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I remember when they wanted to rip up the asphalt parking lot and install pavers in the Condo parking lot. Oh the screaming over the $250K cost of the project. Over 20 years the life span it will cost the individual unit owners is $8 a month. Five years later the same people who screamed and yelled over the parking lot paver project, couldn't wait to spend $250K redecorating the "Party" room in 2014. 2020 these same people came back and wanted another $150K to redecorate the Party room again. This was when I realized it was time to get out. September 30 2022 Hurricane Ian put the party room under 10-12 ft of water.

Basically, the lack of proper maintenance artificially reduced the price of the Condos. Kicked the can down the road. Those who got out earlier made a profit and now the remaining owners are holding the bag.

After Surfside, I would have sold a condo as quickly as I possibly could have. Not because I would worry about the building falling down. It would have been because it was obvious it was about to get really, really expensive to live in a condo.

I owned a townhome and loved it but I hated not being able to control things like the HOA fees. Yes, you have to maintain a single family home but you have complete control. You can set aside a few hundred dollars a month and still manage your maintenance costs. If you have to get a new hvac for 10k, you can save up if you have notice. If you don't have notice, they offer 0 pct financing. Most other things, like roof, wood rot, windows, etc, you can plan for and shop for good deals and do this a little at a time. It's nothing like having to come up with assessments or an HOA fee going up they way they are now. I hope you sell Michael. Get a single family home and just pay someone to mow the lawn if you don't want to. It's better to be in control of your own money and destiny.

I've been shocked at some condo fees! My hubs & I were looking at condos, but we changed our minds due to the fees.

Florida has gone insane with home prices. I love the place and its beautiful in most places but property prices are batshit insane. I thought Phoenix was insane, Florida is on an entirely different level of insane. I wouldn't buy anything in FL.

Welcome to South Florida! When you buy a condo it feels like you are making a mortgage payment and at the same time paying rent. Condo fees and assessments can easily be the same as your mortgage payment. In 2005 i was paying $220 today $900!

I've looked into Condo's because when I was starting my real estate journey, they were cheaper, even with the HOA dues. I was aware, even then, that I could not control those costs and they could skyrocket beyond my control, so I elected to buy single family homes, where I could control the costs better.

This here is exactly why I bought a house with my own pool. So much of the maintenance I can handle myself and the construction of a Florida house is very simple compared to houses up North. The reason insurance is so high is because of the contractor gouging every hurricane. It’s always best to avoid this by maintaining your property and doing what you can to mitigate potential damage. I didn’t need rip off artist for repairs, I did my own repairs and invested the remaining proceeds into the home.

Almost bought near St Pete's Beach, beautiful area, but the pandemic hit and put that on hold to wait for it to blow over. Dodged a bullet

The security company got all their money and pay the guards the minimum, they fell sleep on the night shift and do nothing.

Never buy a house or a condo that has an HOA. I can’t believe people are still trying to figure this out.

Someone on the condo or HOA board usually is getting a kick back$$ from security and landscaping companies

There are basically no more buyers. Those who wanted to buy a house already bought when interest rates were low. The party is over in my Florida neighborhood price cut after price cut. There is a very loud bird that lives next a house for sale. You have to nuts to buy that house.

Overnight, Condos became a money pit trap that is probably going to be hard to get out of.

Came so close to buying a condo about 2 years ago, so glad I didn't.....great video, thanks for being honest, not many are nowadays

People on a fixed income (esp retirees) are taking a bloodbath with all the price increases of food, maintenance, taxes, insurance, etc.

Michael! I'm in Miami for a few days, this place is completely insane... for the rich, it's like good times are here forever! Huge disconnect from the average person's reality... Unbelievable amount of buildings been built!!! Girl I visited is a RE agent, says condos in Brickell going like crazy been bought by foreigners! Lots of dirty money!

