Group Buy of Florida Property

[who's ur daddy?]

Although we are DVC owners, I've always wondered about getting a 4 or 5 families together to buy a Florida property (one of those villas in Kissimmee with a pool in the back!). I think the Florida market is ripe for picking given the deflated housing prices (I've heard as much as 40% discount from its peak). I don't know when it's going to hit bottom, but would think sometime this year with a slow upward movement in prices over the next several years. Roll the dice I guess.

In any event, anyone have any thoughts about owning? There's the acquisition cost, of course, but then there's the yearly maintenance. However, spread over 5 families, it might be doable. As long as you have the necessary contracts in place between families, it could be a good investment. 52 weeks divided by 5 families - 10 weeks each, with a rotation for the prime weeks.

Anyone know families who have done this?

 

[chrisann]

keep me posted if you wouldn't mind

 

[KINGBOBOFTHENORTH]

I don't know about the merits of joint ownership but I can confirm there is a glut of homes on the market and this is a good time to negotiate.

BobK/Orlando

 

[CanadianGuy]

The first thing to look into is the annual Florida land taxation for non-residents.

You'll find it's quite steep.

If that doesn't scare you off.. carry on.

Knowing how 'wrong' a simple 'photopass share' can go... I'd be extremely careful to be sure that you know your partners VERY well and I'd recommend strongly that you not solicit those partners from strangers on the internet.

Just a few things to consider.

Knox

 

[who's ur daddy?]

The first thing to look into is the annual Florida land taxation for non-residents.

You'll find it's quite steep.

If that doesn't scare you off.. carry on.

Knowing how 'wrong' a simple 'photopass share' can go... I'd be extremely careful to be sure that you know your partners VERY well and I'd recommend strongly that you not solicit those partners from strangers on the internet.

Just a few things to consider.

Knox

Don't crush the dream, Knox!!!

This info is exactly what I need - taxes, insurance, etc.

I also know that some of your best friends can be quite irritating when you have to live with them... In any event, I think the home would be owned by a corporation and then everyone enters into a shareholders' agreement to define their rights and obligations. The penalty of non-compliance would be to enable the corporation to buy back your share for book value (this will hurt them if the value of the house goes up).

Just a dream for now - kinda tight on cash at the moment!

 

[drag n' fly]

What a logistical nightmare Id rather have a root canal

 

[sapper1]

That sounds like a great idea in theory but the potential for disaster exists on so many levels that it boggles the mind. When things start to go wrong, as they most certainly would, it would keep a team of lawyers busy for years.

Time shares are a safer route to take if you want a shared ownership with strangers.

 

[CanadianGuy]

I believe that Florida Non-resident property tax is at a rate almost 10 times higher than residents. So.. ouch.



Knox

 

[sean-1966]

I would be interested in learning more...

 

[who's ur daddy?]

Yes, non-resident tax might be a problem. From the one or two articles I have read, U.S. citizens who declare Florida their home state can designate their Florida house as their "homestead". As a homesteader, by recent legislation, their tax is capped to 3% annual increases. For non-homesteaders, the annual increase is capped at 10%. The general thought is that a lot of municipalities are cash strapped, so they will go to the max for taxing non-residents.

On the radio though, they say that there is now a 50/50 probability that the U.S. will go into a recession but that it will be fairly short-lived. The window to pick up some cheap Florida property might be short too. Or long. Who knows?

 

[KINGBOBOFTHENORTH]

I believe that Florida Non-resident property tax is at a rate almost 10 times higher than residents. So.. ouch.

I don't believe this to be true. Each home has an "assessed value" and that figure doesn't matter who owns it. The assessed value is below the real value. Floridians that file a Homestead Exemption on a home get a $25,000 discount off the assessed value. I believe that figure is about to double due to legislation passed a few weeks ago by voters. So the tax we pay is based on a reduced assessed value but it doesn't save that much. Nonresidents certainly don't pay 10X what we pay; perhaps it's a couple hundred dollars higher. For example, a homesteaded property might have an annual property tax of $2700. If it's not homesteaded (including owned by non-residents), the tax might be $2900 or $3000. This is just an example only.

Right now property values are generally falling so assessed values are falling.

BobK/Orlando

 

[F4disneyfan]

Although we are DVC owners, I've always wondered about getting a 4 or 5 families together to buy a Florida property (one of those villas in Kissimmee with a pool in the back!). I think the Florida market is ripe for picking given the deflated housing prices (I've heard as much as 40% discount from its peak). I don't know when it's going to hit bottom, but would think sometime this year with a slow upward movement in prices over the next several years. Roll the dice I guess.

In any event, anyone have any thoughts about owning? There's the acquisition cost, of course, but then there's the yearly maintenance. However, spread over 5 families, it might be doable. As long as you have the necessary contracts in place between families, it could be a good investment. 52 weeks divided by 5 families - 10 weeks each, with a rotation for the prime weeks.

Anyone know families who have done this?

My mom and her brothers and sisters did this with a cottage up north and it worked out well till one of her brothers dies and his wife wanted to be bought out of the property and it made the whole thing a mess.

 

[dsneygirl]

That sounds like a great idea in theory but the potential for disaster exists on so many levels that it boggles the mind. When things start to go wrong, as they most certainly would, it would keep a team of lawyers busy for years.

Time shares are a safer route to take if you want a shared ownership with strangers.

That's just what I was thinking. Just ask anyone who has to share a family cottage with their siblings.