WILL FLORIDA CONDO OWNERS SURVIVE THIS?

Florida condo owners are about to get hit by the perfect financial storm. With insurance rates already going up as much as 300% for some buildings along with recent changes to the Florida Condominium Act and new changes going into effect in 2025, many are going to face tough times in the coming months and year.

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Paul G. Lykins
Broker Associate
True Floridian Realty
Direct: 561-877-3074

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Disclaimer: I am not a lawyer, CPA, or financial advisor and any info in this or any of Palm Beaches Paul's videos are my opinion only and for entertainment purposes only. I am a licensed Florida Realtor (BK-3265266) and can only advise you about buying or selling in the state of Florida; however, I can refer you to an agent in your state if needed. Do not base your decision to buy or sell real estate solely from watching any of Palm Beaches Paul's videos and always consult a licensed professional or lawyer.



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[commonsense]

I'm 72 and grew up in Palm Beach County in the '50's and 60's. Buildings of any kind were NEVER built right on the beach like many condos were in the '70's, '80's and beyond, because everybody knew that was foolish! Houses were set back a good block or two from the beach, made of concrete block covered by stucco, with floors of terrazzo, in case of flooding. People are getting dumber with each generation, it seems. Condos and mansions being built right on the beach prove it.

[ThatNiravGuy]

Selling your condo isn't the problem. Finding a buyer who will buy all of your problems, is the problem.

[yeseniapastor]

I work for a lender and condo assoc are not getting approved for mortgage loans because cono associations are not doing the repairs are not properly insured and don't have enough reserves. Your video is the best I have seen. Well explained and 100 % on point. Thank you sir

[johntatman]

Not only do the HOA fees go up but the value of the condo goes down as no one is going to buy this liability.

[dylanmoris]

It is hard to nail down specific predictions for the housing market because it's not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars

[robd]

You're absolutely correct!
Mom bought a beach front condo in 1987 for $88k with HOA fees of $300 per month. Her assessments have totaled more than she paid for the condo since 1997, most recently, this month $6k. HOA fees are now $950 per month. Florida s a mess! Oh, not to mention car insurance prices now to. Update as of March 2024, the HOA monthly fees are now, $1, 125.00 and we're putting condo on the market for sale.

[temarikel]

Not an engineer but as a demo guy in FL, I've demolished my share of structures that were too far gone to be repaired so the owners decided to demo and build new. With experience, I've learned a few things along the way. The one thing folks can do to help themselves is identifying cracks in the concrete, no matter how small, and fixing them asap. Cracks allow water and air intrusion, which causes the rebar to rust. As it rusts, it expands and the concrete spalls. Some of you have probably seen chunks of concrete come off a column, or elevated slab, leaving behind a brown rusted rod. If the engineer sees that (and he will), get ready to open your wallet. If your building is really bad, the engineer will report it to the CIty, after which time your building can be condemned, and you may have to move out for the duration of the repairs (at your own cost).

Remember, a good engineer will always always err on the side of caution, so you can figure that his survey may call for a bit of additional reinforcement here and there, just to be sure (added cost). And honestly, you can't blame him. At the end of the day, it's his word that your building is safe to be occupied.


Concrete restoration is big business in FL, and they are overwhelmed with limited hiring options and rising costs. It's extremely labor-intensive work so you end up paying very high prices. It's good to make a habit of paying attention to all aspects of your building. Even if you're not a pro, you can see when something is out of place, and you can report it to your board members. A small crack is cheaper to fix than a bigger crack.

[bugginout]

Great content! This is EXACTLY why my wife and I, and my mother-in-law, sold our 2/2 condo’s in September 2023 to cash buyers that wanted furnished condos. We raised the prices to include furnishings. Buyers didn’t flinch and both sold within 15 days. We made a little money, not a lot, but we didn’t lose money. We moved to North Carolina and bought a 4/3 home on .5 acres for cash with no HOA. We avoided the new increase in HOA fee increases from $388 to $900 a month in FL. I’ve never felt more confident in our decision to leave Florida after 18 years on the beach. For us, it is a win win.

[SomervilleBob]

I owned a condo in Boston for a few years as an income property. I owned one out of three. What a pain in the ass! The 1st floor owner stopped paying condo fees. We took her to court. Still nothing. Finally, she died (I didn't do it) and we attached her estate. As soon as I could, I sold. Too many problems! I was done at being a landlord. I have my single family house now and that's it.

[Soosan]

I am a licensed condominium manager in Ontario Canada. We are required to do Reserve Fund Studies every 3 years. This includes an audit by an engineering firm. I can't believe it wasn't required in Florida. Very scary.

[g.c...]

I agree with 99% of what you said except for the fact that I moved to SE Florida in 2022 and moved back to New Jersey in 2023!! I am very much in my right mind!!! 😉

[shawngregory]

My Dad paid cash for his condo yet he still needs to come up with $3k a month for taxes, insurance and HOA. Anyone who thinks Florida is cheaper is delusional.

[cmscms]

Im an engineer, I would never go into a steel reenforced concrete building that was more than 20 years old. (not in your climate) You are right, there is no way for engineers to even guess whats going on in the concrete floors or concrete columns... Again, due to the climate, my guess is 20% of condos more than 20 years old, strength has degraded more than 30%. Once the regulations of 2025 arrive, watch for Condo owners to walk away from the really rough buildings. Again my guess, 10% of buildings 20 years and older, probably need to be red tagged and demolished. The Federal Government, FEMA will no longer bail Florida out of hurricane disasters that happen every nine months.

[bryant]

The condo thing in FL was a financial time bomb that has been waiting for years to blow.

[InvestCashflow]

🎉🎉🎉thanks - prices will
Drop 50% condos, houses up 25%

[Iconoclasher]

The costs of maintenance of a building is a matter of physics and economics. They've brought it on themselves with all the "NO!" votes for past maintenance projects. Now the piper is demanding payment. Life is tuff. 😮

[Phil-G]

Good video, I’m up in the New England area, and you just made my mind up on purchasing rather than renting when it comes to my retirement winters as a snowbird. I feel like renting is the way to go because you can pick different locations from year to year, no responsibility just absorb the rental fees and you’re good to go. I feel bad for some of those people that have no choice but to deal with inspections but honestly I’m in the construction field of elevators and I feel like everything has a service life . Buildings are no different, and some are in need of an expiration date period. Man-made structures can only absorb so much of the climates abuse over time. It’s sad that those people were sold a false sense of value.

[jpman]

What really sucks for these owners is, they won't be able to give those condos away with these kind of BS fees. Good luck with that.😮😮

[jeffreysmarr]

I was in a luxury Kauai beach front condo last year and maintenance men were working on the spaulding where the rebar were rusting within the walls. You are spot on regarding the impending financial disaster facing Florida's aged condo owners.

[sttarch]

When you buy a condo, you are going into business with strangers. Your building is not owned by some unnamed entity. It is owned by you. If you are going to buy, you need to check what reserves they have and what repairs have been done recently. My cousin in Jensen Beach was just hit with a $35, 000 assessment to rebuild all their balconies. An adjacent building was hit with $80, 000 per resident to do the same. Residents themselves had already replaced their windows and sliding doors. These are huge costs considering the fact that they sell for $350-500k. I feel badly for a little old lady on a fixed income, but there is no free lunch.