How Assesments Are Forcing Owners Out of Their Homes!

In this eye-opening video, we delve into the skyrocketing condo assessments in South Florida and the devastating impact they are having on residents. From Miami to west Palm Beach, condo owners are facing financial turmoil as fees soar to unprecedented heights.
🔹 Homelessness: Discover the heart-wrenching stories of owners who are being forced out of their homes due to unaffordable assessments.
🔹 Forced Sales: Learn about those who are reluctantly selling their beloved condos to escape the financial burden.
🔹 Financial Strain: Understand how thousands of residents are grappling with the severe economic stress caused by these overwhelming fees.
Join us as we explore the root causes of this crisis and discuss potential solutions. Whether you’re a condo owner, potential buyer, or simply interested in real estate trends, this video provides crucial insights into a pressing issue affecting our community.
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Paul G. Lykins
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[@PalmBeachesPaul]

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[@marinaoppenheimer1023]

@@PalmBeachesPaul please stop badmouthing Florida. What is your objective? Selling real estate somewhere else? I live in a seaview Miami Beach condo, and our assessments are not that bad. So please stop.

[@PalmBeachesPaul]

I'm not bad mouthing Florida, try watching some of my other videos and you wouldn't make that statement. I'm telling the truth, the assessments are bad and lots of people will be losing their property because of them if they can't pay that's called reality.

[@WilliamSchillerstrom]

This "crisis" was the result of lax state regularions of condos. Condo boards should have been required to maintain sufficient reserves and properly maintain their building.

[@GD-ru7xr]

I looked for months to buy a condo in S. FL. Every one was rejected by the bank because of low reserves and /or lack of maintenance. Owners have been milking these buildings for decades; it's caught up with them.

[@pablod3734]

@@GD-ru7xr exactly!!! They rented them out and pocketing 100% of it with zero maintenance done to the condos.

[@nancyjarrell4620]

You are exactly right! Reserves should have been held all along but everyone thought the next generation would have to worry about it.

[@Luv-evedear]

The rejection of a mortgage in Hollywood is because the buildings were pushed into the flood zones, 7 miles west of the ocean. Condo buildings only kept legal amount of flood insurance on buildings. THAT’S WHY NO LOANS ARE GIVEN TO CONDO BUILDINGS WITH LOW FLOOD INSURANCE. They only have the legal amount of flood insurance and mortgage companies will not give a loan for a building with lower than they require of flood insurance. FACT

[@carsonwentz8301]

@@nancyjarrell4620 typical boomers

[@userxyz64]

@@GD-ru7xr what are "reserves"?

[@gingerkilkus]

Back in the day, when I purchased my first condo home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@leojack9090]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@flimmaytinstone8980]

My first was 6% and the banker said I will never see rates this low again. That was in 91

[@CaseyKoplinCk13]

@@gingerkilkus vote for Trump.

[@antareschen4451]

Return to 3%? there were no 3% till after 2019. SMH

[@antareschen4451]

Buying a condo is already financially uneducated. Now you have to sell your condo for lower price doesn’t mean the whole housing market has to decline. There is no such thing in single family home. Whoever choose to buy SFH is already higher in financial education.

[@adriaba790]

When this man emptied his 401K to buy a condo he sealed his fate 😢

[@usiffputz6753]

Not true. He should have opened an LLC then put a 1st lean on the Condo for $275k once you do that you are covered. Think ahead boyz. They cant foreclose without paying 1st lean off, so whats the problem.???

[@bitcoindaddy1]

@@usiffputz6753 dont pay your HOA and property tax and see what's happen...

[@wowzers1069]

@@usiffputz6753 Doesn't work that way. Nice try.

[@RG-xi3rd]

yes, never empty your nest egg to buy a house or buy anything for that matter.

[@RussellD11]

@@wowzers1069 actually, as a corp lawyer , IT DOES, if your smart...

[@helenhebert7127]

I am an architect that specializes in building envelope design. I have sat through condo board meetings and have been screamed at by owners who didn’t want to make necessary repairs. Most people are very shortsighted. This is the result of

[@vintagejaki751]

What was their reasoning for not paying?

[@mlisaj1111]

Some likely just don’t like an unexpected cost, and for some may not have the money or it’s a hardship. But if in an older building that needs repair….not much else to do, and it needs to be fixed. But many will say “nah…that crack will be fine” or try to delay.

[@xtrey19x]

@@vintagejaki751 Is this a serious question? They don’t want to and/or can’t afford to. We live in a country where people are only affording the lifestyle they live because credit (debt) is loosely given out. Paying what it actually cost to own a home would mean they’ll have to cut back in other areas like cars, vacations, dinning out, fancy clothes, Jewelry, shoes, and don’t forget the student loans for themselves & their children. How are they supposed to keep up with the Jones if they don’t have the latest & greatest consumer goods & are going out to show it off?

[@xtrey19x]

@@mlisaj1111There should be nothing “unexpected” about home repairs & maintenance work.

[@mlisaj1111]

@@xtrey19x I agree that eventual repairs in a building are no surprise….but many people don’t.

[@RG-xi3rd]

Salt water unfortunately eats away everything you own at the beach. There are always repairs every 5 years. That's about how long it takes for the rusting out to take hold. These condo owners should have known what they were getting into before the purchase. Homes on the beach require constant maintenance. The amounts seem excessive, but I guess that's what happens when the board doesn't keep the buildings maintained for decades.

[@edmundcharles5278]

@@RG-xi3rd They should have constructed the continuous of either Roman concrete or marine concrete-it lasts forever!

[@robertmartinez3769]

Including cars and appliances. Everything metal related

[@faithrada]

​@@robertmartinez3769 Exactly. Up North I painted about every 5 years.. on the coast in Florida... EVERY YEAR.. with pricy coastal paint.

[@ninetimesaday]

buy a little more inland, beachfront causes so many issues.

[@kathyschreiber9947]

You mean the roofs, parking lots, common areas, and infrastructure of the building don't just fix themselves?

[@kyleinpa5285]

I feel bad for young families who can’t even afford to buy now, not for millionaires who have to pay for maintenance on their properties.

[@deecee901]

Why it's equally bad for all. It's greed..

[@pawelpap9]

@@deecee901Whose greed? Condo owners who for decades voted against realistic maintenance costs and now woke up in buildings that have no cash reserves?

[@desmondjefferson2127]

🎯🎯

[@bryanachee7133]

@@pawelpap9 well not everybody in a building votes the same.

[@melokc7257]

Most All are not millionaires. Just individual condo owners that worked for a living.

[@paulkelly4731]

These owners are delusional. It's not like you can buy a single family home, live in it for 40 years, and never have any major repairs. New roof, foundation cracking, new windows, hvac, and on and on... These assessments are accrued deferred maintenance costs, and they are higher because of the extremely corrosive marine environment, and a building built on SAND! These owners, with exceptions, bought these units for reasonable prices and want to enjoy the monster appreciation of the unit, but don't want to pay to maintain it.... Guess what, a potential new buyer doesn't want to pay for your neglect AND the monster appreciation.

[@Melanie-xe1gh]

It’s not fair to blame the owners. They thought the outside maintenance was taken care of by their high HOA dues. They thought they were paying for upkeep. That’s always been a draw for condo buyers. Lesson learned, but for the elderly owners, it is devastating.

