THESE PLACES ARE IN FINANCIAL RUIN!
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- čas přidán 9. 09. 2024
- One issue I've recently noticed that I haven't seen anyone else talk about is that a lot of condos have major problems when it comes to their finances and none of this is being disclosed upfront in the listing description so buyers know what they're getting themselves into. You have to go through the motions and make an offer on a place and ask a ton of questions to get all these answers and by that time you can be knee-deep in a transaction and have wasted hundreds or thousands of dollars on a place you're not even gonna buy. This is a major problem in the current housing market and it needs to be fixed.
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DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Michael Bordenaro is not a registered financial advisor. Your use of Michael Bordenaro’s CZcams channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, CZcams, E-Mail, and Instagram) for communications with Michael Bordenaro does not establish a formal business relationship.
UBER And AirBnb in BIG TROUBLE! PEOPLE ARE SAYING NO! czcams.com/video/T9lxuM5CcZI/video.html
there is no more "disposable income"
@@moseybearthat’s why it makes no sense to have children.
@@patrickm6012 I dissent here. Sure, it's rather easy to make your argument. On the other hand, my father was given up for adoption during the "Great Depression 1.0" because his single mother couldn't afford to raise him. He saved his money, went to the Univ. Michigan and got his degree in mechanical engineering. Joined the Navy Fought in WWII. Got a job after discharge. Went onto becoming president and CEO of a large engineering firm. His mother basically adopted your attitude. He, however, decided to make something of himself despite living through being abandoned, living through the "Great Depression", a world war and so on. Children = the future. Real hope. Something to live for, something to fight for. In our Postmodern world it is easy to think of children as objects. They are more than objects. They represent the future.
@@moseybear I respect your viewpoint and understand where you are coming from. The challenge is over the last 25 years or more raising a child is a massive expense which takes away from disposable income from the OP’s point. I was just pointing out how the expense outweighs any benefit.
Plenty of money floating around. UBER and AirBnB will be around longer than this channel will
be
Back in the day, when I purchased my first 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.
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.
Anticipate rising home prices due to inflation, potential economic fluctuations, and Federal Reserve actions, emphasizing the need for expert financial advice amid uncertainties.
How do I reach out to a financial advisor, my portfolio has been struggling since 2022 and I’ve been holding on by the skin of my teeth.
Her name is “Rebecca Nassar Dunne’” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thanks for sharing. I searched for her full name, found her website immediately, reviewed her credentials, and did my due diligence before reaching out to her.
I worked for some crooked "real estate investors" as their in house property manager. These guys would buy up condo units from judicial sales auctions. They would purposely target lower income areas. In one particular building they bought up enough condos to essentially take over the HOA and list themselves as board president. They would follow none of the bylaws and pay none of the monthly assessments. The building was falling apart and they had zero reserves to take care of the issues. I would take calls from the upset tenants with mushrooms growing out of the walls. DO NOT BUY INTO A CONDO BUILDING THAT HAS UNITS OWNED BY LLC's. I felt so bad for the working class folks who bought into that association as their first property. Had they known what was going on they would have never made that purchase. I will never buy a condo.
I think almost every building has units owned by LLCs. But you really gotta watch out for is are the majority of them owned by LLC’s
Odessa seems.... Unreasonably upset. And aggressive towards telling the truth.
Wonder if SHE has an LLC trying to make money off the backs of naive and new buyers of multi family places...
You messed these people’s lives for a paycheck. Shame on you.
@seaneendelong8065 Odessa cannot afford a home because of these scamming flippers asking $100k to millions profit in two months. Illegal, but government looks the other way on us all.
@@MichaelBordenarothis is why it is so important to have a 20 % cap on units that can be rented in condo buildings, or owner occupied for the first 3 years, keeps investors out and renters. Permanent residents
Sometime in the early 80s as a Young Man. I approached my employer and asked for a $1500 advancement/ loan to help with a downpayment on a condo. He said no it was a bad investment. He told me to go find a small single family house. I did and it was good advice.
Yes! Never buy a condo!
Just find the cheapest condo you can rent in a decent area. Is not meant to be an investment. This way if the nabe goes south, you can leave. The money saved you can put into mutual funds.
I rented a condo for 1700 a month, the man bought it for 15k in the mid 80s. Needless to say, that man made a great investment. He is still renting it out, 40 years later
I bought a condo 3 miles from the beach in California. In 3 years, my HOA fees went up 35%.My property manager told me I am not privy to WHY our fees went up.I was told only HOA board members would be in that loop.
I got voted onto the board & found out slab leaks were breaking apart the plumbing in my 35 years old condo.
I sold my condo quickly & DISCLOSED THAT INFORMATION.
I have an HOA. They've been open about their financials. All members get a copy of the financials that's has been audited by a accounting company. I thought that was the normal thing all HOAs do.
@@Rhaspun Apparently not.
lol.. yeah yeah lol
Daughter’s friend bought a house and found it had termites after he moved in. Neighbor told him previous owner knew about it and didn’t disclose it. Friend sued previous owner and won a very large settlement. Disclose the problems. It’s the law!
Did she skip the inspection or did they miss it too?
It happened to me. The very expensive highly recommended inspector missed it
@@maitev-p9582 what's weird about inspections is they're owned by the buyer. They should be kept by the municipality if the sale is abandoned after an inspection with maybe a payment going back to original inspection purchaser to access. We backed out of several homes but all of what was found went back to being at the next buyer's pocket to discover. IE the 3 layers of roofing shingles that often capture so much moisture at that thickness the new owner will be stripping down to the plywood when the leaks start. $$$$$$
@@maitev-p9582 SUE THE INSPECTOR
I wouldn't buy until a full structural and building survey had been done
HOA crash hitting Florida is now the big new . It's causing quite a stir, right? Some folks are saying America needs to get rid of HOAs altogether. What's your take on this situation?
