Century Village Deerfield Beach vs. Century Village Boca Raton (for sale, real estate)

[ndcairngorm]

I have noticed that the HOA fees are much higher in Century Village Deerfield Beach than they are in the Boca Raton Century Village. Why would this be? Higher city taxes? More grounds to keep? Any ideas?

[City Guy997S]

Originally Posted by ndcairngorm

I have noticed that the HOA fees are much higher in Century Village Deerfield Beach than they are in the Boca Raton Century Village. Why would this be? Higher city taxes? More grounds to keep? Any ideas?

HOA fees in condos are based on two big expenses: Insurance costs and building maintenance!
Taxes are paid by individual owners.

Being the Deerfield CV is older and further east in Broward County then I would expect the costs for insurance and building maintenance to be higher. Compounding this issue is foreclosures, Deerfield has more which means more people not paying the HOA dues, making it more expensive for the owners that do!
Remember when looking at a 20-30K condo, the HOA fees could exceed your purchase price in a few short years ($400 a month X 5 years = almost 25K). Lots of people see the cheap purchase price but don't consider the longer term expenses.

[ndcairngorm]

Actually, foreclosed condos do have the HOA paid on them each month. They are unlike co-ops, which can end up with some homeowners paying for all those who have left. Whoever owns a condo unit at the moment - owner, bank, or other - is liable for the fees, and even delinquent fees, if any, get paid when the unit sells - as they all do eventually.

I can understand your comments about the age of the structures - naturally an older building requires more work. And perhaps the insurance might be more because of age? Don't have a handle on that. But Boca's fees are nearly half the price of Deerfield Beach and it doesn't seem like there should be that much difference.

We are not looking in the 20-30K range but if we were, the high fees in Deerfield Beach might be a deterrent. Deerfield CV does seem a bit more walkable than Boca, where most everything is on its own peninsula surrounded by water. Perhaps the distances are not as great as they seem on the map.

[wizrap]

I'm with City Guy on this one. Did you google What Happens When Fellow Owners Don't Pay HOA Dues | Nolo.com

Here's another one http://www.quora.com/Why-are-HOA-dues-in-condos-so-

[ndcairngorm]

I read those. Very scary. (Actually I could not make the second link work).

I agree it is a gamble buying into a condo when one does not know the fee situation and past history. If you have noticed, though, although there were loads of condos for sale this time last year, by January the number had diminished to a very few, showing that yes, there is a big turnover but the units do sell. The same thing seems to be the case this year - plenty of units on the market (all different ones from last year). This means that the homeowners associations did collect any back fees, if any were owed, when the units sold. (I'm speaking of Deerfield Beach CV here, which is the only one I have followed carefully for a period of time.) But the HOA fees in every building are higher, despite different homeowners' assns., and presumably different financial situations, than those in Boca CV. It just seems strange to me that this would be the case.

[JimT7406]

Wondering what numbers you are looking at because the numbers are around the same in both communities. If you are seeing numbers around $200 per month on MLS that is a partial number and not accurate. Most 2 bedroom units are around the $400 per month range give or take in both communities.
Over the past few years, inventory has dropped and prices have increased. Remember turnover is relative, you are talking about some of the biggest condo communities in the area. There are thousands of unit there.
Yes $400 per month could sound like a lot but remember it includes almost everything, I think even the internet and a better than average cable package plus water is included. The only monthly bill you would have is for electric. With a homestead exemption, you probably will not have a property tax.
Boca has a nicer look than Deerfield, but Deerfield is closer to the beach if that is of interest. Both are secure complexes. CV is not for everyone but a pretty good alternative.
What you may want to check into is the golf course. Not sure what the status is?

[ndcairngorm]

Thanks, JimT; yes, I wonder about the golf course there in Deerfield CV also. I have not been able to find out the status of this. Also, there is a proposed off-ramp from the highway which would bring more traffic onto SW 10th, which I think would affect some of the buildings directly on that road. So lots to think about.

[LifeIsGood01]

Originally Posted by ndcairngorm

Actually, foreclosed condos do have the HOA paid on them each month. They are unlike co-ops, which can end up with some homeowners paying for all those who have left. Whoever owns a condo unit at the moment - owner, bank, or other - is liable for the fees, and even delinquent fees, if any, get paid when the unit sells - as they all do eventually.