[@jamesmorgan5671]

Did you watch the video? Yeah, I'm sure when they bought the condo they were told upfront that it hasn't been properly maintained for 20 years and they would have to pay for all that deferred maintenance at once.

[@thatShadowKat]

You must not live in a condo or have watched the video. That last story, the owner being assessed $224K.... since they moved in their fees doubled from $1500 to $3000 .... A MONTH. If we take absolute averages, that would have been $270K over the past 10 years. I'd be pretty off if I paid that AND required to pay an additional 224K, bringing it up to nearly $500K total. Sure they paid a reasonable price. And they pay a monthly fee to live there. Yes, there is the idea of maintenance and all, but just tell us what do you think all that money went toward.

[@commonsense6967]

@@jamesmorgan5671Whatever, they refused to alliw HOA to raise dues that would be sufficient for repairs, and now they are living inpotential death traps. SAFETY ISSUES, potentially.

[@waynerick5755]

They thought it was Disneyland 😅😅

[@davidjohn4326]

I use to own condo's in Myrtle Beach,,, most of the problems I experienced in Myrtle Beach was that the homeowners were always voting down HOA dues to build up reserves for replacement and upgrades.. Than as year went on and replacement of roof , elevators, concrete repairs all had to be financed by special assessments into the thousands.. One tell sign that your condo is in trouble is when the HOA board members sell their condos before all the assessments start taking place. The newer condos has reserves set up and included in HOA fee.. Owning an ocean front condo is not worth the cost of ownership unless you are wealthy person.

[@Kevin_Rhodes]

Bingo - my mom and I own a condo in SW FL. For YEARS the board could not get dues increases passed. And the reserves got too low. They finally HAD to do both an assessment and raise the dues. And some owners had to sell and move because of it. Thankfully, only a 2-story building and NOT oceanfront so not subject to the new state laws. And we got lucky in that we were going to have to pay for a new roof, but Ian caused that to be an insurance claim instead, greatly reducing the size of the assessment. In our case, we had insurance coverage for the assessments up to IIRC $25K, so it only cost us the deductible.

[@Drizimar1]

Members kept kicking the can down the road, I do not feel sorry for any of these people. They did this to themselves and whining about is not gonna change anything.

[@garyjarvis2730]

Pay me now or pay me later - and later is already here.

[@Kevin_Rhodes]

@@garyjarvis2730 Absolutely spot on. And I say that as someone who owns three FL condos (thankfully in a 2-story building nowhere near the beach) where the HOA for decades didn't charge enough in dues and had inadequate reserves. I knew that going in and my condos were bought at prices that took into account the looming assessments. Hasn't been too bad in our case, but we got lucky in that Ian caused our roof replacement to be an insurance claim rather than something funded by the HOA. I rent two and my mother lives in the third.

[@mrbob19561]

Soon 50 years from now. Water will be all the rage..

[@italiang8470]

Sorry for the unsuspecting, but I pay for maintenance and repairs on my house as I go. There is no free lunch.

[@mistiinseattle]

yes but do you pay for maintenance on your neighbors' homes as well? People simply don't know this when they buy. I sure didn't.

[@OtisFlint]

@@mistiinseattle And your neighbors pay for yours. That's what happens in an HOA/condo community.

[@mistiinseattle]

@@OtisFlint lol nope. I sold my condo. Never again lol

[@DanGilliland-pi4vh]

I will never buy a property with an h.o.a. I will do my own maintenance work

[@thatShadowKat]

And these owners pay assessments monthly for what reason? The last story said he was paying 3000 a month. And for what? They're not asking for a free lunch, they should be asking where their lunch money went!

[@wowzers1069]

I am the treasure for our condo complex board. We recently had our Structural Integrity Reserve Study (SIRS) done and will be raising the HOA dues by a small amount next year as a result. Our complex has always been well funded due to responsible board members and more importantly we have residents who knew that we needed a reserve account that could stand up to most anything. We broke the news to residents yesterday that dues would go up and not a single person complained. At the same time the property management company that we use told us that about 30% of the complexes they manage had 'kicked the can down the road' and have zero in reserves. Those complexes will be facing enormous HOA increases - some as much as 300% increase + a one time special assessment. The condo complexes on the ocean are a great place to live but buyers need to check the financials, and under recently passed legislation you are entitled to financial disclosure.

[@gogetter593]

@@wowzers1069 great business motto I'm not afraid of the condo market I'm searching for 1 now in miami beach!! I know you can find a great condo if you find the the right HOA that's managing the condominiums!!!!! That's what I'm searching for in north or mid beach possibly south beach

[@williamcahill2462]

Congrats to you and your fellow owners. Your responsible boards saved you. As a facility manager, I toured a lot of these buildings. The folks I gave my input rarely bit the bullet and took the required steps and now it's all coming home to bite them. The reality is, this country is short tens of thousands of capable facility operators. It's never been seen as the high value position it really is.

[@jonesmatthew7511]

I owned a townhouse on a lake in New Hampshire with 100 units. Now the septic system went out and the leach fields were literally running uphill. The EPA required a 3 million dollar connection to the town sewage line... this was back in 2012 and was 1/5 the value of the condo and I exited at a loss. The HOA fees doubled during construction to pump out sewage by truck. I learned a lot from that experience.

[@discovery781]

How were u able to sell ?

[@jonesmatthew7511]

@@discovery781 lowered the price to 75% of what I bought if for 10 years earlier and took the loss (which I made up on renting it out for the last 4 years of ownership). Hard nocks, made me study economics. I was an Austrian school living in a Keynesian world!

[@guyplay]

I’m the Board President of a large condo association in major metropolitan city. Most of these owners are responsible for this because they don’t want any type of an assessment increase and fight it. In my city, a Reserve Study, is required by law. We use it as a guide for financial planning. Each year our assessments increase anywhere from 3 to 8% so that we can pay for capital projects. My building was built in the early 40s and is currently in better shape than buildings that were just built less than 20 years ago. We never defer maintenance and that is the key to a well-managed condominium building. One other thing that owners never seem to understand is that the cost of living and the consumer price index continues to go up each year and often every month. Associations have to keep up with these costs, many of which include the cost of salaries for the staff at a minimum.

[@erikthorne]

Would what you are doing actually keep the values of the condos higher? The building is sound. Reserves are their to meet future needs. I would think that would make a condo an easier sale for a better price. These people that are against assessments seem to not realize the value of their condo relies on the condition of the building? You let the building go no matter how nice the inside of your condo is you are not going to get good money for it.

[@ytadventurer9170]

@@erikthorne The whole point of "kicking the can" is that they think it won't be their problem because they'll either be gone or dead by then. It's the same problem we have with the Boomers and the national debt and lack of Social Security funding. They know it won't be their problem, so they run up the deficit and leave paying for it to the younger generations.

[@guyplay]

@@erikthorne it is one of many factors in retaining and increasing property value. Unfortunately, so many uneducated condo buyers may look at the monthly assessment for a unit and decide that’s too high. Prospective buyers must look at the finances of a building especially in smaller buildings under 20 units. You should have $5-$10k per unit in reserves for a high rise with several hundred units. In smaller buildings, you should have double of that at a minimum. When I purchased my place 10 years ago, I looked at a beautiful unit in a small building with 30 units. They only had $2k in reserves because they just used all the money to replace a three story outside stair case. The cost was under $40k for that project so I said hell no. You haven’t been planning at all.