Investing in real estate and stocks can indeed be a smart move, especially when you have a solid trading plan in place to navigate through both the good and challenging days. It's all about having a strategy that can help you capitalize on the profitable opportunities that come your way.
It's essential to be wary of purchasing a property in an HOA. Numerous new homeowners in Florida are discovering themselves in HOAs, which can lead to increased debt and complications. Only individuals with significant experience, especially those who survived the 2008 financial crisis, can effectively navigate these uncertain times and make informed decisions in the real estate market.
I've been considering consulting with experts for guidance, especially after learning about the HOA situation. I feel like I could really use some direction at this point, but I'm not sure if their services would genuinely help solve the issue.
'Sharon Ann Meny' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Thank you for the recommendation. I'll send her an email, and I hope I'm able to reach her.
Congratulations Michael. We all appreciate your 5 years on CZcams. Enjoy your celebration this evening.
I've got more years on CZcams and three times the amount of videos that Michael has (3k) on my channel yet I only have 1.7k subs. That just goes to show how effective Michael is with his content. Imagine how many subscribers he'll have when he reaches 3k videos on his channel.
Thank you kindly!
Congrats, Michael. I LOVE your content. And LOVE your walks. ❤
Michael, you do good work!! Keep on Keeping on!
🥳
I'm retired and work everyday doing something on home or property it never ends.
And it never will...no matter.
Yeah, that seems to be the case for a lot of people
I too am retired and working on mobile homes everyday at the age of 72.
Buy a condo
It would have no issues
Better than renting from a landlord who won't fix things but likes to raise the rent.
Michael, I've tried to term my FL condo nightmare story to you a few times. This time I'll say, i did the right thing and didn't stick another buyer when i knew a special assessment was coming. It cost me 250k. For my two 500 ft beach condos. It cost me my retirement, but i did the right thing, and i sleep well at night. God will take care of me. I'm also a realtor and an honest one. I can't imagine not disclosing... Congratulations on your 5 years!! You're one of my go to channels. ❤
May God bless you for your honesty ma'am!
THIS>>>>>>God will take care of me. HE WILL. Doing the right thing many times is the most difficult and Our Lord Jesus Chris will supply our needs.
@@susieserb6068Praise Jesus Christ! HALLELUJAH AND AMEN!!!
I did the same
💐🥰
Don't want to sound like a broken record, but always appreciate how you keep reminding, especially the younger generation buying their first home, about all the expenses involved in home ownership!!
It can be hit or miss with owning a home as far as expenses and repairs go. It's not like you're going to have thousands of dollars in repairs every year for 30 years. There will be some expenses here and there but as long as you have an emergency fund then you should be fine. Renting has it's disadvantages as well.
It’s my pleasure thank you for always watching
@@BREEZYM6015 You have maintenance costs with any home. For instance roof, hot water tank,
air conditioner, and furnace. These are expensive. Or you can live off grid like a land slug. Or
you can live on a boat where you pay dock fees.
@@BREEZYM6015 Well said. I have owned my present home for 44 yrs & am going to replace the sewer line since I discovered it is Orangeburg. It is still functioning, but has caved some in one area. The estimate to replace it is $4000 to $5000. The last major expense was a new furnace in 2019. Other than that it has just been normal maintenance & up keep.
They used to say we need to save $500 a month, or $6,000 a year to maintain a home. I am finding it's best to save $700 a month, or $9,000-$10,000 a year now.
If the buyer knew what the seller knows, there would be NO SALE!!!
Yes, my lovely house in VA I bought. It looked beautiful! I just replaced one of the waste pipes to the new high end bathroom they /the seller put in, replaced boiler and water heater last year and relined the chimney. The generator seems to be on its last legs and the roof is probably next because we had a squirrel in the attic that chewed the flexible air conditioning ducts that had to be replaced. It has a beautiful dry basement and yard if you just don’t notice the malfunctioning pond feature. 🙄😂🥹😂. Oh the joys of home ownership. The cost of that 1928 historic plate by the front door. Forgot to mention need to track down some still existing knob and tube but I would still choose it over a condo where the money is going into an unknown bottomless pit.
Not true. Real Estate people know about buying and selling houses but they may still sell to another Real Estate person if the price offered by buyer is fair to seller or if seller really wants to sell their house.
When I sold real estate I always told buyers upfront about any faults or problems I knew or suspected. A lot of people don’t mind tackling issues as long as they know what they are dealing with and can adjust what they offer for a property accordingly. Some buyers even see issues as an opportunity to get a good deal.
And anytime some asked me if a waterfront property, a property in the flood plain, or even a property with a little stream could flood, I’d say HELL YEAH real loud so they’d remember I told them.
💯 fact
In Ca. you have to disclose it and if they don't they can be sued.
So how exactly can we guard against the coming financial reset for 2024? Like what are really the best strategies to make our portfolio recession proof against the incoming financial reset? I'm very worried about my $110k stock portfolio.
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions.
I agree, having the right plan is priceless. My portfolio is well-suited for any market and recently doubled since early last year. My CFP and I are aiming for a seven-figure goal, which might take another year to achieve.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Jessica Lee Horst is the licensed advisor I use. Just research the name. You’d find necessary details to work with and set up an appointment.
curiously inputted Jessica Lee Horst on the web, spotted her consulting page and was able to schedule a call session, no sweat. Ive seen commentaries about advisors but not one looks this phenomenal
Buying a condo has always been a very FOOLISH thing to do. IT'S NOT A HOME, ITS JUST AN APARTMENT. And you have to trust others with the maintenance of it.
Property tax is such a scam. There needs to be reform throughout the country regarding property taxes. I'm not saying we get rid of it entirely, but there needs to be reformation of some kind.
Duh how do you get services from govt??
My real estate agent told me back in 2003 to NEVER buy a condo!
I'm a 25 year condo owner in New England, and have done 12 years on the association board. The big problem has been non involved owners and people being clueless about how an association works. Condo owners are not the smartest. We are in deep crap at my association. 50+ year old buildings under maintained.
