Condo owners wake up to reality that homes are worthless
In Boynton Beach for example, a two-bedroom, two-bathroom condo at Hunters Run Country Club with access to a resort-style pool and high-end amenities is selling for just $10,000. The owner paid $60,000 for it in 2001. It's now worth $3 per square-foot. On Marco Island, a one-bedroom, two-bathroom condo complete with water access at Sunrise Bay Resort is listed for $9,000. In contrast, a newer build nearby on Marco Island with an oceanfront entrance is selling for $629,000.
But the rock bottom prices still won't move inventory. Buyers aren't biting. Instead, most are opting for newer builds, which come with modern storm protections, amenities and HOA fees that won't skyrocket any time soon. The dramatic shift comes after a new Florida law — passed in response to the deadly 2021 Surfside collapse that killed 98 people — imposed strict inspection and funding requirements for aging buildings.
Condo associations must now conduct structural safety assessments and collect hefty reserve funds for future repairs. 'I think we are going to see a growing divide,' attorney Alessandra Stivelman of Eisinger Law tells DailyMail.com 'New condos built to modern codes and with fully compliant reserves will thrive — while older buildings may struggle to survive and face termination, bulk sales, or redevelopment.'
Now, owners are trying to dump their condos. The problem is, no one wants them. The State of Florida Property Management Association (SFPMA) reports that at Miami's Cricket Club, a 50‑year‑old tower, each of the 217 owners were hit with an extra $134,000 in assessments. Summit Towers in Hollywood, Florida, faced a $56 million assessment, or $99,000 for each of the 567 condos, which completely tanked the value of the building.
Condos built over 30 years ago have seen a staggering 22 percent drop in value over the past four years, reports SFPMA. Meanwhile, new units have climbed in value 12 percent in just two years. Mortgage insurer Fannie Mae has now blacklisted more than 1,400 Florida condos due to deferred repairs or insurance lapses, which halts any attempt at a sale. Hard‑hit condo dwellers on fixed incomes and retirees see no way out. 'That's the million-dollar question – what will happen next and when,' Stivelman says.
'While this cycle of new and replacement buildings may help improve the safety and durability of Florida's condo inventory, it also raises concerns about displacement, affordability, and access for long-time residents. 'Many may not be able to absorb escalating costs or compete in a market shifting toward luxury redevelopment.' Despite the crisis, Governor DeSantis has acknowledged the 'serious problem' in the condo market, but offers no immediate bailout.
DeSantis did sign a new law that kicks in July 1, that will rein in homeowners associations (HOAs) long accused of slapping residents with surprise fees and fines for petty infractions. DeSantis signed HB 1203 into law earlier this month, ushering in sweeping reforms aimed at making HOA boards more transparent and less intrusive. Under the new rules, any HOA with more than 100 homes or condos must post key documents — including budgets, covenants, and bylaws — on a publicly accessible website by January 1. Board members and property managers will also have to complete 4 to 8 hours of state-approved education each year.
And homeowners must now get at least 14 days' notice, along with an agenda, before any board meeting. The changes are being welcomed by property owners who say they've been blindsided with arbitrary violations and ballooning fees with little warning or recourse. And this could be just the beginning of nitpicky HOAs. Lawmakers have signaled more limits may be on the way, in Florida and other states. But it's not enough for many retirees. As the crisis continues in Florida, the state may lose them as they didn't anticipate repair bills, high insurance rates and sagging condo values that are squeezing seniors out.
More frequent natural disasters such as hurricanes and flooding have also led to more repairs and mitigation needs. As a result, the number of condos on the market has soared, and a 'mass exodus' is expected. There were 20,293 condo listings in the Palm Beach, Broward and Miami-Dade counties in the second quarter of 2024, ISG World reports. The figure is an 143 percent leap from the 8,353 in the same period 2023. Almost 90 percent of those for sale are in buildings more than 30 years old.
