would you recommend bying a beach house or acondo for a long term overseas investor to max future profits?

Asked by Dror Noama, Fri May 30, 2008

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Christopher…, Agent, Panama City Beach, FL
Sun Oct 6, 2013
The word “investor” is thrown around all too often in Panama City Beach. “Overseas Investor” just screams “take advantage of me”. It takes me back about 8 years ago. Some of the last condominiums in Panama City Beach were finishing construction. They didn’t completely sell out during Preconstruction and many of those contract holders were choosing not to close. They couldn’t find buyers so they went out to find “Overseas Investors”. They didn’t find many. The ones they did find, didn’t appreciate the pricing collapse that followed.

Panama City Beach is a great location. It has some of the best beaches in the world. It is a great place to get away. You can find exceptional golf, food, and water activities. It is a destination that is very popular in the South East, and slowly becoming more popular in the United States.

Let’s talk numbers. The Panama City Beach condo market bottomed for roughly 2 years. Basically 2011- 2013 depending on the building and floor plan. We are 20-30% above the bottom for many of these condos. The market had its pricing bump and is likely to continue appreciating. That appreciation is unlikely to be at the break neck pace of the last real estate boom. A good rental condo will net you 2.25 – 3.5% in rental revenue after all expenses. That is for a cash purchase. On rare occasions you will find a 4 bedroom that will get over 5%.

You can see examples of the price history in my last market update:


And there are many more updates in my blog. They also have pricing histories in easy to read graph form.


Condo buyers today are looking at the numbers, but I doubt many of them would call the purchase “strictly investment”. They know the area and enjoy coming here.
So back to the question of, “would you recommend buying a beach house or a condo for a long term overseas investor to max future profits?”

The answer is clearly No. Panama City Beach would never hit the radar for an “overseas investor”. And Panama City Beach is not an International Destination. If you are buying one condo, you are not an investor. You’re simply an individual buying a secondary residence.
1 vote
Pacita Dimac…, Agent, Oakland, CA
Fri May 30, 2008
I have a client who just sold four of her beach front properties in Spain. And I just sold her a beach front condo in Alameda. Her advice is to find water front properties, especially beaches, that one can comfortably live in, and that one can easily rent out. Since such properties always seem to keep their value and command a higher price (sell or rent) than similar condos without a view, she is sticking to this formula. It must be working because she is, frankly, a very wealthy woman.
1 vote
Costa, , New York, NY
Fri Nov 22, 2013
I would recommend going to Spain for buying reduced price properties. Perhaps, you may find the cheapest homes for sale on the Costa Blanca, province of Alicante on the East coast of Spain - towns like Torrevieja and its neighborhoods.
Check the prices and some hot offers here:
Web Reference:  http://topspanishhomes.com
0 votes
Birgitgolf, Home Buyer, Englewood, FL
Sat Oct 12, 2013
Please contact me direct so we can discuss all your needs and wants birgitswflrealtor@gmail.com
0 votes
Maria Mesaro…, Agent, Sarasota, FL
Sat Jun 29, 2013
My advice to you is: check SARASOTA,FL. go to http://www.ImpulseRealty.net, go to serach MLS and you will see.
Let me know if I can help,
0 votes
Joanie Miller, , Panama City Beach, FL
Fri Aug 22, 2008
I believe a condominium would be more lucrative in Panama City Beach since the vast majority of investors buy condos here. In fact, its easier to maintain a condo as well since almost every one is managed, landscaped and secured by on-site people. If you buy a beach front home and you do not live in the area, you will have to hire your own landscaper, have your own maintenance man on stand-by and others. Whereas a condominium, you simply pay your electricity most of the time and the association/management handles everything else. In addition, the cost of insurance on owning on the coast is more expensive. If you own a condominium, you split it amongst your community.

If you're thinking about buying a condo in Panama City Beach, please see the link below. It has some of the most popular resorts in our area.

Take care and best wishes.
0 votes
Kirsten McAn…, Agent, Panama City Beach, FL
Mon Jun 2, 2008
Panama City Beach in Northwest Florida is a very popular vacation and second home spot. We offer beautiful white sand beaches directly on the Gulf of Mexico. With our new international airport scheduled to open in 2010, travel to the area will become direct and affordable, opening us up to the world!

We are currently experiencing a very strong buyers market so your money goes a long way towards wealth building investments. This market, combined with the tremendous benefits of the new int’l airport, brings predictions of good value and profitable appreciation.

PCB offers Gulf-front condos and townhomes, beach cottages, detached single-family homes, golf communities, retirement neighborhoods and wooded inland environments. There are also exciting new developments that will change the landscape of this region forever - there will be something for everyone from the new Oceanside Pier Park entertainment center to Wild Kingdom Animal Park to fishing at the new Pier and boardwalk! And, much more is on the horizon – we are hoping to be a stop for the Disney cruise ships. We have a lot to offer everyone!

CLICK the link below to read and learn about Panama City Beach, Florida, USA.

Search all properties that are for sale in PCB and surrounding areas here: http://www.coastal-lifestyles.com

Please let me know how Keller Williams Success Realty and I can be of further assistance.

Kirsten McAndrew, Realtor
Keller Williams Success Realty
Panama City Beach, Florida 32413
Web Reference:  http://www.pcbeach.org
0 votes
Maria Mesaro…, Agent, Sarasota, FL
Fri May 30, 2008
Yes.Now IS TIEM TO BUY. You just need to choose neighborhood good for resale. This is when I come as a profesional,show you fact about sale and purchase in neighborhood and you make final decision.Any question?
0 votes
Bill Eckler, Agent, Venice, FL
Fri May 30, 2008
Assuming both would be waterfront properties, we would agree with the majority of responses thus far that a beach house would bring max. value. There are advantages and disadvantages of each but when focusing on value alone, a beach house wins out.

Hope this is helpful.

The "Eckler Team"
Century 21 Alma and Associates
Venice, Fl 34285
0 votes
Myke Atwater, Agent, Santa Rosa Beach, FL
Fri May 30, 2008
My family has a home at the beach as opposed to a condo--the biggest reason was and is the condo association fees that can be substantial. There is an overabundance of condos most places, so from a rental perspective, what sets the condo apart from the hundreds of others that you as an individual owner are competing with? At the beach, look at the law of supply and demand--for the long term investor, there is a limited amount of space of prime real estate--when the beach area is completely consumed the price HAS to increase. Simple supply demand economic principal. You can go vertical by buying an existing property and turning it to condos, but the actual beach properties are extremely limited. So, for the long term investor--go to the beach house.
Web Reference:  http://www.MykeTriebold.com
0 votes
LLoyd Nichols, Agent, Fort Myers, FL
Fri May 30, 2008
I would recommend a beach house for the long term investor, but a condo would not be a bad investment, either. There are pros and cons about each, such as lawn care responsiblity and insurance issues. Please feel free to contact me if you are looking for a property on Fort Myers Beach, Sanibel or Captiva. I am fluent in French and speak some Italian.


LLoyd Nichols
Right Choice Realty LLC
cell: 239-810-2980
Fax: 239-463-4826
home office: 239-463-5217

Active Rain Blog: http://activerain.com/lloydn
Website: http://www.mlsouthwestfloridahomes.com
Website Blog: http://ftmyershomesandgardens.blogspot.com/
0 votes
jesse perkins, , 78258
Fri May 30, 2008
There is a great investment opportunity in the Florida Keys if that area is of interest.
0 votes
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