They will sell you, they won't tell you.
The entire state of CA will soon be in financial ruin. all the new mandates on landlords will cause many owners to sell out.
Cant speak so much for condos as it is a minuscule part of my business, but i am a lead technician who works at residential mold remediation company in the New England area. I can definitively say that there is overt fraud being committed on a daily basis mostly on the sell-side realtor part of the RE industry. The amount of newly acquired homes of which the mold issues are completely being hidden or overlooked, or at the very least massively understated. We are scheduled out 3months in advance! People dont realize to properly remediate a household that is contaminated with mold can be just as expensive as replacing whole house HVAC or adding an edition onto your house, and the realtors just completely skim over this stuff like “oh ya its just a little mold in the house u can clean it yourself or hire a house cleaner. Thank you for bringing up stuff like this Michael these people need to held accountable for their actions they are ripping off honest hard working people during the highest recorded asset prices in history i mean can we talk about moral corruption/greed/ethical decline of a nation/society its so sad to witness day in and day out.
I appreciate you saying this year and a lot of those people should be getting sued for their failure to disclose these big problems
@@sK1tTlesrYum New England is full of con artists. It's extremely rare to find licensed professionals with a conscience. The more degrees, credentials and bank accounts they have, the bigger the scam. I'm from the Midwest and learned the hard way that you cannot trust anyone in business here. I even noticed people in the medical profession are just as bad, but that's another story.
Homes close to water I'm assuming? Love NE and I look on Zillow all the time (midwest) but know will never pull the trigger. Basically an area that's foreign to me regarding upkeep of a home. I never dreamed mold would be an issue there but...
@@susieserb6068 homes near fresh/stagnant bodies of water are often most susceptible, also properties that are in more wooded areas where u have alot of landscaping/trees overhanging and the household receives little to no sunlight. Believe it or not homes on the Atlantic shoreline are less susceptible because of the salt in the air, also the sea breeze in the summertime helps with temperature volatility. The main issue stems from older homes that are poorly insulated, central HVAC ductwork being completely uninsulated, all it takes it a littlebit of excess humidity in an unfinished attic/basement and some condensation from the plumbing or hvac equipment and then bam unbeknownst to most homeowners you now have a petri dish inside of your household. Absolutely under no circumstances should you wave your right to an inspection nomatter how good of a “deal” it looks on a surface level. Also seperate from a general inspection i would in addition hire a plumber to inspect any water filtration systems for mold/algae and also an HVAC contractor for the same if the household has central heating/cooling
@@susieserb6068 homes on the Atlantic shoreline believe it or not are often less susceptible because of the salt in the air. Main issues in my experience stem from houses that are poorly insulated, either that or haphazardly installed HVAC or plumbing that is very poorly insulated or in some instances not insulated at all. Absolutely under no circumstances should you wave your right to an inspection regardless of how good of a “deal” it looks on the surface. Most general inspections do no include an assessment/inspection of Central heating/cooling systems or inspection of any plumbing & or water filtration systems.
5 years of someone we can trust to give us the real information.
SAME SHYT EVERY VIDEO
HE'S JUST TRYING TO MAKE HIS HOA AND MORTGAGE !
WHY DO YOU THINK HE'S ON HERE EVERY DAY !!!! DUHH ??
@@InMyBrz Who cares. Unlock your caps, duh!
My mother had a condo in Nashville (she's been deceased for about a year) up until about 6 years ago. She was in financial trouble and when I went through her finances, I saw that she suddenly had to pay a $35,000 fee (that everyone had to pay in the building) for making repairs that should have been done years ago. So she was in her 70s and had to take out an equity loan to pay the fee. She was fortunate in that she'd gotten into the condo years before at a good time so the equity was there. But still she was having to make extra monthly payments without warning. So what we're seeing now is just what my mother went through but on Steroids.
Same thing happened to me. Got an emergency assessment for $30,000 because of structural damage in the common area and balconies. We're in Los Angeles.
Bottom line is don’t buy anything period and act like it’s 1930, because it’s true 😢😢😢
I used to own a condo way back when. What killed me with the condo living was the noise from the neighbors, traffic of strangers cars on the parking lot of the condo and the fact that a condo would never appreciate as much as a standalone house.
And my lawyer friend told me and my wife at the time: “Whatever you do, never buy a condo, only a house”. But me being young and stupid went for a nice interior of that condo rather than a fixer-upper I could afford at the time. Few years later I still ended up selling that condo and buying a fixer-upper.
Live and Learn 😎
I consider us lucky. We sold our Florida condo yesterday for twice what we paid in 2018. We overpaid then because it was gonna be our 2nd home and was professionally decorated by the prior owner…and it was stunning. The pool has been tore up for almost 2 years and can’t imagine what the assessment will be to actually get it up useable again.
U forgot smells! Car exhaust and my neighbor used to cook the most vile smelling food and you can't get away!!! She moved away and I later sold. Never buying a condo again!
When people tell you 'Not' to do something, the human brain hears: 'Do'
Think about it, when your wife tell you Don't Forget the milk, what happens?
Another huge problem is theft, corruption and kickbacks from "approved" vendors are rampant in hoas and condo associations.
Scams
Florida should change it's name from sunshine state to Scam State
Yes. It should be open bidding for vendors. No bids being assigned to some friend or relative of a board member. The biggest expense for the HOA I am part of is the common area maintenance and then the maintenance of the club house and swimming pool. Club house is a good size building that is available for rental for all members. Big swimming pool and tennis courts.
My 72 yr old mother & I (50yrs) are moving out of the USA. Our family are Founding Stock, but things are collapsing. Civil war has been brewing for years & getting nearer. We live in your old state, Illinois, and it's a fracking nightmare. Bucharest, Romania here we come.
during the depression my mother's family moved back to an EU state and found it was even worse there, IDK you can run but can you hide?