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Daily Mail
7 hours ago
- Daily Mail
I've just bought my second one euro house in Italy - this is how much it REALLY costs to own one
A man who has just bought his second house for €1 in Italy has revealed exactly how much it costs to own one. George Laing, 32, made headlines after he purchased his first €1 home in Mussomeli back in 2022. Since then, he has been working on renovating it and has so far managed to stick to a tight budget. The antiques trader purchased the bargain property through a government-backed scheme which was launched in 2017. It was created with the aim to help boost local economies and attract new residents to towns and villages with a declining population. Now, having just bought his second €1 home, George exclusively reveals to the Daily Mail exactly how much it costs to own one of the bargain properties, and his estimated costs to completely fix up both by hand. He explains that, while the €1 secures the freehold of the property, there are other costs that total to around £4,000. 'So in total, with all the €1 houses, you pay €1 for the freehold,' George says. 'You then have to pay an agency fee of about £500, you then have to pay the local notary to act as your sort of legal representative to transfer the deeds over from the owner to you, that costs about £2,800.' In addition, George shares there's agency fees of around 100 to 200 euros, as well as an energy certificate which costs around €200. George adds, 'Then you need to pay for the floor plans, which is another €80.' A lot of the €1 properties also don't have water connected, according to George. 'To get a new water meter €700 and then usually you need a new mains pipe into the the mains water, which is another €700. 'So all in all, I tell people a €1 house costs roughly £4,000.' George's first €1 property 'needed a complete, complete refurb,' including work on the electrics, plumbing, roof, bathroom and kitchen. He gutted out five vanloads of rubbish before the house was clear. 'It's a shell which is going to be turned into a self contained one-bedroom flat,' George adds. However his second property 'is in a slightly better condition'. He says: 'Both have issues with the roof and need a new roof, but it's a little bit smaller. 'But generally, the first one had a quite a few major cracks from an earthquake in 1968, the second one had no cracks at all, which is one of the reasons I snapped it up, because the condition was pretty good for being a €1 house.' Despite the range of renovations needed on both abodes, George has taught himself a lot of skills and plans to complete the work - mostly himself - within a tight budget. 'I'm getting pretty good at doing it pretty cheap,' George reveals. 'The first property I bought, my budget initially was £15,000 to renovate the entire property, but I've only spent £1,000 so far, and I'll do the entire property for under five grand.' The Brit has witnessed other €1 property buyers complete similar renovations for thousands of pounds more. View this post on Instagram A post shared by George Laing (@george_laing_) 'I know someone who's done the exact same job as me, and they spent 50 grand,' he adds. George says he has become skilled at making 'a pound go about £100'. He has received a little help along the way in the form of 'free stuff' and 'free materials'. 'A lot of people come here, they do one building, building jobs, and then they've got loads of materials and they just don't want them anymore, and they just give them away,' he shares. As for his newest house, which he purchased in July, George has an even lower price tag in mind. 'The second property, I'm budgeting about €10,000, but I'll likely end up doing it for half of that,' he explains. George brings down the price by doing a lot of the work himself, including roofing. He says: 'I'm doing the roof myself. I'll be replacing any beams that needs replacing. George brings down the price by doing a lot of the work himself, including roofing. He says: 'I'm doing the roof myself. I'll be replacing any beams that needs replacing' 'I was just on the roof a minute ago, replacing about 40 tiles on the first house I bought. 'You can pay five grand, six grand, for someone to replace a roof, but I just go to the local building merchant and I get a trader's discount on the tiles. 'It may not look perfect, but it will cost me a fraction of the price.' Once the transformations are complete, George plans to rent the houses out and purchase properties. Though George has had great success so far with his renovations, he admits it isn't always easy. He reveals one of his biggest challenges is funding the projects and travelling between the UK and Italy constantly. 'It's constantly a bit of a money pit,' he explains. 'I've got to travel back and forth because of Brexit. I can only stay in Italy 90 every 180 days. 'So I'm effectively only here every two weeks, every month, because I don't have a visa.' He adds: 'It's been very difficult saving any money, but I managed to do it just by working seven days a week. 'So there's been a bit of financial struggle, but we're getting on with it because the flights add up, you've got to pay for food. Everything sort of quickly adds up.' George has also struggled with language barriers at times, and has found it difficult to learn Italian. 'I speak absolutely no Italian, and I find learning Italian incredibly difficult,' he shares. 'I've got ADHD, so I find it very hard to focus on things sometimes and retaining certain information.' Instead, George has found himself relying on Google Translate to communicate with locals, butt admits it can be 'quite lonely at times'. Aside from the struggles, George feels his €1 venture has added more value to his life. 'It's bought so many opportunities and it's created so much more money for me, and my life has got so much better since leaving London and leaving the nine to five struggle,' he explains. 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The Independent
