if you think what you are hearing is scary. what you are not hearing is absolutely horrifying.
The big long term problem....the abandonment of large numbers of older buildings. I can see desperate owners will to rent to substandard tenants..when this happens, watch out! These tenants can cause all kinds of problems-and eviction are almost impossible.
That will never happen. As Jerry mentioned, companies with deep pockets will buy at bargain prices , raze the building and replace with modern, high end properties.
as someone with no skin in the game this sounds like a slow motion train wreck. I would only consider a property requiring no repairs and having no maintenance debt. Big investors might be able to buy, renovate and resell?
If this video doesn’t show you that the American dream is dead I don’t know what one will. When it comes to retirement Thailand and Europe is sounding more and more appealing these days.
Oh it's dead, and the BOOMERS killed it with their endless GREED!!
Europe? Maybe Poland but they probably won't let anybody in.
In the meantime, this should make for some great low rental opportunities in those buildings that the people can’t sell. Especially those that are not currently residing in those units.
Some years back a car dealer sold a Ford Mach 1 worth 75$k to an 80+ year old woman, and I saw her crawling out of it to go back and talk to the dealer, who probably said, “Don’t worry… it’s not broken in yet”, and sent her off without her money.
I blame the Boards that were running these condos and the contractors that built them. I’m in a condo in North Palm Beach on the Intracoastal and my taxes went down this year and so did our building insurance. Our reserves are exactly where they are supposed to be. Blame the boards and also blame the owners that fought with the board because they didn’t want to spend the money to have things fixed.
HOA's feel like modern day Time shares....costs only go up and difficult to sell
My daughter's 3 story condo association has 12-15 million dollar assessment from the state mandated inspection. This has to be paid for by 100 owners. 150k per owner. Their monthly fees went up 50 percent for this year because of the wind policy cost. They are collectively screwed.
Screwed is putting it nicely. They are BANKRUPT
A spokesman for Swiss Re ( a large global reinsurance company) said that it was his opinion that Florida home insurance rates are still not high enough to cover the risk. It seems to me that Florida is so over built that a hurricane making landfall anywhere in the state is likely to cause multi-billion in losses. I believe that it is a free country and that if you want to own in a high risk coastal area that is for choice but the risk should be entirely on you. By laying bare the risk maybe some people will wise up and recognize the risk living near tropical waters during a period of climate change.
I own 7 condos in Orlando. Prices have dropped due to the extreme price increases due to roof replacements needed, but it won't last forever. Prices may drop, but they will come back. Nothing last forever.
Part of the problem is that owners put their futures in someone else's hands. The road to condo association responsibility isn't always smooth.
Thank you for sharing your thoughts! It's important to highlight the role of owner involvement in maintaining a healthy condo community.
Years ago I read a good book on future. It said home ownership, auto ownership, etc would become prohibitive. It advised to divorce yourself of assets in US, which I did, I live in Philippines
Awesome video and awesome backdrops dude, keep up the fantastic work !
Have you been to Florida? It's hot as hell. Why would anyone want to live there? F that.
@castin5406 Not Florida, but Texas in June. Texas was Africa hot.
Yes. The heat is killer 6 mos out of the year.
You forget the stooge who is the governor ? A real POS
In my 55 years I never had a problem with the heat, they have central AC don't they ?
NOT as hot as Arizona
Good question
I lived in snowy and Dem controlled Connecticut for 55 years and moved here to St.Pete Fl and do not regret one moment of it.. Stay in your tax laden snow belt states please..
I’m retired. I’d love to live in Florida near a beautiful sunny gulf beach but I’m not going to risk losing my life savings in this crazy weather with hotter and hotter ocean temperatures and stronger more violent hurricanes. Nope. It’s a sucker move.
Won't Trump fix this next week, while making America great.
@@whereisthedollarNice comment. Smart ass....
@@whereisthedollar Yuk, Yuk. There may not be a sucker born every day any more, but there are enough already to elect a real estate con-man again.
