Remember last newsletter when I said that Orlando was efÂfectively underwater? Well, analysts have one-upped me in a humongous way, boldly stating that half of homes backed by a mortgage are effectively underwater. By their train of thought, homeowners who owe 85% or more of their home’s value are effectively underwater because they lack the 6% realÂtor commission to sell their place and a 10% down payment on whatever new home they seek. So those homeowners (about [...]
Question: The HOA manager told me that my swimming suit was not appropriate and that I should wear something that would cover more. I am Brazilian and I was wearing a bikini that is smaller than the others. But there's no HOA rule that says that Brazilian bikinis are forbidden. The guide only states "proper swimming attire." Answer: “Proper swimming attire†means appropriate to the majority of people that use the pool. In this case, it sounds like the majority are families and/or [...]
Two bus loads of Canadians invaded MetroWest in search of cash condo deals that most locals just can't afford. Thanks to the hospitality of the Madison COA management team, they were allowed to run amok around the condominium while they learned about what it takes to pick up a foreclosed condo and other distressed real estate in the Orlando area. Team Condo Metropolis met the group to head up the morning's tour with Channel 9's Josh Benson. "We wanted to show them that we [...]
"According to the news, real estate is still going to drop by 10% so I'm going to wait." I hear that a lot. And those folk are losing out big time right now - if it's a condo they're after. Because the truth is, if you want to buy an Orlando condo, you're already too late for the best deals. Orlando condos hit bottom a long time ago - in 2010 in fact. So if you're planning on waiting, you're just going to pay more with every month that passes. Remember, all real estate is [...]
You thought that real estate investment advice was one of the many services that Realtors offered, right? Wrong. That's the realm of licensed Federal Securities agents. Because when real estate agents start giving investment advice and those investment strategies don't work out, guess what... the law suits start to fly. Vista Cay condos near International Drive are some of the nicer condo hotel type investment options currently available in Orlando. But as real estate professionals we [...]
MetroWest Realty is covering a story this week that ought to be of concern to those looking to purchase at condo conversion projects like MetroWest's The Element where the majority of the inventory is being held by the developer or a bank - or Receiver. In a very rare move, The Element is reverting back to apartments... officially, meaning that they're not just renting out the empty units until they can sell them again as condos when the market picks up, they're actually going to disolve the[...]
Question: I need information on HOA policies and procedures with regards to fining. Can you help me? Answer: Generally, the board has the authority to enact reasonable rules and enforcement procedures. They should include: Clearly definition of the issue (parking, pets, failure to pay HOA fees) Consequences for failing to obey like fines or curtailing use of amenities  Appeal process. Fines need to be reasonable. Any rule or resolution that is contemplated by the board should be[...]
National existing home sales dropped 3% in September according to the National Association of RealÂtors. Conversely, housing starts jumped up 15% and beat estimates in the same month. Yet another grab-bag of mixed indicators. To strike a more intimate nerve with us Central Floridians, CoreLogic recently released analytics indicating that the total mortgage debt in Orlando is greater than the sum of the property values. You read it right: the City Beautiful is underwater. Know [...]
Question: We have a president who solicits co-owner involvement when the board is discussing business at a board meeting. Should co-owners be allowed to participate in board discussion as if they were a board member? Should a board meeting be conducted like a town hall meeting where everyone can speak? It is my contention that a board meeting is for the board to conduct its business without co-owner input. Answer: Your interpretation is correct. Board meetings are designed for the directors to [...]
Question: We recently got a professional reserve study done. Our budget committee took the information and plugged it into a spreadsheet that will allow us to postpone the need for a professional study revision. The substitute study changes some of the assumptions, like reducing the recommended reserve contribution and the inflation rate. By doing this, we can lower our annual contributions significantly. Our reserve study provider has recommended annual updates. What are the pros and cons of [...]