January 2025
In Ontario we call them condominium corporations, and stratas In British Columbia. In the United States they have Home Ownership Associations or HOAs. Regardless of terminology, all are desirable living environments attracting more people each year.
Sarasota, Florida is growing to meet the demand of Canadians looking to purchase a warm-weather property for when they want to escape cold and snowy weather. Unlike high-rise buildings in Toronto, Sarasota is building homes in all shapes and sizes, many with high-end finishes. Lanais are popular. This is a more expansive porch or balcony incorporating some combination of barbecue, outdoor seating, heating (for cooler nights), lighting, screen walls providing protection from bugs that electronically open and close, and sometimes a swimming pool.
Individual communities encompass thousands of homes surrounded by walking areas, grass and retail. Some are gated communities protected by electronic or physical security. Each community may include recreation centres with golf, exercise equipment, swimming pool, tennis and pickleball courts. Many offer a broad range of social activities.
For those accustomed to condominium prices and amenities in Toronto, homes and monthly fees in Florida seem low. For less than the cost of a high-rise condominium in Toronto, one can purchase an expansive single-family home with use of outdoor amenities and social programming.
Before purchasing an “inexpensive” winter home, be aware of local differences that make these homes less economical than they may appear:
- All costs are in US dollars. Add 40 percent for a Canadian equivalent.
- Like condominium corporations, HOAs have rules to follow that impact on how your home is maintained. There may be paint colour, landscaping and maintenance requirements that must be adhered to at your expense.
- Monthly HOA fees appear lower than condo corporation fees because they cover less. Roof replacement, plumbing, electrical work, outdoor painting, gardening and maintaining HVAC systems are just a few of the costs not paid by the HOA.
- Insurance is a much larger expense in Florida than in Toronto, and there is no equivalent to corporation insurance that provides greater support for residents and owners.
- Lastly, and most importantly, HOAs have fewer requirements to maintain a sufficient reserve fund. As communities age and expenses increase, special assessments are more likely than in Ontario. Some may choose to fight these assessments and be successful thus ensuring the community shifts into decline. There may be a loss of amenities or common spaces and more infrastructure problems when funds deplete.
Florida will remain a desirable destination because of its weather, and Sarasota is just one of many areas popular with Canadians. Before embarking on a property purchase in the state, be clear on purchase price and ongoing maintenance costs.
