Posted by: chris
on Sep 26, 2009
Many Panama City Beach condominium associations are likely to see budgetary shortfalls in the near future. Some already have. In the overall scope of things, Panama City Beach should be in relatively good shape compared to other areas of the state. The most common reasons for our budgetary shortfalls are:
An increase in costs to run and maintain the condominium
Improper budgeting and funding of reserves
The percentage of owners not paying their association fees
It is important to understand that budgetary shortfalls are relatively minor. It is only when the association looses its ability to raise capital from owners (thru increased association fees or assessments) that they get into trouble.
Each building is going to have a different budget to operate from. The price of condominium insurance seems to be every association's favorite explanation for an increase in association fees. Upon closer review one may find condominium insurance has gone up marginally. It should have very little impact on the fee increases. While flood insurance has gone up, each association gets rebates back at the end of the year for their flood insurance policies. When the rebates are deducted from the total premiums paid, the increase is a very small part of the overall increase in fees. If one compares the budget and makes sure that the rebates are properly applied in the budget, the increase in cost may be found elsewhere. *
Posted by: chris
on Sep 24, 2009
Real estate condominium re-sales in Panama City Beach were up in July when compared to July of 2008. Seventy-eight (non preconstruction) condos sold in 2009, compared to the sixty-five (non preconstruction) sales the prior year. Eighteen additional condos sold in 2009 at the Island Reserve auction, and eleven additional sales in 2008 were a result of preconstruction closings at Tidewater.
Real estate condominium re-sales in Panama City Beach were up in August when compared to August of 2008. Sixty-four (non preconstruction) condos sold in 2009, compared to the fifty-five (non preconstruction) sales the prior year. Thirty-two additional condos sold in 2009 at the Island Reserve auction.
We are entering a new phase in this real estate condominium market. I have yet to hear anyone talk about the health of a given condominium association. This is going to be a more popular topic in the months to come. You can read some articles on condominium associations here.
Tidewater Condominium's developer units were assigned a receiver as the bank proceeds with the foreclosure of these units. This is actually a good thing for Tidewater because it assures the association dues for these units will be kept current.
Posted by: chris
on Sep 22, 2009
We will start hearing more about condominium associations in Florida this coming year. Let's get a head start on understanding it and what to pay attention to and what to look out for. Panama City Beach is going to have its share of associations that run into budget problems. These should be minor when compared to other areas of Florida.
So what makes this area different? Our condominiums overwhelmingly serve as secondary residences. This is very different from other areas where condos are built as a primary residence or even converted from apartments during the real-estate boom earlier this decade. Many of these types of condos are having large budgetary shortfalls that they can not seem to recover from. The main difference is the strength of the owners.
A good example would be a condominium converted from apartments during the height of the market. If the majority of the owners are just getting by with their bills each month, this can spell trouble for an association. In the current market there are going to be a number of owners who are not paying their association fees. The minute the association increases the association fees or charges an assessment, that number is likely to skyrocket. This can easily spell disaster for that association.
Most condominiums in Panama City Beach serve as secondary residences with the majority of the owners having a strong financial position. If the association needs to increase association fees or charge an assessment to clear up a budgetary short fall, the most of the owners are capable and willing to write the check. This keeps the associations safe in a turbulent market.
Posted by: chris
on Sep 17, 2009
Aqua Condominium is now in the process of selling its remaining developer inventory. * The developer still has fifty-nine remaining units in the building. Roughly thirty were put under contract in an offering that went out to the existing owners several weeks ago. * The remaining units are being offered to the general public. * Click here for Aqua Condominium's full list of units for sale, floor plans, amenities, pictures and more.
* Information on the listing of the remain developer units being put up for sale and the number of units put under contract taken from the Bay County MLS.
Posted by: chris
on Sep 14, 2009
On Friday, September 11, 2009, Corus Bank was closed by the Office of the Comptroller or the Currency. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. Corus bank took possession of Laketown Wharf in September 2008.
The FDIC provided a press release on September 11, 2009. You can read the full release by clicking here.
