“Apartment prices are stunning,” stated Juan Castro, a Redfin Premier agent in Orlando. “Condos that used to have a $400 month-to-month upkeep charge could now have a $700 charge. It’s inflicting patrons to rethink their plans.”
Common householders’ insurance coverage prices in Florida shot up roughly 40% in 2023 alone, and new laws within the wake of the 2021 Surfside condominium collapse are mountaineering HOA charges throughout Florida.
The brand new laws compel HOAs to conduct common security assessments of condominium buildings, usually requiring hefty charges for upkeep and repairs. That’s why getting a condominium mortgage could be more difficult than getting accepted for a single-family residence mortgage.
Challenges past affordability
Restricted mortgage choices for condos additional complicate the difficulty. Lenders usually require debtors to show monetary reserves and could also be much less more likely to approve loans for condos in buildings with questionable monetary well being.
All these elements, mixed with Florida’s notoriously excessive insurance coverage charges on account of pure disasters, are making a difficult setting for condominium patrons.
