The Orlando Condo Blog

It comes as a surprise to some, but under the Florida Condominium Act, when an owner decides to rent out their condo, their rights to use the on-site amenities like the pool, gym, tennis courts etc. pass to the renter.

“Dual use” as it is referred to, is generally prohibited by the governing documents, meaning that owners who have tenants living in their homes can actually be prevented from using their own facilities.

Unfair? Not really. The amenities are developed for use by only a certain number of persons and in communities where most of the units are owned by investors who rent out their condos, that use could effectively be doubled, putting enormous pressure on the infrastructure. Just as you can’t live in your home once it’s rented, nor can you use the pool. Fortunately, in most cases, this never becomes an issue as most condo investors live out of state – or out of the country.

For more information on acquiring MetroWest investment condos, contact us here at Condo Metropolis on 407-290-3408. We look after the entire life cycle of your investment, meaning as your Realtor we will help you purchase a property, as your property manager we will find a renter for you and manage the unit, and finally, when you are ready to exit from your investment, we become your Realtor once more, listing and sell the unit for you!

So much for “gated communities.” Attorney Ken Direktor appears on CNN discussing potential association liability on the Trayvon Martin case. Interesting stuff. Orland condo buyers should worry more about the community itself rather than whether or not it is gated. Half the time, the issues are on the inside of the gate!

Question: When I bought my two condominium units, the documents allowed units to be rented. Thereafter, the condominium declaration was amended to prohibit rentals altogether. I did not vote in favor of the amendment. Subsequent to the effective date of the amendment, I sold one unit, but I have also kept one unit. Can I continue to rent the one unit I have kept? R.J. (via e-mail) Continue Reading »

Question: I live in a community with a homeowners’ association. Does the board have to let owners speak at board meetings? S.R. (via e-mail) Continue Reading »

Heya. Changes are a’brewin’ in the mortgage industry. You need to be aware of what’s happening, as it affects you directly.

Clients with FHA Case Numbers assigned on or after April 9, 2012 will see an increase to both the upfront mortgage insurance premium and the monthly mortgage insurance premium.

The upfront mortgage insurance premium (currently 1% of the base loan amount) will be increasing to 1.75% of the base loan amount.

The monthly mortgage insurance premium (currently 1.15% of the base loan amount divided into 12 months) will be increasing to 1.25% of the base loan amount.

For example– Continue Reading »

Question: When I bought my two condominium units, the documents allowed units to be rented. Thereafter, the condominium declaration was amended to prohibit rentals altogether. I did not vote in favor of the amendment. Subsequent to the effective date of the amendment, I sold one unit, but I have also kept one unit. Can I continue to rent the one unit I have kept? R.J. (via e-mail) Continue Reading »

As a real estate brokerage that deals largely with investors from out of state, it’s no surprise to us that Florida had the highest concentration of property purchased by international buyers in 2011. That’s according to the National Association of Realtors Profile of International Buying Activity.

31 % of all international sales in 2011 came from Florida, and Canadians who accounted for 23 percent of all foreign buyers. In fact, 8 percent of Florida resales in 2010 were to Canadians.

For Condo Metropolis here in Orlando, I would guess that a full 50% of our international sales were to Canadians in 2011 with 2012 shaping up to bring more of the same. With bottom having come and gone on the condo front, it seems that everyone in Canada is now looking for a piece of the Sunshine State. And who can blame them, or anyone else?

For more information on buying Orlando condos, townhomes, vacation villas and single family homes, contact us here at Condo Metropolis on: 407-290-3408, or email Info@CondoMetropolis.com

For those of you are number oriented, read the full NAR report.

I often work with buyers who are worried about picking up bad debt on a foreclosure. In other words, they fear that if they purchase one that is subject to a home owners association that they may be liable for the dues that were never paid by the prior owner. True?

The answer, as always, is “it depends.” You should contact a real estate attorney for legal advice on matters such as these however there are some basic rules of thumb that may help guide you.

You can check if the HOA/COA has a lien recorded against the property for outstanding dues, but just because you don’t find one, doesn’t mean there aren’t any dues outstanding.

The title company should also be able to help you in figuring this out. In general, condos listed on the MLS that have already been foreclosed upon don’t suffer from this issue. Foreclosure sales on the “court house steps” can be a different matter: Continue Reading »

Low prices and a recovering economic outlook are encouraging more and more overseas property buyers into the American market says the latest annual survey of the Association of Foreign Investors in Real Estate (AFIRE).

The survey, which was conducted in the last quarter of 2011, interviewed a group of AFIRE members who, between them, hold around $338 billion of USA real estate in their portfolios. It showed that they plan to increase their investment in the U.S.A. even further in 2012. The survey highlighted that many investors still regard the USA to be one of the most secure and stable global markets.

As everyone knows by now, prices of American real estate have crashed, to levels of around 10 years ago, with up to 70% off prices from peak in some states. In fact, prices can be around 50% of build cost – clearly an anomalous situation that will correct. Purchase prices may be very low, but the rental market is booming as more and more Americans decide to rent instead of buy. In Orlando’s condo market it’s virtually unanimous that bottom has been and gone. But that doesn’t mean there aren’t still plenty of great deals to be had. Continue Reading »