I lived in a condo I owned for 10 years, until 2017, when I retired and sold it and to relocate. Having security guards patrolling the grounds is a luxury. It would be cheaper to put security systems on the buildings and put up Neighborhood Watch signs.

A twenty percent reduction in home prices is not near enough after the recent price increases!

I'm seeing this in all of the neighborhoods here in Bluffton, South Carolina. My fiancé runs a barn in one of the high end neighborhoods here where celebrities go to get married. They just doubled their HOA. It's wild.

Every time I see a cheap condo for sale that looks great, the condo fee is over 1000 dollars a month. Those condo fees don't even cover all of the costs, like electricity. No surprise they dropped the price so much to sell it.

Thank for the great information Michael! Our condo fees have gone up 10% each of the last 3 years and we have a special assessment fee on deck. The association is well over 35K in arrears we've got cast iron drain throughout the complex that been dog patched and needs to be replaced among other things. We're fortunate to have our place paid off but I would so welcome a developer to come calling asking for a respectable buyout. I'm glad you talked about that developer/buyout situation that's occurring in Florida a previous video. Our complex is 40 plus years old and in an excellent location to desirable schools. Maybe I need to make some phone calls!

When I was on the board of a condo townhouse assoc. ( not in florida) We were given 2 options- pay a lower amount over a longer period to fund the reserve account or higher up front amounts for the first 7 years or so and then let investment returns pick up the rest to complete the funding, similar to how pension plans are funded. FLA condo assoc. Boards should get similar advice from a finance professional on how to build investment returns projections into the funding model to shore up the gap for condo unit holders. These new laws will result in huge pots of cash that need to be managed. Rhe other reco is to engage the services of a fiduciary to hold the assets to prevent fraud. Desperate ppl might get elected to the board just to raid the reseve fund. Good luck getting the $$ back if that happens

Civil unrest will skyrocket this year be careful of cutting security

I'm looking at condos and noticed that some of them haven't appreciated in years. The problem is that property taxes and common charges have gone up so much it wipes out market value of the unit

I have always been leery of HOA fees. These sometimes insane monthly costs are simply a way of gouging the condo owners.

Miami Beach condo reserves is what the HOA members buy their new Mercedes with.

Very important topic and nice graphs. I have owed condos in Florida and another serious problem was Condo Association fraud, not getting the required 3 estimates for repairs and hiring family and friends and getting a kickback. Also, I experienced associations charging more for renter background checks and pocketing the difference. And outright embezzlement. I’d like your thoughts.

your condo is worthless with those current hoa fees and the acceleration for future fees- it's like owning ford pu when diesel is 12 bucks a gallon

It just means that condo prices need to drop more. It's basically an apartment that you pay for with a lower monthly fee.

South Florida is so done. I’ve been on traffic for 2 hours all week. There’s no thing as traffic hour in miami. More like traffic day. Hate it here.

Sadly this law was needed because you don't want deferred maintenance that leads to another building collapse.

What is happening in miami? Developers want it to be an enclave for the very wealthy. Everyone else not welcome and priced out. And all the local politicians who claim to care so much about people are just letting it happen.

The biggest detriment to security guards doing their job are the actual residents themselves. Guards get screamed at when they ask a resident to show ID or if there’s a problem, or people who are living there, but are not on the list of residency.

Michael is back at it again with a great video.

Ahh the special assessment!! One of the joys of condo ownership!!!

My friend finally sold his condo after he could no longer afford the rising fees associated with hurricanes and forced upgrades to the windows.

Seems I've really dodged a bullet here. I have a 'condo' I own in the Midwest--a coop arrangement. Means all 26 of us unit owners own the corporation that owns the buildings and land. We rotate on and off the Board, and keep an eye out for getting multiple bids for maintenance projects. Thinking about getting maintenance done now instead of paying for expensive repairs a few years later. Not as glamorous as Florida, but my coop fee, including ins, lawn care, trash, water, gas and heat, comes to $560 a month. In winter, my electric bill is $27 a month. No other utilities.

