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Old 01-14-2024, 11:28 AM
 
Location: Florida
2,340 posts, read 2,286,565 times
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What do you expect for your cap rate?
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Old 01-14-2024, 03:29 PM
 
17,302 posts, read 22,030,713 times
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Quote:
Originally Posted by Miamibuyer View Post
There are no building lots next to Auberge. They own all the space and it’s on the water so there is no space to build behind it. HOA is crazy at almost $5k/month however I feel the location and quality of build will make it attractive. I don’t disagree with people’s hesitancy on buying luxury waterfront condo in Florida, but if you buy quality and location, I don’t see values crashing down and no justification for it. But we are all guessing.
In more important news.............I don't see appreciation happening either!
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Old 01-14-2024, 06:49 PM
 
16 posts, read 33,174 times
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I would be a cash buyer
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Old 01-14-2024, 07:00 PM
 
Location: Florida
2,340 posts, read 2,286,565 times
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Originally Posted by Miamibuyer View Post
I would be a cash buyer
That’s your answer for your prospective cap rate?

I strongly encourage you to study real estate investment seriously before diving in.
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Old 01-14-2024, 07:36 PM
 
16 posts, read 33,174 times
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That’s my answer because this is a vacation home that I won’t be renting or earning money on. But I may sell it in a few years and it’s a sizable purchase which is why I’m just wanting to hear different view points on likelihood of selling for same, more or less that what I purchased.
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Old 01-15-2024, 06:41 AM
 
182 posts, read 140,166 times
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Quote:
Originally Posted by Miamibuyer View Post
I would be a cash buyer
why though? Even at cash, 300K minimum on any decent purchase; add hoa fees, insurance, taxes.... You can do so much better in other 'market's with your 300k. In all honesty, rent for now, invest your 'cash' wait it out or find another state without the extremely dangerous ever rising costs of flood insurance, insurance, COL, and property taxes.
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Old 01-15-2024, 06:42 AM
 
182 posts, read 140,166 times
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Quote:
Originally Posted by FL_Expert View Post
That’s your answer for your prospective cap rate?

I strongly encourage you to study real estate investment seriously before diving in.
1000% agree. Sad but true. I find myself increawsingly wondering how the USA is now affordable for regular people, MC and barely now MC.

enlighten me, i want to be wrong on this I hope and pray i am wrong.
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Old 01-16-2024, 06:55 AM
 
17,302 posts, read 22,030,713 times
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Quote:
Originally Posted by Miamibuyer View Post
I would be a cash buyer
even better!

Lets imagine you area spending 1mm!

If you can get 6% you are making 60K a yr in a passive investment.

Buying a 1mm condo what would you fantasize getting in a return after all the expenses (HOA, taxes, insurance) and what would you think it is going to appreciate from here? If you keep in 5 yrs do you think you will net 300K?

You mentioned using it as a vacation property. If you came to town and stayed at the Ritz Carlton 5X a year what would that cost you? 5X at 5K a trip? So figure $25,000? Even deducted from your 60K passive investment you are still 35K ahead.

I worked for a guy years ago that bought a 2nd home for 500K (80's purchase). He had one year he never visited the home yet spent about 40K in taxes, insurance, repairs/maintenance, HOA fees etc. His one liner that year was he could have stayed at a 5 star hotel for a month and not spent what that house cost him that year.

He died last year, house today is probably worth 8+ million as a tear down. If it cost him 70K a yr as an average over the last 40 years that's 2.8 million in carrying costs. Taxes alone this year were 48K so in the beginning they were less but now I'd bet between taxes and insurance that is 70K annually now.

Big ticket items like roof/seawall/renovations can easily add 100K each to the annual budget. In a condo you sometimes get forced into these costs whether you believe they are warranted or not.
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Old 01-16-2024, 10:28 AM
 
181 posts, read 133,170 times
Reputation: 460
Quote:
Originally Posted by Miamibuyer View Post
There are no building lots next to Auberge. They own all the space and it’s on the water so there is no space to build behind it. HOA is crazy at almost $5k/month however I feel the location and quality of build will make it attractive. I don’t disagree with people’s hesitancy on buying luxury waterfront condo in Florida, but if you buy quality and location, I don’t see values crashing down and no justification for it. But we are all guessing.
The quality of the build doesn't negate the necessity of ongoing structural inspections. Recently, HOA's have been forced to budget for those, as well as necessary repairs, but poorly run HOA's are a very common tale, especially in Florida. I wouldn't want to be the victim of a $125,000 special assessment on my condo, which is becoming more of a reality in Florida. Just search the crazy stories.
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Old 01-16-2024, 02:32 PM
 
17,302 posts, read 22,030,713 times
Reputation: 29643
Quote:
Originally Posted by mborner View Post
The quality of the build doesn't negate the necessity of ongoing structural inspections. Recently, HOA's have been forced to budget for those, as well as necessary repairs, but poorly run HOA's are a very common tale, especially in Florida. I wouldn't want to be the victim of a $125,000 special assessment on my condo, which is becoming more of a reality in Florida. Just search the crazy stories.
There is a scarier trend than the 125K! "Open ended assessments!" My uncle has a condo going through building restoration but they don't know what it will actually cost so its an open ended project. The total depends on the damage they find in the work.
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