I can understand your comments about the age of the structures - naturally an older building requires more work. And perhaps the insurance might be more because of age? Don't have a handle on that. But Boca's fees are nearly half the price of Deerfield Beach and it doesn't seem like there should be that much difference.

We are not looking in the 20-30K range but if we were, the high fees in Deerfield Beach might be a deterrent. Deerfield CV does seem a bit more walkable than Boca, where most everything is on its own peninsula surrounded by water. Perhaps the distances are not as great as they seem on the map.

Deerfield Beach may be a more desirable area because people want to stay in Broward County. I don't know if they can add extra fees according to location. I know there are amenities that are included in DB, don't know if they are included in both, I think water and sewer and basic cable and a few other amenities that other places might not have.

[City__Datarer]

Originally Posted by ndcairngorm

I read those. Very scary. (Actually I could not make the second link work).

I agree it is a gamble buying into a condo when one does not know the fee situation and past history. If you have noticed, though, although there were loads of condos for sale this time last year, by January the number had diminished to a very few, showing that yes, there is a big turnover but the units do sell. The same thing seems to be the case this year - plenty of units on the market (all different ones from last year). This means that the homeowners associations did collect any back fees, if any were owed, when the units sold. [boldface added] (I'm speaking of Deerfield Beach CV here, which is the only one I have followed carefully for a period of time.) But the HOA fees in every building are higher, despite different homeowners' assns., and presumably different financial situations, than those in Boca CV. It just seems strange to me that this would be the case.

As JimT7406 has posted, I think you may be seeing some listings with partial fees--listings that post either only the condo fee for a particular condo within the larger community, or only the other fee, what I think is a community-wide fee, but not both. (Some agents/sites do post the total fee, though, so I think continuing to look at more listings will help you get a better general idea of the range, and then I would suggest of course verifying the fee for any specific condo under serious consideration.)

Re the bolded part, while I know nothing about the finances in that particular development, if you're saying that as a general rule in Florida banks have to pay the entire back arrearage on condo units, regardless of how high it might be (and keep in mind there are sometimes years of delinquent fees prior to the bank's taking over the condo upon the completion of the foreclosure process), that is not consistent with my own personal experience nor with my understanding of state law.

Because I'm not in the real estate or legal field, I could always be wrong in some of what I think I understand, and people should do their own research, but I wanted to share my own experience and impressions, for whatever they're worth, as a former Florida condo owner and possible future condo buyer--but one who is a bit on the fence as to any future condo purchase because of a home ownership model where I might once again wind up paying someone else's share of the bills as well as my own.

I definitely understand the appeal of condos such as you're looking at, OP--I'm very seriously considering them myself as an eventual retirement home, because financially and logistically, a single-family home feels like more than I should try to take on, and a condo is in some ways an attractive alternative (especially since small, affordable single-family homes are hard to find). I also like the idea of having the various activities, and friends I'd make through those shared activities, right in the community, within walking distance.

But I do recommend that anyone thinking of buying a condo do their own research (into the relevant statutes and also concerning how things play out in practice in various condo communities) so that they can weigh the benefits vs. risks for their own situation. It is really a quite different type of home ownership, in terms of the additional set of risks you take on when you buy a condo, and I think that sometimes people think they are more protected than they are when they get involved with owning a condo.

OP, if you do decide to buy a condo, I hope you'll come back and post about your experiences. I've learned a lot from people who have taken the time to share their stories (the good and the bad) here. Best of luck, whatever you decide!

[wizrap]

Without knowing what the docs say, you may not be comparing apples and apples (condos with the same square footage, for example). I have only lived in one condo HOA, but my experience was that you could also have a neighbor with the same sized condo as you, same floor, paying significantly more or less each month to the HOA. Why? Special assessments. Where I used to live, you had the option of paying your special assessment as one lump sum, or "finance" it by agreeing to an increase in your HOA each month for a certain number of years. I had a neighbor whose HOA fees were significantly more than mine, or another neighbor's, because he would finance his special assessment. When I went to sell my condo, my realtor told me that my HOA fee was an extra selling point, because that HOA fee gets passed on to the new owner. Your best bet is to look at both properties and work with a good realtor to guide you to the right one for you.