Condos are a great buy, but look befo...

Condos are a great buy, but look before you leap

There are 100 comments on the South Florida Sun-Sentinel story from May 21, 2009, titled Condos are a great buy, but look before you leap. In it, South Florida Sun-Sentinel reports that:

Steve Economou last month paid $157,000 cash for a fully furnished two-bedroom condominium at Boca Teeca, a short bike ride from the ocean in Boca Raton .

Join the discussion below, or Read more at South Florida Sun-Sentinel.

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the Independent

Boca Raton, FL

#1 May 21, 2009
looks like some good deals for "investors" again...
Deputy Dog

Altamonte Springs, FL

#2 May 21, 2009
Concrete coffins where neighbors learn to hate each other
OverTaxed

Hialeah, FL

#3 May 21, 2009
There will be (and are) some good deals for investors out there, but the danger is VERY high. It's like buying bank stocks, they are either going to do well (you'll be able to rent the unit highly cash flow positive) or your going to lose it all (the building will fail, HOA collapse, section 8, etc).

That's the thing, there are going to be many condo buildings that simply fail, they won't be able to get enough people to pay the HOA and support the costs of the unit, and the building (as a whole) will be sold to groups that will take them section 8. So, while throwing 75K on a condo seems like a great deal, realize that the value of that condo could, very realistically, go to 0.

There are quite a few buildings that need to just immediately go sec 8 or be torn down; those built at the tail end of the boom in places that have NO demand at all for luxury condos (Riveria Beach, Sunrise, etc). Those that have a good location (downtown/oceanfront/etc) will make it; those in more marginal areas will fail.

Just be careful, and realize that the worst situation is a TOTAL loss, not the 10% your psycho RE agent is telling you is the "worst case".
DAS

Fort Lauderdale, FL

#4 May 21, 2009
Yea Ok..Buy it for 160 and its worth 75K ...........
good ole boy

Terre Haute, IN

#5 May 21, 2009
You couldnt give me a condo, where the association could jack up my rates at will. And with the state corrupt Cubans that control Florida can jack up my taxes. No way.
Small time politics

New Orleans, LA

#7 May 21, 2009
Steer clear of any associations homowner or condo. Their board members are all crooks and can double your maintenance at whim. Face it your board members are not mental giants and most of them get kickbacks from venders and contrators.
Joe

Fort Lauderdale, FL

#8 May 21, 2009
I think I will keep my single family home. The only thing I have to do is have the grass cut and pay the taxes. Everything else, I have control of. A condo may be a good deal today, but just wait...
Telmark

Redding, CA

#9 May 21, 2009
Quote;
"That's the thing, there are going to be many condo buildings that simply fail, they won't be able to get enough people to pay the HOA and support the costs of the unit, and the building (as a whole) will be sold to groups that will take them section 8."

Exactly. We saw a lot of this while renting a condo back in the early '90s. The worst thing was the huge increase in "visitors" on or around the 1st and the 15th of every month. These "visitors" took up all of the "open" parking spaces, threw loud all night parties, and generally trashed the place. Meanwhile, the crime rate (burglaries, car break-ins, property theft, etc,) skyrocketed during these periods as well.

Prospective condo buyers should also realize that many HOA programs are completely unregulated and, as such, can put your finances at risk in the long run.
Elephant Candy

Hollywood, FL

#10 May 21, 2009
Regretfull. These people are typical american idiots.

They only hear what they want to hear.
GolTeefes

Cape Coral, FL

#11 May 21, 2009
Yup, buy, buy, buy....those condos are selling for more than a lot of brand new, never lived in houses are selling for on the east coast....the sucking sound you hear is the economy continuing to spiral down....we've yet to hear the crash.

Just do some quick math....ALL of the jobless whose credit cards are just now going 90 days late added to their home loans which at 90 days are just now in foreclosure....toss in the car dealers, their employees and ALL of the businesses that are supported by them....from advertising to restaurants and you've got.....more loss

Don't drink the cherry Kool-Aid the Preziden and da media be offerin....the muzick you hear is designed to keep the patients calm.

Since: Feb 09

Boca Raton, FL

#12 May 21, 2009
Condos are the worst investment. I would rather rent!!! I bought my first condo, and its been a disaster owning it ever since!
krocks

Pompano Beach, FL

#13 May 21, 2009
FYI, Economou, you could have gotten a better deal in Boca Teeca. You overpaid in a buyer's market; bad business ~
Cemetary

Pompano Beach, FL

#14 May 21, 2009
I was looking into Carriage Hills, Stirling Road in Hollywood... BEWARE of that place. I was approved for a loan, but the investigation showed they had law suits against them from roofing companies, so the mortgage company said, NO to that place!
LOL

Pompano Beach, FL

#15 May 21, 2009
170K in Boca Teeca?? Worth MAYBE 100K. dum da dum dum
Jay Ross

AOL

#16 May 21, 2009
Ironically, the buyer of the condo unit in the "5961" building of Boca Teeca was totally ripped off....Check the sold comps for the other 1200 square foot 2 bedroom units in that same building. Prior to his purchase, the last 2 sold for $85,000 and $95,000 respectively. And the building has had major financial turmoil. Last year the homeowners even had a vote to remove the entire board of directors.And they are still in a dispute with an insurance company over a hurrican damage settlement. And the golf course that the building overlooks is in disrepair.
SUCH A DEAL !
Just Me

Midlothian, IL

#17 May 21, 2009
You pay and pay and pay a condo assessment every month. In 10 years time, our monthly assessment nearly tripled. And still, when anything major needed to be done (roof, tree removal after Wilma), wouldn't you know it? There wasn't enough money in the coffers to pay for it. So we had special assessments (running into the thousands) on top of our monthly assessments.

Condos are a huge rip-off. Don't want to do yardwork? Hire a company to do it for you! It's a lot cheaper and if you're unhappy with the company's work, you can fire them and get someone else! The #1 reason I hear people give for buying a condo is "no more yardwork!" and BOY! What a dumb reason.
Joe

Miami, FL

#19 May 21, 2009
Condos are the worst I just got assesed for an extra $9.400 for new parking lot striping. Two years ago it was $5,900 for a new roof. I could have paid off a house by now!!

Buyer beware is right!
oh please

Midlothian, IL

#20 May 21, 2009
Nearly $170K for a 2/2 in Boca Teeca? Has this guy heard of google?
There are several 2/2's for sale in Boca Teeca right now running between $95K and $120K. He's thrilled because it's furnished...for an extra $70K? What a yutz.
OverTaxed

Hialeah, FL

#21 May 21, 2009
Good call (renting).. In many condo buildings today, you can rent a condo for the cost of HOA+taxes+insurance. There's simply NO way that you can beat that deal. Even if you got the condo for FREE, you'd still be better off renting it because you can't be hit with assessments. There's lots of condo communities (and SFH as well, which is very strange) that, on paper, have no value at all. They can't cover their costs (with rental income) assuming the MTG is totally paid off; that places them at 0 value.
SouthFlorida wrote:
Condos are the worst investment. I would rather rent!!! I bought my first condo, and its been a disaster owning it ever since!
Bad Boards

New Orleans, LA

#22 May 21, 2009
Joe wrote:
I think I will keep my single family home. The only thing I have to do is have the grass cut and pay the taxes. Everything else, I have control of. A condo may be a good deal today, but just wait...
It is always a gamble that your board members are honest. Increasing or decreasing the value of your home is basically up to idiot board members. They break the bank at your assn and your value plummets.

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