âThese are the hidden costs of buying a condo,â she said.
And there are other complications: Shortly after last month’s collapse, a number of insurers sent letters to condo owners asking them to submit proof that their buildings had passed inspections, reported. the Miami Herald.
Insurance on buildings and individual units had previously been an issue for older beachfront condo complexes as they grappled with the recurring threat of hurricanes and tropical storms as well as the effects of climate change. Insurance companies have retreated in recent years in their willingness to cover these properties, Mr Clarkson said, and rates have skyrocketed.
âIt’s getting harder and harder to find what I might consider a legitimate business to come in and write a building like these,â he said, referring to insurers willing to cover such sites.
Beachside condos, in his opinion, have a certain built-in resilience. âI don’t think the condo market is ever going to go anywhere,â he said. “How don’t you want to come down here and open your windows in the morning, open your cursor in the morning and let in a nice breeze?” “
âIt is a question, he added, of consolidating the buildings.
Still, the disaster raised concerns and stoked fears about the condition of older buildings in the local real estate market, which, like much of the country, has been booming in recent months.
In Miami-Dade County, condos costing $ 1 million or more have seen an increase in demand this year, with sales increasing 300% from January to May compared to the same time last year, according to an analysis of sales data by Ana Bozovic, a broker and founder of Analytics Miami. Condos costing less than a million dollars have seen a 92% increase over last year.
Impending inspections could increase both repair costs and buyers’ caution, leaving residents who wish to sell their homes, like Ms Mason, in precarious positions, Ms Bozovic said.