Florida Condominiums Top Tips to Make an Intelligent Investment

Florida Condominiums and Buying Right

Florida Condominiums

Key West Style Florida Condominiums

 

Experiencing a steep growth curve prior to the economic downturn, the Florida real estate market is a vibrating hub of abundant unsold and new condominium units. This is an once-in-a-lifetime opportunity for second-home buyers as well as investors interested to grab a piece of the endlessly desirable Florida condominium realty pie. With a large number of these condominiums being located near lush golf courses, sunny beaches, and providing world-class amenities, buyers have been flocking to this part of the world. Recently prices of Florida Condominiums have been back on the rise.  Don’t be in such a rush though you forget to do your due diligence.  Purchasing a condominium under Florida laws and regulation is an entirely different ball game compared to what you have experienced so far!

 

Condominium and Units

Starting with the definition of condominium for first time condominium buyers in Florida.  What exactly does the term ‘condominium’ stand for? Though most owners refer to their individual apartments as ‘condominium’, in reality, condominium denotes the entire property consisting of all the apartments, parking areas, grounds, and generally, the recreational facilities incorporated there. Each apartment is known as a ‘unit’. Other than the unit, the rest of the property is referred as ‘common elements’. The buyer has the exclusive ownership of the unit and the ownership of the common elements is shared with other unit owners. The Florida Condominiums Act highlights that all the owners have an undivided ownership of the common elements.

Condominium Documents and Its Importance

This ‘unit’ arrangement could lead to absolute chaos unless there are strict management and guidelines in place. Due to this close proximity with your neighbors and the potential chances of miscommunication regarding the common elements, there are condominium documents highlighting restrictions and rules that cover different concern areas including maintaining, repairing, and insuring the common elements. These documents briefly incorporate the following:

  1. Declaration of Condominium – The key document of your ownership of Florida condominiums. Describing the common elements and the units, this document defines the precise rights of the unit owner, authorizes formation of association, and controls the operation and uses of all common elements.
  2. Articles on Incorporation of the Association – Filed with Florida Department of State, this document authorizes the creation of the condominium association.
  3. Bylaws of the Association – The bylaws are the guidelines for the association’s operation.
  4. Operating Budget – It describes the association’s common expenses. The cost is split among unit owners in proportion to their ownership interest in all the common elements and changes year to year.  We always recommend you request a current budget from the HOA directly when purchasing.
  5. Rules and Regulations – Consisting of restrictions concerning the use of the common elements, these rules are ratified by the Board of Directors.

Investment and Purchase of a Condominium Unit

Though the purchase of Florida condominiums involves many considerations like a  single family homes, different factors are involved because of unique legal structure of condominium real estate. Under the Florida Condominiums Act, the two categories of the condominium purchase process are purchasing directly from the developer or from any prior unit owner. Under the Act, these two procedures are differently treated and there are different legalities involved. If you are eager to accept the Florida condominium life and planning to invest in a unit, prior research of these criteria is important.  Once you purchase its too late to do your due diligence.

 

How to Make Money Flipping Florida Condominiums

Declaration of Condominium and Bylaws

Stuart Miles | freedigitalphotos.net

As a real estate investor, you already know how popularFloridacondominiums are. If you’ve never invested in one before, you may have your doubts about how much money you can stand to make or how quickly you can sell the condo. The trick to selling quickly is making sure the condominium is up to par and everything potential buyers are searching for. Here are a few tips on how to make money flipping Florida condominiums.

Buying Right

The first trick is to avoid jumping on the first Florida condominium that becomes available. While it can be tempting, you need to wait for a sweet deal to come along so you can get a great condo at a low investment. This might mean a foreclosure or a short sale, so watch the market and make sure you’re up to date on the condos in the area you’re looking to purchase in. Your profit is made when you buy, not when you sell your condo or home.

Improving the Condo

Because it’s virtually impossible to add rooms or do major renovation on a condo the way you can on a house, you’ll need to make improvements in different ways. For instance, most people focus on the kitchen and the bathrooms in condominiums when they’re considering purchasing. They look for plenty of space, up to date appliances and facilities, open and airy rooms, and functional work stations. Focus your time and effort on these two rooms above all else, because a condo with a fantastic kitchen and bathroom will sell quickly.

Cosmetic Touch-Ups

In addition to providing great quality bathrooms and kitchens, there are cosmetic touch-ups you can make to your Florida condominium that will help it sell. A fresh coat of paint throughout the condo will help it look immaculate, and you should keep the colors to neutral tones like off white, beige or cream. This allows individuals to see the condo as a canvas for their own taste whereas bright or vivid colors can be off putting. A thorough cleaning is in order, and should include dusting the baseboards, scrubbing the bathrooms and kitchens especially, and airing out the condo.

Staging the Condo

You may want to hire a staging professional or do it yourself, but in some instances, staging will help the condo sell. All personal items should be removed from the condominium and areas should be staged much like the set of a movie. Neutral, classic furniture can be placed in rooms to illustrate how the area might be utilized. Before opening the condo for someone to view, light candles scented in vanilla or another subtle scent, and use lighting to set the moods in different rooms.

Making the Condo Competitive

Finally, when you’re ready to sell the condo, you’ll want to make sure it’s a competitive price. Check the local listings and compare those condos (including the number of bedrooms, bathrooms and specific features), and then determine a fair price for your condo.

By using these tips, you can ensure that your Florida condominium flipping will be successful and that your condo will sell quickly, making you a lot of profit.  If you are looking for a copy of your Declaration of Condominium or Condominium Documents, please feel free to search our database of 1000’s of Condo Documents.