Anyone own a beach condo in Florida? Or if you could, where?
- Thread starter APK Nole
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If I had the cash (and I don’t) the new Alys Beach development with the giant infinity pool and enormous gym. The father of my project manager in PC built it out and it’s ridiculous from the pictures I’ve seen. Lots of high profile CEOs and celebrities are the only current owners as I think the min purchase is $2mil if I remember correctly.
My in-laws have a house on St George Island. They bought it as a weekend getaway but ended up moving there full time because they liked it so much. Great beaches, enough to do but never seems too crowded. Only 80 miles from tallahassee so we are there a lot.
I'll give you the short answer...it's a bitch to get insurance on a Second(Non-Primary) Home in Florida...USAA won't even do it....The Constant Assessments for 10K..20K..30K...get old really quick due to Condo Board Approved Projects that you probably don't even want..if you want to rent it out when your not there a good management company is going to take 30-40 percent of the rental fee...dumb complaints you get from busybody full timers..etc..nice having a beach getaway but the headaches got a little much
Seems easier to rent for a week or two a year and not be tied down.
Thanks. I'm getting the idea that you own/owned one correct? Our plan would be to rent it out weekly but without a management company. Why is insurance so difficult for a condo that is built to withstand flooding and wind? Thanks again.
I grew up with a beach condo and loved it. Lots of great family memories and always knew I wanted my own one day.
When the time came where I was in position to afford a beach condo I looked at all the numbers and it just didn't make sense for me (in my 30's so still working pretty hard and couldn't enjoy it equal to the cost). Honestly if you need to rent it out to make the numbers work, just don't do it.
In 5 or 10 years I may revisit but would only do it if I: could leave work early every Friday to be there for the afternoon - Sunday, could afford a 3 bedroom (less than that and you really can't invite anyone else to join the immediate family), was inside of 90 minutes door to door house to condo, and wouldn't sweat the $15,000 assessment when it inevitably comes.
When the time came where I was in position to afford a beach condo I looked at all the numbers and it just didn't make sense for me (in my 30's so still working pretty hard and couldn't enjoy it equal to the cost). Honestly if you need to rent it out to make the numbers work, just don't do it.
In 5 or 10 years I may revisit but would only do it if I: could leave work early every Friday to be there for the afternoon - Sunday, could afford a 3 bedroom (less than that and you really can't invite anyone else to join the immediate family), was inside of 90 minutes door to door house to condo, and wouldn't sweat the $15,000 assessment when it inevitably comes.
I would suggest renting......highly suggest it.
Owning a vacation home/condo on the water/beach is a huge headache. More trouble than it's worth. Treat the decision like you would when deciding to buy a boat vs. renting one (or a boat club). Unless you're going to be using it a lot, don't buy it. I've made some good financial decisions in my life, but a property on the water was most definitely not one of them. A huge money-suck. It's a labor of love.....and I really enjoy it the 7-10 days a year when I'm there, but if I had to do it over again, I wouldn't.
Owning a vacation home/condo on the water/beach is a huge headache. More trouble than it's worth. Treat the decision like you would when deciding to buy a boat vs. renting one (or a boat club). Unless you're going to be using it a lot, don't buy it. I've made some good financial decisions in my life, but a property on the water was most definitely not one of them. A huge money-suck. It's a labor of love.....and I really enjoy it the 7-10 days a year when I'm there, but if I had to do it over again, I wouldn't.
Why wouldn't you rent it out when not being used? It's an investment, you're throwing money away.
Did own...got out about 4 years ago...just did not have the patience to deal with it and all of us were getting tired of the assessments for new roofs..pools..tennis court repaving..etc
Renting on your own without a Management Company if you don't live near the area would seem like a nightmare waiting to happen..you know who will always be on call 24/7 for any problem that arises in your unit?...plus your dealing with all the hassles of bad tenants..getting paid..etc…
If your asking why is Homeowners Insurance difficult to obtain in Florida especially on the beach I can only assume you don't live in Florida...Homeowner's Insurance here is a complete cluster..practically everyone has left the state for new underwriting..you would assuredly have to get coverage through the state backed Citizen's I would think
I'm not really considering renting, looking at this as an investment first and foremost. That said, boat club is where it's at. My friend belongs to one, best decision he ever made for me.