The banking in the EU is so insanely burocratic. It is taking 5+ years to resolve an issue with my father's state just because the bank is asking for ridiculous documents from me living in the US that have nothing to do with my father's little money saved. For instance they asked me for proof of employment... they have my SSN and copy, US government papers etc... 5+ years drip drip drip of burocratic inefficiency to solve a legal situation because my father refused to make a will, and the laws there, are that my mother owns only half of the flat where she lived for 40+ years. Every 3 months they ask for a new document. I don't think I will be retiring there.
Good luck in Bucharest. It could be pretty wonderful, especially if you speak the language. But if you think former communist bloc countries are more stable and better run than the US, think again. You may be amazed that the electricity is unreliable, it takes weeks to get anything fixed and seeing the doctor takes months.
As a New Yorker, I’ve always dreamed about retiring to Florida. Now, not so much. Thank you Michael for 5 years of warnings 🎉
Come to north Florida! So much better then down south
You can still retire to Florida, and there are places where you can buy two houses for the price of a condo.
JUST DON'T BUY INTO HOA! ********* D-O-N'-T ************
At every opportunity on youtube I warn people Not to move to Florida.
I am here but not for long.
Republican call it the Freedom State, boy are they wrong.
It is 1 of the top Police States in the US.
@@bandbyoneMIDI Southern Florida and the coast line are doomed to flood
Move to southern Alabama .
Absolutely no to HOAs, never. Only rent units with no HOA and all the responsibility is the landlord's.
By God's Intervention I almost bought a house in an HOA. The reason the owner canceled the sale didn't make sense. So it had to be Angels watching over me.
I did ask for the rules of the HOA and wrote to the HOA with questions. The realtor brushed me off and the HOA did a poor job of answering my questions.
I didn't know about the HOA rules being attached to the deed.
I wonder what I would have done at Closing when I discovered that?
I do sign documents: I do not sign my rights away.
In 2010 my mom’s apartment in Vancouver Canada was sued by the city because they were not keeping it up to code. $40,000 charge PER UNIT because the city chose their own contractors to fix. It’s so much cheaper to just keep it up to date but the problem is it was mostly rentals and the landlords kept voting down the maintenance. Big surprise.
You are VERY lucky because here in the US, apartments are considered private property, and can have unsafe and disgusting things going on like black mold, bed bugs, roaches, pipes leaking through the ceiling, left with broken smoke detectors, no electricity, and backed up drains. Our Department of Health/Government has zero jurisdiction.
In Vancouver everything about condos seems so scammy and smarmy. I'm very hesitant to put my life savings into a downpayment then spend decades paying for a super super super over priced apartment.
@@AshleySpeaks4U The local health departments have authority to issue citations if they're a rental unit. If you're an owner, you have no recourse except take the condo association to court and it has to be filed as a derivative lawsuit, which are extremely difficult to win if you don't have full support of other condo owners.. Then who pays the attorney fees? It's not a common expense until you win or lose.
A solution is NOT to buy a newly-built condo. Those are with low fees subsidized by the developer to sell condos, then the developer pulls out and the HOA fees skyrocket and the inexperienced HOA Board, often made up of condo owners who reluctantly get involved, gets taken advantage by every outside vendor and contractor they need, including the hired management company. That’s how it works.
I thought the developer and the HOA are secretly the same person. HOA just a sneaky way to charge rent after selling ownership.
At my moms So FL condo, they just presented her with budget plus some projections for future expenses. The reason was to introduce the topic of massive assessments over the next two years. The problem was that deferred maintenance over the lifetime of the association has caught up with them and there was escaping the costs (roof replacements, roads and parking lots, landscaping, wood sidings on all the buildings, unsafe balconies, cracked and sagging foundation on the clubhouse). The result: $700,000 in total reserves and $15,000,000 in maintenance costs due NOW. Max amount they qualify for lending is $2,000,000. This story is playing out all over FL RIGHT NOW. in some places, the cost of the assessment equals the value of the unit, especially after the RE sales community gets wind of the massive liabilities.
So it goes bailout/government ownership/evictions, right?
In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200,000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?
The truth is that if you make the right picks, you could make killer riches very quickly, although such profit usually needs expertise, as in hedge funds or financial managers. I personally prefer the latter.
I agree. Based on personal experience working with an investment advlsor, I currently have $985k in a well-diversified portfollo that has experienced exponential growth. It's not only about having money to invest in st0cks, but you also need to be knowledgeable.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Annette Christine Conte for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I am glad I don't live in Florida anymore and that my parents don't live there either. I lived in Florida for twenty years. Florida has a lot of problems and the people running Florida are not solving them and they always pretend there is nothing anybody can do. I have seen problems increase for twenty years and nobody is fixing anything. The condo's problem has been there for years and now they want the people living there to pay for years of mismanagement and a lack of maintenance. The other issue is the stormwater system that is supposed to keep Florida above water. They have been putting pavement and concrete over everything and not building new stormwater sewage systems to let the water flow to the sea if a hurricane comes. Florida is flooding now with normal storms.
Corruption in Florida is at the highest levels of local government. We are talking drug trafficking and murder. Florida is a scenic sewer.
Congratulations on 5 years. You have been spot on since I have seen following you for a couple of years. I watch everyday. You always make them interesting, thanks, Jack
❤🎉🙏🥂
That is awesome!
This guy is good bro
As a Chartered Appraiser here in Canada, part of my job is to estimate the reserve fund professionnally (full report). It is mandatory every 60 months (max)... Thank God Condo Associations (called Syndicate) are obligated under law to do this exercice... You're awsome Micheal, stay thrue...
These are all the problems associated with "socialized living"
That is what HOA are, oh my, 'socialized living'.
1984
You know, one comment that I'd make that I NEVER hear addressed - and that is the exorbitant amounts that HOA's are being charged for every day, run of the mill maintenance work. I owned a condo in the past in California, that came with "landscape maintenance." The term was a pitiful excuse for the quantity and quality of the work being performed, and there was essentially no value being obtained for the expense.