[@Jacquie_Kirk_111]

@@guyplay that's ideal. I live in a condo in Canada. The board is keeping fees low, and all the stupid owners think this is great, but no Maintenance is behind done, it's criminal.

[@guyplay]

@@Jacquie_Kirk_111 run for the board and make some changes.

[@ricladouceur6202]

Who buys a condo without seeing the reserve fund is healthy!

[@joefratianni8693]

Lots of people and many don;t care about the reserves because they think nothing will ever happen. Its not just a SoFLA thing either.

[@CollDott]

All say it's super HEALTHY!!😅😅😅

[@alluringbliss4165]

Humans are fallible

[@melissachartres3219]

Who types out a question without using a question mark? Same people.

[@ArthurDentZaphodBeeb]

I suspect the majority don't even know (or care) what a Reserve Fund is, until it's too late.

[@jeffdunnell6693]

Don’t people realize that buying a condo in a high rise is buying the entire building maintenance costs.

[@bar10ml44]

@@jeffdunnell6693 Yes, but if you have a reserve fee built in and good management you can cover the bigger expenses. When you live in a large complex you need to be strict because a lot of people don't give a toss about who pays the bills.

[@faithrada]

​@@bar10ml44 Unfortunately.. in bad times MANY people stop paying their condo fees.

[@scleary4318]

@@bar10ml44 cost money from day one if the reserve is depleted in comparison to the net worth of the building Run. Same holds with Florida retirement villages all it takes is one Hurricane and there goes the value of your investment!!

[@FrequentFlyer_MIA]

All homes require maintenance

[@hermanrogers1325]

You are absolutely correct they should have known and the same for houses when people buy them and the same thing goes for renters when the price of rent goes up

[@thomasryan2679]

Our pension system offers a one-time, lump-sum, payout. A growing number of guys were taking this option and investing in Florida real estate. After 32 years of service, now they're going broke and are worried. They risked that lifetime check to get rich quick.

[@oldphart-zc3jz]

That's insane. Wise humans buy land at an affordable location rather than follow the herd then pay it off and live on it. (Worked for my, I retired at 47 and my alarm clock is a rooster.)

[@Sherri1971US]

Yes.

[@odettetenney409]

I WOULD NEVER BUY A DAMN THING IN FLORIDA, U R TRULY WASTING YOUR MONEY.....

[@trevorrobinson2941]

Actually they did, guys in my trade did the same thing and ended up broke

[@seanm3226]

@@odettetenney409 You’re wasting your money if you don’t know what you’re doing. I recommend that you stay put.

[@frankd3505]

Salt water very corrosive. In most cases the owners have refused for years to fund repairs

[@elcee7800]

Yup, IGNORANCE! Free entitled ride up until payback time, then crying poor boy tears. Their feet don’t stink.

[@lucifersapphire8412]

Condos are the worst investment, the HOA fees alone should be a huge red flag for prospective buyers.

[@Lexxie45]

I lived in Fort Lauderdale area back in the late 1990's and absolutely loved it. I knew a guy, a friend of my now ex husband's who bought a nice 2/1 condo on the beach for $15,000 cash and when we were there for a party one time, he was laughing that he paid only $100 to live there. That's how much the HOA was back then. He sold that place for more than double since then and now owns his house in Delray Beach, I think. Family emergency made me move back to Seattle in 1999. I always wanted to go back to Florida but now that prices have gone to the moon, I won't be able to.

[@Kevin_Rhodes]

There are still very reasonable places to live in FL. Just not in a highrise right on the beach. My mother and I own three units in Port Charlotte on the Gulf coast. Not on the beach, but a nice 2bd/2ba unit in our building is $125-150K. One bedrooms are well under $100K. Double what we paid for them six years ago, but still a very good deal, especially if you have a paid for house up north you can sell as we did. Certainly FAR cheaper than Seattle.

[@janruss3729]

Their first problem was that these people chose to buy a condo. Second, it was in Florida.

[@rosanneshinkle4133]

Many great places in Florida but I would never recommend the beach or a barrier island. As beautiful as they are, it is too risky. And never a condo. Go rural.

[@janruss3729]

@rosanneshinkle4133 I lived in Florida for 3 years in the 70s. Never did they have the hurricanes or volatility of weather they have had in the last 25 years. Florida is a place to vacation at the right time of year, but never to live there again.

[@PalmBeachesPaul]

That's interesting because I have lived here for 30 years and have never lost a single item to a storm ​@@janruss3729

[@janruss3729]

@PalmBeachesPaul I'm glad for you. You've been lucky or put a lot of thought as to where you live in Florida. 😊

[@nana-l5v6s]

You want luxury, care free life but don't want to pay the cost

[@DeeK.M]

Terrible Outcomes. I left & sold my tiny home in Ft. Laud retirement section 20 years ago. You couldn't get me to ever live there again! ❤My NYC🗽🏙️My Brownstone paid off, Thank God!

[@gijanetexas5770]

I live in a townhome in a HOA community in Texas and we had the same thing happen. Five decades of low assessment fees to make the seniors happy and now bam, all kinds of stuff needs to be fixed. Our issue was the cast iron pipes under that houses that we had not enough reserves to cover the replacement.

[@prettygirlus9008]

Back in 2020, my 24-unit / 4-building condo complex needed new roofing. Bids came in at about $800,000. Condo rules required a vote of all owners for any expenditure over $250K. A majority of owners voted down the new roofing project. The board simply decided to do the project in multiple stages to stay within its $250k spending limit. But that added $200K to the total project. It ended up being five stages over two years to complete project w/ a over $20K in special assessments per unit.

[@glennwatson3313]

$800,000 million? That's $800 billion.

[@matthewsmith2362]

He was trying to say 800 to a million. Like in that range

[@unpointsword]

@@glennwatson3313 so you expect people to believe you're smart enough to comprehend and regurgitate an abstract value like that but can't extrapolate meaning from between the lines of a simple sentence? Bless you

[@glennwatson3313]

@@unpointsword Your post was the perfect combination of disdain and disdain. The beginning was just a straight up, if poorly written, insult, then you finish with the classic, "Bless you." You must be from the South grandma.

[@glennwatson3313]

@@matthewsmith2362 I'm sure he was. I just found it funny. $800,000 million. I never say a number written like that. I can't figure out if its $8 trillion or $800 trillion.

[@loveaodai100]

I am from NYC. In 1973 I visited Miami during spring break and resolved that I would live in a tropical environment. Came to pass in 1988 but to Saigon where my wife is from. We bought a condo in Saigon 15 years ago. There are no property taxes and the total maintenance fees are roughly 10 dollars per month. We have a corner unit on the 14th floor and no a/c required. Our electric bill runs about 15 dollars per month. Bus fare for the ten minute ride to downtown is 22 cents. Pho (Vietnamese beef noodle soup) costs about 1.50. Banh mi sandwich about 1 dollar. Unfortunately no retirement visa like Thailand but as my wife is a Vietnamese citizen I can live with a residence card as her spouse. The ocean is about two hours away.

[@PalmBeachesPaul]

So you say no AC does that mean it never gets above 70° and no humidity or do you just live with the fact that you're gonna be sweaty. I've lived in Texas and Florida and both states are extremely hot so I can't imagine ever living anywhere without AC I literally can't sleep if I'm sweating in bed I'll toss and turn all night.

