Condo market faces risk of collapse

A new report from UBS shows that Miami is the market most at risk for a bubble burst​, particularly in the condo sector.

[NalaRichenbach]

Nobody wants an over-priced money-pit that will make them poor. Keep them.

[jaygold]

Nobody wants those condos. Monstrous HOA fees, deferred maintenance costs, and outrageous insurance costs!

[andyleo]

Between HOA fees, insurance and property taxes, I don't know how anyone can justify buying a condo in Florida.

[raymondkidwell]

I paid $5 million for a cardboard box on a 10 foot by ten foot slice of swamp land that’s under a foot of water. I hope to resell it and turn a profit. Welcome to Florida

[jaycepero]

My current HOA president used to drive a Ford Focus station wagon. He was basically self employed. A year into his reign he was driving a $50K Jeep Cherokee, he moved out and changed the rules so he could serve without living here. His unit stood empty for months. He hired his brother in law to work as the property manager despite the fact that we pay the Foster Company to do just that. During a condo meeting he abruptly left when he was called out for his corrupt leadership. You can't "campaign" for a board seat. It's hell. They charge upwards of $600 a month in fees and we don't even have full time security.

[WvvwvvwwVvwwvwv]

I am so glad I sold my Miami Beach condo several years ago when people were over paying for condos.

[hammer-r]

I wouldn’t touch one in an area where insurance is growing exponentially and the buildings have safety issues and some are collapsing.

[kevinhsu]

Sounds like these condos are still overpriced given lack of maintenance/ kick the can down the road by condo owners. The cost of living in sunshine state is a lot higher than what most retirees had assumed. Those low hoa fees were artificially low in the hundreds but they really need to be in the 1-2k from the get go. Hope people will remember this going forward before deciding to retire in Florida. All that sunshine isn’t gold.

[simplyangelalala]

The Government needs to step in from preventing these money hungry companies from buying out the houses. Its ridiculous

[WilliamPappas-bo]

Is Ron going to ask Governor Newsom of California to bail him out of his mess?

[db]

No one should blame the new high condo fee increases and once-off assessments to fully fund reserve funds as a result of new State Legislation. The issue is prior owners in the past decades who constantly voted down annual fee increases to pay for large capital projects because they didn’t want to pay them. That has finally caught up with the whole industry - it’s very poor budgeting and hiding your head in the sand. At some point, someone has to pay for and fund the reserve bank balances (sinking funds) to pay for large capital projects like new roofs, asphalt replacement, new chillers, elevator modernizations, lobby upgrades etc etc. I just feel sorry for those people who have entered the market recently and are stuck with the burden. Such reserve fund legislation has been present in Ontario, Canada for decades, and the vast majority of condo corporations are fully funded through regular monthly fees.

[DTRIPLESOWKOW]

The HOAs should’ve taken care of this over the past 20-30 years but instead they stole that money.

[rickace]

I have multiple homes here in California that I rent out, all in desirable places. It's all about the location. When you buy a house, make sure it's in a place where people actually want to live.

[JogBird]

hahaha.. 25 yr old condo.. the special assessment is prob $100k

[Tchild]

This Thursday, after hurricane Milton hits Florida, a lot of condos are never going to sell.

[Bronx_Yankee]

I saw the handwriting on the wall after that tower collapsed, smoking gun. I had 4 contracts pending in May 2022, sold in 44 days and bought a 1/4 acre 2/2 1 car garage in small town Central Florida. I could not have gotten one half of that now

[beaniemac]

All these older buildings have special assessments due to either neglected maintenance or regulations. Either way, you're not gonna be able to sell a condo to someone when u gotta disclose a special 20k assessment that's due, which is NOT allowed to be covered by the buyers mortgage

[sunking]

I'm 71 YO and our family lived in Casselberry for a few years. I was 10 (1963) when my father decided to leave. We ended up in Santa Clara, CA. It turns out to be a great move to get away from Florida and live in great weather. Florida...it's a giant mess with "EVERYTHING" there. Now, here comes hurricane Milton for another round of devastation.

[parkependleton]

Florida might have zombie condo buildings, but at least they have nice weather.

[dennisd]

They have that completely backwards. "The family settled for $50, 000 less than it was listed for". No, you listed it for $50, 000 more than it was worth. Something is only worth what someone else is willing to pay for it.