7 hours ago
- The Independent
Mark Zuckerberg's property empire unmasked. Here's everything we know, from where they are to how much he splurged on them
Meta mogul Mark Zuckerberg, the world's third richest man, boasts an enviable portfolio of properties across the U.S, from Silicon Valley, Hawaii, and one just minutes away from the White House in D.C. In Palo Alto, California, Zuckerberg has splurged over $110 million on properties since 2011 — and created a compound of 11 properties by purchasing adjoining houses. He purchased a $7 million home in Crescent Park and later took on four more for an estimated $43 million. Security is tight around the estate, which features a saltwater pool, a sunroom, multiple guest houses, and even a private school operating under disputed legality. Neighbors in the area, however, are rattled by the technogarchs' overwhelming presence and feel that the area has dramatically transformed since his takeover, according to The New York Times. In keeping with his fellow billionaire tech bros, Zuckerberg has also cozied up to Trump over the past few months, after being unveiled as the mystery buyer paying $23 million – in cash – for a tree-lined mansion nestled in the D.C. suburbs of Woodland Normanstone. One premium D.C. real estate broker told Politico that Zuckerberg's purchase in the nation's capital had everything to do with politics. 'It's the ultimate bow to the man in the White House [...] He notices who's there. It's an easy way to say, 'Hey, we're with ya. Here we are,'' Tom Daley said. A monopoly of homes in Palo Alto, California Zuckerberg's Silicon Valley purchases have recently caused a stir locally. Along two streets in Palo Alto, Edgewood Drive and Hamilton Avenue, the $270 billion mogul now owns 11 properties. Some of the houses lie dormant, while five others have been merged into a compound. Nine neighbors in the Crescent Park area spoke recently told The Times about their frustration with the Zuckerberg expansion. 'It's a mystery why the city has been so feckless,' said Michael Kieschnick – whose home on Hamilton Avenue is bound on three sides by property owned by Zuckerberg. Zuckerberg reportedly offered neighbors as much as triple the market value to buy them out, The Times reports. Just a 10-minute drive from Meta HQ in Menlo Park, Zuckerberg's homes are said to be kitted out with the latest AI-assisted modifications. The main Zuckerberg family estate comes with a saltwater pool, a decadent sun room, five bedrooms, and five bathrooms, according to Architectural Digest. Private security guards have been spotted lingering in cars, filming visitors, and even questioning passersby along the sidewalk, according to The Times. Aaron McLear, Zuckerberg and Chan's spokesman, recently told the Times that the couple fought hard to appease their neighbors. 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Its new buyer was kept under wraps for months until a Politico spilled the beans. A Meta spokesperson confirmed that the home will 'allow Mark to spend more time [in D.C.] as Meta continues the work on policy issues related to American technology leadership.' The Hawaii megacomplex The most controversial jewel in Zuckerberg's property crown lies thousands of miles away in Hawaii. On the island of Kauai, he has spent over $100 million assembling a 1,400-acre mega-compound known as Ko'olau Ranch, according to WIRED. Beginning in 2014, the estate has expanded to include at least two mansions with 57,000 square feet of combined floor space, a 5,000-square-foot underground bunker, and over 30 bedrooms and bathrooms. Cloaked by 6-foot walls, the tech baron's sprawling tropical estate is shrouded in secrecy and designed to be self-sufficient in case of extreme emergencies. Yet, his Hawaiian venture has attracted fierce criticism from the local community. The island's 74,000 residents, many of whom are Native Hawaiian or descendants of plantation workers, have witnessed the building of his passion projects with mounting frustration. In June 2020, over a million people signed a petition accusing Zuckerberg of 'colonizing Kauai,' citing a series of lawsuits and land disputes. The secrecy surrounding the compound became more controversial following a string of tragic workplace incidents. In 2023, a 53-year-old crane operator was severely injured on site. Even more troubling was the death of 70-year-old security guard Rodney Medeiros in 2019, who collapsed after a 12-hour shift. His family filed legal claims, citing poor conditions and the restrictive non-disclosure agreements that kept his death tightly under wraps. The ordeal grew more complicated over time, as the family became frustrated by the omission of detail regarding their loved ones' death and the NDA's limits, according to Wired. A glittering Lake Tahoe retreat Zuckerberg also owns luxury estates on Lake Tahoe's west shore, acquired for $59 million in late 2018 and early 2019, according to San Francisco Gate. The properties, named Carousel and Brushwood, were purchased through NDAs and are located on pristine lakefront land. Both are used as vacation getaways for his family. From Silicon Valley to D.C., Kauai to Lake Tahoe, Zuckerberg's real estate acquisitions reflect not only his saturated wealth status but also a strategic and controversial power play when it boils down to seeking power and influence.
