Just made an offer on a waterfront FL condo

[Andre900]

Hello. The real estate market has come back pretty strong in FL over the past three years. Prices are rising at close to 10% per year and inventory is low. Fortunately, I bought a short-sale single-family home on a golf course for under $100K on FL's east coast at the bottom of the market in Fall 2011, paid in full all cash.

One of my dreams is to have a waterfront FL residence with a boat dock. Single-family homes of this type start at $250K, with relatively high property tax, insurance, and maintenance; and that's more than I want to spend. I've decided that a waterfront condo might be the way to go and found one that I greatly like. It's a 2/2 1900 sf, with garage and boat slip, foreclosure with a list price of $190K, located on FL's east coast, on a navigable canal out to the FL Intracoastal, and just two blocks from the Atlantic Ocean and a lively commercial and beach area. The grounds, amenities, and neighborhood are excellent; and the 20-unit complex is surrounded by $400K+ single-family homes. It's a popular residential and vacation community. The unit last sold in '04 for $240K. Monthly maintenance fee is $400. Annual property tax is $2400. Insurance is $1600 per year. So, annual carrying cost is $8800. I plan to rent it out for $1200/mo until I retire and move into the unit in five years; and at that time I'll rent out or sell my current single-family home. I should be able to net about $3K per from the rent. But rental income is not my motivation. I believe that in five years, all waterfront FL living will be far out of reach for me. I just made an all-cash offer for $160K.

Any thoughts?

[jacob]

How steep is the beach front? High tide levels at Virginia Keys (Ft Lauderdale) are currently rising by 1.2"/year. That's one foot per decade. Extrapolating then, how long until the previous water front will only be reachable by boat?

Also, have you looked into where the local water utility gets its water wrt salt water intrusion in the limestone aquifers?

Also whether there's a problem with back-flow in the sewage system, like this
http://www.palmbeachpost.com/news/weath ... ies/nR2Qw/

https://www.youtube.com/watch?v=X1hJYLw7OlM#t=298
https://www.youtube.com/watch?v=-JbzypWJk64

[SimpleLife]

Man good on you. I would love to live in a tropical place like Florida. I've been to Miami and the Keys and loved the weather. It was a long time ago but it seemed like a great place to live, always warm and sunny.

[Andre900]

@Jacob: Good points. I'll look closer into that.

[Andre900]

@SimpleLife: Yes, I relocated to FL from MA 25 years ago.

"always warm" Yes, but too warm from June - Aug.

"and sunny" Well, not exactly. A bit too much rain, again, June - Aug. But it's usually multiple brief showers and the sun does come out every day.

[SimpleLife]

@SimpleLife: Yes, I relocated to FL from MA 25 years ago.

"always warm" Yes, but too warm from June - Aug.

"and sunny" Well, not exactly. A bit too much rain, again, June - Aug. But it's usually multiple brief showers and the sun does come out every day.

Yep, that was my experience as well when I was there for a week or so late August to early September a decade ago. Tolls what seemed like every few miles and short, light showers that were barely more than a warm mist.