Another more recent example, from my current residence (a house that I own). I needed to repair/rebuild a deck on the front entrance. I got a quote from a local deck company in excess of $85,000 to do the work. I decided to do the project myself, which cost me $5,000 in materials at full retail. That's a cost reduction of over $80,000, and yes - it cost me a few months' labor, but saving $80K was well worth it. But these HOA's - they don't do this kind of hard scrutiny - it's just "sign me up" and the members will overpay every single month for sub-standard results.
So on one hand, the HOA's are being fleeced by their vendors, and/or the vendors are in collusion with the management or board, and the quality of the work being performed is waaay less than satisfactory or meant to stand the test of time. Is it ignorance? A poor understanding of construction, gullibility or what?
Exactly .. I just don’t care for HOAs .. I do a lot of stuff .. fixing cars, do wood work , plumbing , electrical etcetra to upgrade my home .. I noticed the condo my parents had in Florida they just did grass cutting and untwined the pools though most of the units were duplex single story .. I tend to like to crank up my guitar amp so I can’t live in those places or everyone would complain
My dad paid 2K a year for a leaf blower!
Inspectors in collusion with builders and realtors - treasurers and property management and vendors in cahoots as well. So glad to take the money and run when I sold a new construction town house in Mass. in 2018. I am saving more money now renting, than I did paying a mortgage and dues and assessments on a townhouse. It would surely be a money pit before the mortgage was paid off.
The boards lock in with favored contractors and do single bid over priced over kill construction projects that don't need doing. Reeks of money pocketing. Very hard to prove. Landscaping is ridiculous. Pay landscapers money to put down mulch then pay them again weekly to blow it out of the beds. What a racket!
@@donaldworthington9552 That's why unit owners need to go to the meetings and hold the Trustees accountable. Most unit owners just leave everything up to someone else to decide their fate.
Watching your videos made me take a double look at my spending habit and it was horrible. I'm back taking steps on cutting spending and trying to save money again! keep up the great work!
Wonderful!
Thank you to our host for these walk-around outdoor segments. Greeting from Broward County Beach FL. Schools start next week Broward and Miami-Dade
Watch your speed in the school zones.
Congrats on 5 years! Property problems are not just Fl condos, but homes also. Snowbirds aside, long time Florida homeowners let their property turn into dumps. People don't realize that the Florida climate actually requires more property maintenance than northern climes. Mold, rot, termites, moisture, are not just seasonal but full time here.
I am surprised Florida folks don't know about Dehumidifiers. AC units do some dehumidifing but not enough. When I bring up the word 'Dehumidifier' i get deer in headlights expession.
@@Blue-hf7xt You're right there. I used dehumidifiers in summer in the northeast in the house and basement, made the place feel cooler and smell better. I moved to Fl a few years ago to get out of the cold/snow, and haven't seen one dehumidifier here. I think people are spoiled by having central A/C for a few reasons, they run quietly in the house, run on 240v vs 120v so effectively less power, don't have to keep lugging the condensate bucket out to dump, and you'd have to run 2-3 of them to dry out the house. Right now the dewpoint here is 77 deg and even if it drops a couple deg I can notice a difference (at the same outside temp). Had an ice cold bottle of Pepsi in the car the other day and I swear it was wetter on the outside than the inside of it.
Just had a 25% Condo HOA increase here in Atlanta/Bkhd. Will never buy another HOA property anywhere!
He’s right. Buying a condo must do due diligence 1)read board minutes/ask about special assessments 2) get copy of bylaws 3)find out amount of Reserves to cover emergency repairs 4) talk to neighbors in the building 5) check out who’s on the Board
It’s a long list and people lie especially realtors who want to make a sale
I got tricked buying a condo- hit with a special assessment, increased HOA a year later - if I read the Board minutes all the problems were there
Flood risks all over Texas have increased dramatically due to massive developments laying down so much concrete and reducing surface absorption land. Communities that previously had zero flood risk are now "moderately" at risk. Be careful when buying a house or condo.
I think the best house is one on wheels.
And considering many parts of texas land is caliche, once the ground is saturated with rain water, it floods.
@@rayshelld791 Exactly.
Congratulations on 5 years, Michael!! GOOD JOB!🎉🎉
It's almost like property value should depreciate in value like vehicles or somethin, since eventually everything goes out of code, deteriorates, and needs to be replaced. At some point, an old AF building is better off demo'd and rebuilt from the ground up. Especially when prior owners didn't do any maintenance. But we treat buildings like investments and have all this speculative investing behind the current status quo, so number go up.
The land and location of the land is where the value is. In Japan it is like that, homes are demolished after 20-30 years and they rebuilt. People put a lot of money in houses on decor but in the end it is all the important stuff that have to be sound: foundation, roof, insulation, water and sewer etc..
I was going to buy a condo 30 years ago and the first thing the bank asked for is books and financials. If a bank is financing the deal they will always check.
@@acen2178 Yep and the lender has a special inspection just for condos. They should be inspecting the safety of common areas too.
I rented an apartment in Reno/Sparks and was in the complex a month before a neighbor asked if I knew the previous tenant had died in the unit & wasn't discovered by her son for about a month. I was totally, completely thrown off base when she told me that. I went to management and told them I was aware of what they had done, by not telling me before I signed the contract.
I wanted to be moved into a different unit and compensated for the expense to have utilities/cable etc. transferred. Plus the extra cost of utilities to keep windows cracked 24/7 because when I moved in there was a faint smell that I could not put my figure on. I never felt comfortable cooking in the kitchen, that's how bad it was.
After speaking with an attorney, I was informed they don't have to tell you that information if you are renting. Only if you're buying a property would they have been required to inform me first.
