Home Buying in Clearwater>Question Details

Jill, Other/Just Looking in 48307

What are your thoughts about buying in Clearwater Cay as an investment property/second home? The HOA fees

Asked by Jill, 48307 Mon May 11, 2009

are already high. Since there are so many forclosed condos here, will the fees dramatically increase? Any comments would be appreciated.
Thanks,
JIll

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5
Jill,

When getting involved in purchasing property in high risk communities great care should be given to collecting information and becoming as informaed as you possibly can about the communities history, its finances, and what the future holds for it.

Dispite the current economical and real estate conditions, there are many established and stable communities that offer huge savings. Our recommendation is that if you have doubt about about a community's stability and future consider expanding your search and looking at other options.

An area real estate professional will be able to provide you with the direction and support you require.

Good luck
The Eckler Team
0 votes Thank Flag Link Sat Jun 6, 2009
Do you mean Cove Cay in Clearwater? If so that community is divided into four villages: Village I, Village II, Village III, and Village IV. Each village in Cove Cay has its own pool, clubhouse and condominium association. The condominium associations from all four villages belong to a master condominium association. The master association maintains the common areas such as the entrances of Cove Cay as well as Cove Cay's guardhouses. It has a semi-private country club, golf course, marina, and tennis with membership available to all Cove Cay residents.

Currently 49 properties are for sale in there out of a total of about 1000 units. Five out of the 49 units for sale are short sales while one is in foreclosure.

Will the fees dramatically increase? Currently some of the HOA fees are $360 per month. That is comparable to many other condos. However this one has more amenities which can be a plus. It's difficult to predict that fees will dramatically increase. So far their master association seems to have escrow reserves which is a good sign. Another good sign is that there are "only" 49 homes for sale there out of 1000 homes. Not bad.

~ Lana
0 votes Thank Flag Link Fri Jun 5, 2009
Jill, to give a confident reply there are a number of questions that beg a response.
What is your intended use for the property? Residence, investment, holiday/seasonal escape
What is the location of the property in which you have interest. Some buildings in the same complex may have different rules such as age restrictions, pets, leasing and any variety of posion pills.
As mentioned previously, financing is influenced by your intended use and qualification, restriction, non-resident owners and late maintenence payments. Let me know the address and unit and further investigation can be pursued.
Web Reference: http://www.mydunedin.com
0 votes Thank Flag Link Mon May 11, 2009
David is right. You must be careful with condos these days. There are associations in better shape and good opportunities available. I'll be glad to help you if you contact me.

Martha
Realty Resources
Web Reference: http://MarthaVasquez.com
0 votes Thank Flag Link Mon May 11, 2009
Jill.
Taxes also will be high because you are not living there. WIll you be needing a mortgage? If the renter versus owners is too high in an association then banks may not lend without at least a 30% downpayment or they won't even touch them.
Theother issue is can you rent the unit out for enough to pay for monthly costs. And don't forget a lot of condos trying to protect themselves do not allow renting out for the first year.
Fees will continually increase as owners default or not pay the fees. The burden has to shift to the people that are left. These fees of course are paying for a lot of services especially such as building insurance.
Hopefully as the market contiunues to stablize so will HOA fees as the pressure o foreclosures slows down. Condos are very challenging to buy these days. You can contact me anytime if you need more information.
0 votes Thank Flag Link Mon May 11, 2009
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