Vacation home purchase dilemma and the Gulf oil spill

[Dueller]

Last year a friend lent me his vacation condo in the Florida panhandle. I say "condo" but its not the traditional high rise but rather a stand alone cottage in a 10 acre compound with a common pool, club house, indoor pool, recreation/exercise facility. Built in early 2000 the cottages are modeled after Key West beach homes ranging from 800 (1 BR 1 bath) to 1400 sf (3BR/2.5 bath) with screened porches/balconies. And its not beach front property but rather about 1/4 mile from a national park beach on the gulf...but really a beautiful setting/compound.

Wife and I loved them and in the market before the RE crash they were overpriced at $300K (1br) to $500K (3br) the post boom fire sale prices had dropped to $100K-300K respectively. We asked a realtor to keep her eye open for a 2 br unit we specifically liked for its location and knew it was a foreclosed unit as appliances had been carted off. We figured if we could get it in the 125-140K range it might be a deal.

Well yesterday realtor call me and said the very unit we wanted came on the market...asking price only $100K. It last sold in 2005 for $425K. However with god knows what's gonna happen with the oil spill I'm in a quandry. A trusted friend/broker from the panhandle says he wouldn' t touch anything because the spill may make this place a ghost town. Nothings shown up yet, but.....

What say you?

[scottmandue]

There is a small chain of islands in the center of the Pacific that I love to visit. The only way I could afford to buy property there is if I sold everything I own. However about once a decade they have a (God forbid) brush with really bad weather. I often wonder what real estate values are after such a storm.

But on to your point... I would bet five to ten years the oil spill will be long forgotten... do you care if it turns to a ghost town? To some people that would be a plus not a minus.

[Dantilla]

Better odds than Las Vegas.

Other than that, who knows?

I'm sure even if oil reaches this area, eventually the values will return. The big question is, how long? Sorry, no crystal ball here.....

[RWebb]

offer $72k

I'd bet the beach will be ok looking in a few years.

[Dueller]

The compound I'm looking at...real redneck riviera

[RWebb]

I like the foreground, the L background in #1 not so much.

[cgarr]

Do it or I will, funny you bring this up because when we visit MS in July I got the wife talked into looking around for something we can buy for those long Michigan winters!

[Aurel]

No worries, the oil should not get into the pool. I see it more like an opportunity to get a really good deal.

[stomachmonkey]

Go for it.

[A930Rocket]

Sold!

[Zeke]

With that bridge and island all you need is a swim up blackjack table.

I have never seen the wisdom of buying any vacation property unless you:
(a) plan on renting it out 50 weekends a year, or
(b) plan on spending 50 weekends a year there.

For that 100K plus fixin' up/upkeep/insurance/condo fees, I could stay at the Ritz 50 weekends a year.

[MotoSook]

The wife and I came to this realization recently. Unless we are certain we will live in the place when we retire, the numbers will never work out. So we'll just rent a vacation house when we vacation.


As for Dueller's case, if the numbers work and he wants it....this ghost town potential thing should work in his favor. No way will the state of Florida or the US govmt allow BP to depress the area, not for long. So use the scare factor to your advantage and make a low ball offer. You might just get a vacation home for what some folks have into their cars.

With that bridge and island all you need is a swim up blackjack table.



I have never seen the wisdom of buying any vacation property unless you:

(a) plan on renting it out 50 weekends a year, or

(b) plan on spending 50 weekends a year there.



For that 100K plus fixin' up/upkeep/insurance/condo fees, I could stay at the Ritz 50 weekends a year.

[masraum]

Can you afford to walk away if a hurricane wipes it off the map? Can you afford the insurance? Even for something that's got a low purchase price, especially that close to the water, I suspect the insurance will be pretty pricey.

My mother lives across a bridge from Pensacola (Milton, tiny little town) on the north side of I-10. Insurance in the area is ugly.

Personally, I'd not buy vaca property, especially in that area. I'd just rent when I wanted to use it.

[masraum]

Originally Posted by milt

With that bridge and island all you need is a swim up blackjack table.

I have never seen the wisdom of buying any vacation property unless you:
(a) plan on renting it out 50 weekends a year, or
(b) plan on spending 50 weekends a year there.

For that 100K plus fixin' up/upkeep/insurance/condo fees, I could stay at the Ritz 50 weekends a year.

Yep

[nota]

hurricane ins is about 3000-8000 in south fla
thats not flood or fire just wind storm ins
check the cost to build the place
plus the condo fees
and whats the rental deal some places allow more renting then others

[911Rob]

If you can enjoy it, buy it.
Life is meant to be enjoyed.
Sounds like this will be a positive thing for you and wifey

[nota]

I wouldnot worry too much about the oil spill
6 months from now it will be gone mostly
and state park will have the costs not you

[porsche4life]

I'd need that place to become a Ghost town before I bought there...

Too frikin many people... I'm not a people person so that ain't my cup of tea... I'd rather have a house smack dab in the middle of a full section up in the mountains....


But... If you will enjoy it with the wifey? Go for it!

[Rot 911]

Originally Posted by Soukus

The wife and I came to this realization recently. Unless we are certain we will live in the place when we retire, the numbers will never work out. So we'll just rent a vacation house when we vacation.

My thoughts exactly! On the other hand dueller probably can drive down there most weekends.

[MotoSook]

Proximity was the other consideration. If we can't drive to the property in 2 hrs or less, we'd probably not get value out of it. Without a beach that's useable more than a few of months a year around here, we're now just keep an eye ou for ranch in the SW to retire at.

Dueller like you said can probably drive to the handle before his Star Bucks cappucino runs out.

Quote de Soukus

The wife and I came to this realization recently. Unless we are certain we will live in the place when we retire, the numbers will never work out. So we'll just rent a vacation house when we vacation.

My thoughts exactly! On the other hand dueller probably can drive down there most weekends.