My father is the president of his HOA at a large retirement community in Pembroke Pines. To combat insurance costs he is trying to set up a sort of conglomerate of condo communities so they can get a large group policy. One policy for several communities. It's complicated. Everyone needs to be up to date with an engineering inspection from a structural engineer, they need to have substanstial reserves, etc. It's a ton of work, but it could save big $ if he's succesful.

In Canada, strata fees have been exploding, especially insurance. All the small providers are underwritten by larger firms like Lloyds Of London, who insure a larger market overall, so when other costs go up in other sectors, the costs are psssed down accross the spread of insurance clients.

The examples you mentioned are the reason why I could never live in a condo association. It's takes alot of patience to deal with stupid people. Don't know why anyone would complicate their life this way.

Board: we have contractors that have been with us for a long time that we want to continue to support. Translation: that's where the kickbacks come from.

Watching from Costa Rica.🏖 Thank you for your candid appraisals! Glad I delayed pulling the trigger on my Naples, Florida property purchase!

Did not miss any of your videos. The assessments are insane. Bringing the buildings up to reserve is going to be murder. I tried warn my brother in law who wants to get a Snow Bird place in Miami. He thinks I have sht for brains already.... I get no satisfaction from being correct. I did my duty. My parents' building here in West Seattle are 100% reserved because they bit the bullet years ago. There is no deferred maintenance. No reserves is absolute insanity.

In my condo we had the neighborhood watch. There are a lot of retired people looking for something to do, and the neighborhood watch worked shipshape

“You will own nothing and like it”. Sounds like more paths towards that

Hey Michael, A listing in Georgetown Texas near Austin Texas. A flipper may be losing their A$$ on this one! Someone bought a house in my old neighborhood June 2022 relisted July 2022 at $724,900 dropped the price every month and now down to $509,900! Zillow doesn’t show their purchase price. Probably one that Zillow bought! Thanks for all you do! Keep up the great work!

I just cleaned clothes out of my closet and donated to Goodwill. Cut the FAT. Right?! Feels good when you pull the trigger.

The value of condos that are in buildings of 2 stories or fewer will go up in price like crazy.

I live in Florida, and as of January 2024, our monthly condo association fees went up by $150.00 per month. I am able to get by, but many of the older, retired people who have lived in my building for 2 decades or more are REALLY struggling.

I bought during the smart time of early 2020. I definitely didn’t plan on moving any time soon. It’s not worth it with these rates today.

Another quality report!!! And I have the same old question for you, how in the world do you come up with so much information to make a almost daily report. THIS HAS TO TAKE A MAJOR EFFORT AND TONS OF PLANNING. I can see this taking you in new directions. You really have very limited competition in your reporting. Keep pushing on the gas! Keith

Thank you for posting these videos about the UNAFFORDALE HOA'S in Florida. Because of this, I have changed my mind to relocate to Miami beach. The no capped HOA's and the trainweck Desantis running and ruining Florida are major contributing factors to keep my comfortable ass right here in Jersey. I'll just travel back and forth to Miami Beach. You are a rare breed broker with integrity to expose the trends and facts for potential buyers. More blessings and prosperity to you. Keep the TRUTHS coming!

Never ever buy a condo or townhouse. The HOA fee will eat you up.

Hello Michael these expenses are going to the moon, it might get to the stage to have a new block built ,the people move in and then demolish the old ones .

Bet the apartments that are high raises..sky rocket the rent. This is just nuts .

I would never buy into anything with an HOA. it's easier to budget in a stick and brick house. plus you don't have to pay for things that you don't want like security

We bought in 2017 and back then... that was what realitors were saying was at the top of the market, because it was increasing so much YoY for the last several years. 🤔 Thinking about it my wife and I decided to buy, because everything worked on paper and it would be our home, not a flip or investment property. We are still there and having seen the mess from 2020-2023 we are glad we bought when we did. It's incredible to see what's happened and we are in good shape even if the housing market corrects -50%. We are waiting for another opportunity to buy low for our first rental property. We are thinking later 2024.

