“Florida is known for oranges” is one of the first suggested entries that come up in Google searches for Florida. Florida is known for much more than just oranges, though. Southern Florida, Miami in particular, is known for its beaches, vibrant nightlife, restaurants, shops, and overall relaxed culture. Far from being a retirement community, both young and old mingle and enjoy themselves in this area. If you’re attracted to all the benefits that Florida has to offer, you may want to own or rent condos. Here are three common questions people ask about Miami condos, and what you need to know about them.
1. Is a Condo a Good Investment?
If you intend to buy a condo for the purpose of renting, this can be a good investment. It’s important to consider all the costs of rent condos, though, in order to figure out what your net rent will be. A $75,000 condo might get you $750 rent a month. Over the course of a year, however, you’ll need to pay for insurance, maintenance, accidents, and taxes. In this case the amount of money you make on rent is about $3,500 annually. Still a good amount, but it will take several years to make back your investment. Many websites offer free condo investment calculators to help you determine whether your investment will generate profit, and how quickly that will happen.
2. Do I Need a Luxury Real Estate Agent?
About 88% of buyers will purchase their home using a real estate agent or broker. Real estate agents understand the buying process and can guide you through it. They will also be instrumental in figuring out what the best property is for your investment. The right luxury condos for sale for a family planning to live there for 20 years, might not be the right property for you as an investor. Without a real estate agent, however, it will be more difficult to judge and understand comparative property value in the local area.
3. Are New Luxury Condos Better Than Aging Ones?
There’s no hard and fast rule as to whether older or newer condos are a better choice. As one Miami resident points out, they enjoy their 1968 condo because the walls are solid and noise-proof; in their experience, “some of the newer buildings have really thin walls.” On the other hand, newer buildings tend to be in up-and-coming communities. Older buildings might seem like more of a “steal,” but be wary of condos located in areas with multiple foreclosures. Renters might not want to be surrounded by empty homes, and foreclosed homes means everyone else has to pay a larger percentage for neighborhood upkeep fees, if there are any.
Do you plan to buy and rent condos out? Let us know in the comments.