[@rond1475]

I lived in a condo years ago and here's the problem . The condo owners vote every increase down to keep their HOA fee as low as possible . All you ever hear is we don't need this or that and nothing gets approved . Now the state had to step in to make things safe .

[@glennwatson3313]

Renting suddenly does not seem so bad.

[@jppalm3944]

Better read that rent contract real go. Now people are adding clauses to allow increases for bla,bla, bla

[@emmmoo8631]

wait till they put the rents up dummy!

[@rsoxx74]

That's the end game. Own nothing and be happy

[@tjmmcd1]

You truly believe that owners ARE NOT going to pass-on massive increases in monthly fees or assessments to renters? You're safe until your annual lease expires and your monthly rent is raised by 30-50%. You either pay the increase or you're forced to pack up and move. I hope you saved up money for relocation expenses, even though the basic costs of EVERYTHING have increased DRAMATICALLY in recent years, while our income is basically the same.

[@glennwatson3313]

@@tjmmcd1 Owners will charge as much as the market will bare and not a penny more. The same is rue for you and I.

[@koltoncrane3099]

It is interesting how real estate has kept going up and then the county raises taxes and says real estate is now worth more. It’s like my mom I remember her saying her real estate taxes went up a lot and her houses hasn’t changed in condition except got older with a roof that now needs to be replaced. It’s worth less but money printing and the government buying mortgages or backing them pushes bubbles higher.

[@matthewsmith2362]

You get the “I under stand monetary policy” award for the day. So many people are so lost as to why everything costs more. Its the dollar buying less is all

[@raygunsforronnie847]

Most states require that real property taxes be assessed on the market value of the property each year, not what you paid for it. The tax rate itself may not be going up, but the value of the home does go up and the tax bill increases.

[@Iconoclasher]

Comparing a single house to a 100 unit condo is like comparing a butter knife to a chainsaw. A home buyer with some basic sense of awareness can take a good objective look at a perspective house and make a fair assessment of the condition. To fully ascertain the condition of a 100 unit condo you have to hire (or be) a structural engineer to really get a picture of the building.

[@kathleenhazy6126]

I can’t believe people didn’t do that. You would think before a purchase that big, people would’ve wanted to make sure it was a sound investment.

[@Iconoclasher]

@@kathleenhazy6126 I'm no expert on the subject but I've heard some engineering firms charge around $10,000 for an inspection. That's alot if you're an individual buyer.

[@Kevin_Rhodes]

I paid for an inspector to take a look at the building AND the units before we bought. It was about $1K. I also asked some pointed questions of the HOA President, and took a long hard look at the financials. The building was fine, they told us the roof was coming due and my inspector concurred. The financials were less fine, it was obvious that the reserves were low. That factored into my offer(s) - effectively I priced in the assessments that seemed inevitable. I have to think that for these buildings that need many millions of dollars in repairs such that the assessments are over $100K per unit, there would be problems that jump right out to anyone who knows to look for them. And I would never buy in a high-rise building (or on the beach) to start with. My building is only 2-stories, and mixed concrete and frame construction. It is MUCH more like a house than a skyscraper, and has bills that are much more house-sized, even with 50 units. I paid from $62-$70K for the three units my mother and I own. She lives in one, I rent the other two.

[@jamestreanor182]

It’s great that these unsafe buildings are being forced to fix deferred maintenance that they have refused to do for decades.

[@Floratic]

What some people aren't understanding who lack sympathy for these condo and townhouse owners is that some of them are on fixed incomes and planned out for the HOA cost and other costs that come with home ownership. They were assuming the HOA and building management were doing what needed to be done. Now they're finding out that isn’t the case and are being slapped with a huge special assessment being asked for upfront. Even someone not on a fixed income would have issues paying that.

[@jaylewis5035]

These horrible condo owners refused to pay for maintenance and upkeep. I have no sympathy for them.

[@amrice62]

Not all - some of these folks probably were outvoted at meetings regarding increased HOA fee, or repair leading to assessment, not everyone is to blame. The majority that voted down updates, repairs are the guilty

[@QuicoKoala]

@@amrice62 In seeing that you are perpetually outvoted, I would sell immediately. By staying, you become part of the problem by default. The only ones I would feel sorry for are the ones that just bought the condo and we're not a part of the voting.

[@zariballard]

So they don't have another collapse? As a rule, buildings don't collapse unless builders don't build correctly....when does the owner of the building itself and/or the HOA fees fit into this situation??

[@prairiedoggy1]

Never buy a condo that isn’t FHA approved.

[@RandomAF0001]

Little harsh but true. This could have been avoided

[@brains84]

Southern Florida is uninsurable. Too much risk at this point.

[@francismarion6400]

Not in all cases. I have insurance and it hasn't gone up much in the last few years.

[@davidwelty9763]

@@brains84 and yet it is insured.

[@GW-gz8jh]

@@davidwelty9763many people that have paid off their homes are taking the gamble and going without. People are moving out of state once it hits a point they can’t afford it. Uninsurable doesn’t always literally mean you can’t get a policy. It can also refer to being out of reach of the average person affording it

[@raydemos1181]

some people pay for insurance, and they think they are insured,,,,,,,,,,,,,,,, think again

[@Plumeria1]

@@GW-gz8jh That's true for home owners. Condos usually have an insurance requirement for individual unit owners.

[@toddp765]

Thanks for the update. I bought a new condo about 10 years ago and 3 years into it we had an assessment done right after the developer sold his last set of units - we found he underfunded the reserve (a typical developer selling tactic). I received an $18K bill to be paid over 18 months. When I went to sell the condo, the sales contract stipulated the reserve was prorated for the 30yr assessment period. I ended up paying about $3300 (18000/30*5yrs I had it). I was lucky as I was told this only worked because I bought a new condo and was only in the first few years of it. That said, we all were warned back in the late 80's early 90's about the hassles of condos. I didn't listen but will never buy another one. Between HOAs, management companies and developers... not worth the headache.

[@EastBaltimore-z1w]

Condos do not maintain themselves. Pay the assessment or sell your unit.

[@debrabuckley5011]

a condo fee is for that purpose, larger repairs have to go through a meeting and financed over time and added to condo fee.

[@jerryglasses2229]

Mortgage professional, accoutant and former three time board member. The problem is that buyers and realtors are not qualified to analyse a reserve study or the finances in general. We have appraisers and home inspectors but no one to breakdown the finances of the hoa. Buyers go in blind when purchasing. I suppose you could hire an accountant but good luck in Getting the info from the HOA. Many dont have audited financials and have never done reserve studies. These are million dollar business run by amateur volunteers. Ill never buy a condo or townhome again

[@robertneblett4477]

If you have to borrow from your 401k to buy a home then you’re shopping outside your price range. Those senior only mobile home parks in Ft Pierce or Port St Lucie are probably better options.

[@RoseanneSeason7]

Can you imagine moving from a condo to a mobile home park? I bet they get depressed once the reality sets in. Watching Matlock in a sardine can will be sad

[@MelywoodMedia]

@@robertneblett4477 I borrowed from my 401k to get a house. It tripled in value, I sold and took proceeds to buy a luxury condo in a gated community. Our property has well over a million in reserves and maintenance is fastidious.

