Ask Terry Questions Special Assessment on Rental Condo

Special Assessment on Rental Condo

By Terry Savage on October 06, 2015 | Housing / Real Estate

Hi Terry- I have a condo that I rent out in Florida and there was a $10K special assessment passed by the Board to all owners of this high rise.*(Complex was built in 2009 and there is a lawsuit pending against the builders) You could either pay it in 1 lump sum or over a ten year period w/ a 4.1% interest rate. The assessment was based on the individual square unit – mine will cost around $170 a month. I am trying to put away as much for my daughter’s college. I have about $45K saved for her right now – what would be the best way to deal with this – tie it in to my mortgage, pay the lump sum or pay it monthly ? I appreciate any advice to this matter.

Terry Says:  Well, a lot depends on when your daughter is going to school — but in any case, I wouldn’t disturb that money.  If the rate is fixed at 4.1 percent for the next ten years, I’d probably go with that and pay it monthly.  I don’t know how  you’re handling the condo from a real estate perspective, but since you’re renting it out this will need to be included in your cost basis.  And maybe it will allow you to increase the rent to offset the extra monthly expenses.  Consult your accountant for this part — But again, I’d keep the college savings totally separate.



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