I'm tired of throwing money away on rent here in the Plantation/Fort Lauderdale area. Currently paying $1600/month for a decent 1-bed spot, and it's starting to feel insane with potential hikes coming. I could get a roommate to drop it to ~$1000/mo, but I'm eyeing a $125k condo (1-bed/1.5 bath, ~700sqft, $420/mo HOA) that's been on the market forever with price cuts – comps sold for $98k-$120k recently.
Quick Math (30yr mortgage @ ~6%, 20-25% down ~$25-31k):PITI + HOA/ins/taxes: ~$1300-1400/mo (slightly under current rent).
Pros: Build equity, lock in costs, tax perks – especially if I stay 5+ years in this softening condo market.
Cons: High HOA risks (special assessments post-Surfside laws), opportunity cost of down payment in stocks (10% returns?), illiquidity if job changes hit as a Georgia Tech student/engineer.
Rent + invest the difference seems smart short-term per Reddit calcs (price-to-rent ratio high), but owning hedges FL rent spikes and gives stability for my UI/UX projects.
Florida condos are "money pits" to some with insurance/HOA bombs, but this HOA seems solid (Plantation Place, reserves ok, no 50yr inspection soon).
What would you do? Buy now while prices dip 6-10%? Rent w/roomie & stocks? Run numbers for my scenario? First-time buyer, ~$40k saved
FYI: eyeing a $135k condo, offered $125k and got countered with $128k. I wanna keep fighting
Stuck Paying $1600/mo Rent in South Florida – Should I Buy This $125k Condo Instead? Need Advice
byu/Repulsive-Canary9080 inRealEstate
Posted by Repulsive-Canary9080
15 Comments
Move out of Florida
Stay on FL and buy a house not a condo
Condo market is soft all over.
https://www.wsj.com/economy/housing/the-condo-market-hasnt-been-this-bad-in-over-a-decade-9f3e7256?st=VD7wb6
A 1 BR is a tough sell.
They do say to be greedy when others are fearful, and the condo market right now has a lot of fear.
This is a really thoughtful breakdown of your situation. A few things to consider: First, make sure you understand all the costs in that $420 HOA. Some condos have surprise special assessments, especially post-Surfside. You mentioned the reserves look okay, which is good due diligence. Second, at those prices, running the numbers with a preapproval letter in hand gives you real data to work with. The price-to-rent ratio is definitely high in South Florida right now, so renting short-term while building more reserves isn’t a bad strategy either. Third, consider your job stability as a Georgia Tech student-engineer. If there’s any chance of relocating for work, condo liquidity matters. Good luck with your negotiation on that $128k counter offer!
I would not buy a 1 bed condo unless I was buying the whole building and it came as part of the sale. They are harder to sell and harder to rent/less rent coming in. If it’s an older building you can expect big surprise HOA fees. You need to inspect their books to ensure they have the money to cover any repairs.
Buying anything with an HOA is a risky proposition. The association rules can be restrictive, and you risk fines for not following them. I’d rather spend money on renting and avoid the headaches.
Specially, in Florida I see all those news reports about the HOA going after people constant. Take you to court one lady got locked up for not maintaining her grass!
No bc hoas and hoas in Florida
There’s a reason that’s been on the market forever. The South Florida condo market hasn’t even come close to hitting bottom yet. It’s really easy to get into a condo and then get trapped there.
That $200 difference pre-maintenance fees and pre-whatever you forgot in your calculation fees + likely 7% mortgage as it’s a condo probably not worth it.
1 bedroom is tough to sell. A 2 bed/2 bath would be better in the event you need to sell or rent or have a roommate, or stay and have a kid, etc. You just have more exit strategies and options.
Skip the 1 bedroom.
If it’s the unit I’m thinking it is, that place has been on the market for 318 days. It has only 85 views and 1 save (I bet it’s you) on Realtor.com.
It sounds like it’s currently rented, confirm that there is no lease, even though the description indicates the tenant will move out. That could be an issue.
The $420 will increase a bit every year more than likely, but Plantation Place is relatively well kept. I would confirm the condo fees don’t also require an additional special assessment fee because I see other units listing fees higher than $900 per month.
Most recent comps:
Unit 107 sold for $120k and it is a 1/1 720 sq ft.
Unit 207 sold for $98k 1/1 720 sq ft.
There is a 2 bed unit listed at $165k. All things being equal, if condo fees are the same, you’d have the ability to get a roommate if you ever needed it with a 2 bed. It’s possible you could snag a 2 bed for $145-150k.
Plantation is a great city btw.
Rent isnt “throwing money away”
Is there a condo buy in?
The rent/invest point becomes much clearer the longer you hold. Assuming prices don’t go down, you will most certainly make money by holding 5-10 years, at which point your rent would be more like $2k. (And then you’ll have equity.) The big question is probably your job situation. Would you be able to rent the unit and for how much? If you have to move, it would be good to have a back up plan for the property. If you plan to stay put, it’s almost certainly a good buy. If you can deal with the roommate situation, definitely do that. In the short term, most of that money is going to the bank anyways, but they’d be helping you pay down interest.