Thread: Is buying a condo a good investment?

Ever since I went down to RP the first time, I've always wanted to buy a condo.

However, I can't go down there as much as I like, because of my job. I wonder if it's considered a good investment... As more and more condos are being built up, I imagine the rentals have been slowing down.

If anyone wants to share any information (how much of your monthly payment is paid by rentals, etc?) that would be good to people like me.

10 or so years ago when I bought my little shack here there was only one condo development and they were selling 3 bedroom ocean view condos for $99000. At that time there was no finacncing but I thought that it was a riduculous price. Now the same condo sells for $500,000 or more. I am not an expert on the condos but I know there are alot of people hurting for money right now and there alot of resales on the market. As far as making your payment with the rent... don't count on it. Maybe, but don't cash in your 401K to do it. I think that in the long run it is a very good investment, but right now is a diffucult time here and in the USA.

I think buying a condo is still a good investment, but it depends on your goals. If you're looking for something to start generating an income for you through rentals.... be careful. So if you need to mortgage and want rental income in order to pay that mortgage, bad idea right now IMO. You want to inquire as to whether the development you buy into allows owners to rent on their own (not all do). If they do, then you could market on VRBO or Craigslist, but that means work on your part.

The flip side is, now is a good time to buy as far as prices! There are alot of people in trouble, who are under selling their completely furnshed condo's. That saves you alot of money and work in setting a condo up.

If you don't need to depend on rental income, and plan to keep the place as a long term investment, I would definitely look to buy in this market. If, however, you need rental income to pay for the bills.... I wouldn't risk getting in over your head.

Just one opinion.....

Personally, I wouldnt buy a condo in the "high rise hotels" on sandy beach. Just not for me. I have lots of resorts right here in Phoenix i can go to. I like having my own home in RP. No crowds, elevators, and crowded pools. Much cheaper too!

Originally Posted by FIESTAFROG

Personally, I wouldnt buy a condo in the "high rise hotels" on sandy beach. Just not for me. I have lots of resorts right here in Phoenix i can go to. I like having my own home in RP. No crowds, elevators, and crowded pools. Much cheaper too!

I'd imagine a condo would be cheaper then a home. Is your home on the beach? What I like about the condos is I can sit out on the deck and watch the ocean.

my house is 2 blocks from the beach and i payed $65K for it last year. Would probably be $120K now. I know where you can get a great deal on a 2 story in a community with pool for around $195 or so....Los Mesquites 4 blocks from beach

Originally Posted by FIESTAFROG

my house is 2 blocks from the beach and i payed $65K for it last year. Would probably be $120K now. I know where you can get a great deal on a 2 story in a community with pool for around $195 or so....Los Mesquites 4 blocks from beach

Wow, that's insane.

You can buy a beach front 2 bedroom condo on Sandy beach for $300 to $350K or a 1 bedroom for about $250K. I like the condo life because there is little upkeep and no security issues. However I will say that the renters can be somewhat problematic at times. Puerta Privada is the only one that does not allow nightly rentals. I have dogs and it would be nicer if I could just let them out in the yard like at home in AZ but there are trade offs no matter what you do. The smaller the complex the less headaches IMHO. GD

What you do have with the condos, in addition to the higher costs for the units on the beach, is the monthly maintenance fees. I had heard that they were as high as $400 per month at Las Palomas (this is from a realtor who was living there)....who was "whining" when she had a bit too much to drink and they had almost doubled from the previous year....

But you have to keep in mind for the condos, you have rental income coming in (given it might not be much)