If history is to be believed, the first day of July 2010 was the day when markets like Miami Beach condos began to creep slightly towards recovery, thus signaling that the bottom of the market had apparently been reached. This day was also notable for the passing of the Florida Distressed Condominium Relief Act, a law which went a long way in restoring a degree of trust.
Back in the earlier days of the market, small investors and hundreds of permanent buyers would purchase one or two Miami Beach condos and a recovery was in sight. These small investors have since morphed into “buy and hold” individuals with deep pockets who plan on holding onto these units for three or five before selling them off.
The major benefit of the Florida Distressed Condominium Relief Act is that it gives associations some financial stability and real estate agents a major advantage since they can now sell units like Miami Beach condos with increased confidence. For example, associations can now collect fees from tenants if owners fail to make payments which in turn will encourage community upgrades and therefore increase property values.
There's a lot more to the Florida Distressed Condominium Relief Act and Miami Beach condos are only used as an example since this is after all a statewide law. Nearly a year later, how effective do you think this new law has been in turning things around?