Why should you buy a Gulf front condo right now????
1) Gulf front condos have sold at the lowest price over the last 6 months because summer rentals are gone and winter rentals are non-existent or below market value. By the time association fees, mortgage payment, taxes, and insurance were paid, they were losing money in the fall and winter. That makes them more negoatiable on the selling price. That means when you make an offer on a condo and it has to be appraised, that value will be lower and the seller of the condo will have to meet that price for your lender to loan money on the unit.
2) The highest condo rental rates occur from March- September. Eighty percent on the gross income for your new unit will come in the next 7 months.
So let me sum this up....there will be a lower appraisal price on the units because appraisers use the last 6 months sales data and highest gross income on the unit for the next 7 months makes it a perfect time for a savvy investor to purchase a unit....or two. We can talk about leverage ratios in our next blog session. Just say the words...."leverage ratios"...sounds like you really know what you are talking about when you say that! Raise your eyebrow when you say it.......