Looking at Boynton, Delray, Boca, and? (Fort Lauderdale, Coral Springs: HOA, condo, crime)

[wizrap]

I’m going to update Deerfield Beach by suggesting you look at Deer Creek, where golf club membership is also optional. I saw one pool home listed for $760k. Most more expensive—some cheaper but they are 2/2’s.

You will definitely need to visit and get a feel for the area, and once you’ve narrowed it down to a city or two, rent and then buy.

[City Guy997S]

Originally Posted by wizrap

I’m going to update Deerfield Beach by suggesting you look at Deer Creek, where golf club membership is also optional. I saw one pool home listed for $760k. Most more expensive—some cheaper but they are 2/2’s.

You will definitely need to visit and get a feel for the area, and once you’ve narrowed it down to a city or two, rent and then buy.

Never liked Deer Creek.........the houses have to really look "brady bunch" old by now and its not in a great area of West Hillsboro. There is nothing near there but Century Village and fast food places.

[blueskies2023]

Originally Posted by MattSellsPBC

Pmed you. When you're seeing the low pricing in equity interest communities versus non, it's pretty much a ruse; don't fall for it. You'll end up spending far more than you would think.

How so? thanks Matt

[wizrap]

Blue skies, Matt is referring to developments where you think you’ve found a great deal (property that is outrageously cheap) and then when you look at the fine print, you see that the development requires a buy-in of several thousands of dollars, with a monthly fee of several hundreds if not thousands of additional dollars.

Because the mandatory country club fees are so high, the financial attractiveness of the homes fall, and that’s why you see them selling so cheaply.

[EANJ]

The golf/country club thing can absolutely be a major issue. The equity vs. non-equity is not only a major issue, but so is the re-sale of a unit. Non-equity is a killer. You buy in for X dollars and when you sell you get nothing back! And when the person who buys, has a mandatory "buy in" -- this becomes a major source of revenue for the club/HOA.

While it might not be the case any longer, there was a time where in certain developments people were selling units at extremely cheap prices -- $35,000 -- and they weren't selling easily even at that price, because when you bought, there was a mandatory "buy in" for golf/club membership, and it was $100,000 (for example). Today, what I see is that a golf membership let's say is $100,000 or $150,000 -- and if it's not mandatory, and you don't want it, and you only want "social membership" or "club membership," the price is $85k or $90k, or $140k, etc. The discount from golf to social or club is very small. Yes, the monthly or quarterly minimums can be an issue. My friend at Wycliffe told me the minimums are very low, so that's not a major issue for him.

All of this is part of the club/HOA business model. For me, I am not a golfer. I'd absolutely enjoy a social membership, going to a club, eating, drinking, etc. I would enjoy a gym and other amenities. But I just don't play enough golf! LOL. So, getting a small discount off the golf membership price, non-equity, and big minimums, no, that's not for me.

[City Guy997S]

Originally Posted by EANJ

The golf/country club thing can absolutely be a major issue. The equity vs. non-equity is not only a major issue, but so is the re-sale of a unit. Non-equity is a killer. You buy in for X dollars and when you sell you get nothing back! And when the person who buys, has a mandatory "buy in" -- this becomes a major source of revenue for the club/HOA.

While it might not be the case any longer, there was a time where in certain developments people were selling units at extremely cheap prices -- $35,000 -- and they weren't selling easily even at that price, because when you bought, there was a mandatory "buy in" for golf/club membership, and it was $100,000 (for example). Today, what I see is that a golf membership let's say is $100,000 or $150,000 -- and if it's not mandatory, and you don't want it, and you only want "social membership" or "club membership," the price is $85k or $90k, or $140k, etc. The discount from golf to social or club is very small. Yes, the monthly or quarterly minimums can be an issue. My friend at Wycliffe told me the minimums are very low, so that's not a major issue for him.

All of this is part of the club/HOA business model. For me, I am not a golfer. I'd absolutely enjoy a social membership, going to a club, eating, drinking, etc. I would enjoy a gym and other amenities. But I just don't play enough golf! LOL. So, getting a small discount off the golf membership price, non-equity, and big minimums, no, that's not for me.

Boca West has 2/2 condos that sold pre-Covid for $100. Of course the HOA fees were like $1500 a month and the club equity was $70,000 for social membership and then it was like $15,000 a year in dues for that.

Covid found some suckers to buy those condos but you can still buy them today for $80,000.
https://www.realtor.com/realestatean...=srp-list-card

The club has some million dollar homes and then some broke folks in condos. If the rich guys want to remodel the clubouse for 10 million and get the votes to approve it then the poor guys have to pay for it too!
Bad math........

[MattSellsPBC]

Originally Posted by blueskies2023

How so? thanks Matt

Wizrap explained it well. If you compare equity versus non-equity properties as close to an apples to apples comparison as possible, the equity property will typically be considerably less expensive than the non-equity for the price sold.

Equity properties (golf course communities) require tiered equity membership (golf, social etc; golf is usually the most expensive), high monthly dues, mandatory food stipends and the like. Thus, if you believe you're getting a "steal" on the property then you may be in for a rude awakening after you add all the fees together.

[blueskies2023]

Originally Posted by City Guy997S

Boca West has 2/2 condos that sold pre-Covid for $100. Of course the HOA fees were like $1500 a month and the club equity was $70,000 for social membership and then it was like $15,000 a year in dues for that.

Covid found some suckers to buy those condos but you can still buy them today for $80,000.
https://www.realtor.com/realestatean...=srp-list-card

The club has some million dollar homes and then some broke folks in condos. If the rich guys want to remodel the clubouse for 10 million and get the votes to approve it then the poor guys have to pay for it too!
Bad math........

and this seems to me as just crazy stupid real estate. Not even RE imo. Should be illegal to set up as home 'ownership'. B.S.

[EANJ]

I owned a place in Boca West, strictly as an investment. Sold it many years ago but kept a very close eye on the development because I often have opportunities offered to me. Yes, I've seen the very cheap, give away, entry-level condos; yes, due to the mandatory buy-in of the club. However, and while I have not check on the details or the bylaws lately -- here's what I will say -- one, I never saw the HOA fees rise to some atrocious level. For the entry level condos, I saw them at $500 to $600 per month, and that may have included an assessment (I am not sure). I don't know that this is so much out of line with a comparable type place in Boca with similar amenities. Two, I was told, and again, I do not know if this is true or not, but I was told there was a suit and a proposed settlement that club membership and buy-in was no longer going to be mandatory.

Lastly, depending on the actual break-down on "condos to mansions" I am not sure if people in condos would truly get forced into some multi-million dollar club renovation. Why? Yes, some assessments and capital improvements are across the board, but it's not price/number of homes as much as price/equity, sq. ft., assessed value, etc. No, I am not saying that's the way it works, but it is also not a case of every single time the little guy gets crushed.

Personally, if I were going entry level anywhere -- I wouldn't make my decision based upon a BB. I would make sure my realtor is an expert, and I would have my attorney review all the applicable documents.

A condo for a $1 or $10,000 -- whatever the price is -- which used to be a lot more, is $1 or $10,000 for very, very good reasons. Remember folks, not for every single unit, not every single day, but in the end, the marketplace works...unless the entire marketplace is rigged, LOL.

[NYTraveler1983]

I just moved to East Boca in April. It’s a good area but fewer HoAs. Do you want an HoA to take care of your landscaping or ok doing it yourself? What you save in HoA fees you can use to hire landscapers, etc.