Dear Revital:
Since I live in Sand Key and am a real estate agent and investor here, I thought I would throw in my two cents. In our particular area, we have a lot of condo rental opportunities. So many, in fact, that rental prices are rising very slowly and in more than a few cases, they are declining. On the other hand, property values continue to rise due to an extreme scarcity of land (the last available parcel on Sand Key just sold to a developer), desirability, and the fact that many people in our area will pay the price to live on the beach. When you come from an urban area in the Northeast, like me and my husband, you jump at the prices here, so people like us and the snowbirds help keep values rising.
Having said that and reading your post, I am assuming that your friend is looking at this property as a primary residence. Based on your post, I would tell her to buy the condo if it is for a primary residence. Especially since it sounds like she might have a good deal on her hands. Her rent might stay low, but, if she doesn't buy now, she won't have the advantages of homeownership, including building equity and when she does get ready to buy, the payments will be even higher due to rising property values. If she is looking at it as an investment property, then forget it, she'll be in the same boat as everyone else around here-plan to pay the mortgage and don't depend on the rent money.
Has she spoken to a lender? Perhaps she could look at a loan with graduated payment options to help reduce the blow of the jump from the cost of renting to the cost of home ownership.
I hope this helps. Feel free to contact me with any questions at
[email protected]Sincerely,
Beth Kimber
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