U should sell your condo n move to playa del Carmen Mexico... Bldg concrete rebar... N pocket the extra amount

FOMO - fear of missing out. Nice data . Thx Michael

Hi Michael you all find the HOA will have to allow for much higher litigation costs and Insurance premiums about to sky rocket by at least 100%. Florida is the most concern to the Risk companies, all it will take is a Major storm and you will find properties will not be able to get insurance.

I believe the new legal requirements will strengthen the condo market because buyers will have better assurances about the financial conditions and structural integrity of the condos. Required engineering studies and setting aside adequate resources to maintain the condos are essential. The Condo Board of Surfside knew about the problems, but they claimed they got massive resistance from the owners to raise assessments to take care of the problems. Under the new law, the Condo Boards have no choice regarding engineering studies and reserve funds, and condo owners have to meet the needed requirements.

New construction in FL are built with latest building codes... Lower insurance

25 years no maintenance is sometimes not a good idea

Developers will also own the management company that is extremely difficult to switch and will sell units initially for less because they know they will make their real profit in fees.

You're right my brother still owns my Punta Gorda isles condo and the hoa doubled and its going to get worse. I bought a 3 bed home in nearby Port Charlotte. Taxes ready?? $950.00 a year. And I could get a 1/3 discount because I'm a Po boy on paper. No home ins needed I bought cash.

A lot of Americans are going to learn some basic math as the finances of this country careen over a cliff the next several years. Just because you can afford a payment doesn’t mean you are living within your means .

Re the security comment -- trace the connection between the board members to this company. Likely either a personal connection or kickbacks happening.

Nobody likes a condo association fee but there are services provided. You still have to upkeep your single home…roof, paint, insurance, grass, windows, lighting outside, possibly security, & plantings.

Get the most recent meeting minutes and know the reserves!

I think about those condo owners living in the Millennium Tower, who were asked for millions of dollars to fix a problem they didn't create.

I don't know about new constructions. I've seen stories of terrible build quality during the pandemic.

Had a terrible experience with condo board, will never own a condo again!

Deals are good. Thanks for explaining the NEW CONSTRUCTION. Great video

If I could not afford to buy a single family home then I would just rent an apt or condo. I would never buy a condo to save my life. The benefit of owing your own home is not only the house, but the land it sits on. You are not only a homeowner, but also a landowner. Land is really what gives real estate it's value/power. A condo owner is basically a slave to the association (HOA Fees), no thank you.

If HOA fee is over 250$ monthly… You really need to ask Yourself, Why so much ? Needs to Checkout rules and regulations… if HOA rules are no Rent out .. think twice before buying…

lived in a condo. some old freaks lived next door they did drugs and got drunk all the time. The old lady and old man used to stalk me around condo complex and cranking thier TV because they can't hear. I mean I should have just knocked them both out but didn't want to goto jail

Buying a condo makes absolutely no sense to me. Paying an enormous price for a space and the bills, and then having HOA fees higher than a rent payment. Seriously, why not just rent an apartment? Basically, it is the same quality of living. The only advantage I can see is that when you move, you might have some equity. However, that isn't a guarantee.

That's why I love my townhouse. Two stories, simple.

Home windstorm insurance cost in Florida is Beyond crisis mode, whether you purchase SFH or Condo, absolute highest in Nation. Now like $5000 to $10000 per year for small 1500 sq ft house ,fairly typical, same for Condos, if near the water , Cost is even higher, no help coming from the legislators, the recent bill passed helped the Industry , not the citizens

The banks themselves have zero reserves.