I can almost assure you it won't be a good investment.
Alys Beach really changed the dynamic of 30A. Their style of construction is being mimicked, or attempting to be, all over South Walton now.
The reason I ask about the homeowners insurance is because from what I've read the HOA fees include insurance for the entire building and owners are only responsible for insurance the contents. Anyway, you're pissing in my Cheerios with all that assessment talk LOL, everything I've read says only consider a complex that keeps a reserve for that stuff, otherwise expect yearly assessments.
I really enjoy staying on Anna Maria Island - particularly the Bradenton Beach area of the island. Pretty beach, a number of good dining/drinking options all close together, pretty good fishing off the pier.
But I don't have any real desire to own a place there; prefer to just rent one when we are ready to go.
But I don't have any real desire to own a place there; prefer to just rent one when we are ready to go.
Where's the logic in that? A headache is one thing, a bad investment is another... there are tons of examples of positive cash flow vacation rentals. It's still real estate.
Look into that closely. Often, the owners association insurance covers only the building shell itself. It certainly won't cover contents (appliances, furniture, etc) and may not cover things you might think it would (interior walls, etc).
Good point. From what I've read it would cover rebuilding the entire building to the drywall and doors and would include toilets/plumbing. Owners would possibly be responsible for kitchen fixtures and flooring.
This, 30A anywhere, Seacrest Beach, etc.
I own other properties that don't have nearly the same headaches.
There are more variables with vacation homes on the water that are out of your control (insurance, maintenance, economy's effect on tourism, etc.). Stress-test your numbers in every way possible. How does your economic model look in a 5-year period where the economy goes down the crapper and your fellow owners fail to pay for the assessments that have resulted from the 4 hurricanes during that same time?
You're not going to find a ton of success stories out there. The time to buy and (potentially) make money was 5-10 years ago. If you understand that you will likely lose on the venture and still want to buy it, that's fine. It is pretty cool to own your own beach pad. I do wish you the best of luck if you move forward.
A wise old man once told me, "If it flies, floats or faces the ocean, rent it." I have never regretted following his advice.
I heard something similar but the last one was different.
Definitely a sign you are not Tribe. That guy was a balla!!!
Because you shouldn't buy a beach condo as a money maker. Buy one because you want to be at the beach all the time and have the money to afford the luxury of a last minute trip to the beach in the comfort of your own place. If your goal is anything besides that, don't buy.
I’ve got cash, just not drop $2 mil for a secondary home level cash yet. Right now I’ve got a bunch invested in commercial real estate for my businesses.
I don't disagree but there's a grey area, there's no hard and fast rules. I'm looking to buy something that offers some fun to the family that is somewhat of an investment.
I forgot to add earlier as well expect to buy a new AC Unit every 4-5 years as the salt and sea air is corrosive as hell on the system...and even in the 4-5 years they are working you will have numerous service calls as Renters just love to run the system 24-7 at 70 degrees or lower since they aren't paying the bill and that causes problems with compressors overheating and shutting down
Well that's exactly my point and the disagreement- a beach condo should be a luxury purchase not a practical "numbers make sense" investment purchase.
The realistic cost of your time to make it work numbers wise has as almost certainly not been included in your calculations (the dead give away is that you don't plan to use a management company, that expense sucks but it is almost always still cheaper than the cost on your time to manage it).
Blending family fun and investments rarely works out, they are two different things and should be treated as such.
Now isn't the time to buy IMO. I'm expecting a market correction after next year's tax deadline. In short, many people that own them enjoyed writing off a nice chunk of money in taxes. When it comes time for next year's taxes the 'normal' condos that regular people can afford will likely not assist in their tax bill so I think we will have an over supply on the market causing prices to fall.
