Is it worth buying a condo? (Miami, Surfside: sales, lease, HOA fees)

[NYTom]

I am considering downsizing to a condo after retiring. Was thinking of one of those nice two story small condo communities, not a high rise.

After the disaster at Surfside, has the new assessments impacted condo sales for all types of condos?

Is a condo purchase now considered a poor investment?

[1insider]

If you stick with one or two story communities, the new regulations do not apply. We haven't seen the impact yet of the increased monthly fees that compliance will force on most affected communities but it's coming. I expect the condo market statewide to take a big hit once the new reserves have been established and funding them has begun. No way a $500,000 condo unit with $600/month fees will still sell for the same price if monthlies increase to $1500. The buyer pool is going to shrink dramatically. Two story complexes could actually benefit as they become the only affordable option for many buyers.

My opinion, of course, and I could be wrong but I can't think of any scenario where significantly higher fees have no negative impact on prices and demand.

[NYTom]

Originally Posted by 1insider

Two story complexes could actually benefit as they become the only affordable option for many buyers.

Then those prices are going to go up as the demand for them increases. I should buy one now...

Thanks for your input.

[Alfiehurt]

Originally Posted by NYTom

Then those prices are going to go up as the demand for them increases. I should buy one now...

Thanks for your input.

now a year later, may I ask, is it worth buying this time with teh current mortgage rates?

[wizrap]

Originally Posted by Alfiehurt

now a year later, may I ask, is it worth buying this time with teh current mortgage rates?

To me, mortgage rates are one of the many problems with buying a condo. The rates are higher for condos, the underwriting requirements are stricter and a higher down payment is required, all compared to a single family home.

Adding in the new state laws governing required reserves and maintenance schedules, you’re also faced with mandatory assessments and higher monthly fees.

Buyer beware. Buyer be careful.

[City Guy997S]

Originally Posted by Alfiehurt

now a year later, may I ask, is it worth buying this time with teh current mortgage rates?

Rates are higher than a couple years ago but are still cheap historically.

3% rates were not the norm and you shouldn't expect to see that again any time soon if ever

[City Guy997S]

Originally Posted by wizrap

To me, mortgage rates are one of the many problems with buying a condo. The rates are higher for condos, the underwriting requirements are stricter and a higher down payment is required, all compared to a single family home.

Adding in the new state laws governing required reserves and maintenance schedules, you’re also faced with mandatory assessments and higher monthly fees.

Buyer beware. Buyer be careful.

Banks also don't want small loans. I helped a relative buy a 75K condo and 50K loans were tough to come by. The banks don't want to get stuck with a condo and its hoa fees/assessments if the buyer defaults/dies and they are not making any money from the low interest on a 50K loan.

[beach43ofus]

I prefer the side by side single story residences sold widely in Florida. I call them duplexes, but they have nicer names for them now. I leased one for 1.5 yrs when I first returned to FLA, & it was designed in a way that provided adequate privacy...much more privacy than any condo I lived in.

I had no stairs and nobody above me...both excellent features.

They are selling quite well all around FLA, but I'm not sure if they are available elsewhere. I dont see why not.

If I were to buy a condo, I agree w/ the OP's choice of a 2 story to avoid all the new laws post Miami condo collapse.

I owned a 2 story condo before, & always had noise from above....hated that.

[wizrap]

Even with a two story condo, you can’t escape the condo association insurance increases. A client of mine who lives in a condo told me earlier this year there’s only 3 companies that will write insurance on condo buildings. So not a lot of choice or competition for condo boards to choose from for the residents.
I know the state recently approved more companies but I don’t know if they are entering the condo market.

[Alfiehurt]

Originally Posted by City Guy997S

Banks also don't want small loans. I helped a relative buy a 75K condo and 50K loans were tough to come by. The banks don't want to get stuck with a condo and its hoa fees/assessments if the buyer defaults/dies and they are not making any money from the low interest on a 50K loan.

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I had the same issue getting pre-qualified for a small mortgage

I got pre-approved by Space Coast Credit Union

What worries me now is not being able to get home insurance even with a small mortgage where i have 75% down payment in cash