Is Your Condo A Primary Residence, Second Home, or as an Investment? Because It Matters.

 One factor to consider before buying a condo is how do you plan on purchasing it - as a primary residence, second home, or as an investment?   1.      If you plan on obtaining financing for your condo be sure to ask your lender if he or she offers different mortgage rates for primary residence, second home or investment properties.  Some lenders will finance condos although others will not finance condos at all.  Be sure to ask your lender for details on rates, down payments, and loan products. 

2.      If you plan to purchase a condo as an investment property, you may want to consider placing the unit on a local rental program.  Ask to meet with a rental agent who can guide you in what a Resort Guest wants to see in a condo.  Short term resort rental agencies offer pricing for different seasons and different level units.  A “platinum rated” condo during Memorial Day week will certainly rent out for more than an average unit on a non holiday week.

3.      Ask your rental agent how you can decorate your condo to have the “luxury hotel” feeling.  It may seem like extra money upfront to decorate to high standards but remember that if guests enjoyed their stay in your condo, they will want to book year after year with you!

4.      If you plan to only use your condo for your family and friends you may choose to decorate in a manner which suits you, in other words, more personalized décor.  There are numerous stores and shops in Destin with a wide range of pricing for condo furniture, linens, electronices, kitchen equipment, appliances, and decorative items.

5.      Consult with your accountant on how the IRS views a second home versus an investment property.  Consider the fact that there is a homestead property tax exemption available in the state of Florida for primary homes.

Now may be your chance to have that dream home on the water when a few years back this dream may have seemed unobtainable.  Contact me for more info.