Are the Cabana Club Sand Key FL Condos for Sale Financially stable?

Sand Key Florida – This is the 3rd article in a series I’ve written on the Cabana Club Condos for Sale. If you didn’t see the first two click below to read them and get more of the back story.

So what started this series was the fact that the prices on Cabana Club Sand Key FL condos for sale are some of the lowest priced  gulf front especially for 3 bedrooms on Sand Key FL and Clearwater Beach FL…which always begs the questions, Why?

Part of the answer I believe lies in the fact that somewhere along the way, and unfortunately I don’t know where or when exactly it happened but the owners of the Cabana Club Condominiums (I spoke with what I believe to be a reliable source who gave me the following info and asked not to be named. I of course have no way of verifying the information so as always buyers should do their due diligence.) * explained to me that they decided not to keep their reserve fully funded for the normal upkeep and ongoing maintenance of their beachfront condo community.

Well for a Sand Key Florida Gulf front condominium that is @25 years old it doesn’t take a rocket scientist to know that you are going to have some BIG expenses coming. I was told that since 2008 they have chosen to just do annual assessments.

You might ask yourself why Cabana Club Condos Sand Key FL Owners would choose to do annual assessments versus funding reserves? Well in my experience, just like many families right now, everyone works with a budget or a monthly income and when owners, especially those on more fixes income or whose income has dramatically changed in the last couple of years (can you say Realtors, Lenders, Stock Brokers, Retirees living off investments and the list goes on and on)…they often are hoping to buy some time and either have things improve or sell before they are affected.

Here are the notes I took based on my phone conversation with this inside source trying to get the information straight from those in the know on the afternoon of 10/7/10:

“The Cabana Club had assessments starting in 2008 to envelope the building, which they explained included updating and renovating the outside areas like balconies, concrete, clap board, etc.

Each unit got a new assessment on Sept 1 2010  which varied based on size of unit and that
starting in 2008 the owners decided not to fully fund current and future projects and agreed to annual assessments instead. (When I asked this person how much per unit they would not tell me however in researching with sellers of units my buyers were interested in I found a typical 3 bedroom unit was looking at an additional $600+/mo)


They just agreed again to do an assessment on Sept 1 2010 and the same for 2011 and they are looking to do a longer “loan” to roll in and fund future ongoing assessments / projects.

When I asked this person if they were fully funded on reserves, their comment to me is they have “some reserves”

* Updated 3/7/11 – At 12:53pm I received a call today from the original source regarding this article. We spoke for 4:01 minutes in the presence of one of my clients. The person called me and said “that there are facts in this article that are incorrect” – I told them we would gladly correct any errors or incorrect information if they would please let me know what is wrong. They refused to give me any additional information and  just kept repeating that it was wrong and I should remove this article.  My client heard me ask  for 4 minutes straight to give me any corrections and this person refused. I asked them to give me the current fees and assessments and she refused and said “I’m not going to tell you anything about the Cabana Club”. They also said they didn’t speak to me in the afternoon because they don’t work afternoons and yet this person just called me at 12:53pm which is roughly the same time we spoke back in October. We strive to provide accurate information however while all information is deemed accurate, it is not guaranteed and all mistakes will gladly be corrected when brought to our attention. As always, any buyer should not rely on this or any other information without verifying all information to their satisfaction when making any purchase.  We live in a dynamic market and things are constantly changing. All seller’s must provide a Buyer making an offer with a complete condo disclosure for current fees and assessments so our advice is be sure you are completely satisfied with the information you receive. If you are a seller/owner at the Cabana Club and have information that would be helpful to this article please feel free to call or email me and we will gladly update this with the latest information.

So while right now there are several low priced 3 bedroom units for sale – it appears you are looking at currently paying an additional $600+ a month for the current assessment which appears to be scheduled to run through 2011. So if you are asking how come these Clearwater Beach 3 bedroom condos are so cheap?…Now you know more of the story.

In my opinion this is why when I see a cluster of “great condo deals” in the Clearwater Beach real estate market I know there’s got to be more to the story and you should have a Clearwater Beach realtor who digs in and makes sure you’re educated as to what you’re getting into.

