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Consider a Condo for Your Second Home
Vacation condominiums offer amenities and less maintenance, but more restrictions.
Bob Vila’s Home Again opened its fifteenth season with a bay-front condo remodel along the Venetian Island stretch of Miami Beach. This vacation getaway was a remodeling challenge from the start. Gina Kirkpatrick, a realtor with Beach Front Realty, was given a modest purchasing budget to work with and the directive to find something dated. “You know, shag carpet, awful wallpaper, that sort of thing,” she recalls.
She found a one-bedroom, 950-square-foot unit with an open floor plan in the Island Terrace complex, with views of the bay and the luxury homes along Venetian Island. The complex is situated right on the Venetian Causeway, a stone’s throw from the beach and an easy jaunt to the Miami mainland or to trendy Lincoln Road. What’s more, the unit fell well within Bob’s purchase range — proof that you don’t need to be a millionaire to live like one.
This condo was a bargain because the owner was willing to buy into an older building, Kirkpatrick explains. Older units are often roomier with more closets, which means more space. For Bob, taking out closets meant opening up more space. Bob’s unit was in need of TLC, but so was the rest of the building. The timing was good, however, as the current owners had just been hit with a one-time assessment earmarked for a major property overhaul, making this condo an ideal second-home investment.
In Miami, second-home owners tend to purchase condominiums over single-family homes. Condominiums provide a host of amenities and low maintenance. “Owners like having a doorman downstairs — the doors are locked, there’s less vandalism,” Kirkpatrick says. And the market has responded to that demand by significantly adding to its inventory. Property values have been known to double in just five years, making a condominium purchase a wise choice for those looking to resell down the road.
In Miami, views are a priority, causing developers to build upward instead of outward. so even mainland properties tend to offer views of Biscayne Bay. The Miami mainland can be a buyers’ paradise, with one- and two-bedroom luxury condominiums with square footage ranging from 850 to 1,500 square feet. In Miami, swimming pools are standard fare, but developers tend to attract new buyers with luxury spas, community rooms, and high-end services. ’
Beware of the Bylaws
Condominium living has advantages, but they come with a price tag. Prospective buyers should inquire about the complex’s association fee, which can run anywhere from $300 a month for a one-bedroom to $600 for a two-bedroom condo in Miami. The higher the square footage, the higher the association fee. Fees cover things like routine exterior maintenance, pool upkeep, building insurance, and front-door security. Plan for the occasional assessment, particularly for older buildings where exterior updates and structural upgrades are more likely.
Condo associations also have bylaws and regulations that dictate what you can do to your unit and how it will be done. Cosmetic changes are typically okay as long as any required city permits have been acquired. Condo associations don’t concern themselves with a wall-color or carpet change. But interior reconstruction is another story, particularly if it compromises a load-bearing wall. Beware of noise restrictions and the hours during which construction can take place. Also inquire about delivery and storage of construction materials, as well as disposal of construction waste and debris. All of this will factor into the cost of your remodeling project.
Second-home owners aren’t year-round occupants, so it’s important to check association bylaws if you plan to rent out your unit. Some places require that owners establish residency for a couple of years, while others may limit the number of months or the number of times per year that the unit can be rented. And some don’t allow rentals at all. Pet ownership is yet another consideration, so do your homework before you buy.