The end of the year and the beginning of the new year always brings changes to the condo-hotel plateau in Daytona Beach area. I mean a direct Oceanfront Plateau (LOL)
Elections of the Board of Directors, new budgets, changed Assocation fees. How much do they go up? And when you suddenly see that the fees go down, when every other Association had to increase to offset expenses, wy could that happe?.
But where the expenses can increase? One of the ways to end up paying way more is when the Insurance company reappraises the building and comes up with the appraisal that is to about $200 per sq. ft. for a simple boxy multi-level building. The builder say they can be replaced at costs way less than even $100 psf, but Boards are not effective in fighting rising costs and rather just increase the association fees.
The other dangerous tendency to increase the fees is due to a slow business. With more owners who do not pay their dues, the Associations are forced to to increase the fee so that they can cover the expenses by overcharging paying owners, and hoping that eventually the foreclosure would bring the new paying owner, and the Lender, taking back the property pays the outstanding fees or at least 6 moths of them.
The biggest surprise came fro the Hawaiian Inn Beach Resort in Daytona Beach Shores. Their fees came down from $500 a month to $450. That;s quite a reduction.
Hawaiian Inn in Daytona Beach Shores has always had higher than others maintenance fee in a attempt to avoid Special assessment while adequately maintaining the fledgling structure.
They finally had to initiate the major renovations to the structure built in 1965. It caused Special Assessments, and they are still not over, and the next one starts in March and is to be paid in 12 monthly installments at $390 per month in addition to $450 a month Association fee. Considering that many units are and will be off the rentals for quite some time, it is understandable why the prices in Hawaiian are among the best for condo-hotels in greater Daytona Beach area.
If you are interested in condos or condo-hotels in Daytona Beach area, call me 386-405-4408 or e-mail me. At prices as low as they are today, it makes sense to buy or invest as heavily as you can afford.