[@raygunsforronnie847]

@@RoseanneSeason7 And watching Matlock in a crumbling high rise structure is better? A structure that has lost half its value because of the building condition, lack of contingency fund, and desperate sellers?

[@iworkout6912]

In the Tampa bay area (Penillis County) is loaded with old mobile home parks. Many probably been their since the 60's. At some point they will need to be replaced and guess who pays, the owner. Rent in the parks is lower than any condo in south Florida. So I guess Miami condo owners can sell out and relocate the one of those old 'trailer parks'.

[@unknown-user]

I honestly don’t understand condo living and why would anyone elect this lifestyle. Why would anyone buy a piece of real estate that clearly is not yours. It’s just a glorified rental with ownership headaches. You own nothing, you are just a renter with your name on the deed. It’s a scam! If the idea is living maintenance-free, just rent or buy a house and contract the maintenance to someone else. How much does it cost a month to maw the lawn? I guarantee you it’s not $3000 a month.

[@Dbb27]

I rented in one once for a summer. I felt like a rat in a box.

[@jamesmay5860]

​@@Dbb27you probably are a rat in a box

[@jobellecollie7139]

Buying an apartment has never made sense to me. I recently moved into a patio style home. There is about 15 feet between each home, I have an 8th of an acre yard and my own driveway and two car garage. This is as close as I'd ever want to live next to a neighbor. I've never lived in an apartment, but after living in military barracks, I had my fill of neighbors!

[@orangefield3171]

I’m a senior and am considering going back to apartment renting in a senior community. After 30 plus years I’m tired of home repairs, dealing with contractors and probably being ripped off a few times on pricing. I’m ready to downsize now and simplify my life.

[@Robin-xt7yo]

I don't like hearing any kind of noise from neighbors. Lived in Apts where I couldn't sleep due to rock music blaring above my head. So I bought a house on 3 acres which abuts 2,000 conservation acres. I don't chum with my distant neighbors and I love it that way!

[@tomf9292]

Feel bad for the guy who sold for $110k, but to drain your 401k to buy a condo is dumb in the 1st place. So many people buy homes/condos that can’t afford them. If you can’t afford the repairs, you can’t afford to own a property. Period. I was an contractor for 40 yrs. I ran into countless people who needed say a new furnace ($5000-8000). They didn’t have the money which always blew me away. I thankfully own a 1 story villa in S FLA. no inspections and we have lots of money in reserves. Good show Paul

[@PalmBeachesPaul]

I have talked my buyers out of buying more times than I have asked them to buy. I never want one of my clients to buy more than they can afford.

[@nikkic83]

@@tomf9292 plus you pay taxes on the 401k withdrawals

[@anaibarangan4908]

Depends on how long ago bought the condos, before it's all degenerated into assessments more often and became high assessments, and none of the money paid shows on the property, before the high assessments.

[@anaibarangan4908]

My cousin says that the same way in another city in Florida about her best friends condo complex.

[@anaibarangan4908]

They take care of the grounds somewhat and the pool, but that's it.

[@ThereIsAlwaysaWay2]

I have no tears for multi millions condos owners, that have benefited of a great life for decades. 79 years old guy, can sell it, and come live in the places 90% of American's are stuck in. Heck some houses are still 150 000$ in many states. Some fantastic houses in cozy towns are 400 000$. They should count their blessing and move.

[@charleshammer2928]

Good comment, you are absolutely correct.

[@ThereIsAlwaysaWay2]

@@drc3po What state? In a small village?

[@surgeinc1]

Feels like some of this is an opportunity for con artists to acquire premium real estate through foreclosure.

[@debrabuckley5011]

not a condo or hoa

[@macgreiner]

Seems like this is a simple case of chickens coming home to roost? Crazy to me that this has only been mandated now.

[@lrc87290]

Only because the new law written in blood.

[@JacobSchmitt-j8p]

I can’t imagine people not be able to get a job

[@deckerdax]

Come to Ft Lauderdale and you wouldn't believe what is happening here. My assessment alone is 130k, it's totally insane.

[@PalmBeachesPaul]

so sorry

[@patrickwhelan5703]

@@PalmBeachesPaul Don't be sorry! This was years in the making with everyone in on it. How in God's name can you inspect an ocean side condo every 40 years??!! We're talking about salt air, salt spray, metal and concrete and shady Florida builders. It's a toxic cocktail that exploded. It's maddening. I'm surprised that more Surf Sides are not occuring/

[@usiffputz6753]

Lauderdale is crap pan handlers on every corner

[@matthewsmith2362]

@@deckerdax indeed but did your association vote down reserves over and over? Were you living up in there with 300 to 600$ a month dues? If you paid super cheap for years it’s not totally insane it’s actually right on time.

[@TaylorHaubrich]

How often do you attend HOA meeting

[@KellyK-il2bk]

I owned a condo in Illinois that had higher association fees, but it included replacing roofs, siding, and other maintenance. In the 20 years I lived there was not one special assessment.

[@stevewalker2028]

In UK we have a thing called "equity release mortgage". Elderly people borrow money on the security of their home, with no monthly repayments required. They live their final years in peace & comfort, take a cruise or whatever, and when they pass away the bank gains ownership of the property. It works pretty well.

[@happycook6737]

@@stevewalker2028 We have that same thing in the USA. It is called a reverse mortgage. However very hard to predict how many more years the person will live so the end result is homeless seniors when they outlive the funds! 😱😭

[@nathanruben-tv5lf]

I believe it is a way push owners out and transfer the ownarship to a coorporate to rebuild those places again and sell...

[@lorretawheeler9713]

I worked as property manager in condominiums for 30 years. Do a reserve study and raise the assessment accordingly. I angered a lot of board members but at least I only had one building that had to do a special assessment

[@Flies2FLL]

Ouch! That Howard Konetz bought his 1800 square foot condo for $478k in 2014. Ten years later comes an assessment that is approximately half what he paid for it.... This is going to get ugly folks. I have two condos and a duplex and I'm getting out of one of them, even though there is no assessment coming and I have had 100% rental income the whole 12 years I've owned it. Great video!

[@PalmBeachesPaul]

@@Flies2FLL so sad.

[@whatsupwithsteve]

I feel bad for these people but that condo collapse a few years ago highlights the need to do occasional repairs/retrofits and the owners get to share the cost...:( I'm sure there are words to that effect buried deep in the fine print of the sales contract.

[@tatianastarcic]

For newbies, be aware that this is a grossly oversimplified scenario. For one thing, you can't get a mortgage on an investment property without at least 25% down payment. Two, it's easy to see comps for house purchase prices, but it takes a lot of research to understand the comps on rent prices. The trick is to find a place where renting is more expensive than buying, but those places are less common because of this very type of scenario. Three, you have to remember that rent number he's using is supposed to be net income, not gross. So you have to think about costs for taxes, insurance, maintenance and vacancy when you're researching investments. All that said, real estate investing is a good tool for wealth accumulation. But it isn't foolproof.

[@ScottKindle-bk3hx]

Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@MM-wi5dn]

Real estate is only a good investment in places with fast growing populations. Florida is reversing that now.

