Questions for Condo Owners

[Wendy_Darling_2001]

Hi everyone,

Usually I am just a lurker but I have some questions and knew my DIS friends could help me.

The apartment complex I live in is being converted to condominiums. We just found out last Thursday and have until this Sunday to sign on the dotted line in order to recieve the insider discount of 5%. We have done a lot of research and think we can make a nice profit by selling in a few years.

Everything is happening so fast and at this point we don't know what questions to ask. We know the association fees are $175/month and can go up a maximum of 10%/year according to Florida law and we have the 2004 Budget. We will receive the condo documents (the book is as big as a dictionary!) this weekend to read through.

There is a Q&A session tonight and we don't know what to ask! I would appreciate any advice anyone can give!

Thanks,
Wendy

 

[KimRaye]

Will there be any rehab involved? Any upgrading or repairs or painting etc. inside your unit (or others)?

What about the sales promotion process? How might this affect you? i.e. Open Houses in the building (not your unit of course). And, how long might that take? Signs on building, etc.

There's a lot more but, it depends on what you actually want to know I guess.

I would suggest going to the Q&A and, when you hear other questions/comments, it might trigger some questions for you, too.

 

[Wendy_Darling_2001]

Thanks KimRaye!

Yes, there is a sales office set up in a building near the front of the complex (there are 30 buildings, 410 units). Won't be a problem for us. They expect to sell out in 18 months.

They are doubling the size of both pool areas, adding a private movie theater, guardhouse and gate, landscaping throughout property and painting the floors of the breezeway. They have already started the rehab. We can buy our unit as is and they will give us $5750 towards closing costs or we can choose to have them upgrade the unit with tile, berber carpet, all new appliances and fixtures, new paint, crown molding. We are taking the money towards closing.

We just don't know what happens after we purchase and there is a condo association in place. How does that work? What about assessments?

 

[KimRaye]

Originally posted by Wendy_Darling_2001
they will give us $5750 towards closing costs ..... We are taking the money towards closing.

BE SURE that even if your closing costs do not total $5,750, that they will still credit you the full amount. (Trick on their part sometimes)

We just don't know what happens after we purchase and there is a condo association in place. How does that work? What about assessments?

After the owner/builder has sold a certain amount or percentage of the units, he/they will turn over management to the new owners. I would suspect that he/they will use a management company during their ownership but you, and all other new owners will have the choice of retaining that company or, hiring a new one. You will gather as owners and, vote on officers, etc. for your condo association before doing all that tho.

 

[Seahunt]

One important thing to check into also is how much your annual property tax is going to be, especially with all the "improvements" they are making.... don't forget you are going to have to pay that every year now also, and you might want to check with your insurance agent regarding what your new insurance rates will be.

We have had special assessments every year, usually average in the $1500 per year range. DON'T put these important repairs and maintenance issues off - there was a big article in the local paper regarding a condo in New Smyrna Beach that had a $100,000+ assessment per unit (ouch!), and there was a very sad story of some retirees who were going to lose everything because they couldn't afford the assessment, and couldn't sell their condo since no one wanted to buy in that building because of the huge repairs that were needed.

 

[Wendy_Darling_2001]

Thanks everyone for the advice! We went to the Q&A meeting last night but it was only for us to ask them questions on a one-on-one basis. I would have preferred hearing other people's questions and comments!

"One important thing to check into also is how much your annual property tax is going to be, especially with all the "improvements" they are making.... don't forget you are going to have to pay that every year now also"

I'm confused - I thought that I will pay property taxes based on the appraised value of my unit which works out to be about $2500/year. How would all the "improvements" affect that figure except by increasing my property value which in turn would increase my taxes?

KimRaye,
We were able to get it in writing that the money would come back to us, I think it will be around $148.

Seahunt,
How long do you have to come up with the money to pay for the special assessments?

Any other comments/advice will be greatly appreciated!