DVC or Buy Something Email...Very Interesting Discussion...A Couple Questions

[WaltD4Me]

The discussion on the email show about going DVC or buying an actual property in Florida was really interesting. Who ever would have thought you would be able to buy and own something for the same or cheaper possibly as buying into DVC.

From the discussion, I am curious about a couple things.

1. What if one of those special circumstances costs comes up and you just don't have the money? Can they "evict" you? Same for an increase in HOA fees going up because of vacancies/foreclosures. What happens if you can't afford the increase and can you fight the increase?

2. The $19,000 one bedroom. Why can you only live there for 6 months at a time? What happens the other six months? Can you rent it out or let someone else live there? And if you can really live there for six months, move out for a day and move back in (not sure I heard that part right) then what is the point of the 6 month rule?

 

[DisneyKevin]

The discussion on the email show about going DVC or buying an actual property in Florida was really interesting. Who ever would have thought you would be able to buy and own something for the same or cheaper possibly as buying into DVC.

From the discussion, I am curious about a couple things.

1. What if one of those special circumstances costs comes up and you just don't have the money? Can they "evict" you? Same for an increase in HOA fees going up because of vacancies/foreclosures. What happens if you can't afford the increase and can you fight the increase?

2. The $19,000 one bedroom. Why can you only live there for 6 months at a time? What happens the other six months? Can you rent it out or let someone else live there? And if you can really live there for six months, move out for a day and move back in (not sure I heard that part right) then what is the point of the 6 month rule?

1) A lien can be placed against your property and this can eventually lead to foreclosure. This is happening all over central Florida (and in the neighborhood we live in).

And yes....you can fight an increase in the HOA, but you would have to have a majority of the homeowners, which is tough to do in a non-residential community as most owners live somewhere else. There are HOAs and Condo associations and while many of the laws/rules are the same, there are some big differences.

It can get very confusing and our point was that you should know what you are getting into before you purchase....especially if you arent going to live in the property full time. This makes it tough to attend HOA / Condo meetuings and to get to know the people making decisions.

2) I dont know the specifics, but I think it has something to do with the fact that the property is zoned as a resort and taxed as a resort. It is not zoned as a residential property. As for the point of the rule and the possibility of getting around it....I dont know.

 

[WaltD4Me]

Fascinating. Thanks for the answer.

I guess maybe what I was trying to ask about the $19,000 condo is if it is really an extended 6 month "time share" where you "own" it for six months and someone else owns it the other six months? Or if you own like any other condo you could buy. Interesting that it is classified as a resort rather than a residential property.

Years and years ago a friend of mine had a condo and one of those special circumstances came up and they told her she had to come up with $3,000. I can't remember all the details, but I remember thinking I'd never buy a condo after that.

 

[Stacy's a freak]

Years and years ago a friend of mine had a condo and one of those special circumstances came up and they told her she had to come up with $3,000. I can't remember all the details, but I remember thinking I'd never buy a condo after that.

This is a risk you take for buying a condo or most other types of HOA situations. Yes, they collect $X each month for standard maintenance and you hope that the association is saving or planning for larger projects. But there is always the possibility for a "special assessment" which can result in a one-time large bill for the unit owner. Maybe a new roof is needed, etc. And honestly, this is no different than owning a house. If my furnace breaks tomorrow (god forbid), I'll have an unexpected bill...

 

[Gretta]

My husband and I have spoke from time to time about getting a condo in Florida. I mentioned to him that condos are very reasonable right now. He has asked me to look into it further. Is there a certain area of Orlando that I should be looking at? I know that Kevin and John mentioned it was the vacation corridor. I'm not sure where this area is. Any help would be greatly appreciated.

Thanks,
Gretta