The Association

I just came from a meeting of the Villagio Condo Association. Ay caramba.

Three years ago, I made a bonehead investment decision, and bought a condo conversion unit for $235,000. At the time, my instincts told me the unit was worth no more than about $125,000, but it seemed I was the only person I knew who WASN'T buying investment property. The idiocy of my purchase reached new lows recently.

The last unit like mine that sold went for about $140K. And then, in February, there was a fire caused by some white trash tenants who, if the rumor of the fire's cause and origin is true, were throwing lit candles at each other during a domestic argument.

Tonight I went to the "emergency meeting" called by the Condo Board. We heard from a lawyer the Board hired to handle issues arising out of the fire, as well as a public adjuster.

The news was bad. At best, 1/3 of the complex's 90 units will have to be demolished and rebuilt, and it will take around one year. During that time, it is anticipated that few, if any, of those unit owners will pay their maintanence fees, so those of us in the non burned buildings will get his with big assessments.

At worst, the Village of Palmetto Bay will require the entire building to be brought up to current fire code, and there will be insufficient insurance coverage to accomplish that. That will likely send the association to Bankruptcy Court, and between my own coverage and the community coverage, I'll probably get about 1/2 of what I paid for the unit.

Oh well. I'm a big boy, and can accept the loss. The funny part is the people at the meeting.

To a person, the 25 folks there wanted each of us to know their personal pain. One fellow in particular, an auto dealer and "failed condo investor," tried to dominate the meeting with questions about how this was affecting HIM.

Most of the other folks didn't get the concept of a condominium --that we were all partners here. A few of the older ladies kept asking about essentially casting off the building that was damaged, so that "the rest of us could go on with our lives..."

Despite the attorney's repeated explanation about how that wasn't permitted by the law, these ladies persisted.

I left before the meeting ended, after the same questions were being asked for the third time.

I came home and made a proclamation to Wifey. I've made them before, and broken them. This proclamation is that we would NEVER, EVER move to a condo. I've just grown too accostumed to my independence, and can't imagine having to suffer the fools one must suffer if he lives in a shared community.

Besides --I'm already a big enough fool as it is, for buying at the height of the bubble.

My partner Paul was smart enough to stay out of the game. He lost his money on the better investments of wine and women. As he told me, he knew there was something askew when our old secretary was buying and owning multiple properties.

Once the janitor is buying tech stocks, it's time to sell the tech stocks...

The good news is that my tennant Lenny wants to stay, and keep paying rent. There really aren't other renovated condo complexes available for reasonable rents in the area.

Hopefully they'll be able to fix the affected common areas for the available insurance coverage, and little by little the market will come back. I'll bequeath the unit to the girls, and THEIR kids can sell it, maybe, for what Grandpa paid, back in aught 6!

Where's the next investment bubble? This time I'll leave my checkbook at home...