NEVER BUY A CONDO! (The Stucco Building almost Collapsed)

11/26/24 •

Summaries by topic

• English

HOA fees and special assessments can significantly impact condo owners, potentially leading to substantial financial burdens and property devaluation. The speaker highlights instances where condo owners faced six-figure assessments due to stucco-related building issues and HOA mismanagement, emphasizing the risks associated with condo ownership and recommending against it. Ultimately, the podcast emphasizes the importance of understanding the implications of HOA fees and special assessments before purchasing a condo.

HOA Fees & Assessments

• 00:00:13 HOA fees can unexpectedly rise, as illustrated by an example where fees increased from $350 to $1,200 per month due to needed repairs. Special assessments can also be imposed for various reasons, such as funding shortfalls or unforeseen repairs, resulting in significant financial burdens on condo owners.

Stucco Building Issues

• 00:02:47 Improperly installed stucco can lead to severe structural damage, as demonstrated by a condo building in Charlotte that started leaning due to water damage to the foundation. This issue resulted in a large special assessment, illustrating the potential for substantial repair costs.

Condo Value Impact

• 00:09:14 Special assessments and HOA issues can significantly impact the value of a condo. The speaker describes an instance where a condo owner was forced to sell at a significantly lower price due to an impending assessment, highlighting the potential devaluation of a property due to HOA issues.

HOA Power & Foreclosure

• 00:04:18 HOAs have the power to enforce assessments and, in extreme cases, foreclose on properties if owners fail to pay. The speaker emphasizes the authority of HOAs, warning that even if a mortgage is in place, the HOA can take legal action to reclaim the property.

Recommendations

• 00:09:58 The speaker advises against purchasing condos due to the potential for unforeseen financial burdens and property devaluation associated with HOA fees and assessments. He recommends always inquiring about HOA fees, their inclusions, and the existence of any reserve funds or pending special assessments.