How Healthy Is Your Fort Lauderdale Real Estate Home Or Condo Homeownerâ€™s Association?

It is no secret that the Fort Lauderdale real estate market has been affected by the unprecedented number of foreclosures happening across the country. We would argue that because of this fact, there are an enormous amount of deals to be had on properties in the area.

There are currently properties in the Fort Lauderdale real estate market for sale that are more than 50-65% BELOW what the property sold for 18 months ago. For the first time in several years, the prices of homes in the area are becoming affordable to the normal family. In addition, those looking for investment properties are finding that some will actually generate monthly income as a rental property.

When buying a distressed property either in foreclosure, or one that has already become a bank owned home or condo, youÂ MUST have knowledgeable professionals working with you that can perform the necessary due diligence on the property so you do not have any surprises later.

Currently, one of the most important items to review when buying these types or properties is the financial stability of the Condo or Homeowner’s Association (HOA). Often, when someone goes into trouble financially, the first thing that does not get paid is the Condo or HOA dues. HOAs rely upon each member in the community paying their dues monthly.Â

These funds are then usedÂ to sustain funds that pay for a number of neighborhood amenities. Depending upon your community, you may have an entrance to maintain, playgrounds, swimming pools, tennis courts, and many more items that are maintained by the HOA for the benefit of the community as a whole. In condos, the associations may be responsible for much more including the common areas, stairs, elevators, and the roof.

Here is where the trouble starts. With the massive amount of foreclosures in some neighborhoods and condos, the associations are not collecting the necessary dues to pay for all of the maintenance on the amenities. In some cases in South Florida, more than half of the current units in some smaller condo conversions have not paid their dues in months.

What does this mean to you as a prospective buyer in the Fort Lauderdale real estate market? Well it means that those that are paying the dues usually end up paying more than their fair share in the form of a dues increase or special assessment. Â These increases could end up costing you additonal hundreds of dollars a month that you did not plan on.

So be careful when looking to buy a property in this opportunity filled real estate market. Make sure that you have the professionals in place that can ask the right questions and perform the due diligence necessary.