[@ltrecords4500]

We were proactive. We knew what was coming and we sold ahead of this storm. With what we sold we bought a brand new house and kept some money. You have to be always on the look out,if not ...the world would eat you!..😮

[@Galworld761]

You just passed your wear and tear costs to someone who hasn’t used the condo.

[@josephaltman460]

I will never live in a condo! Especially in FloriDUH! 😆 Ridiculous, to pay $400+ HOA costs every month, just to have the building fall apart.

[@matthewsmith2362]

400 was on the cheap side for years and years it shoulda been in the thousands every month for these ocean view places

[@SarahBourne-w2b]

So where is the monthly money going that people pay? These owners are being robbed.

[@siemorjj8081]

I live in a 2800 square foot home in North Tampa and my HOA is $250 per quarter, or about $85/month. This condo stuff is insane.

[@Kevin_Rhodes]

@@SarahBourne-w2b A big chunk of it should be going into reserves for the future. Most condo HOAs barely have dues high enough to pay the current costs of the building. As one example, JUST the building insurance for my 50 unit building is now $150K per year. Almost half of the current monthly dues goes to just that. Then there is cleaners who come in and clean the public areas, the fee that the management company charges, anything that needs immediate repairs that is the Associations responsibility, the portion of the shared amenities (a couple of pools and some grilles) that is my building's responsibility, etc. The dues were way too low for way too long, so we ended up having to do a couple of assessments that went straight into reserves, and we are still going to have to raise the dues considerably over the next few years. And that is with getting lucky and having the roof replacement end up as an insurance claim and not as a capital improvement. The state government should have forced this issue a long, long time ago. Sadly it took a bunch of people dying to cause action to happen. the condo owners have no one to blame but themselves and/or their neighbors who would not vote to increase the dues.

[@Kevin_Rhodes]

@@siemorjj8081 And how much does it cost YOU out of pocket to replace your roof and other major maintenance on your home? All your HOA probably does is pay for a bit of landscaping and any shared amenities. A Condo HOA has to maintain an entire building, and in the case of these aging concrete highrises right on the salt water beach, that is *incredibly* expensive, especially if it has been allowed to fall into disrepair as so many have.

[@PatrickFoley-vf3lr]

So many people thought it was so cool moving to Florida and buying a condo. Now look. Happy in New England.

[@carlosmark9840]

@@PatrickFoley-vf3lr freezing in the winter 🥶 is no picnic boring bland restaurants no one envy‘s you

[@davidwelty9763]

@@PatrickFoley-vf3lrtaking joy in other people’s misfortune is not very becoming.

[@RoseanneSeason7]

@@PatrickFoley-vf3lr I bet you stick out like a sore thumb in New England hehe

[@kyleinpa5285]

@@davidwelty9763These people that own have benefitted by their property value skyrocketing in the last 5 years. And I don’t own yet, and now at these prices I can’t afford to buy. So I want prices to crash so I can afford something. It doesn’t mean that I will take joy in their pain, but just like someone who had their property value double in five years, doesn’t take joy in the pain of people who can’t afford to buy now, they are still happy that they were on the right side of the increase

[@sunyclime]

Good stay there. We won’t need more flaming liberals.

[@ricladouceur6202]

A condo is no place for someone on a fixed income with no other means of raising money!

[@JAM661]

@@ricladouceur6202 well it worked 20 years ago when many of these people bought these properties. I live in MN and we are required to have a reserve but our HOA almost doubled in the past year due to insurance. But some have been since the building were made in 1988.

[@ssgg23]

Unfortunately it’s a very common place for retirees living on social security to live. It’s often one of their only options.

[@chuckmilton]

The last guy who was in the condo for 10 years should have known a big assessment was coming due to deferred maintenance. He should have been going to board meetings for those entire 10 years to make sure reserves were being set aside for scheduled long term maintenance. And if they weren’t, he should have gotten on the board himself and made changes to the associations financial planning

[@MCC876]

One option is to get 80% of the condo owners to sell to a developer who might give you a decent price for your condo. The developer will tear down the building and build a luxury condo tower.

[@davidrockefeller2007]

@@MCC876 they aren’t right offs

[@Jen1112111]

Thats never going to work

[@byronbuck1762]

@@Jen1112111nope. Happening all over to older waterfront condo buildings

[@annehaverhals1750]

There is a huge problem with this. You have liscensed engineers doing the evaluation. They don't want to be sued so they will not be conservative on their evaluation.

[@PalmBeachesPaul]

Many others have the same opinion we will see what happens

[@bbustin1747]

Inflation didn’t help matters over the last few years on those assessments, Easily add 20-30 percent materials and labor. Deferred maintenance was really expensive.

[@barbarawilliams1745]

I will try to be as kind as possible. Have any of these people ever owned a single family home? The upkeep and maintenance is ongoing. A homeowner cannot pay a monthly fee for landscaping and pool maintenance and leave it at that. There will always be repairs and replacements to figure into your budget.

[@CalebMilne-eu5ht]

My expenses for my under 500k condo are currently around 50k 10k taxes 22k general assessment 12 k 2 special assessments Its never ending These boards get off on it The budget is over a million And they hire more staff and raise salaries Build their little empires It’s unbelievable

[@MM-wi5dn]

Thats insane costs

[@joemancurreri6635]

these old people have NOT approved an HOA fee increase in 30 years! their buildings are falling apart. If not repaired ASAP, the owners will have to leave the units. That's what they get for neglecting their building for 30 years. This old lady is paying $99.00 a month HOA fee! impossible.. should be $1,200 a month.

[@CaseyKoplinCk13]

No they shouldn't be more than $300-$400 a month tops.

[@ricladouceur6202]

Good luck selling those condos. Nobody wanted to contribute to reserve funds and now they are getting hurt.

[@debrabuckley5011]

do you think with higher insurance costs and maint costs are going to sell the more others learn about this.

[@PalmBeachesPaul]

@debrabuckley5011 inventory in an all-time high for condos. The number of units available for sale has doubled what it was a year ago which obviously forces the prices down because there's so much competition

[@generator6946]

We live in fly-country. Twenty years ago I was ashamed to admit it but now my little corner of the world is pretty cool …

[@wyonamagee6521]

I’ve owned rental property for decades, and I know that you have to plan for future expenses. Most condo owners do not realize that when you buy a condo, those expenses are there, but they are shared and when they are delayed, that only makes it worse. If I were to blame anyone, it would be the management companies who has failed these condo owners. The management companies did not do their jobs because if they had these problems would have been addressed before they became problems. It is up to the management companies to ensure that the condos planned for future expenditures which they did not do.

[@Kevin_Rhodes]

It's not up to the management companies. And I can assure you that the management company for the condo building I own in was after the board for YEARS to raise the dues due to the reserves not being high enough. The management company has no power to do more than make suggestions, the board has to put it to a vote of the association members, who very much could and did say NO to dues increases beyond the minimum needed to pay the bills. We were only able to get an assessment and increases through when the state finally MANDATED a certain level of reserves. Thankfuly, it's only a two-story building so we are exempt from the new inspection and immediate remediation requirements so ours was not that bad. There is also no requirement to even have a management company involved. Some condos do, some don't. Ours does because we are actually in a nine building development with some things shared among buildings, but each building is a separate association. They are not cheap.

[@paxundpeace9970]

If you have a seeside condo has 2 or 3 bedrooms better have deep pockets. You can't expect to live in a resort style skyscraper that in part has more pools and balconies as many 4 star hotels. You gan not expect that this will cost you just as much as normal rent.

