Vacation condo purchases???
 

I just read the timeshare thread and hope to get a similar discussion going on purchasing a condo. We have been seriously considering buying a condo in Hawaii, but can't decide if we should go cheap and just keep it to ourselves or purchase a more expensive unit and put it in a rental pool. Anybody been there done that??? I'ld really like to hear the good, the bad and the ugly

No body out there has bought a vacation condo? Or maybe those who did don't come to sites like this.

I've read it's tough to make much money tho' the convenience is great. assoc. fees can be high. There was a thread on the subject in general at :<BR>http://boards.fool.com/Message.asp?mid=16418064<BR><BR>Good luck

My wife & I purchased a vacation condo at North Myrtle Beach SC 3 years ago (we now live in it, but that's another story). Here are some observations:<BR><BR>1. State tax laws can be a little confusing--I turned over our taxes to an accountant for the first time ever because of this.<BR><BR>2. Speaking of taxes, I believe that placing your unit in a rental pool may result in a decrease of allowable expenses you can claim.<BR><BR>3. We bought our condo for personal use, rental income, and longer term investment. Due to the rental season being nearly 100% between June 15 and August 15, the balance of personal use and rental income worked out nicely--we made our money during 2 months in the Summer, and we favored coming to the beach in Fall and Spring anyway. The local real estate market is a little depressed right now, so it remains to be seen if we'll reap any gain when we sell the condo.<BR><BR>4. A good property management/rental agency is key--ours does an outstanding job for 20% commission.<BR><BR>5. You need to consider the integrity of the homeowners group you will be dealing with, the character and condition of your building, and the presence of newer buildings in your vicinity.<BR><BR>6. The more touristy or resort-minded, the better your rental income is likely to be. And new developers may offer great deals, such as the one we saw at a nearby development: 1st year rent guaranteed to equal or exceed your mortgage.<BR><BR>7. However, you may enjoy spending time at a less touristy place, in which case, your rental income will probably not match your expenses (except for tax purposes, what with the numerous deductions you are allowed).<BR><BR>All in all, we are very glad we purchased our condo. I would make the same decision now as then.<BR><BR>If you have specific questions, I'll be glad to try to answer them.

Chuck;<BR><BR>Thanks for your extensive reply. We too want our condo for personal use, rent to offset some of the expenses and possibly but not necessarily an investment. We plan to use the condo in the summer and possibly for a week in Jan after the holiday period. We realize that this will not be a positive cash flow situation. <BR><BR><BR><BR>

My wife and I are currently in escrow for a condo in Maui.We will use the rental pool and visit ourselves for two weeks a year until we retire.Our condo was expensive( about 1/2 million) so we have to rent to make ends meet.Ask me a year from now if we are able to make our mortgage payment.

What complex is your condo in. We go to Hawaii a couple of times a year and rent from owners direct when we can. What rental management company did you choose? We would also have to have a condo in the rental pool to help cover expenses if we decide to purchase. I would be very interested in your experiences.<BR><BR>Aloha;

dejahma, switch to e-mail for more info. I don't think everyone would be interested in the details.