Is Buying a Beach Condo a Good Investment? 7 Things To Consider
June 20, 2022
Is buying a beach condo a good investment? Buying a beach condo is an investment that many people are attracted to. Vacationing at the beach is something many love to do and buying a beachfront property only gives you more reasons to visit often. However, even though buying a beachfront condo is an alluring investment, there are a few things you should consider before making a decision. Whether you are buying a beach condo for a vacation home, a rental property, or as an investment, here are 7 things to consider before buying a beach condo.
7 Things To Consider When Buying a Beachfront Condo
1. The Property Will Take Weather Damage
Statistics show that Florida is the most likely US state to be hit by a hurricane. Although Florida tends to get hurricanes, US coastal cities in general are particularly vulnerable to hurricanes and storms, which can do a lot of damage to beachfront condos. Flooding, high winds, and heavy rains can all cause damage to a beach condo and lead to costly repairs. Plus, the insurance premiums are higher for beachfront properties because of the increase in risk to extreme weather.
2. Damage To Flooring
A property on the beach means that salt water and sand will take a toll on the flooring. Sand is hard, rough, and full of tiny particles that will scratch and wear down hardwood floors over time. Saltwater can damage floors as well because of the salt content. Salt and sand can also get worked into your carpets which is difficult to get rid of.
Area rugs are a great investment for beach condos because they can help protect your flooring and be easily replaced when they become too worn. Tile flooring is also a good alternative to hardwood flooring.
3. Rapid Mold and Mildew Formation
Humidity and moisture in the air are breeding grounds for mold and mildew. Living right next to the beach only amplifies this problem. In coastal houses or condos, mold and mildew tends to grow in a couple of days. Mold can cause various health problems. If you don’t plan to check in on the beach condo regularly, then you may need to hire someone to do it for you like a property manager.
4. Look For a Property Manager
Having someone regularly looking after your beach condo can be invaluable if you live far away from the beach or can’t visit often. Property managers will make sure that the condo is being maintained, can handle any maintenance or repair issues, and will take care of any renters. They help you save time and money in the long run by increasing the overall life and value of your condo. With the increased risk of hurricanes and rapid mold formation, property managers become incredibly important to have.
5. Make Sure The Condo Units Have More Owners Than Renters
One of the most important things to look for when buying a condo is the owner-renter occupancy ratio. You’ll want to make sure that there are more owners than renters when buying a condo. Renters tend to be more careless than owners as they don’t have a stake in the property. Mortgage lenders also look at the owner-renter occupancy rate when deciding to approve mortgage loans for a condo. The typical FHA, VA, and conventional loan won’t approve a loan for a condo with more than 50% of renters.
6. Check The COA’s (Condominium Owners Association) Reputation
Every condo has an association that manages the complex. The COA is in charge of the common spaces, amenities, and maintaining the complex. They also create the bylaws that every resident has to follow. A good COA addresses the issues with their community quickly and takes care of the property while a bad COA drags their feet on repairs and doesn’t keep up with the property. Be sure to research the COA and the bylaws of any condo you’re thinking about buying into.
Read More: What To Look For When Buying a Condo
7. Check Rental Laws
If you are looking to buy a beach condo for short-term rentals, then the first step is to see if you can even rent out the property in the area. States and localities are cracking down on short-term rentals by restricting them to certain zones. Some localities have even banned them from an area entirely. Short-term rental regulations are ever-changing, so it’s important to stay up to date on the laws in the area where you want to purchase a condo. COAs can also have their own rules on short-term renting so make sure to check with their bylaws as well.
Looking For a Condo? Work With a Good Real Estate Agent
Navigating the complex world of real estate and contracts along with the nuanced search for the perfect property can be very overwhelming. It’s invaluable to have someone on your side who can simplify the real estate industry with their expertise and can help you find the right property.
The Negotiators is a new type of real estate agent organization that streamlines your search for an agent who earns every cent of their commission. Negotiators are handpicked from amongst the top real estate agents in the country that have all proven their ability to go above and beyond for their clients. By hiring a Negotiator, you’ll have someone on your side who has a wealth of experience, real estate expertise, and an unrivaled work ethic working with you throughout the entire home buying process.
Contact your local Negotiator if you want to work with a great real estate agent.