“Number one, it is going to increase the amount of money available for maintenance and keeping condos in the right shape,” he said. “Number two, it’s going to stabilize the market. The liquidity will become much better. It’s going to have a positive effect on the overall economy, because Florida is a huge state, and Florida condos are a big part of the overall condo market. So it will help the overall stability of real estate in the US. It’s a big deal.”
Improving affordability
When calculating the impact of the 25% down regulation on a condo purchase, you can see why it is such a problem. This is especially true because, in many parts of the state, condominiums are the affordable housing option.
By limiting first-time buyers’ access to condo financing, Slyusarchuk said many are forced into a house, which can be significantly more expensive.
“Sometimes you can buy a condo for $200,000 where you have to buy a house for $500,000,” he said. “With this kind of discrimination and restriction, you force an ordinary person to put 25% down, which is $50,000. That’s a gigantic output.
“So you push people to buy more expensive housing with a higher interest rate, and more upkeep. You’re just squeezing a regular consumer into something they can’t afford. A lot of affordable housing is condos because you can buy for $100,000 to $200,000. It’s unreal to ask a person to put $50,000 down, plus you need furniture, plus you need to renovate. This is absurd.”
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