Interested in buying a beautiful condo in South Florida for just a dollar? There are over 10 luxury condos in Palm Beach County that are listed for $1 - $900. Yes, these deals actually exist, but there is a catch!
The catch is that you have to join the respective country clubs, pay the required annual dues, regardless whether you choose to take advantage of the amenities. The annual total costs can go as high as $30,000.
Before you jump at the nearest too-good-to-be-true deal, you need to do your due diligence by asking as many questions as possible regarding the deal. You first have to determine all the mandatory fees and what you stand to gain.
For example, the one dollar condo requires you to pay $10,000 country club membership application fee which is non-refundable and a $40,000 equity buy-in for you to join the club. When it comes to selling your condo, you might get as much as 70 percent of your equity, which comes to $28,000. You will also have to pay annual dues that come to about $10,000 which entitle you to unlimited use of the country club amenities, but this too depends on your membership level.
Aside from the country club related fees, you will also be required to pay the condominium association fees. You should ask if these two are solvent and determine if they can afford to pay for major renovations, repairs and capital improvements. You should also find out how many condo owners are delinquent and how many condos have been foreclosed for delinquent condo fees.
You also need to investigate the CCRs – covenants, conditions and restrictions; the house rules your personal as well as rental use of the condo. Most condos restrict occupancy to people who are at least 55 years old.
If you are looking to rent out your unit, it’s important that you explore the tax consequences of your rental income. Though the cost of your condo may just be a dollar, the additional costs of acquisition which are mandatory can usually be capitalized and depreciated.
If you have a dollar and can afford the country club lifestyle, perhaps such a commitment is in your future.
Posted by Boca Expert Realty on
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