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Thinking about buying investment condo

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Thinking about buying investment condo

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Removed on: 27 February 2009, 02:33
New Hartford, New...
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for Myrtle Beach
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1. Re: Thinking about buying investment condo

I just met with a long time realtor friend here 2 days ago. Prices have taken a dive here. Many sellers are listing their units for less than they paid for them. Including the newer ones.

Cover costs? Not likely. Take into consideration POA's, insurance, maintenance before signing. Rent will help offset costs but not cover them.

It's too early to say how rentals will be affected by the economy.

Rentals are at their peak between late May and Labor Day. Before and after can be very spotty.

With the many rentals to choose from you'll need to make sure your unit is top notch and well maintained. Much will depend upon the area you are considering purchasing in.

Also take into consideration escalating insurance costs and that South Carolina has a personal property tax as well as regular property taxes.

We've been owners and rent out our homes but have always had to supplement to cover expenses.

Do yourself a favor and find exactly what your expenses will be before purchasing. We have no regrets but had a lot of experience with real estate before making our purchase.

Don't let your emotions make the decision! It can be great but only if you can afford to make it work.

Good luck with your search and your decision! Hopefully it will all work out for you!

georgia
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2. Re: Thinking about buying investment condo

Above poster covers most bases. One factor to consider is how much you want to use it yourself. We have 2 condos in MB and use each of them3-4 weeks each year. We rent in the summer and have winter renters (90 day) in the winter and use ourself primarily spring and fall. In a "good year" we will cover all expenses , but have no mortgage. Some years we have to supplement some. The tax depreciation helps some, but will eventually have implications when we sell. We have owned for 11 years and appreciation has been good overall despite the recent past. If you have $ to invest and do not have to have an immediate return on it, I think now might be a good time to buy. People will make an effort to have a vacation even in tight economy and like the stock market, the values will eventually go back up. We also thought with the idea of retiring into one of them, but after staying 30 days at a time, we decided we would not be content with our set up of 2BR, 2BA since it would not allow us to ave extended family visit without really crowding.

Rehoboth Beach...
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3. Re: Thinking about buying investment condo

Very well said, lillious........

There was a thread not that long ago about this subject if you do a search.

Yes, prices are down way more on condos than single family homes, in part because there's a glut on the market. You could buy them at great deals all day long.

Talk to owners first, & do the math. Know up front that insurance & owner fees will escalate. These two alone can equal a typical mortgage payment. Personal property tax will not impact you (beyond your belongings in the condo) until you retire to the condo, but in the meantime, you will pay a higher real estate tax as a non-resident. Last but not least, if you allow the property management to rent your unit for you, their take is often staggeringly high (at some, close to half of the rental rate).

North Carolina
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4. Re: Thinking about buying investment condo

No doubt, prices have dropped, but a budget of $90K to $120 still will not get you on the ocean or 2nd row. Most renters will want to be on the ocean or across the street, so renting anything else could be difficult because there are so many ocean front/2nd row options. Next best thing may be on a golf course at that range??

Rochester
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5. Re: Thinking about buying investment condo

Thanks to all!

Wow! I'm glad I asked. It doesn't sound like this will work for me. I guess I'll wait a few more years(I'm 55).

I used to love the idea of retiring in Florida but with the congestion, crime, rising cost of living and the fear of hurricane damage, I have crossed Florida off my list.

How about Texas?

North Carolina
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6. Re: Thinking about buying investment condo

It's a buyer's market. In 5 years, that may not be the case.

Kiawah Island...
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for Kiawah Island, Charleston
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7. Re: Thinking about buying investment condo

Remember there was a hurricane that took out Galveston Island this past summer/fall.

Myrtle Beach, South...
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8. Re: Thinking about buying investment condo

My suggestion and I have my real estate license, buy because you love and you CAN AFFORD IT without depending on rental income. Too few vacations chasing way too many rentals-not a good combination for someone who wants to cover their costs. Yes there are good deals out there but you have to be able to carry those costs in case you don't get renters.

Myrtle Beach, South...
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9. Re: Thinking about buying investment condo

All those things you mentioned about FL you might want to be sure you check it out here as well, there is no Garden of Eden anywhere. Myrtle Beach experiences all the same things any vacation area does or any city does