I have heard several buyers recently say the same thing,
“The price is good but the association fees are unreasonable!”
This has really become more of an ever increasing issue with buyers as the price of condos in the Brevard County, Florida area have dropped.
A condo for $50,000 is a good deal but $400 a month in fees is steep for many!
I can see where the buyer prospects are coming from because when the prices were high the condo fees as a percentage of the monthly payments were not that high and most owners were current.
Now that the prices have dropped it has only made the association fees seem even that much higher.
Condo fees and homeowner association fees are indeed an unknown when you purchase in a development that has an association. Costs will rise and the owner’s share may eventually rise as well.
There is concern among homeowner associations:Financial woes for homeowners associations
ORLANDO, Fla. – Dec. 4, 2009 – A recent survey of Florida homeowners associations found them feeling beleaguered and discouraged.
More than 90 percent of the 777 associations surveyed by the Community Association Leadership Lobby say they expect their financial troubles will continue or deepen in 2010.
About 60 percent of survey respondents increased assessments to cover budget shortfalls caused by delinquent owners. And about 66 percent of respondents say there has been an increase in the number of property owners who are more than 60 days late paying fees and assessments.
The results of this survey are likely to support calls for legislation that would allow associations to collect more late fees from investor-owned properties and collect payments directly from tenants renting properties.
Source: Orlando Sentinel, Mary Shanklin (11/23/2009)
Of course the number of owners in arrears may impact the operating capital as well. That is exactly the reason I always recommend my buyers obtain financial information on any neighborhood they plan to purchase within.
Services that condo associations provide are nice. Facilities are nice.
But there is a cost to be borne by all owners.
Gary L. Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region. Whether your interest lies in a 55+ community such as Heritage Isle, a golf course community such as Baytree National Golf Links or water front, give me a call!