Bummer

“No one told me that it was going to be this bad.”

Imagine that you just purchased a unit in an oceanfront building at what seemed a good price and the seller was honest enough to disclose, and kind enough to pay, the upcoming assessment for concrete repairs. You probably felt good about your purchase until the crews finished setting up and got into the heavy jackhammer work making life in the building unbearable during working hours. After talking to neighbors in the adjacent building who just finished their concrete project, you realize that you’re faced with up to two years of daily tooth-rattling noise, construction equipment and crews everywhere and a swimming pool that’s unusable because it’s been covered for protection from the concrete dust. Mortgage payments, condo fees, property taxes and utilities continue to be due for the duration of the project whether you can comfortably use your unit or not.

Concrete renovation projects are part of life in oceanfront buildings (thankfully, not frequent) and knowing about upcoming projects and the possible implications for life in the building during the project is part of the homework that I am constantly mentioning here to prospective condo purchasers. If a prospective owner doesn’t consider the life interruptions that are part of major projects, they may have regrets even if they are OK with the cost. As part of due diligence for a condo purchase, I recommend reading the minutes of as many recent association meetings as are available in addition to inspecting the financials and budgets. Upcoming projects may or may not have been mentioned in a meeting, so, it’s always a good idea to ask direct questions to the seller, their listing agent, board members and neighbors, if possible. In addition, a good buyer’s agent should have some knowledge of the history of past projects on the building and should be investigating possible upcoming work on your behalf.

The building pictured above has just begun it’s concrete project. There are units for sale in this building priced at the same level as units in similar buildings in this part of the beach that have recently completed their concrete projects. All other things being equal, the choice for an informed buyer is easy. Do your homework.

“However beautiful the strategy, you should occasionally look at the results. “
______Winston Churchill

 

Your Money or Your Life

An uncrowded recent morning in Cocoa Beach.

[ I'd like to thank Doug Heddings of the True Gotham real estate blog for the kind words and for selecting this post for this week's carnival of real estate. ]

One afternoon this weekend, I selected a Gurkha Legend Aniversario Perfecto from the humidor and sat down on my front deck to unwind and enjoy the show of the approaching thunderstorm. My mind, as it often does, wandered to considerations of the dynamics of our current market. I had to pull my rocking chair back from the edge of the upper deck overhang as the rain moved in. The clouds, as they moved overhead, defined the edge of the front like overlapping watercolors. As the thunder boomed, the echoes rolled from south Cocoa Beach off into the distance to the northwest. The osprey across the street continued to hunt for fish, seemingly oblivious to the rain as it swept in across the Banana River from the west. At that moment, I realized how much the nature of my life in Cocoa Beach is directly related to the exact spot where I live. My experience of the storm would have been completely different in another place or might not have happened at all. I chose the location of my home very carefully. I knew before I bought, exactly where I wanted to live and why. For buyers of property in Cocoa Beach, location may be more important than they think. Thinking more about this I realized that buyers’ motivations fall into two main groups; investment and lifestyle, or, more simply, their money or their life.

For buyers who plan to live in their property, location is of maximum importance. For those who plan occasional personal use, location is still important. Those who are buying strictly for investment have the luxury of pursuing the absolute best deal they can find across all areas. If you’re looking to buy it would be a rewarding exercise to decide where you fit in the gradient between exclusive personal use and pure investment and then to target your areas accordingly. Your income in an oceanfront condo will be higher in a weekly rental building but your personal time in a weekly rental building may be less of a reflective beach experience than you were hoping for. If you want action when you’re in town, you probably don’t want to own in my part of the beach. Likewise, if you want serenity, the view over a beach crowded with people may be less attractive to you. Talk to your agent about the differences in the areas where you are looking and do your best to define the things that will be important to you when you own your place in this special part of Florida. You can probably find a deal in the area or building that fits you best but it may cost you a little more for the perfect spot. Make your choices carefully. It’s your money or your life or an acceptable compromise of the two.

“Go confidently in the direction of your dreams! Live the life you’ve imagined.”
Henry David Thoreau