Thursday, August 24, 2017 / by Michael Weissman
Looks like a "Great Deal"!!! --- BUT BEWARE OF HIDDEN COSTS
It looks like a gem, but it's located in a building constructed on leased land and the owner must pay a $1,100 monthly land lease fee in addition to the $640 monthly association fee. The additional payment and future uncertainty regarding the renewal of the land lease keeps the value or this property and the real estate taxes low.
At the right price and for the right buyer this would be a gem, but for most buyers it only appears to be "great deal." Land leases are common in cooperatives (coop), but condominiums (condos), particularly many that were built in the 1950's and 60's were also constructed on leased land. A coop is a form of ownership which has fallen out of favor by real estate professionals, buyers and banks and can often be purchased at a discount compared to similar condos.
If you are looking to buy a home in a building directly on the sand, in Fort Lauderdale, you really need to budget at least $250,000 for a one bedroom and $350,000 for two bedrooms. There are less expensive condos on the sand, but if you do not have at least $250,000 for a one bedroom, you should consider buying something just off the beach where you can get more for you money.
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Association fees should always be scrutinized to determine if they mask "hidden costs" such as; deferred maintenance issues, lease payments or other issues which tend to keep resale values low creating the perception of a "great deal".
About the Author of this blog: Michael Weissman is Licensed Real Estate Broker, owner of Preview Preview Properties, Inc., Partner in the Law Firm of Damiani & Weissman, P.A. and owner of Closing Express, Inc - a title services company. He is a practicing attorney in the State of Florida since 1991 and a Realtor (R) since 2002. If you have any questions about this article or any real estate related issue you can call him directly at 954-770-1500.