Eventually the complex did let me move into another apartment that didn't have the smell of death in it. Attorney was a co-workers recommendation & she didn't charge me. ❤😊
A lot of the problems stem from the ones on the board that have no experience or knowledge of how to navigate laws or building codes. I tried talking to the hoa about the new Florida law that says you need to have flood insurance if you are in a flood zone. The president told me he knows we are not in a flood zone. After I showed him the Broward county map of flood zones he still denied us being in the zone. He obviously didn't understand that when new buildings in the area are built they raise the ground so what was once a flood zone now pushed that water somewhere else which happened to be where we are located. The board has still not bought flood insurance.
I. Learn so much from Contributors of Michael’s Channel! Thank you for sharing that info!
FEMA determines the flood zone and needs for insurance
This is a harsh reality that can happen to anyone if they’re not careful with their finances. Poor money management, excessive debt, and lack of planning are often the main causes.
That’s scary to think about.
It’s so easy to fall into bad financial habits without even realizing it.
Thanks Michael for all your hard work putting these videos together ❤. A three story condo (36 units) was just evacuated (Jensen Beach) because the building was deemed “unsafe”. 11 of the 36 families live there full time and were asked to grab their belongings and be out in one hour! Every homeowner recently paid $43k in assessments, only to be told to leave your home now! No word when they will be able to return. This is going to get very messy.
The new laws do t stop corruption which is at the heart of of the problem with condos and the power they have.
government whether is a rep or demo Do not solve problems
Happy anniversary MB. I just literally spoke with my loan officer about the problems with condos and the HOA nonsense. I am approved for a home loan and not finding what I want and these interest rates are ridiculous. I will exercise patience. I’m getting that single family home one of these days. No panic or pressure buying for me. I’m in the sf Bay Area and watching the job market they keep lying about.❤
There is little lying about the job market if you stay away from the news for the consumer. If you stay with the business sources (WSJ, CNBC, Bloomberg) you should be well aware tech has dropped 100k jobs in SF, Valley, LA and Austin over the past 6 months. That a lot of those laid off tech workers are sitting on 100k to 400k of savings and stocks and moving to florida, georgia, AZ, NM, NC, SC, TN and not Austin Texas.
A ton of CA flight is supporting the Florida real estate market. The CA retires tend to distort the high end of any market they move into, they just cannot stand only spending 400k on a retirement low maintenance situation in AZ and gulf coast FL. If they take the deal they immediately are upgrading their home with stuff nobody else considers a must have luxury, instead of dumping dollars into T Bills. If they want to blow dollars on Jacksonville, it isnt such a distortion for the rest of us.
@DianaPrinceitiswhatitis truth is these current rates of 6 and up rates are normal. The low interest rates of 2 to 3 percent two years ago were an actual bailout due to covid. The rates were kept to low for too long, and the damage to the system was done. The only way out is a painful recession where, unfortunately, people might lose everything in order to get inflation and the system back to normal.
I live in Virginia, and it's the same in all states.....a huge number of condos need substantial repairs or have financial problems, but most owners don't go to condo board meetings and don't know what is going on....until it's too late. The board raises the condo fee to try to solve the problems, and now you are stuck there. No one will want to buy your unit because the condo fee is so high.
Save for a free standing home, preferably without an HOA. Then it is truly your home and you make all the decisions yourself.
I wonder how the masses fell for this Condo scam?
Congatulations on hitting the five year mark. I really appreciate your man on the ground economic reality check. Keep up the great work.
Thanks! Will do!
Hopefully people finally learned.. when the government gives you something for “free”.. you will be paying it back in spades. Make no mistake that inflation is a tax
Exactly, I only know one person who donated his stimis. Everyone else is not allowed to complain.
@@bpb5541A lot of wealthy people didn’t get any money…and that’s fine. However it was stunning to see the poorly educated take that money and decide they wanted to buy their first brand new cars and dealers raped them. Now…they can’t make those $1,000 payments😂
You're an inspiration, keep making awesome content.
As a licensed community association manager, I saw the owners of different associations year after year vote to not fund ANY reserves. The challenge with working as a LCAM is you are the ham/cheese in the sandwich between the owners and the board members. YOU get complained at about everything and then IF there are renters - you wind up getting complaints because the tenants are not following the condo rules and the landlords don't want to hear about it -- so bottom line? Too much hassle and not enough income to warrant putting up with the situation.
That’s exactly it
135 W. 50th in Midtown NYC just sold for $8.5 million. It last sold for $332 Million in 2006. It's starting. Winter is upon us.
The sale was only for the building structure and did NOT include the land underneath…
@@gsftom NY Post, NY Times... numerous other sources mention nothing about land not included... I question your source. It's all a matter of public record which also mentions nothing about land not included. If you have a source, I would read it.
Did you make a typo? That is like 2% of prior sale.
@@gsftom why buy the structure itself and not the land or rather why sell just the permanent structure without the land?
@@MbisonBalrog nope check NYT for the story.
Condo's are unjust and corrupt. It's like a lifelong HOA. The bills never stop.
You are absolutely right Michael. I bought 2 properties in Florida years ago way before this issue came up and I’ve always requested the selling agent to provide all the financials of the condo before committing on any deal
I’m retired. I live in a condo in Florida. We’ve done everything right but we’re still doomed because Tallahassee has become so antico that they’re making laws that are intentionally going to shut condos down. They’re gonna force the dissolution of condominium corporations in the state and they don’t care.
Condos in the age of 40 to 50 years old are ticking time bombs. I sold mine 2 years ago now just outside of Chicago. I had a friend in the village water department and warned me of the problems with the failing water mains in the complex that were under the slab foundations. Sure enough the leaks are starting to pop up all over the complex. Never buy a condo you're better off renting. Special assessments can destroy you financially.
I think in the future they are going to have to repair things like this before they fail or design buildings so the water mains are accessible. So sad how many under maintained buildings there are nowadays.
I'm a contractor, and I am seeing this across all aspects of life in the US. Not just condos. Maintenance of any kind is the last thing on many people mind. Yet things continue slowly move downward. Don't believe me just look around.
