Not everyone wants a 5 bedroom house in a kid-friendly community. You can live in a luxurious condo on or near the beach, have the nightlife, great restaurants, cultural events and attractions and a fantastic investment all at the same time.

There seems to be some misconception that living in a beautiful apartment near the beach in a trendy downtown condo is only for millionaires. Nothing could be further from the truth. The average home price in Broward County is somewhere around $340,000. For that amount of less you can live a lifestyle that others only dream about.

I know what you are thinking. What happened to the conservative investor who lectures about affordable housing. Hey, you have to live somewhere. You want to make sure you own something that is appreciating and gives you tax breaks. Why not a condo if it suits your lifestyle?

What is a Condo?

A condo or condominium is a type of real estate ownership where the owner has title to a specific unit and shared interest in common areas. In other words, you own your own apartment (or townhouse if that is the type of property) and you have co-ownership in the common areas like the swimming pool, building structure, grounds, etc., with the other condo owners in your development.

You purchase your unit and would typically have a mortgage payment. In addition, there are maintenance fees that you pay to a condo association that goes towards the maintenance and insurance of the common areas. But the important thing to remember is you do own your own unit just as you own a home.

Should I Buy New Construction or a Resale?

There are plenty of nice resales available throughout the state. It depends on your personal timeframe and budget. I might have a nice unit for $300K in an area where the new construction will cost you a lot more. This is not always the case however.

When we have a pre-construction project and you get in early, you are almost assured of the unit going up in value in a relatively short time frame. Again, it depends on your schedule and budget.

We need to see what you can afford, where you want to live and what type of building you are looking for. We can then search the current listings and compare them to new construction. This is a service we will gladly provide for you at no cost.

Go Direct or Use an Agent?

Unless someone is desperate to sell, which is not too likely in this market, an owner will ask just as much for their condo whether they use an agent or not. They are not going to cut their price below what other units have sold for and what the market will give them. They are just going to try and pocket more money. So, you might as well have an agent do all the work and help you through the process. It doesn't cost you anything, the agent will turn up more things to see and in the long run you will have less problems.

On new construction, the developer will not give you a dime off by walking in without me. However, in some situations, I can give you a better price through a rebate at closing than you can get from the developer. So, there is no question that you should use an agent for new construction. Also, since I have many different projects and have no vested interest in any one development, I will give you facts the developer might not share with you.

Renting Your Condo

First you want to make sure that you can rent the condo without restrictions. I have looked at some older developments where you can only rent a certain number of times, for a limited period or not at all.

If you bought the condo cheap enough or have enough of a down payment and your carrying costs are not too high, you could break even or possibly make a profit. It is not too common anymore. Most investors make their money in the appreciation. Do not get bent out of shape if you are in a slightly negative cash flow situation.

Most of the time, you are renting because you are not going to personally occupy the property and you want to hold it long enough to:

- Eliminate short term gains and pay tax at the lower long term gain rate
- Take advantage of the high appreciation in the market
- Sell when the supply is low

Buying A Condo Conversion

We are getting in new condo conversion projects every week or so. Most are newer or upscale apartment complexes converted to condominiums. The prices for initial purchasers have been excellent and they seem to appreciate rather quickly. If it is your primary residence and you live there for two years, you might be able to completely avoid income tax on your profit.

Call us for more information on Florida condo projects.

The information on this web site is provided as a guide for general informational purposes only and is not intended to be tax or legal advice. It is deemed reliable but not guaranteed. Please consult with your own attorney, tax advisor and/or accountant for specific advice. Martin Unger is a licensed sales associate in the state of Florida and works with London Realty Corp.