@@leschab Enjoy the next 4 years, snowflake
Great video! I can’t believe how many people are dealing with financial issues relating to their high rise condo inspections and assessment. We are hearing of cases where people are considering just walking away because the assessments are so high - Sam
Thanks for your insight, Sam! It’s definitely a tough situation for many condo owners right now. The financial strain from inspections and assessments is really taking a toll. thanks for taking the time to watch and comment here on this channel. See you in the next video!
This is the front end of a massive real estate collapse in Florida statewide. Not just So Florida. There are now a lot of listings in The Villages. And those aren't even condos. Most of the So Florida properties will be purchased by big money developers for pennies on the dollar and demolished for new higher value properties. A lot of people are going to lose everything similar to the 2008 debacle. I expect people to just walk away from many of these units.
Doesn’t matter how cheap you pick a condo up. Any money saved will be spent on hoa fees, fines, law suits. NEVER HOA’s I forgot towing fees. They have so many rules on regards to parking. Btw I’m sure they are getting healthy kickbacks from the tow company they have contracted with.
Neva Neva Neva!!!!!
Absolutely correct! I just sold my condo and am leaving Florida. Never an HOA again!
100% agree with you!
Easy way to avoid towing fees is to park right.
I'm not buying any of that Florida crap, I'll rather go to Southern CA and buy some cheap or abandoned partially burned out home that needs some major repairs for pennies on the dollar that insurance companies had bailed out of last year
" Castles made of Sand, fall into the Sea eventually " rip Jimi.
It would be great to see some hard data on numbers and locations of buildings by age. Where are the oldest condos located and the ones that are 25 or 30 years old today they’ll be a whole Nother group of joining that classification soon enough.
excellent video, a very accurate analysis. thank you !!!
Let's be honest. What's driving prices down is the overwheming, over-crowdedness and the fact that the "complection" of the state has changed drastically. Anyone who lived in Florida thirty or forty years ago, moved away and goes back for a visit is amazed. The place has gone down hill incredibly.
HOA's are like most everything in life, it can be a good thing to have or a bad thing. It depends on the people. The biggest problem with HOA's are that most people don't want to serve on the boards, so they end up leaving it to a small handful of people who end up being frustrated dictators and try to run the HOA's as a dictatorship. If more people took turns serving on a board, HOA's can be a very good thing. If you don't think so, go to areas that have no rules and see the garbage all over the place, making homes and condo's look like a dump. A well run HOA can prevent that from happening. Condo fees here are under $400 a month and don't go up every year. When they are raised, its around $20 a month.
Agreed. I'm in a very well-run HOA here at the Jersey shore with excellent oversight and low monthly fees for a luxury development. It makes or breaks it to have knowledgeable, experienced board members (based on their occupations in our case) and not those doing it on a lark.
You make some excellent points! The dynamics of an HOA truly do depend on the community and the people involved. A collaborative effort can really make a difference!
You bring up a good point. The same applies in politics. The people with common sense and general intelligence don't run. It's the narcissistic morons that strive to be our rulers.
Old underfunded condos have always been a bad investment that are "too good to be true.". Quality, well managed buildings are solid. Differentiating is the leg work.
Excellent summary Jerry. THANK YOU! It is a big mess for the time being.
6% drop is negligible. In Hong Kong, condo drops 30% in last 12 months. China mainland condo dropped 60% . 😂
No to living in Florida and California 😂😂
Maybe the Democrats in California that lost their homes can move to Florida because they have a lot of vacancy?
I understand your concerns! Every market has its ups and downs, and it’s important to choose a place that feels right for you.
@pault4435 funny
@@pault4435 The fires might be the catalyst we needed here in California to get all the liberal elites to finally realize the people running the state are fools.
"Welcome to Texas! Now Go Home..."
Another well-informed post. You explain things very well.
This is just creating a drama! In Miami we have plenty of well maintained newer buildings. It all depends on who manages them. Our building just passed 25 year inspections without any assessments. Our HOA did not go up and insurance went down. Miami has plenty of beautiful brand new construction buildings.
