I thought today about a friend of mine who lives in a nice Florida golf community –- on the east coast of the state -– and pays nearly $30,000 in carrying costs annually, even after resigning his golf club membership. His home is valued a little north of $400,000. I thought his carrying costs were an anomaly, but after doing a little research for a customer from the United Kingdom who is considering purchasing a condo in Florida, I’ve spent the day contemplating the costs of ownership.
Here are the details on one listing I reviewed for my UK customer:
Community: Waterlefe in Bradenton, FL
Unit: 2 BR, 2 BA, 1,300 square feet
Semi-private golf and all other standard amenities
The Manatee River runs along edge of golf course.
Price: $182,500
Now that certainly seems like a fair, maybe even a bargain, price for a unit in a modern, well-tended golf community. Close inspection of the listing may reveal why the price appears so reasonable. First, there are the taxes, set at $2,077 annually. But this being Florida -– a zero-income-tax state where they have to pay for things somehow -- there is an annual charge of $2,408 for CDD, which stands for Community Development District, essentially a local tax to run the local community. The CDD is in lieu of an incorporated town. In essence, the tax on the $182,500 condo is a healthy $4,485 annually. But of course, any owner of a home in a planned development is on the hook for homeowner association dues; in the case of Waterlefe, HOA dues are $483 per quarter, or $1,932 per year.
