Posted by: chris
on Jan 14, 2011
This article answers the second part question asked in the article " What expenses come with a condo?".
Second part of the question:
What about association assessments for renovation, etc. What exposure does an owner have to their "whims". I would like a good handle on these type of dynamics. Thanks, ............just a brief overview would be great"
Posted by: chris
on Oct 18, 2010
Financing a condominium in Panama City Beach can be quite a challenge these days, a situation that has existed for some time now. Beginning early in 2009, condominium lending fell into a sharp decline. At present, there are apparently just three banks offering consistent loan programs for condominiums in this area. Vision Bank, Regions Bank and Compass Bank all have programs available for many local condominiums.
Now, two more condominiums have made the banks' "No interest in lending in this building list." Calypso and Splash Condominiums have been added to the properties for which bank financing is not available. Association litigation led to Calypso's inclusion, but Splash was added
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 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.
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