It is your personal choice NOT to come to Florida, but we love it here
Bye Bye FL!
My Hotel the Flamingo Inn is in minute 8:52 in this video. We are the last small family owned hotel on Fort Myers Beach after Hurricane Ian and working on rebuilding what is left. Thanks for the info in your video. I always wanted to buy a condo in Miami and use it as a vacation rental. The time might come soon once the market bottoms out.
Thank you Jerry.. a very comprehensive presentation of every aspect. No one ever seems to question contractor fees or inspection fees.. or the integrity of both. I would assume you yourself would not buy a condo but was wondering if you see any light at the end? What is happening in Cal right now is sure to affect insurance rates.. if you can get it.. across the country. Thank yoy again.. well done!
I got a lesson in the condo market when I was a first time homebuyer. I looked at a few and did the math and quickly realized I wouldn’t be any better off if I “bought” an apartment (essentially, that’s what you’re doing) The lack of maintenance is a myth, dealing with the board is challenging, many condos are rentals which is the same as living in a rental because it comes with renters problems. Mostly noise and neighbors that aren’t invested in the community. Once I realized that and saw how the monthly fees can and do change, I lost interest completely. They’re also difficult to sell, condos are a money pit.
Sounds like the condo life is more like a sitcom than a dream home! Who needs TV drama when you have noisy neighbors and board meetings? Not every condo is bad, but it has to do more with what state it is located in, and the old real estate motto...location, location, location. Thanks for taking the time to watch and comment here on this channel. See you in the next video!
So, the only way you can tell if somebody is doing drugs is if they have missing teeth, peels on their face, eyes dilating, if they are wearing sunglasses all the time, if they Spazz out, if they are spazzing out, and how they react to others! Share this all over!
they were too high
I wanted to buy a condo apartment somewhere around Miami to Sunny Isle in a price range from 1.2 million to 1.8 million. I've been looking on the internet at apartments every day for the last 3 years. Initially I was watching prices increase and for the last year I've been watching prices being continually reduced. One of the apartments I really like was just reduced $250,000 in one shot. Other apartments have had multiple substantial reductions.
I did not buy because of insurance and the fear of rising HOA fees and especially because of Real Estate tax. I initially thought that the cost of real estate tax was reasonable when looking at Zillow but what I want to Florida and a broker showed me around I found out that the tax rate is about 1% higher than what Zillow shows. The tax rate is about the same as in New York!
Instead of buying an apartment in Florida I decided to spend $400,000 to remodel my house and another $111,000 to buy a Cybertruck. If I see prices come down a lot more over the next two years I might reconsider.
A good friend sold his condo before that Surfside condo collapse. He said the condo association had gotten out of control and was raising the HOA fees before the collapse.
His son had bought three condos before the collapse so he he’s probably getting reamed by the HOA.
love the b-roll at 4:11
Engineering problems in high-rise buildings tend to be surprisingly costly, especially some of them, for example ones that involve the facade, windows, elevators. Combine that with not enough capital in reserve, it can become a problem situation that people do not like. However, there is likely to be a lack-of-differentiation between the well built buildings, and ones that are not well built - so maybe a buyer's opportunity in that sense. Some of the buildings are quite well built - that is the good news.
It's as if no one remembers *the Florida real-estate bubble of the 1920's* - by 2000 we'd reached a point at which those who witnessed or survived that fiasco had died. And so, it started again. Issues then being replicated now: (1) overinflated prices, (2) speculation/financing issues, (3) natural disasters, (4) poor construction, (5) taxes (tied to price increases). The only thing new is how *uninsurability* has entered the picture, caused by high repair costs from ever-worsening weather disasters, and construction that was barely up to code in the first place (with costs of maintenance rising as quickly as prices and taxes, and so not performed as required to fend off the effects of weather).
Yeah, stay out of Florida! You didn’t really like the creepy crawlers anyway. Come up to upstate NY. We have our own ocean( Lake Ontario) and there aren’t any alligators to bite your leg up in there.
SHHHHHHhhhhhhhhhh,🤫
I appreciate your comment! It's always great to hear different perspectives on the real estate market across the country.