The Guardian
12 hours ago
- The Guardian
How Spain put up wealth taxes - without chasing away the billionaires
With its green curtain of hanging gardens, the Planeta building is one of Barcelona's most recognisable office blocks. Earlier this summer, it was acquired as part of a Monopoly board spending spree by Spain's richest man, the Zara fashion label founder Amancio Ortega. Through his Pontegadea family office, which invests his personal wealth, Ortega has also just snapped up the five-star Hotel Banke in Paris, an apartment building in Florida, and a half-share in the operator of Teesport in the north-east of England, adding to a property portfolio already worth €20bn. Why the rush? Ortega is poised to receive a record dividend of €3.1bn (£2.7bn) this year from his shares in Zara's parent group, Inditex. He is reportedly racing to spend the windfall, which would otherwise be subject to wealth taxes. Sources close to Pontegadea told the Guardian it was not investing to avoid tax, but following its mandate 'to create wealth from the original assets, maintain it, make it grow, and consolidate it over generations'. It invests all dividends from Inditex 'and any other income from its own economic activities every year, no matter the amount', they said. Whatever the reason, the Ortega property portfolio has grown rapidly in recent years, making his family office one of Europe's biggest real estate owners. As chancellors around Europe cast about for ways to repair the damage to public finances caused by successive global shocks, there is a growing clamour for more effective ways to tax the largest private fortunes. Spain is one of only three European countries (along with Switzerland and Norway) to still collect wealth taxes, and policymakers are looking to Madrid for lessons in what works – and what doesn't. In the UK, the former Labour leader Neil Kinnock and the party's former shadow chancellor Anneliese Dodds have joined those calling for Rachel Reeves to introduce a wealth tax when she sets out her budget in the autumn. As the chancellor looks at the options, which could also include changes to inheritance tax, members of her own party are pushing for a debate in parliament about introducing a 2% annual levy on those with assets over £10m, which they say could raise £24bn. In France, a similar proposal aimed squarely at the ultra-rich with assets of more than €100m was approved by the lower house but was rejected by the senate. Wealth taxes are designed to take a percentage of a person's assets each year. Once fairly common, they have gradually fallen out of use, replaced by levies that bite when money changes hands, for example, through dividend payments, inheritance and sales of shares or property. Spain's wealth tax dates to 1978, a year that marked the transition to democracy from dictatorship under Franco. Regional governments receive the revenues collected by the levy, a system that worked well until, after a brief pause during the financial crisis, it was brought back in 2011. On its return, Madrid's conservative administration responded by discounting the rate to zero. The move benefited the high-earning footballers at Real Madrid, attracted new residents from other regions, and incomers from Venezuela and other Latin American countries, boosting property prices. In 2022, the conservative-run region of Andalucía in the south, announced that it, too, would cut the rate to zero. In a play on the Spanish term for tax haven, paraíso fiscal, Madrid's regional leader posted on X: 'Andalucíans: welcome to paradise.' Then Galicia, in the north-west, where Ortega is resident for wealth tax, joined the fray by offering a 50% discount. A source of income that had been providing hundreds of millions of euros a year to support local services, including healthcare, was under threat. The battle to save it became a tussle between the socialist-led central government, headed by Pedro Sánchez, and conservative-run autonomous regional governments. At the end of December 2022, Sánchez took action, with the solidarity tax on large fortunes. Initially for two years, to help with public spending after the pandemic, it has now been rolled over until the regional financing is revised, which is not likely to happen soon. It was designed in such a way that whatever revenue was forfeited by the regions would be collected centrally. The rate starts at 1.7% for those with net wealth of €3m, rising to 3.5% for fortunes over €10m. It is payable on worldwide assets. There are allowances: the first €700,000 is exempted, as is €300,000 for the main residence. A cap to help the asset rich and cash poor means that combined income and wealth taxes cannot exceed 60% of income. Numbers shared with the Guardian by the Ministerio de Hacienda (the Spanish Treasury) show that in the first year, 2023, the regions collected €1.25bn, and the central government €630m; a total of €1.88bn. In 2024, the regions took the logical step of keeping the income for themselves. The total take rose to €2bn. 