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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
10935 posts

re: Sandestin Real Estate Prices....where are they headed?
Interesting thread. Everyone is talking about the rental income picking up now, but no one is talking about the primary homes/income that will affect this. Even if rental income booms the next 2 months, a lot of these owners are probably small business owners who have had an income crunch the past 3 months and need capital to keep their primary business going, as well as making their payment on their primary house. Along with decreased demand from people not willing to shell out a few grand for a week on the beach.

How does someone with a stable income during these times make a good investment? 1-2 BR condo on the beach? SFH a few blocks away from the beach?


baldona
Auburn Fan
Florida
Member since Feb 2016
12394 posts

re: Sandestin Real Estate Prices....where are they headed?
quote:

Fat Bastard..... do you do business in areas comparable to Destin? Just trying to formulate my plan and timing of when to move on this.



A good buy for a vacation rental is a property that Gross rents for 10% of its value, a great buy rents for 15% or more.

Most people under estimate expenses and realtors don’t help here.

You are talking likely 2-5% of value in expenses a year, 20% of rent is management fee (that’s 2% if value), mortgage, and then the rest is your net income.


amgslg
Member since Jun 2014
171 posts

re: Sandestin Real Estate Prices....where are they headed?
In terms of rental income affecting owners' ability to pay their mortgages, I don't see this happening. We [I own a condo in destin that is selling/closing on June 15] only lost rental income in March through mid-May which hardly provides any rental income at all for the year. The bulk of your money is made mid-May through September and that hasn't been affected for us.

In fact, with cruises and Disney no longer a viable option for the next year or so, I see an even greater demand for beach rentals so I don't think lack of rental income will be forcing anyone to sell.





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rotrain
LSU Fan
Member since Feb 2013
186 posts

re: Sandestin Real Estate Prices....where are they headed?
quote:


How does someone with a stable income during these times make a good investment


By waiting a year or two. It takes time for sellers to accept that there is no longer the amount of disposable income there once was for investors to compete over rental properties, nor the demand for people to rent them. Go back to the housing crisis...in high demand markets it took until 2010 for asking prices to come down.


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Freight Joker
Alabama Fan
Member since Aug 2019
618 posts

re: Sandestin Real Estate Prices....where are they headed?
quote:

Is anyone seeing any movement in prices?


I’ve seen a few 1/1 direct beach front condos hit the market in west PCB in the $240-$270 range. Been following PCB for years and you would expect those to list around $300-315.

We will either purchase in Orange Beach or PCB (close to Sunnyside) in the next year or five.

Haven’t seen any noticeable difference in OB prices.


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mule74
LSU Fan
Houston, TX
Member since Nov 2004
9360 posts

re: Sandestin Real Estate Prices....where are they headed?
The wife and I bought a half acre lot two miles off of the beach. We are looking to build in the next couple of years . Three other lots around us sold in the last week.


Im4datigers
LSU Fan
Northern Virginia
Member since Oct 2003
3254 posts

re: Sandestin Real Estate Prices....where are they headed?
Where about?


mule74
LSU Fan
Houston, TX
Member since Nov 2004
9360 posts

re: Sandestin Real Estate Prices....where are they headed?
Watersound


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30
Man4others
Member since Aug 2017
1381 posts

re: Sandestin Real Estate Prices....where are they headed?
I don’t know about Sandestin but the beaches of 30-a just had their busiest weekend ever. People are booking up rental properties like crazy since nobody wants to fly to the Caribbean. RE prices have gone UP on 30-A. Demand for properties is strong.
This post was edited on 5/31 at 8:15 am


TigerLord2020
Member since May 2020
16 posts

re: Sandestin Real Estate Prices....where are they headed?
Jetty East has quite a few for sale. What do you guys think of that place?


PUB
New Orleans
Member since Sep 2017
4715 posts

re: Sandestin Real Estate Prices....where are they headed?
Condos - HOA Scam will rip you thousands upon thousands every year and ALWAYS go up year after year after year


SloaneRanger
LSU Fan
Upper Hurstville
Member since Jan 2014
1982 posts

re: Sandestin Real Estate Prices....where are they headed?
quote:

Condos - HOA Scam will rip you thousands upon thousands every year and ALWAYS go up year after year after year



Meh, the devil is always in the details. You just have to understand what you are buying with a condo. You don't just own the interior of your unit. You have an undivided interest in the whole property, and thus have part of the responsibility for its upkeep. You just need to be aware of this going in and do your due diligence.
This post was edited on 5/31 at 6:08 pm


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Man4others
Member since Aug 2017
1381 posts

re: Sandestin Real Estate Prices....where are they headed?
I’m not familiar with Jetty East but those buildings on that jetty sketch me out as they look like they are barely hanging on the sandbar


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Auburn1968
Auburn Fan
NYC
Member since Mar 2019
1417 posts

re: Sandestin Real Estate Prices....where are they headed?
quote:

Capitalizing on other people’s misery. Stay classy!


Might be saving them from the hell of foreclosure.


Auburn1968
Auburn Fan
NYC
Member since Mar 2019
1417 posts

re: Sandestin Real Estate Prices....where are they headed?
To my experience, Florida's market is like a roller coaster. Lots of booms and busts. State employment is highly dependent on the whims of tourism and that's not looking so good for a rapid recovery from the Wuhan virus and its fears.







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Turtlemane
Member since May 2020
18 posts

re: Sandestin Real Estate Prices....where are they headed?
Exactly! Its not capitalizing on peoples misery. Your in the market to buy, they're in market to sell. Simple as that.

If someone truly didn't want to capitalize on someones misery they should only buy stocks at the 52 week high price. that way you bought off someone who profited


Eye_Heart_Number_33
LSU Fan
Member since Feb 2012
1350 posts

re: Sandestin Real Estate Prices....where are they headed?
Would steer clear of Jetty East. Constant erosion of beach. Saw dredging equipment over Memorial Day weekend.


NAsh-vegas Tigah
LSU Fan
Franklin, TN
Member since Jan 2004
1782 posts

re: Sandestin Real Estate Prices....where are they headed?
I have tagged several Sandestin properties as favorites on Realtor.com. Many sellers are reducing their asking prices. The pace of reductions appears to be accelerating in my small sample size of 25-30 properties for sale. Going to continue to monitor this trend with intent to pull trigger in Fall.


baldona
Auburn Fan
Florida
Member since Feb 2016
12394 posts

re: Sandestin Real Estate Prices....where are they headed?
quote:

Sandestin properties as favorites on Realtor.com


I would recommend stearing clear of of actual Sandestin unless you have experience there. Their fees are exceptionally high and many of the places they require the onsite management company (sandestin) to manage the properties or have even higher fees to allow someone else.

Now if you are looking for somewhere to just use as a private residence that’s difference. But again if you are wanting someone to manage your vacation home even though you don’t rent it, as in cleaning and maintenance, they are going to be very high. It’s a great area so you generally get what you pay for. But it’s just very very controlled so understand that going in. I mean they even have private security that hands out speeding tickets. That sort of thing.


dragginass
Member since Jan 2013
1684 posts

re: Sandestin Real Estate Prices....where are they headed?
I stayed at Jetty East a few times in the 2000s. Even then, the beach was extremely crowded. You have a large complex with a smaller beachfront so the umbrellas/setups are stacked deeply, row after row. They did get some more square footage from the dredging a few years ago. Many of the units closed in their balconies (not sure why this was ever allowed) to add square footage to the units. That said, they had 1br units selling for 90k in 2008/9, and I could kick myself for not buying one.


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