Good Job Michael. Hope to meet you in July

It's right to have the reserves by law. What happens is people own a condo for years without paying into a reserve then when they leave the new owners bear the full brunt of the roof replacement or whatever major work is done through a one-time assessment. It's not fair.

HOA’s are going up 100% in Orlando as well. Home Insurance also doubling or dropping you all together after 10 years with no claims

Thank you Michael for keeping us informed. I was thinking about Condos a while ago BUT Thanks to you and your channel I’m not even thinking about that anymore. I’m still very interested in the Clearwater area. Have a great weekend my friend. , Carlos

This guy is really really sharp!!! Xlnt Xlnt Video!!! I'm a licensed real estate Broker of 42 years from Laguna Beach, Calif. Thanks, Mark

The last year reference and comparison is helpful

I appreciated seeing what those 10 things are that will need full reserves. My concern is that not all condos are created equal. Being on the ocean with the salty air corrodes a building faster than being inland. Most people won't be able to come up the assessment so the HOA is going to have to borrow the money to put into reserves and assess the residents who will have to pay high interest on the loan. There is no safe place to put money in this environment of super inflation so lets say there is a million dollars in reserves in the bank- in ten years that will be like $1000 for what it can buy. So there will never be full reserves when the value of money is decreasing in real terms. The price of everything is going up and the value of a dollar is going down. How are they going to be able to save the money in reserve from devaluation? Or from the board members stealing it? I think "pay as you go" makes more sense. Fix things as they need to be fixed with an assessment. My condo fee includes cable TV. Who needs that? It works out to $86/m per person. I watch internet TV. I hate having to pay for cable TV.

Great walk and talk Michael. Our HOA boards keep tight reigns on our HOA reserves and expenditures in AK and AZ. Always planning in order to keep the maintenance current and avoid special assessments. Definitely miss the single family home life though.

I literally bought a studio apt early 2021 right before the increases, just sold the condo 2 years later for nearly double. It was also getting expensive with the HOAs and insurance/taxes

1 Hotel went through extensive reno, subsequently sister building Roney Palace did the same starting in 2017,presently almost done and prices skyrocketing right now...don't know for how long considering current market !

This seems a bit like a story where someone screwing up ruined it for everyone. If the Surfside condo hadn’t collapsed do you think this would have happened? RIP everyone who lost their lives in that disaster. However that disaster was 100% preventable, but instead a community of people decided to show extreme negligence across a number of years, even at some points ignoring cracks and leaking water in the parking garage of the condo, clear indicators of structural failures. I live in a condo now temporarily, but there’s a building mechanic on the team who’s checking for stuff like this on a weekly basis and following up. Their negligence caused a disaster and the entire community is paying for it

The best way to describe hi-rise condo ownership is that you will beep buying your unit .... OVER & OVER AGAIN, in effect. The days of getting away cheap are OVER. The after-mortgage (PITI) costs will be as big, or bigger, than most mortgages. Hi-rise condos will no longer be viable housing instruments for the middle class.

30 year loan and owning it for 3-5 years is more like a lease than ownership. We did that, but we bought a foreclosure that needed extensive remodeling. Bought a HUD condo for $78k, put $32k into it, sold it for $160k 18 months after we bought it. We didn’t intend to sell it: we had to move because of my job.

I feel like I live in the twilight zone: houses increasing in price lately, even after spending 90+ days on the market.

Insurance! Of course if you insist on living in a hurricane zone you’re gonna pay. My unit’s condo insurance is $275 a year…and that’s Canadian dollars…a year, not a month! The building insurance comes to $20/month as part of my condo fees.

you are completely correct! but most HOA members are just spendthrifts! It's not their money.

I’m in condo for 17 yrs. On condo board. First off we do a lot of maintenance just like you do on your own house. Taxes going up for Everyone in house or condo just like home insurance. Every 3 yrs we do a reserve study to make sure we are in good shape. And nobody on our board gets kick backs. That’s laughable. This gentleman is scaring you beyond belief.