TIPS ON BUYING RESORT REAL ESTATE
By Karen Harrell
Publisher
It’s that time of year – thousands of families will
vacation along the coast and dream of actually one day
living in paradise.
The decision to purchase resort real estate should be
well thought-out, says veteran realtor Noel Faddis,
broker/owner of Realty
Marts International, Inc., on Pensacola Beach, Fla.
“Number one, I think people need
to buy as an investment, but not count on cash flow from
rentals to pay for the unit,” Faddis says. “People
go into it thinking they are going to make money, but in
most cases they do not. They need to be looking at
vacation property as an investment.”
Faddis noted that most condominium
complexes appreciate in value, but smart investors need
to assess the market before taking the plunge.
“Here on Pensacola Beach for
instance, there is not that much more property that can
be developed,” Faddis says. “It is a matter of
supply and demand. The property that has been developed
will only appreciate in value.”
Faddis says a good resort real
estate company will determine their client’s reason
for buying property.
“Number one we assess their
needs, wants and desires,” Faddis says. “A lot of
people work their whole lives to be able to purchase a
second home or retirement home. There’s intrinsic and
emotional value in being able to do it.”
Realty Marts is one of the oldest
agencies in Pensacola.
“We've been here since 1963 and
have built a reputation of honesty
and fairness,” Faddis says. “We try to advise our
clients what is a good value and what is not a good
value.”
Faddis says buyers who want to use
their unit as a rental should buy as close to the water
as possible.
“The pecking order is Gulf-front,
Gulfview and then directly on the Sound,” Faddis says.
“People come to the beach and they want to be on the
water.”
Most resale units are purchased
furnished and can be a good deal if the previous owner
invested in quality furnishings.
Buyer Checklist
- Age
of complex
- Stability
of Condominium Association
- Condo
fees
- Rental
History (If using it for that purpose)
- Leasehold
vs. Land Owner
- Special
Assessments from Storms/Disasters
- Location
(on beach, off water, water view)
