It's not just "Location, location, location" that's important to consider when you're looking at purchasing property! It's realiy important to know what rules will limit the potential buyers when it's time to sell. After all, selling is when the value of your property is most important.
Condos, co-ops, HOAs, can make it difficult for someone to buy your property.
The 55+ Communities restrict your buyers to only those over 55 years old. Although Florida is known as the retirement state, less than 20% of the population is over 65 years old, according to the US Census Data for June, 2017. So, if we were generous, possibly 35% of the population is over 55 years old. How many of them will be wanting to buy your property? Keep in mind, passing your place on to your kids may not work if they aren't old enough. They might be forced to sell your property. If you end up having to take in a grandchild you may find the HOA won't allow it!
"No Lease!" It may not affect you; you would never want to lease out your home, but when it comes time to sell, "No Lease," restricts buyers. Investors can't buy your home. Snowbirds who had hoped to do seasonal rentals while they are up North can't buy your home. Even "No Lease for first year" or, first two years, restricts buyers. This affects the value of your property by lowering the demand, the number of potential buyers out there.
If your single, then decide to partner-up and move in with someone it could get complicated if you can't rent out your place! Leaving it vacant and paying dues, taxes and insurance can be costly. Is that something that could happen to you?
"Daily Rentals Allowed" While investors and VRBO Kings and Queens may think that's great , it could be a nightmare for the long term residents. A constant changing of people requires on-site management, can create disturbances and it could end up affecting your dues.
"No Pets." Did you know that 68% of American Households have pets. (According to the National Pet Owners Association 2017 data) Although, Emotional Support Animals are not restricted by the "No Pet" policies since they are treated the same as a wheelchair, or any other item, a person with a disability may need.
"HOA Approval Required" Some communities set up guidelines of credit scores and background checks. They have time frames of up to 30 days to approve your potential buyers and potential tenants. Know what those rules are before you buy. You may have sailed through with your 700+ credit score and then when someone brings cash to purchase your place and their credit score is 650, they may not be approved. If you end up leasing your place out a 30-day approval process can hurt! Some management companies start your 30 days over if the application wasn't handed in with everything completed. That can be a double whammy.
Membership Equity Communities you are buying a fabulous life style. When your life changes from employed to retired, or suddenly divorced, those high monthly dues can sink you fast. Fabulous can turn to frightening. There are some really nice places on the market for under $50,000. because of the incredible month costs. Some places can't even sell for $25. per square foot and they have incredible views, fabulous locations.
Read the Rules for any condominiums, co-ops, HOAs before you buy and recognize how the rules will affect you and the value of your property when it comes time to sell, or pass it on. Most of the rules protect your value, your property and you; that's why they are there. We need to appreciate that value too!