We love our cute gators.
@@brucebrothers2373 can’t argue with that? How do you like snow?
NY state is like a condo HOA run from NYC. The leaders in Albany make AOC look like Einstein.
Thank you Jerry for the helpful information ~ God bless ya
We can say this problem is just restricted to Florida condos. But is it really a red flag about Florida's infrastructure and vulnerability to massive storms, flooding, and wind damage? That eventually Florida itself will become a bigger version of what is happening to Florida condos? A state of disasters, out of control insurance costs, and deteriorating values.
Great video, thank you! 🙏
You cannot avoid increases in the cost of upkeep forever, plan for them. That’s the lesson.
This doesn't only happen in FL.
I have an investment condo in Canada. Special Assessment was $15k in 2022 and $10k in 2023. Thankfully I'm an investor & it's a tax write off. But i feel bad for actual residents who can't write it off.
The trouble with HOA's is board members think that it's a business function when it's a maintenance function. If you maintain the complex, the reserves take care of themselves. But the uneducated think reserves are primary. When inflation hits, funding reserves must continue, but they also must be spent. Even if you decrease reserves to pay the bills. Unlike a business, the fees still come in each month. Highrise condos do have massive maintenance issues, though. Insurance is turning into a sick joke. But deferring maintenance to fund reserves is a huge mistake, especially during big inflation. A couple of million dollars sitting at 3% while services increase 30% and up over a few years while not rotating cash in and out of reserves is stupid. The time to spend on maintenance is always NOW! Better the reserves are low and no maintenance lag than having have special assessments to cut the grass.
What and where do you recommend to buy for a New Yorker who wants to move to Florida??
Finger Lakes
@ Finger Lakes is in New York…I want a good location in Florida.
i have lived here for 4 years and love it. 55+ community in Viera. House, not a condo.
It appears to me, when you are talking a 6%-10% declines that is not realistic, especially since prices are still at historic highs. Any buyer needs to build in a risk discount beyond what the market auction price is so it is possible 20% or more price reductions are possible/realistic.
Totally hear you! It’s wild out there; feels like we’re all just trying to catch a falling knife. Let’s hope it doesn't get too crazy!
😮this is an eye opener, appreciate your insight!
Crisis brings an extra risk: cascading financial impact to HOAs of delinquent and unpaid dues (esp from foreclosures). Less funds for operations and increased legal expense. And banks deliberately delay foreclosure so they don't take ownership and become liable for dues.
Home price is still 30-40% high dont get fooled its a scam wait for 6months to an year you'll get for less
That’s what people have been waiting for for the last four years all the while prices keep increasing. Keep your fingers crossed. Inflation has been making home affordability a challenge.
How & when will the corruption of HOA board members end? There is no oversight. Unfortunately, a family member lost his peace of mind and home. His condominium unit was in shambles, with extensive roof damage and extensive neglect, yet he continued to pay his fees. The monthly fees paid disappeared with no accountability, oversight, or repairs. Believe it or not, some of the owners just called the police. There was an investigation and arrests. Not uncommon.
Ahem. Florida single family homes are no bargain either. Property ins flood ins and car ins is ridiculously high too
You make a great point! The whole Florida market has its challenges, and rising insurance costs are definitely a concern for many homeowners.
I'm convinced never to retire to Florida.
Thank you for sharing your thoughts! It's important to consider all aspects of a location before making such a big decision. The good news is that many other solid towns, cities, and states are ready for retirement. Thanks for taking the time to watch and comment here on this channel. Truly appreciate you are doing so. See you in the next video
@@JerryPinkas you make South Carolina sound appealing, but eventually you'll hit carrying capacity there, too. Most of the areas covered in your video are urban-suburban. I'd love to see something on "homesteading," or retiring to more rural or smalltown properties where a retiree can keep a flock of chickens, a vegetable garden, and not have multi-story apartment buildings looming overhead. Thanks for all your informative videos!
Air BNB for a couple months a year.
