New Florida Law Roils Its Condo Market

… the laws of gravity and physics will eventually expose the biggest real estate lies. {{ LOL }}

free link:

https://www.wsj.com/real-estate/luxury-homes/florida-condo-special-assessment-law-sales-e754ab09?st=gku9jt01aa3rfbn&reflink=desktopwebshare_permalink

{{ MIAMI—Ivan Rodriguez leapt at the chance to buy a unit at the Cricket Club, an exclusive bay-front condominium in North Miami. In 2019, he liquidated his 401(k) retirement account to purchase a nearly 1,500-square-foot unit with water views for $190,000.

But because of a recent state law that requires older buildings to meet certain structural safety standards, the condo board recently proposed a nearly $30 million special assessment for repairs, including roof replacement and facade waterproofing. It would amount to more than $134,000 per unit owner.

Rodriguez, 76, didn’t have the money. So he reluctantly put his two-bedroom condo up for sale, joining dozens of others in the building who are doing the same. After originally listing his unit for $350,000, he kept marking it down until finally it sold for $110,000 last month, or 42% less than what he paid for it. }}

Does that mean the new owner is only going to pay about $1,000/yr in property taxes for life? That might actually be a good deal. The place should be worth at least $250,000 once the structural upgrade is completed – one time and within its $30 million budget. Of course, you’d have to assess the chances of that.

intercst

3 Likes

My neighbor is due back from wintering in his Florida condo in a couple weeks. I will look for hints of increased buyer’s remorse. He had planned to move down there full time by next fall.

Steve

It’s quite possible! They may even pay less than that due to the homestead exemption (only if the condo is their primary home). And it’ll only go up by a maximum of 2% (?) a year thereafter.

It’s a 3% increase cap, which would mean 34% higher taxes after 10 years.

DB2