[@danielfarren6576]

The guy that owes $224,000 is paying $3000 a month condo fees. That is approximately $4.5 million a year for that building. It looks like these people are being ripped off.

[@ex.spaceshuttle.worker]

I was thinking the same thing. If the condo fee is $3,000 a month depending on how many units there were where's all the money going

[@mistiinseattle]

agree. I learned the hard way. Bought a condo in 2008 two weeks before crash. Managed to sell in 2017 but already had a $15k assessment, which realtor got buyer to pay. But I knee there would be a $50-60k one coming in a few years. Realtors should be required to tell buyers this as I had no idea. I am now a very happy renter. My condo was in Seattle. not florida and was jusr an older 600 sq ft. i moved away from fort Lauderdale in 2001

[@TheSpatulaCity]

Contractors are seeing the gravy train and probably charging $$$$$ for repairs. Wouldn't surprise me if there was some kickbacks involved with condo board members. Also, that guy paying $3000 a month for HOA dues will be just fine. He can probably just give the condo away for free and rent an apartment for that $3k a month in an area not quite so ritzy.

[@pgaven9396]

but he wont because he was one of those who kicked the can down the road

[@whodidit99]

Wonder if HOA board members are receiving kickbacks for the contracts they give vendors? Is there anyway to stop this fraud? If kickbacks are made in cash, they are untraceable.

[@debrabuckley5011]

a condo i know of a head of the condo association hired all people and contractors they knew .they stole lots of money and then they sold their condo and disappeared and no money left in the bank for the condo . no they were never charged .

[@WvvwvvwwVvwwvwv]

I am so glad I got rid of my North Miami Beach Condo years ago when people were actually paying asking price.

[@OvertheGarage-wv1wn]

Buy some nice little one story renovated house in the rust belt for cash and let them foreclose if you can't sell. Bankruptcy at 80? Sure, but one thing is clear, stressing out and risking a stroke is not worth it at that stage of life. If you had five years or more living on the beach that's more than most people get. There are some people at 80 living in some not so nice areas who HAVE to work as a Walmart greeter. Be thankful if you don't have to do that.

[@claudacious9947]

I bought a condo in CA and the previous owners neglected many things, including roof replacement. When it came down to the assessment, an over-entitled owner refused to dish out money and we were happy to serve him with lien. This Florida situation is absurd however. I hope these seniors find a home.

[@styes1]

People like the benefits of condos and gated communities until it's time for them to pay up.

[@dhoover5480]

Much needed. I don't care how many piling you put under 40 story condos on the beach, the sand will shift under a tidal surge. Is it better to die in one collapsing, or wake up and fix them better

[@mymotherwasright3079]

I really feel for these Senior Citizens. This was an excellent video and very informative. I appreciate YOU gave solutions!!!

[@BillCoulter-of5mh]

Poor planning by the hoa boards and management companies in the past and homeowners not smart enough to figure this chickens will come home to roost someday. Fell bad for the owners but you did a lot of this to yourselves by not adequately funding reserves.

[@kennixox262]

A lot of elderly condo owners presumed that they would be long gone by the time the chickens came home to roost. Everyone in Florida knows that oceanfront buildings are in a difficult marine environment and maintenance is a never ending issue.

[@PalmBeachFlorida24]

Agreed. Poor planning. Too many condo birds are operated by ego. Teachers and laymen who think they're business men

[@Plumeria1]

I am one of those retired FL condo owners caught in the assessment situation, I am full-time in FL. Some of my neighbors say will not be able to pay. If you can't get a bank loan, I've told them they can sell and move into senior subsidized housing, based on income. There are quite a few nice, average apartments, low rent, some even include a $50 electric credit. Also, 1/2 of the owners in my development own another home "up north", so they're not really going to be homeless.

[@eileenmcmahon2373]

I would like to see the bill for assessment in writing. What there doing in your apartment for $274,000 assessment. Maintenance i can see but not that much. This is highway robbery. I think they are over charging on assessment...

[@eileenmcmahon2373]

More homelessness. It's terrible .

[@deanbush]

Thank God I got out a year ago!! When 2/3 of owners voted every year not to have a reserve (contrary to what I wanted), they knew assessments were their only other option. They KNEW that. They've made their bed; now they'll just have to sleep in it. Huge lesson learned.

[@Shortsandstuff316]

Buyer's agents... Here we go again. You should have been made aware BEFORE you purchase a condo that the Buyer's agent analyzed the budget and the minutes from meetings. This would take about an hour on the agent's part. They do not want you to know. Buyer's agents are the worst.

[@regtowers4914]

What realtors don’t tell you is the higher property taxes you’ll pay when you pay a higher price. The previous owner homesteaded- the new taxes will triple.

[@PalmBeachesPaul]

Don't you mean what bad realtors won't tell you. Don't be like the rest of the idiots out there talking BS about realtors. I always tell my buyers that the property tax you see now are what the sellers are paying but your taxes will be based on the price you pay for the house.

[@marilyndietzman-vx5ts]

I’m only 61 years old and have been watching this for many years. Just like people we age and decay - bottom line. People grow old - buildings get old and decay. That’s it plain and simple!!

[@All-Miles-Matter]

They are idiots for buying condos in the first place. Never.....ever......ever....buy a home that you dont have COMPLETE control over! EVERRRRRRR! Its about as stupid as it gets. HOA? ABSOLUTELY NOT! CONDO? ABSOLUTELY NOT!

[@Norm100ful]

Own a home in Florida on the water. The unexpected costs are high. I budget $20k yearly for maintenance. Condos are architecturally more complex. It doesn’t surprise me that the older condos have delayed maintenance.

[@curtgomes]

Your statement regarding condo owners putting off or refusing to do necessary repairs or upgrades in the past and now coming home to roost is spot on. Any new buyer of a condo in South Florida had better think twice about possible future mandatory assessments.

[@Robert08010]

"Sees the rotting in the wall..." that's rusting rebar! I think if there is any one thing to learn from the Surfside collapse, it's that you can't really own a high rise condo, you can only lease it for a period of time. But "ownership" is a myth on paper since the reality is you have to keep buying it over and over again.

[@Kevin_Rhodes]

That is absolutely, positively, no different than owning a house. And unlike renting, in theory when you decide to move and sell the place, you get some money back. Renting is just building someone else's wealth - I know, I am a landlord myself. It is quite a bit more expensive to rent one of my condos than to buy one of your own, but many people simply can't qualify for a mortgage, or don't want to for various reasons. That is a valid choice, but it's not cheaper. The one thing that IS true about a condo, is that you are much more at the mercy of your neighbors being willing to spend the money to maintain the building. I went into buying the three units that I own eyes wide open - I knew from looking at the financial statements that the reserves were low. That was factored into the prices I paid and the amount of money I set aside for the inevitable assessments. And I made sure that my condo insurance had some assessment coverage, which more than paid for itself. I also bought in a 2-story building, though that was somewhat luck as my complex has a couple of three-story buildings that are somewhat caught up in the new state regulations and costing those owners a lot more.

[@Robert08010]

@@Kevin_Rhodes That's ridiculous. While you may have to do some maintenance, you often can put off maintenance for years with no ill effects, and the chance of needing to pay as much or more than the price of the house over again is very slim. But in a high rise condo, that may well be the case.