I bought in Florida, had a great place,paid off,moved to bigger place,got mortgage, big mistake, the building i moved to,has a lot of old ladies,they never even raised the hoa maint in 25yrs,they did nothing, only two story bld,with twenty units,now the shit is hitting the fan,my inside insurance up three thousand, monthly hoa up three hundred in two yrs,up too ten thousand in assessments, it goes on and on,going to count my losses and move on.i live in lakeworth, westpalm area
Congratulations on 5 years. I've been with you for about 3 years.
Corporations, businesses, people, all deceive and lie.
All? I don’t lie. And I’m a person! How pessimistic!
Congratulations on five years Michael. I’ve only been watching about six months, but watch every video you put out which is a lot. I enjoy them all. You’re a very hard-working, very intelligent, very dedicated and have a gift of explaining truth and sometimes complex financial issues to the lay person.. thank you and God bless you and Lizzie
Im in tampa and am a junk hauler for now. So many old people live in condos and are stttrruuugglllling to keep up with expenses. Its not just the hoa. Its their transmission just went out or some other crazy expense.
It's not just old people having car trouble. I have a friend who is a mechanic. They are making cars really cheap. Transmissions go out right about when you have them paid off.
You convinced me. No condo for me!
Happy Anniversary Michael; Congratulations 👏👍
Thank you very much!
Congratulations on 5 years, keep it up!!! Thanks for the update! I owned a zero lot line at PGA National from '87 to '99. You drive 6 miles East on PGA Blvd and you come to Singer Island. I remember changing my locks every 6 months or so because of the rot from all the salt air, and that was 6 miles from the beach. I can't imagine the repairs needed in those high rise condo units. It's going to wipe people out left and right.
No idea what a "zero lot line" is.
I tried to buy the condo I'm renting about a year before covid. Our loan got denied after the loan company went through the condo associations finances. They had ZERO in reserves, had several condo owners in litigation due to them not paying at the time the association fee of 450/mo, and they were in special assessment due to a lawsuit they lost against Lennar Homes. The Condo fee is now 850/mo and expected to go up. Glad i didn't get approved. I'll keep renting and saving until the landlord can no longer hold on. Oh, and it's located right off Ives Dairy Road near Aventura.
Kudos to the loan company for saving you from a nightmare.
Thank God! It sounds like renting is the way to go!
@Promiseland2024 right now, it sure is.
@noreenn6976 it's crazy, I was able to see who was and wasn't paying the association fees, was also able to see what condo owners were in litigation. One was a good neighbor, I just kept it all to myself. I got to see why they sued Lennar Homes and why they lost. They had to pay Lennars legal and attorney fees plus their own. It was just a ton of info I got to see that many people don't see.
In recent times the number #1 issue people are concerned with is, ‘personal safety’ something which local, county, state and federal agencies have failed to address adequately. This is why HOA’s have flourished. I worked as an appliance service technician since the 80s in the Los Angeles area. I lived in a HOA community and have seen other HOA communities. HOA’s do keep the community clean, most of the time. I paid about $80 a month in a 300 track home community. It worked for us, nice: community pools, landscaping, no crazy RV’s all over the place. However I have seen some gated communities paying over $1,000 a month. It’s all about what you are willing to pay to live where you want to live.
Yup. At our condo the property manager was stealing and work was not getting done. Result is rising monthly fee and spe ial assessments.
Really admire your candor about the "hidden" money pits that "shouldn't be " but they are. Your concern for people you'll probably never meet makes these dour messages bearable. Peggy Finston MD
I think what has caught condo HOAs by surprise is the rapid increase of labor and materials costs over the last 4 years. Many HOAs have a clause in maximum 5% increase per year and that's why they are facing a shortage. Labor costs have increased by 40%. Inflation, now faced with having assessments for the shortfall. Buyers have always gone for low HOA fees without realizing consequences.
Super thankful you went out of your way to start this channel 5 years ago
When I first got on the board, or perhaps just before, this resolved (started before I was on board) we needed to replace roofs. Management company advised the board to not replace. Instead file a claim for ice ram damage, and let insurance company pay. That worked for a year or so. Then insurance company refused to renew coverage. President had a week to find new company, during the holidays. Rates went up. Monthly fee had to go up AND we had a special assessment for roofs (and a new management company)
@@johnweibel1128 Sounds like the old management company saw a opportunity to milk the situation.
Listening to Realtors on other channels, they are encouraging BB to sell their houses.They say they’re a liability because of repairs & upkeep! As if those Condos don’t need upkeep! I’ve had it with those people! They miss the big checks & Adrenalin Rushes & BB are standing in the way! Thank you Michael for cluing us in!
I can’t believe even 1 more condo was sold after the collapse, especially in Florida.
Here in Los Cabos, the building boom continues. More and more expensive tiny condos ("stack-and-pack"'s) being built. Us locals wonder, "where is the extra water, electricity coming from?" since we had problems with those two well before the building boom. The super expensive new developments have tall and expensive wall enclosures. One in particular was built about 7 years ago. At the time, I told a friend, "this looks to me like the old-West "fort" model". Walls are expensive. What are they expecting? Future chaos? Home invasions? Gated communities have a guard station with usually one person there. I know of several high end gated communities that experienced home invasions on empty properties (snow birds) by simply using ATV's to by-pass the gate. Look out. Big things have small beginnings.
I did watch a local news video in Florida where a couple of hold outs in a condo were forced to move and they would not even allow the news crew onto the property to interview the people.
I think this is the culmination of the great condominium experiment. The idea that multiple owners of a building could somehow work together and be able to manage a property properly (pun NOT intended) was fine when the buildings were new, or at least newly rehabbed, but now that they are at the end of their economic lives, it's becoming a disaster. And SoFL is just the absolute worst due to the hurricanes, "sunny day flooding" and bad soil, especially around the open water (OK, CA might be as bad when the "Big One" earthquake hits). I'll stick with my owner-occupied, single-family detached home out in the sticks.