Single-family homes that are not in a flood zone are going to hold their own a lot better than any other real estate
Good point but you might be surprised to see what FEMA considers to be a flood zone. I had a condo on land 20' higher than a lake but FEMA only saw the shoreline and the building and rated it a flood risk.😮
What about the requirement that to qualify for state run insurance private homes have to be elevated 9 feet higher than the lawn? And insurance companies are leaving Florida in droves? And where do you park your car, or is the garage elevated also? And with the Pacific Palisades wiped off the map, won't insurance companies raise premiums even more?
Why don’t condo boards set up a pool and self insure? Certainly there have to be two or more retired financial ppl in a building that large who could manage such a fund conservatively.
I sold in Miami last year for all the reasons mentioned and although inventory has skyrocketed I have really seen price drops. They’re still well above where they were when I bought in 2018. I wish they would drop but I don’t see it. I see reductions but these are reductions from ridiculously high asking.
Skip buying any Florida real estate on the beach. Between the many condos that are sinking (due to poor foundations) and those that are not in compliance with Florida's newer safety standards and those that are owned by HOA...Florida condos are now a suckers bet.
Worsening hurricanes, sea level rise, insurance nightmares, now rotten old condo buildings. Florida is really not attractive.
You told me everything I had already figured out
Sounds like you are smart enough to see the Florida problems. Thanks for watching and commenting
I keep hearing this (two years or so now) and it may eventually be true. But -6% is not a collapse. And how much have the prices risen in the past five years? Back to five years ago is a paper gain/loss for anyone who isn't a speculator. But anyway, I haven't seen it yet. Note: Insurance is a different thing, and that is real already--HOA maintenance being underfunded depends whether your HOA board was doing its job (which is on you, as a resident).
Only buy a 3 story building - less maintenance costs ( hoprfully
Do the investors really think they can fill the building if the rent are too high? Even renters insurance will go up it those condos are turned into rentals.
Just the taxes and special assessments are the value of the property. You won't get a nickel over that. Who can afford it?
People can't afford to live in Florida anymore. All the rich people from all the lockdown states have flooded to Florida over the last few years. They have made it unaffordable to live here. I know tons of people who are now looking to move out of Florida to a more affordable state. Housing prices have more than double in only 4 years.
Don't buy a condo or properties with HOA fees in South Carolina either, that tumultuous condo market is coming your way too. It will be knocking on folks doors before they know what hit them.
What does it mean “management company didn’t fix building for years “ so where is the money???
Owning a condo is owning someone else's problems and paying for them! SFD! I also like R.E. cycles!!!!!
Myrtle Beach is no better,we were looking last year and condo prices were out of control.
Many markets are experiencing some wild fluctuations right now. But I'm not sure which properties you were looking at in Myrtle Beach SC last year. But in 2025, there are some complexes that are average, and there are others that are solid and way above average. My real estate team has been helping many more retirees who are moving out of Florida. The average price for a one-bedroom condo in Myrtle Beach, South Carolina is around $203,090. However, the price of condos in the area can vary depending on the location and features of the condo. The average price of a two-bedroom condo in Myrtle Beach, South Carolina is around $298,065. The median listing price for all condos in all locations (on the beach, on the golf course, further inland) in Myrtle Beach is $225,000. The average price of a 3-bedroom condo in Myrtle Beach, South Carolina is around $392,295. We are here to help if you have questions, just give our office a call at 843-839-9870
What are the problem areas and the good areas if any. I live in Ohio and have put my “winter” condo purchase on hold because of this.
Jerry, Thanks for posting!! Wow!! Interesting about Florida!!!!! Regards, Gerard Daniel Lyons
Surely this applies to Condos everywhere? Shouldn't they have the same risk profile in any other state? It must be a matter of time before this applies globally.
Condos in communities in most other states don’t experience the hurricane damage like Florida.
The most important difference is that ocean front condominiums are typically exposed to salt water contact from storm surges and wind driven wave spray. Salt and water together are very destructive to steel reinforced concrete structures, so they have a much shorter engineered design life expectancy.