[@debrabuckley5011]

a home is the same .you really never own it .don't pay the taxes or water bill and watch how fast they will come for it .

[@Robert08010]

@@debrabuckley5011 I don't disagree with your point but my point is on a different scale. My point is more comparable to a landslide where after the landslide, your house and the land it sat upon is just not there any more. You own NOTHING.

[@ducheau100]

I wouldn't pay half of an assessment buying into a condo. That is BS

[@LuisRojas-uu4om]

Is this nightmare happening anywhere else in the country??? Who could not see this coming allowing condo associations decide to defer maintenance for decades?!?!?!? Total failure of governance in Floriduh

[@francismarion6400]

Yes it's already happening in other places.

[@bobzelley5100]

In the northeast, Storm water infrastructure that was designed , built and handed over to a hoa 30 years ago need repair . The catch basins , piping , storm water detention basins and outfall structure. A municipal stormwater impact fee, based on a properties owner impervious surface, had been promulgated. Not a tax , thus , Non for profits pay and everyone had skin in the solution

[@Kevin_Rhodes]

This happens EVERYWHERE. It just came to a head in Florida due to the circumstances of all these old buildings built right on the beach after the Surfside collapse. The state finally said "no more", these buildings need to be inspected and FIXED before we have another collapse. Nobody anywhere ever wants to pay more per month. Imagine if you got to vote DIRECTLY, as one of a very small group of people, as to whether your property taxes are going up. Even if it's for the greater good, many people will still vote NO. That is exactly what happens with condominiums.

[@craftsmanctfl3493]

@@Kevin_Rhodes If you live in a condo or home that’s your legal Florida residence, the law provides that your annual property tax (based on the mill levy) can’t go up over 3%.

[@Kevin_Rhodes]

@@craftsmanctfl3493 That is true if you are Homesteaded, (which you have to apply for, it's not automatic) and has absolutely nothing to do with HOAs or assessments on a condo. HOA assessments have nothing to do with the state or taxes.

[@biddierepellent]

it's not just south florida, i'm in central florida and we got hit with an assessment too. it would have been $11k for my condo. we had to kick out the scheming board and replace them with actual homeowners so we could figure things out.

[@carolyneverett762]

Elderly owners should take out a max home equity loan. Use proceeds to pay off assessment and use balance to pay off loan. Who cares what equity is left for relatives?

[@JohnMPavin]

You are the person of reason

[@orangefield3171]

I like that idea, hope some of them are given that advice.

[@debrahunter6303]

Agree 💯 PCT

[@byronbuck1762]

Your math is faulty. You can’t use half the loan to pay the assessment then pay it off with half the amount of the loan. Many of these owners don’t have cash flow to service such a loan.

[@denisedavis9908]

In VA it is law to do a reserve study every 5 years. And the reserves must be a certain percentage of the annual budget. My mother in law years ago was going to buy a condoin Florida, and we explained to her about reserves since the condo building didn't have reserve study.. luckily she changed her mind...

[@alpinegeordie]

Hi Paul great channel, lived and worked in Usa back in the 80s and did a lot of walking around..... it's the only way to get around Living and loving Switzerland at the moment, keep up the good work!

[@PalmBeachesPaul]

Want to trade places😂

[@MatchaKat94]

So, what happens if only a few people in a building can pay the assessment and everyone else is foreclosed on? Are the people who paid still at risk of losing their property?

[@marblox9300]

A special assessment basically lowers the value of a property. But the Property Tax doesn't reflect that lowered value. This is a government scam.

[@ellenraysmith4391]

@@marblox9300 , but every home owner pays to maintain their lawn, landscaping and periodic replacement of major appliances. Every decade the homeowner has to replace the furnace and central air conditioner. Every twenty years the home owner replaces the roof, gutters, painting or staining or residing their home. These are all necessary expenses, on a periodic basis, if you plan to keep your home standing. On an aesthetic level, the cost of replacing and updating a master bath is about $30k, replace and update a kitchen is about $50K. Oh, and by the way, when you do any of the major updates or improvements to your home, you have to file for a building permit, this I when the municipality gets an opportunity to update the assessed value of your home and, yes, increase your residential,property tax.

[@DuffyGabi]

A special assessment forces the owners to fix what they would rather ignore.

[@jorgemoro5476]

I own a home on the Maine coast. When there’s a storm, my sunroom windows get hit by salt water waves. Never mind the constant salt spray. My garage is temperature controlled to protect my cars and it helps somewhat. And it’s a summer home! I’ve owned my home for 20 years and I’ve had to repaint twice already due to the weather. It’s part of ownership.

[@jeffauerbach962]

Sounds like it’s an issue for the entire building and not just that 79 year old couple. I suspect the only ones who will get paid are the attorney’s that work out a massive settlement on the assessment with the city/state etc

[@justin423]

Lawyer's aren't involved in this, so they are not getting paid. He should have served on the board and known what was going on, and could have bailed long before this

[@Kevin_Rhodes]

The city/state has nothing to do with it. The assessment money goes to fix the building's issues. The only lawyers that will be involved are when the association forecloses on owners who don't pay the assessment.

[@jeffauerbach962]

@@Kevin_Rhodes I doubt anyone will get foreclosed over this. It will be settled for Pennie’s on the dollar.

[@jeffauerbach962]

And it will be in litigation for years

[@igotstaknow]

The purpose of 401k/IRA accounts is to generate gains for cash income for retirement years. Buying a home with a retirement account is proof of not learning to manage money well.

[@rosanneshinkle4133]

As a life-long Florida resident, I always wanted to live on the beach or on a barrier island. Did not do this because of hurricane risk and salt water damage. Never considered a condo, too much like an apartment. Happy in Central Florida.

[@annagarza7299]

We were born and raised in California 🌴 we have visited many states but Florida is HORRIBLE THE HUMIDITY IS INSANE we do not have humidity in California 🌴 thank god ❤️ so m as my states that have horrible weather the CAROLINAS ,LOUISIANA,GEORGIA,KENTUCKY and many more I just could not handle the humidity 😫😫 I’m curious if you own your condo and the ASSESMENT is $115,000 he can’t pay it then he tries to sell NO SELL so at this point his only option WALKING AWAY and that is what is going to happen every where in Florida and we would NEVER live in a place with an HOA they have to many rules and if we own our home we shouldn’t have to ask CAN WE PAINT OUR HOUSE BLACK 👎 I’d feel like I’m still living with my parents 😫😫

[@cdavis25232]

Condos are horrible choices for first-time home owners and great for investors if they know how to leverage debt & the deal makes sense!!!!..when you share walls,you also share Roach & rats with folks whom aren't clean or neglect personal responsibilities like peace of mind, animal control and quite times!!!!

[@NeverHaveKids]

Always believed condos are a poor "investment." First, maintenance is a nightmare expense, because you have to deal with significant height and reduced access to roofs, balconies, pipes/plumbing, electrical lines. Second, if the building has "amenities," you better be using them all, every single day, because you're paying for it via both monthly dues as well as special assessments. Costs a fortune to repair a condo's pool, elevators, gym, underground garage, and who knows what else. Finally, your condo is only as solvent as your neighbors. If owners bail, hand in the keys, or declare bankruptcy, you and the building are screwed.