And remember, unlike other Sand Key condos for sale, you can not rent these units out except for 6+months at a time so that’s not a very viable answer for offsetting these costs – you are basically looking at trying to find an annual renter – thank goodness property taxes and interest rates are down at the moment .

How could Cabana Club Condos Assessment affect me as a new owner?

You should know that when you buy in a condo community you are obligated to pay association assessments or they actually have the ability to foreclose on  you. This is why lenders are so serious about financial strength because if they finance a purchase it’s in no one’s interest to realize you can’t afford the condo with escalating association cost or surprise assessments. Buyer beware – do you homework and work with Sand Key Realtors that are YOUR advocate and making sure you have all the info to ensure  you are REALLY getting a good value – even in today’s market, it’s not a given!!!! (Disclaimer: I am not an attorney and don’t give legal advice and should not be construed at legal advice)

Condos that choose to manage my assessments versus solid reserves can be Russian Roulette for buyers that don’t have deep pockets..,can you say another “Clearwater Beach foreclosure” if you can’t pay them!!! Feel free to ask us more we’re happy to share our local insights!!!

Is a Hotel Coming next door to the Cabana Club Condos on Sand Key – What’s the impact?

The other big “unknown” is that in place of the Cabana Grille restaurant owned by the Belleview Biltmore there is supposed to be a new 6 floor low-rise boutique 38 room Victorian style hotel with a new restaurant being built between Dan’s Island condos and The Cabana Club condominiums and some people don’t like that idea which can also motivate some to sell as well as others not to choose to buy. If you’d like to read more you can check it out here.

Lots of people that already live in Sand Key Florida have expressed their concerns about this hotel. In my opinion, it will probably be an asset at best and neutral at worse (except during the construction process which is always a pain), however, each buyer has their own desires and you should know who your future neighbors could be – don’t you agree?

What else do you want to know that wasn’t answered here? If you want a list of all the condos for sale in the Cabana Club or all the Sand Key Condos for Sale – we’d be happy to customize a list based on just what you’re looking for.

As always, if you’d like to know about what’s happening with Clearwater Beach real estate just give us a call and we’ll bring you up to speed on what’s happening right now.

Disclaimer: I am not an attorney and don’t give legal advice and anything in this article should not be construed at legal advice. In addition, all information given here is believe to be true with sources sited however subject to change at any time and is not guaranteed and should be verified for your own purposes and situation.

And if you’re looking for a Clearwater Beach Realtor we’d like you to know that we are passionate about being your real estate advocate. We’re committed to delivering Results daily based on Integrity, Knowledge & Experience – helping you find the perfect Clearwater Beach condos for sale.

We’d like to be YOUR Clearwater Beach Real Estate Team!

Call Cyndee @ 727.710.8035 or Jack @ 727.710.8036

Warmly,
Cyndee and Jack Haydon
Charles Rutenberg Realty

Clearwater Real Estate Office
1545 S. Belcher Rd
Clearwater Florida 33764
727-710-8035 (Cyndee’s cell)
727-710-8036 (Jack’s cell)

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9 Comments

  1. Cyndee – great info here. Wow! This inside info shows you are THE clearwater / sand key condo person to know! I don’t get to drop by your blog very often but when I do, I always get great ideas to write about in my own market. Thanks again!

  2. Hey John, thanks for visting and the kind words – that’s quite a compliment coming from you!! Things are change so quicky in our Clearwater rsal estate market that IMHO Buyers and seller’s owe it to themselves to be working with Realtors who are specialist and doing this full time! We found some of the listing agents weren’t even aware of these details. Also FL got a new real estate contract and now if assessments are pending 12 prior to the Buyer’s effective contract date the SELLER has to pay the assessment – guess how much money we’ll save our Buyers by understanding that latest change!!! (Can you say thousands)

  3. With your expertise as one of Clearwater Beach Short Sale Agents, the advice you share in this post is a must read to every homebuyer and owner in your area. Thanks for sharing this!

    Bob Hertzog

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