I've done just a little looking around, and noticed that you can get a condo in Miami/Ft Lauderdale/Deerfield Beach/etc for ridiculously cheap nowadays, since the housing crash. I think that prices are, on average, down something like 60-70% or so from their highs (though obviously the highs were a bubble).

No kidding, there are condos for sale for $20k, $30k, $40k down there. Has anyone thought about buying a condo down there as rental property?

4/25/2011 11:16:39 PM

Not trying to be a dick, but..

If it's too good to be true..

4/25/2011 11:24:53 PM

The catch are the homeowners dues. The one I was about to buy costed something like 20k but hoa were like 300 a month and taxes and insurance out the ass in Miami.

[Edited on April 26, 2011 at 1:07 AM. Reason : i thought about buying one cash but its still going to cost you A LOT monthly ]

4/26/2011 12:58:07 AM

why buy a condo when you can buy a house in NW FL for about that price? House always beat condo in value.

4/26/2011 1:11:39 AM

because NW florida is the fucking boonies

4/26/2011 1:15:11 AM

Can you provide a link to some of these condos?

4/26/2011 3:57:30 AM

I agree...links or it didn't happen.

4/26/2011 5:00:04 AM

Its common knowledge. Several projects were built during the crash. Now there are literally ghostowns of highrise condos. The presales were bought almost solely by investors from latin America. Now they just sit there.

4/26/2011 7:53:28 AM

Good idea till another hurricane comes through?

Also don't forget Al Gore said Florida would be underwater in no time.

4/26/2011 10:55:18 AM

Quote :

"The catch are the homeowners dues. The one I was about to buy costed something like 20k but hoa were like 300 a month and taxes and insurance out the ass in Miami."

yeah this has been my understanding as well. The sky-high operational costs also appear to exacerbate, on a macro level, the housing market doldrums in that area.

4/26/2011 11:14:09 AM

What do house prices look like down there?

4/26/2011 11:34:14 AM

My boss bought a house down there a few years back.

Between HOA fees, maintenance and storm damage, he's lost at least half of his initial investment.

Hell of a view, though.

4/26/2011 11:53:45 AM

That would be cool.

I might move down there after I finish my degree.

4/26/2011 12:57:52 PM

Lol hurricanes

4/26/2011 1:21:13 PM

$300ish a month for HOA dues on near-water properties really isn't high. Friends of mine in Atlantic Beach and Carolina Beach are paying upwards of $300/month on two and one bedroom condos.

If waterfront investments are in your plan you'll probably be paying that regardless. The main difference I see is that the condo is going to cost you $200k in NC or $30k in FL. All things being equal you can do a lot less rental transactions at much lower prices and still come out ahead on that $30k condo.

[Edited on April 26, 2011 at 2:20 PM. Reason : s]

4/26/2011 2:16:00 PM

Except that 300/month isn't going to be paying for anything when the buildings essentially empty. Add to that the typical families that would be moving into $20k condos, and I imagine the surrounding property is going to go to total shit pretty fast. Sounds like a ton of hassle especially if you don't live anywhere near.

4/26/2011 2:28:32 PM

some ppl pay $300/month HOA living in a 1BR in downtown Raleigh condo now so.......

4/26/2011 3:30:32 PM

Quote :

"some ppl pay $300/month HOA living in a 1BR in downtown Raleigh condo now so......."

yes, but those people are bigger dumbasses

at least $300/month in HOA dues in miami give you something to look at out your window

4/26/2011 3:34:52 PM

Homeowner's dues aren't really pouring money down the drain as people seem to suggest. Buy a house and you're going to have to spend several hours per month on yard care as well quite a bit of money on paint, roof repair/replacement, etc. These are the things that your homeowner's dues are buying.

Quote :

"Except that 300/month isn't going to be paying for anything when the buildings essentially empty."

Ummm...Where do you think it's going then?
If your argument is going to be that so many people are defaulting on homeowner's dues that there isn't enough money to properly maintain the building there is some truth to it; however I think this will correct itself with time as liens are placed on properties in default and those properties exchange hands.

Quote :

"Add to that the typical families that would be moving into $20k condos, and I imagine the surrounding property is going to go to total shit pretty fast. Sounds like a ton of hassle especially if you don't live anywhere near."

Can't be much worse than owning rentals in Raleigh or anywhere else. It seems to be working out for Lake Park at least.

