Condos in Brevard (transplants, real estate, foreclosures)

[Nypafl4u]

Originally Posted by City__Datarer

Just curious--is that special assessment amount a typical cost for the total work, which would then be divided among all the unit owners, or is that an individual unit owner amount?

That is an individual owner amount.
A couple of years ago, the oceanfront condo we own, needed to replace the two elevators. It cost each owner in the building $13,000. Once it was voted and approved by the board, we had 30 days to pay it with no financing available. Stuff like that can happen. Storms can damage roofs, balconys can need work, and the cement projects, all add to the mix. Our building is not fully funded with its reserves, so we have a lower monthly maintenance but end up with more assessments now and then.

[Gypsy3n8]

Originally Posted by Nypafl4u

That is an individual owner amount.
A couple of years ago, the oceanfront condo we own, needed to replace the two elevators. It cost each owner in the building $13,000. Once it was voted and approved by the board, we had 30 days to pay it with no financing available. Stuff like that can happen. Storms can damage roofs, balconys can need work, and the cement projects, all add to the mix. Our building is not fully funded with its reserves, so we have a lower monthly maintenance but end up with more assessments now and then.

HOLY KRAP that's a huge amount. Oceanfront was out of our budget so we are 1 block in off A1A. WE had our first assessment last year for $1500 to replace balcony railings and screens. Most of the 2nd floor units were not up to code, so I was quite happy to pay that for a safer balcony screen enclosure since our small dog loves to hang out with us there watching the courtyard.

[1insider]

Several oceanfront complexes in CB and CC have had big (up to $50,000) special assessments to each owner for concrete work in the last year or so. They usually spread it out over several payments like one big tower in Cape Canaveral is doing their current $18K assessment. They are doing theirs in installments over the next several months. I have seen associations get a loan to pay for the work and jack up the monthlies for several years to pay it back.

Beware buildings with unaddressed concrete issues. Look for cracks/splitting slabs on balconies and walkways or rust stains coming from concrete surfaces. They are ticking financial time bombs for owners.

[City__Datarer]

Thank you both for the info. (But, "Yikes!")

I have long been aware of these financial risks associated with condo ownership--that there could possibly wind up being large special assessments, underfunded reserves, and/or expenses that come up that aren't in a "reserved for" category if one is unlucky. (There is a certain amount of due diligence one can do, but no one can absolutely predict the future, so luck does play a role.)

On the other hand, I also know that some people do quite well with their particular condo, in terms of both enjoying their home (including being glad to have a home they own) and not experiencing big financial surprises (in their particular association).

So it's a form of ownership that's very different from owning your own single-family non-HOA home and that can work out very well or very badly.

But even already knowing these risks exist, these posts are still startling to me, just because of the dollar amounts involved, which are very daunting for me in terms of considering whether to "roll the dice" again on buying a condo (vs. continue to rent).

[Nypafl4u]

Less risk to rent, but no appreciation of an asset either. Even with the $13,000 assessment, and a smaller $1,500 one, my value if I were to sell is about $100,000 more today than the six or so years ago when I bought it. Oceanfront buildings rarely if ever go down in value. They most definetly go up if it has a direct eastern facing view of the ocean. Try to get some history on the condo, like recent assessments as well as historical ones over the last 15 years. That will give you an idea. If a lot of major stuff was done already, like concrete, new roofing and elevators, you should feel safer moving forward with that building.
I also look at frequency of sales in the building. High turnover may be a red flag too. People tend to stay longer in well run, financially stable condos.

[City__Datarer]

I'm glad things worked out well for you in spite of the special assessments!

Looking into the age of the elevators is an excellent tip--especially knowing now from what you posted that they can be even more expensive than I would have imagined to replace.

[1insider]

There is at least one building in Cocoa Beach where I will not use the elevator. I'll walk five flights before I'll get in that thing. Agree with Nypafl about high turnover. It's a red flag especially if there are suddenly several listings in a usually slow building.

About special assessments: homeowners have them too. They just call them expenses. When a homeowner replaces the roof, paints, removes a tree, etc. they have to assess themselves for the full amount.

