Mike’s Real Estate Show

Condos!!?? In our area it is the first real estate to fall and the last to recover. The American Dream for many is the single family detached dwelling. I know many love condos and in some areas they are the ONLY form of ownership available. But if there is an alternative opt for the single family dwelling every time!! My area has been flooded not only with Townhouse/Condos but with “conversions” of existing apartments into condos. Hence prices have been driven down, down, down! Yes, I’m not too crazy about them. Here are some issues that bug me: 1. lack of reserves for replacement by initial developers leaving the homeowners with woefully inadequate funds for replacement and maintenance. This results in reassessment of the condo complex with big fees or increase in monthly homeowner’s dues.
2. Lawsuits for construction defects by homeowners against initial developer–happens all the time!! But what also happens is during this legal process NO LENDERS are going to loan on the complex! At one time we had 5 complexes here in Santa Rosa with lawsuits pending. We could only sell if a buyer had 20% down. NO ONE has that amount down in most condo projects as they are geared for the first time homebuyers. These cases drag on for years and the damage can be horrific. Cause? Usually common wall and water invasion, decks over garages with built-up roofs, on and on!
3. Big Homeowner’s Monthly Fees–Scare the be Jesus out of many prospective homeowners and keep prices flat. Liability for pools and skyrocketing common area insurance bills.
4. Retired Military: No, I’m not being un-patriotic–but I can’t tell you how many retired military homeowners live in condo complexes!! And they have nothing to do but to carry around a clip board making note of every violation in the complex. And then they get elected President because NO ONE goes to the monthly meetings!
5. If your occupants are a certain percentage of renters you might get stuck with higher loan rates also. Check with your local lender and get the percentage of renters versus homeowners in the complex from the homeowner’s association.
6. The “MANAGEMENT COMPANY” who can be totally indifferent from the homeowners to which they serve!
O.K.–I’m ranting! But hey, it beats renting!!! You can get a tax write -off and at least your neighbor doesn’t paint their house fuchsia or Kelly Green!! (And I’m Irish!). Good luck!