Where to buy a warm weather second home?

[Asabino]

We’ve looked for condos in Florida, Myrtle Beach and the Gulf shores. High HOA’s and pending assessments turned us off on these locations. Any recommendations?

 

[ShokWaveRider]

Condo HOAs usually include insurance, some maintenance, cable, water & Trash, sometimes even internet. So as long as they are not exorbitant it should not be an issue. We are looking to downsize and have been looking a low rise condos, it is a wash compared to our current home. We are in NE. Fla. a MCOL to HCOL area.

 

[Lorenzo]

Are you limiting your search to the US?

 

[Kings over Queens]

Are you limiting your search to the US?

Loja in Ecuador. 70's year round.

 

[aja8888]

Why not just rent one?

 

[Koolau]

Relatively high HOA dues are pretty much standard. Consider that the average maintenance cost for just about any structure is around 1% of the value each year. Add to that insurance and amenities and you're soon paying quite a bit in monthly fees. (You would have to do that yourself in a SFH as well but the expenses would be lumpier.)

HOAs are also being required to build and maintain ever larger reserves for future repairs and replacements. (Of course, you can look at what you place in reserves as being "yours" - at least your share of the reserves. So in theory, it's a wash.) Reserves are better than assessments which can be brutal if your building waits until something goes wrong to fix it.

It's just the nature of the beast and not something that's going to get better, unfortunately.

 

[Koolau]

Why not just rent one?

It's true that (in general) renting in a HCOL area is a relative bargain. BUT there is the uncertainty of being allowed to remain in the unit at your convenience. Also, rental markets can turn on a dime and rents can go up dramatically.

There's no free lunch where living space is concerned but renting is a possible alternative if you understand the limitations.

Heh, heh, if you want to see high HOA dues, check out Hawaii!

 

[Music Lover]

It's true that (in general) renting in a HCOL area is a relative bargain. BUT there is the uncertainty of being allowed to remain in the unit at your convenience. Also, rental markets can turn on a dime and rents can go up dramatically.

There's no free lunch where living space is concerned but renting is a possible alternative if you understand the limitations.

Heh, heh, if you want to see high HOA dues, check out Hawaii!

The OP isn't sure where they want to live, so renting is a good option until they figure it out.

 

[aja8888]

Relatively high HOA dues are pretty much standard. Consider that the average maintenance cost for just about any structure is around 1% of the value each year. Add to that insurance and amenities and you're soon paying quite a bit in monthly fees. (You would have to do that yourself in a SFH as well but the expenses would be lumpier.)

HOAs are also being required to build and maintain ever larger reserves for future repairs and replacements. (Of course, you can look at what you place in reserves as being "yours" - at least your share of the reserves. So in theory, it's a wash.) Reserves are better than assessments which can be brutal if your building waits until something goes wrong to fix it.

It's just the nature of the beast and not something that's going to get better, unfortunately.

For these above reasons, it is why a lot of people are renting now.

 

[Lorenzo]

It's true that (in general) renting in a HCOL area is a relative bargain. BUT there is the uncertainty of being allowed to remain in the unit at your convenience. Also, rental markets can turn on a dime and rents can go up dramatically.

In coastal areas like the OP mentioned, I think renting makes a lot of sense. Someone else can bear the risk from weather-related damage and rising sea levels. Insurance may be unaffordable or unavailable. The flip side of the "uncertainty of being allowed to remain in the unit" is that you have some flexibility to leave the unit and move elsewhere (like, to higher ground).

 

[rembrandt]

I can tell you where Not to buy one:

 

[Ronstar]

If you're not 100% on where and what to buy, then it's better to rent until you're 100% certain of what you want.

 

[threeonesix]

Define "warm weather". To me, 50-75 is warm. Anything above is hot, 35-50 is cool and below 30 is cold. So, for me, the entire west coast is warm and all of FL and the Gulf coast is hot or borderline hot.

