Is buying a condo a good investment?

tyler

tyler

I like pie.
Staff member
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.
 
Jim

Jim

Guest
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.
 
B

BienVida

Guest
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.....
 
F

FIESTAFROG

Guest
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!
 
tyler

tyler

I like pie.
Staff member
FIESTAFROG said:
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!
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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.
 
F

FIESTAFROG

Guest
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
 
tyler

tyler

I like pie.
Staff member
FIESTAFROG said:
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
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Wow, that's insane.
 
G

garyd

Guest
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 ;)
 
rockyptjoe

rockyptjoe

Guest
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....
 
tyler

tyler

I like pie.
Staff member
But you have to keep in mind for the condos, you have rental income coming in (given it might not be much)
 
G

gunner

Guest
Condo / House / RV or Tent, don't forget location - It all boils down to lifestyle and how much cash you want to throw down. At this point in my life I love my condo, it fits our lifestyle perfectly.
I love being able to throw a rock to the beach, walking down to the bar or store and of course lugging my ez-up and cooler a couple hundred feet to the beach. It's great to be able to hang with the other owners when we go down and being able to walk to other restaurants and bars. Owning a condo does have its draw backs, the unruly renters suck!

The days of flipping your condo when you take possession for a nice profit are gone and will not likely return in my life time. If your in it for the short term don't bother. If your looking to hold it for probably 5 years now is an excellent time to buy, there are some screaming deals to be had.

And don't think for a minute the rent you receive will be enough to cover the nut, not even close.
Unless of course you put 80% down!!
 
rockyptjoe

rockyptjoe

Guest
Every once in a while I used to overhear Californians talking about the 3rd or 4th condo they had just bought as an investment.....how the rentals would cover the payments. I wonder if they're hurting now?
 
G

garyd

Guest
IMHO anything you buy if not for personal use and enjoyment is subject to risk. Based on the rental $$$ I am getting I find it hard to imagine you can cover your costs. I was fortunate and purchased a 2 bedroom condo beachfront for slightly over $100K and was able to pay cash so whether it rents or not it really does not matter. If anyone tells you you can rent it out and cover the costs you better start to run fast.
 
F

FIESTAFROG

Guest
I guess, I enjoy pulling weeds and painting etc. If I went to RP and didnt have a project, id go insane.

Just me I guess.
 
Wood Spinner

Wood Spinner

Guest
Based on cost and maintenance fees I can buy a nice RV and put it in a park for a lot less $. If I decide I no longer want to stay at that park just pick up and move. About $ 500.00 per month includes water and electric. No more fees ! Some of the parks also have launching and storage for your boat for only a few bucks more.

Don't Worry, Be Happy
Bill
 
E

El Semental

Guest
my house is 2 blocks from the beach and i payed $65K for it last year. Would probably be $120K now.

I got a real kick out of this. It's the ONLY property that has increased in value over the past year. :roll: :roll: :roll: If it was $65k last year it's 30k this year. That's only if you actually want to sell it of course. :lol: :lol:
 
rockyptjoe

rockyptjoe

Guest
Bill Hale said:
Based on cost and maintenance fees I can buy a nice RV and put it in a park for a lot less $. If I decide I no longer want to stay at that park just pick up and move. About $ 500.00 per month includes water and electric. No more fees ! Some of the parks also have launching and storage for your boat for only a few bucks more.

Don't Worry, Be Happy
Bill
Click to expand...
Unfortunately, if construction picks up again (or when it does...) eventually there will probably be only 2 rv parks left....Playa Bonita and The Reef!
 
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