Any investment has risks. Any real estate investment has headaches; that's nothing new. Ultimately it's not hard to slap up some paint and throw down some carpet every 5 years until the investments come around and you come up with your exit strategy.

Being a distant investor might actually make it easier on you since you wouldn't actually try to manage/maintain the property yourself. You'd just hand it over to a management company and let them take their 10% or whatever cut.

I'm going to talk myself into buying a condo if I don't stop soon.

[Edited on April 26, 2011 at 4:07 PM. Reason : s]

4/26/2011 4:04:13 PM

Quote :

"yes, but those people are bigger dumbasses at least $300/month in HOA dues in miami give you something to look at out your window "

i guess different strokes for different folks as i have friends that'd rather pay $300/HOA to live in downtown than $200+/HOA for a townhouse in Cary

4/26/2011 6:09:35 PM

Current legislature allows the HOA to foreclose on the house. Problem is, in this era, that means they take over responsibility of the underwater mortgage. Basically, HOAs their hands tied behind their back when someone has defaulted on their mortgage. They won't get the money from the bank or the owner. The only thing they can do is increase the dues as much as possible so that the 10 current owners in the 300 unit property can cover all of the costs.

4/26/2011 6:12:20 PM

paging Amsterdam718

4/26/2011 6:25:55 PM

200 a month HOA for a townhouse is so outrageous

4/26/2011 6:50:27 PM

5^ I could be wrong, but I would assume that if there are condos selling for $20k, than it's because the building is pretty much empty. Most of the major costs covered by a condo HOA stay the same whether it's 100% full or 10% full. Meaning if the building is empty that upkeeps not getting funded.

Saying that $20k condos can't be worse than the Raleigh rental market is just ignorant.

4/26/2011 10:00:33 PM

Quote :

"200 a month HOA for a townhouse is so outrageous"

It's actually not. Mark and I pay close to $200/month in HOA here and I pay $200/month for HOA on my downtown condo. Now that I rent it out the HOA is nice. I don't have to worry about lawn care, pool, exterior maintenance, etc. Plus my HOA covers my water, sewer, and trash which wouldn't be much anyways buts less bills for me to worry about.

I think you'd be surprised to see what the going rate of HOAs are here around town. Especially when you strt to factor in amenities and the like.

4/26/2011 10:25:08 PM

200 a month on a 300k condo is proportional though. The problem is these will never be worth that much in the foreseeable future because there are too many in the market. There are like 200,000 empty homes in south florida.

4/26/2011 10:42:35 PM

It isn't strictly a matter of proportion, though.

HOA on a place like that cover upkeep and operating costs of the premises, and in many cases, utilities.

4/26/2011 10:53:56 PM

FL will choke you out with investment property taxes that you will owe on it. The shadow market in FL is so huge right now that it will be at least 3-4 years before rebound is even possible. Deerfield Beach has roughly 50% vacancy right now.

Don't think you're going to make a bunch of money off an investment in South FL housing right now, and only buy unless you're actually going to live in it and use it.

I know I am. That's why I am moving there. Personally I don't care if it goes up in value - I just am going to live on the beach and finally actually enjoy it while you're busy lobbying for bulletproof underpants to Congress and tithing 10% to the church of NMCR Society.

4/26/2011 11:02:32 PM

Quote :

"I think you'd be surprised to see what the going rate of HOAs are here around town. Especially when you strt to factor in amenities and the like."

I know the rates are high but I dont understand why. I also never saw any THAT high when i looked at townhouses. Are HOA fees tax deductions? Anyone own their own pool? Is it that expensive?

I'll take every opportunity to be outside so the lawn care (all 50sq ft) has always been a WTF for me as well.

4/27/2011 12:28:26 AM

A pool/clubhouse will eat up a lot of cash and I believe the HOA for some town homes is responsible for a lot of external stuff like the roofs and possibly the roads as well.

4/27/2011 9:57:48 AM

^^ HOAs are not tax deductible but your interest on your mortgage is

4/27/2011 10:31:17 AM

Townhome HOAs usually cover the lawn, watering it, exterior maintenance, etc.
On top of that, some have the Master HOA fee too, which covers the community pool, clubhouse, amenities, and roads.

I'm pretty sure when I looked at Townhomes in Cary (Kitts Creek, Twin Lakes, Amberly, etc), they were all $200+/month.

[Edited on April 27, 2011 at 12:39 PM. Reason : k]

4/27/2011 12:37:27 PM