Don't be afraid to own a condo. The well-run and maintained complexes are pretty obvious with the condition of the grounds and buildings and financials must be provided by a seller. Sellers must disclose assessments but not assessments being discussed. Meeting minutes may reveal the need for upcoming assessments or not. I've been in a condo association meeting where the subject of assessment was not allowed to be discussed to keep it off the minutes. Same thing with single family homes; the seller may not mention everything that matters.

Do your due diligence and talk to neighbors if you can. Condo living can be great if you pick a good complex.

[Gypsy3n8]

"Condo living can be great if you pick a good complex."


I agree 1000% with this. Don't be afraid to look at some of the smaller complexes too. Ours has only 60 units and lacks some of the amenities of larger places (no gym, for example), but the reserves are well funded and the condo fees are a great value for what we receive. Aside from the typical water, sewer, trash, outside maintenance, ours includes both cable and internet/wifi. The only bill we have aside from the condo fee is electric.

[City__Datarer]

My thoughts are no doubt shaped not only by a cautious nature combined with a financial situation such that I can't afford mistakes, but also by my own experience of selling a Florida condo that I previously owned at a big loss, at what turned out to be the bottom of the market, in the hopes of buying a single-family home. (That was a realistic plan for me back then because of low prices, but prices have since more than doubled, and in many cases more than tripled, in less than a decade, at least for the lower-price-range homes that I was looking at.)

So I appreciate the positive thoughts on this thread about condos, and the ways to find a good one, since I would like to have a home I own again and there are still some condos around that I could afford (or at least could afford to buy; a huge special assessment down the line could turn it into unaffordable for me).

The condo I owned, while in an association that was mainly rentals, was not in an upscale oceanfront complex but rather a low-end one. So my experience with a condo association with a high rental rate may or may not be applicable to the area the OP is asking about.

Still, for whatever my experience may be worth, I think the OP is astute to be asking questions about owner occupancy rates in comparing condos. I don't think my previous condo would have seemed like such a potential liability to me (such that I felt the need to sell it, despite the low prices, and try to get into something else) if it had been majority owner occupants rather than overwhelmingly renters.

For myself, I wouldn't necessarily rule out a condo association that allows rentals, but I'd never again buy in an association that's almost all investors (unless I was interested in being an investor myself).

I'm not a snob about renters--after all, I am one--but if I'm going to be invested in a home I own and hope to have it be a good experience over the long haul (and decide to take on the risks attendant to that ownership), I would want at least quite a few of my neighbors to be owner occupants, like me, and have that same sense of caring about their homes and community--to have that common ground with them.

By the way, I agree that there is a lot of overlap between homeowner expenses in a single-family non-HOA home vs. the special assessments that can come with condos, but there are some important differences too. (I've posted why I think this elsewhere, so I won't repeat myself here.)

Best of luck to the OP in finding the right place. I was curious so just looked at some online listings of oceanfront condos there, even though they're out of my price range, and the beaches and views are absolutely beautiful. Being able to pop out your door and take a walk on the beach every day, without having to spend time in traffic, would be at the top of my list if I could have my dream home!

[Nypafl4u]

Timing is so important. We were fortunate to be in a position to buy some of our properties when the market was at its low. We also bought a few after it went up and as rental investments too, but have strained our earnings with just breaking even or in one, severe negative cash flow. But we were buying for investment, long term holding, not a primary resident (except for one). This market is high. I would not be looking to buy unless the need to move was necessary.
Condos can be a good option, but the building's structural condition, location, and finances really must be scrutinized, especially when prices are so high now. We bought our oceanfront condo as a retirement option for 10-15 years from now. It about breaks even as a rental, but did appreciate decently on paper as an investment. If we move full time to Florida in the near future, it likely will be one of the first to go in my portfolio as much as it would sadden me with its great view. Our financial situation would not allow for potential additional assessments, so why take the risk of holding it. I never was a fan of a condo unless it had some special feature or location. We loved the beachfront view and quiet building with mostly non rental owners. Do your homework and decide what makes the most financial sense. Any home owner (regardless of type) will have unexpected expenses for sure, it's just part of the equation.