Spot on Michael. The biggest challenge now is the cost of repairs and maintenance. Here in Australia, it is the same,people buy houses at top prices which have undisclosed issues or are not fully functional. A friend of mine paid 1.2M for a house, after 6 weeks being in there, all toilets got blocked. Upon investigation, the contractors found out there was a blockage in septic system which required ripping floors... The quote 50k 😮... Ps congratulations on your work🎉
New water saving low flow toilets retrofitted to legacy high flow sewer pipes which expect five gallons. When only three litres flushes, the solids get stranded as the liquid drains off. Actually, studies with clear pipes show there are three solid piles in a long pipe at any one time, as the next flush plays dominoes with the previous flush. When low flow was added, it often flushed too little water to dislodge the first pile to the next stop. Especially in long runs. If a toilet is seldom used, the chance of a petrified poop mountain increases.
Do not use Charmin or thick paper. Install the plastic filter on your septic tank's T field pipe. Clean off yearly. Do not rinse coffee grounds, or any grease, down the sink. A friend had the same problem. It was caused by making dog food with whole cooked turkeys and cleaning in sink. Fat occluded downpipe and compromised pumps.
Again great continued coverage of this topic and absolutely great additional comment about this occurring with homes …. I’ve dropped countless thousands of $$ rehabbing my mom’s bungalow in the Chicago area …. Redoing all the mechanicals and other assorted needed updates. You hit it on the head … many times older owners.. ie was my grandmas home and then inherited by my mom … these older owners are not in the mindset or financial condition to make these needed changes. Unfortunately they usually have just enough to keep the lights on and other utilities and home insurance paid.
in France when there are several dwellings under the same roof it is compulsory to have a "syndicat de co-propriété". They are expensive and bring little joy to the owner, however the buyer is informed of the charges beforehand.
My HOA in North Carolina is in the same situation. We're heading directly for lawsuits and eventually receivership by the county. But of course, the majority of homeowners are oblivious and believe the paltry HOA fee of $188 is going to cover everything. Many of them are elderly and think our HOA is some type of retirement community that is obligated to subsidize the maintenance on their homes. They're delusional. They're in for a rude awakening once the receivership imposes a special assessment of probably about $20,000 in order to pay for all the needed repairs.
Yep the HOA is insolvent - time to abolish HOAs 💯
When you build a condo on sand, you get problems. A beach condo needs a ton of maintenance and residents don’t want to pay, surprise you have serious problems.
That's why we need all these laws...people can't just do the right thing on their own.
$ 704 monthly HOA SICK
Mine is $253.
HOA? No way.
I rent but the HOA is like $1300 now in this building, my landlord apologized but said he had to raise the rent because of it. It wasn't like this just a few years ago.
Yikes - that is within a few $ of my mortgage.
They already are having Florida state reps stating we need to look at doing an extension to the deposit requirements or we will crash the condo market and upset our constituents. You called that!
They want it to crash, they want more homeless folks in the streets, extension will only kick the can down the street.
You need to ask for their latest meeting minutes, budget, financials and condo docs before buying.
I...um...didn't do that...
Also ask how many rental units, section 8, etc.
I did ask, and the realtor and HOA ignored me. Fortunately I didn't buy the house.
@@Andromeda_M31 Great point!!! If there are section 8 people in the building, that's a high potential nightmare.
@@PatBlot-lm6zx There are different tyoes of "affordable housing" also known as housing projects. In Massachusetts it's sometimes called 40b where a building is required to have a certain percentage at all times by state mandate.
Potential condo buyers should get information about reserve studies and what is in the reserves, before making an offer or have a satisfactory review of the reserves as a contingency allowing cancelation of the offer.
Agree 💯
WATER INTRUSION = DEADLY MOLD!
“ they’re building in a flood zone!”
As millions of homes on the East Coast are underwater😂🤣
And told they're not in a flood zone!
Don't live on the ground floor?
@giselawatson2203must mean it will flood soon.
@@joseenoel8093 people who believed that were not the brightest crayon in the box.
@@alanheadrick7997 ground floors can give way. Being in the second up floors is not safe either.
Congratulations Michael, for five years. You deserve the success. You are one of the first people I watched when I made the decision to retire in Florida. It changed my life for the better.
Congrats on 5 years with YT, Michael!! I've learned a lot from you. Thank you for all your hard work!!
❤🎉🙏🥂🎂
Here in California we have mandated disclosures of which includes HOA requirements, Financials, budgets, newsletter etc. A buyer can obtain these prior to even looking at the property. Legally, we are not allowed to interpret these but we do have specialists who do interpret the health of an HOA. A good agent, who represents a buyer will review all documents and alert the buyer to what needs attention.
So true. Your real estate a agent earns a check, when the he sells you something. Remember that. You need to stay alert these days as a buyer!
I’m not moving. ! Paid cash in 2011. For my property!! A little bit if acres…. 2 ponds .. I actually own the ground I live on. Anyone in a condo doesn’t own the ground they live on. ! A condo is just a high priced trailer park !!
I'm not moving either. My backyard is Old Florida. Surrounded by McMansions now. Don't care...
@@marknewton6984 sell. And move !” It’s stupid to stay !!
Btw in common condo buildings an owner can be assessed at any time, extra fees to pay for damage from weather, earthquakes 😊or wear and tear.
I have insurance for that and an emergency fund.
Only a $400 assessment since I bought in 1993 which was a 98% vote approval.
If you can’t afford a home just rent.
The reserves should also cover capital improvements necessary each year like roof replacement, road repairs and improvements! Many HOA’s think it’s a badge of honor when they keep their maintenance fees low. My HOA did this for 50 years; now there isn’t enough money in reserves to replace the roofs when necessary so people wait and damage is done to some units from rain water leaking in their units.