 

[brett]

We looked in the US since we were very familiar with Florida/Carolinas. Ruled them out. Then Costa Rica. Very nice, but no. Then Mexico. We did not buy. We have since spent some winters Costa Rica/Panama and on the Pacific coast of Mexico, South America, SE Asia/ Australia. Happy with our decision.

If we do buy at some point our current thinking is that it will be in Mexico. One advantage is direct, 4-5 hr non stop flights. Not so to go to Florida/Carolinas where we live.

We have enjoyed not having the responsibility or burden of a second home. We felt that we might have feel compelled to spend every snowbird winter there. Everyone has different preferences.

In Florida, besides passing on the state, the math did not work for us. It was made even worse by the risk that we perceived at that time (13 years ago). It was always seemed to be more advantageous to rent. and leave the risk of ownership to someone else.

 

[audreyh1]

We never bought a second home because we like going somewhere different all the time.

We already live in a snowbird area. Very nice winter weather as we don’t actually get a winter - a couple of days sometimes, worst case a week.

 

[FlaGator]

I can tell you where Not to buy one:
View attachment 52473

So, avoid Cuba or the Yucatan?

 

[motley]

Nine out of ten dinosaurs agree.

 

[rembrandt]

So, avoid Cuba or the Yucatan?

 

[Surewhitey]

We lived in Playa del Carmen through a couple of 1-3 hurricanes and not a biggie as they build with blocks & concrete. Cosmetic repair only. Power loss, yes as anywhere. Didn't buy though as rents are so dang affordable. Friends on Cozumel experience the same. But we're a simple living folk.

Some friends just moved to Venice, FL for the affordable living (rent in 55+ community) compared to Dallas and year round biking. Too soon for an update though.

 

[rembrandt]

We lived in Playa del Carmen through a couple of 1-3 hurricanes and not a biggie as they build with blocks & concrete. Cosmetic repair only. Power loss, yes as anywhere. Didn't buy though as rents are so dang affordable. Friends on Cozumel experience the same. But we're a simple living folk.

Some friends just moved to Venice, FL for the affordable living (rent in 55+ community) compared to Dallas and year round biking. Too soon for an update though.

I am also a simple living folk.

 

[ShokWaveRider]

Where to buy a warm weather second home?​

Nowhere near or within ~25 miles the any of the US Gulf coasts!

 

[Midpack]

I'm not in the market, but I'd find a way to check how the reserves of the HOA are managed. While weather has impacted insurance rates in FL, the HOA dues spikes and/or huge special assessments have stemmed from (grossly) inadequate maintenance reserves. Plummeting property values stem from both. That could happen anywhere reserves aren't maintained, not just FL. (Foolish) homeowners interested in keeping HOA increases down can make some very short-sighted decisions leaving all condo owners exposed.

 

[OldShooter]

This is similar to other threads that have come along and it still contains (to me) the same mystery: @Asabino, Do you not care about potential risks when you are evaluating possible destinations? Wild fire, floods, earthquake, hurricane, etc. Also financial risks like a city (Chicago) or state (Illinois) having to raise taxes significantly to avoid bankruptcy. ... If I were looking for a "last house" these would be important considerations for me. When I was 30 I could have handled and recovered from these types of events. Now much older, I guess I have the money to recover but I do not want the year or more of disruption and hassle.

The only possible explanation I have for my puzzlement over this issue is the human tendency toward recency bias (Recency bias - Wikipedia) where recent events (no hurricanes, no earthquakes, etc. ) are over-weighted in decision making.

Not trying to hassle you here. Just genuinely curious why you don't mention these risks. Hurricanes alone would instantly take Florida off my candidates list.

 

[ShokWaveRider]

I would take the odd Hurricane over the barrage of Tornados some states get. There is always something no matter where one lives. The areas with a better quality of life are the ones most prone to something or another.

 

[Lorenzo]

I would take the odd Hurricane over the barrage of Tornados some states get. There is always something no matter where one lives. The areas with a better quality of life are the ones most prone to something or another.

And the exceptions--pockets of the US where severe climate-related events are rare AND the quality of life is high--are pricey to live in and probably getting pricier as more people take these things into account in deciding where to live.