'The solidarity tax is not a tool to collect revenues for central government, it is a way of forcing regions to collect more,' says Dirk Foremny, associate professor of economics at the University of Barcelona. In that respect, it has worked perfectly. As a revenue raiser, it is limited. The approach from Madrid has been light touch, though the rules could be changed to raise more. The sums collected are on a par with inheritance tax – already heavily discounted by the regions – which raises about €3bn a year. By contrast, income taxes bring in €130bn. But Foremny says the solidarity tax has a social value. 'This tax is a tool to achieve a more equitable distribution of wealth across individuals. There are good arguments why we don't want to have a very large concentration of wealth in the hands of very few. Wealth is correlated with political influence and power.' He points to the US and its billionaire tech barons as a warning of what can happen when the scales tip too far. What is clear is that, two years on, a predicted exodus of the rich, trumpeted in endless alarmist headlines, has not materialised. Forbes counted 26 Spanish billionaires in 2021. This year, it lists 34, with a combined net worth comfortably over $200bn. 'The big fortunes mostly stayed put, filed protective appeals, and hired better structuring teams,' says Marc Debois, the founder of FO-Next, which advises family offices. 'A handful decamped to Lisbon or Dubai or any other location; enough for newspaper headlines, not enough for a flight.' Could the billionaires be made to pay more? Experts point to a big exemption: the one for 'family companies'. Originally designed to encourage small- to medium-sized businesses, these structures are also being used by the very biggest fortunes to manage their assets. There are restrictions. A taxpayer must demonstrate that assets are being used for economic activity, that is, a trade or business. Cash and shares held simply for investment purposes are taxable. Real estate that earns rents is not. If the family exemption is abolished, Debois says the billionaires won't necessarily decamp. They are more likely to lawyer up, reduce profits by leveraging (taking on debt), and create holding companies in low-tax jurisdictions such as Luxembourg. 'Some money already half‑abroad would finish the move,' he says.' The bigger issue is tens of thousands of mid‑sized family firms rely on the same rule; torching it is politically radioactive.' Estimates by Julio López Laborda, a professor of public economics at the University of Zaragoza, suggest that 80% of the assets of the richest 1% are not subject to the wealth tax. He says the family company exemption could represent a loss to the Treasury of about €2bn, while the cap on tax as a proportion of income, mentioned above, could account for another €2.5bn uncollected. Susana Ruiz, tax justice policy lead at Oxfam, which is working with López Laborda on a forthcoming report about wealth taxes, says: 'We could be raising at least two to three times more than we are at the moment.' Cutting public services in order to fund tax breaks, or simply balance the books, can create a doom loop, because it reduces the quality of provision, undermining the consensus on which taxation depends. In Madrid, declines in healthcare provision fuelled resentment among working people and created a sense that private provision was more efficient, says Ruiz. She believes the solidarity tax has helped rebuild confidence. 'There is a lot of citizen support behind it. It helps in the perception that the system is fair.' So far, there is no sign that it has affected growth. Spain was the world's fastest-expanding major advanced economy last year, outpacing even the US, with GDP up 3.2%. By contrast, growth in the UK and France last year barely scraped above 1%. On the balconies of the Planeta building, and in the country at large, the green shoots are alive and well.