I agree 100%. Primary home prices will not drop off much (I hope) but traditional second/vacation homes will probably get hammered.
As mentioned above, the "I'm gonna manage it myself" is surely a big issue. We own a couple of non-vacation rentals (i.e. a rental house & a rental condo that we rent longer term - annual lease at a minimum). The condo is 40 miles away, I lucked into great property manager that finds a tenant for me for a fee, and the maintenance guy at the condo tower is great about just handling repairs & billing me; that's worked out well. The rental house is fairly close, and I handle renting it myself. It's a huge PITA due to 1)calls from tenant when various repairs are needed and 2)calls/letters from the HOA griping about things the tenant has done (your tenant left her trash can out at the street corner for the whole day, bylaws say it should be brought in by noon, and similar such BS). When it comes vacant again, I'll probably have a rental manager handle it just to avoid the headache.
I can't imagine the hassle of trying to manage on my own a beachside condo as a vacation rental. I'd imagine it would be crucial to screen a potential tenant, or your place will get trashed and you'll get frequent calls from neighbors hassling you because your renter is raising hell at 4 am. If I owned something like that, I'd certainly put it with a local property manager to handle those things - but that obviously cuts down on your cash flow.
I can't imagine the hassle of trying to manage on my own a beachside condo as a vacation rental. I'd imagine it would be crucial to screen a potential tenant, or your place will get trashed and you'll get frequent calls from neighbors hassling you because your renter is raising hell at 4 am. If I owned something like that, I'd certainly put it with a local property manager to handle those things - but that obviously cuts down on your cash flow.
I am wondering if the fees and headaches are universal for the state or more directed to central and south florida. It seems up here in the panhandle the management companies dont take that much, I thought 10-20%. I would look at an older condo (relative term) so you can get an idea of rental history and assessment history.
If you are just looking for personal use and you can afford it 30A is awesome if you like to just relax and more family oriented. Destin/PCB more if you like the night life. I was really impressed with Pensacola area the other weekend and it was nicer than I remembered.
If you are just looking for personal use and you can afford it 30A is awesome if you like to just relax and more family oriented. Destin/PCB more if you like the night life. I was really impressed with Pensacola area the other weekend and it was nicer than I remembered.
The condo association gets the insurance- you only get contents insurance for your belongings etc. that's not difficult by the way.
One of the big problems is that renters and even owners run the AC and leave the sliders/windows open because they like the breeze- so here comes mold.I forgot to add earlier as well expect to buy a new AC Unit every 4-5 years as the salt and sea air is corrosive as hell on the system...and even in the 4-5 years they are working you will have numerous service calls as Renters just love to run the system 24-7 at 70 degrees or lower since they aren't paying the bill and that causes problems with compressors overheating and shutting down
If you live on the water you should make sure the AC unit you buy had the frame dipped in a rustproof coating at the factory. After market coating is a waste of money. Gives you a much longer product life.
OP is like my wife - ask for my advice but discount every bit of it that doesn't align with the decision she's already made.
OP is like my wife - ask for my advice but discount every bit of it that doesn't align with the decision she's already made.
I swear the entire conversation reminded me of the scene in Almost Famous where Lester Banks is trying to talk William Miller out of becoming a Rock Journalist and he finally gives up and says "You have Starry Eyes My Friend" and basically tells him to go do it and learn his lessons on his own
We own a 3BR/3BA gulf front condo in PCB and live there full time. We love it! The condominium is only 85 privately owned units. Not a resort. We figured up the quarterly HOA fees and they amounted to less than what we were paying monthly for our single family home before we sold it.
While we enjoy the Redneck Riviera, if I had a choice of living in a gulf front condo in FL, it would probably be Pensacola Beach or Alys Beach.
While we enjoy the Redneck Riviera, if I had a choice of living in a gulf front condo in FL, it would probably be Pensacola Beach or Alys Beach.
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