Oh what a relief it is!!
Long time lurker wanting to add a few comments as I exit the market.
Got lucky and just sold my second home in SoWal. After watching the market sour for a couple of years now, I finally decided it was time to sell. I priced the home right and sold it within 90 days. I bought new construction in 2003 before the boom caused by speculation and sold in 2008 at a very slight profit excluding carrying costs. Given the current trends in the market, I think I would have been underwater within another year and way under water within a couple of years. However, I did not sell because I could not afford to own. Like many people new to the second home market in the early 2000's, I decided owning a second home wasn't all it was cracked up to be. The primary reasons for selling were--
1. Bad and worsening economy that made me think I would be in a loss position soon with no time in sight where the tide would turn.
2. Renting is much, much cheaper than owning. I can rent the best of the best several times a year along 30A or anywhere else in the world for that matter and still come out ahead of owning (especially when the second home is depreciating). I could rent a really nice place for one full week just for the cost of my annual HOA dues. Not to mention insurance, maintenance, taxes, utilities, interest, etc, etc.
3. Tied down by second home. I never felt I could justify going other places while I owned the second home. Now I feel free to travel the world.
4. South Walton is nice, but I realized there are lots and lots of times when being in another vacation spot would be much nicer. For instance, winter months are much too cold (air and especially water temperature) to enjoy the beach. May/June I never could sit on my porch without getting eaten alive by the deer flies. Sept/Oct I never could be on the beach without being eaten by dog flies. June/July/August more times than not, the June grass and jellies kept me out of the water. I will still visit, but will choose my times wisely like late April to mid May and October. I'll make sure the June grass isn't choking out the water and the jellies are in retreat.
5. If I miss the area and my second home, I believe that I will be able to buy much, much cheaper in a couple of years.
Good luck to all those trying to sell their second homes.
Replies
33
Beach Fanatic
aaahhhh. . .the intangibles that make owning a second home in Sowal great:
- We go to the beach more -- because there isn't an incremental cost to going.
- We vacation with my family more because we all own it together
- We vacation with our friends more because there is space and there isn't an incremental cost to bring them
- We get invited to our friends vacation places in return
- We know the "lay of the land" - where to go to the Grocery store, what restaurants are kid friendly, what is the closest hospital, where Dr. Skunky lives in case of emergency
- I know the kitchen has all the necessities that I need
- There is always a bottle of wine waiting on me there -- after the 6 hour drive w/ 2 kiddos
- If I leave something behind, it will be waiting on me the next time! (I have opened a drawer before and found it full of my kids pj's from 10 weeks previous ---ooops!)
- We have bikes there and don't have to go through the hassel of renting them every time
- Etc, etc, etc! ( I could go on and on, but I think you get the point!)
SoWal Insider
I think we're all in agreement. SoWal real estate isn't a money making machine but it definitely has its merits - we all come here and buy land because we love this place. The market over the last five years turned this upside down but I think we'll be getting back to where we were in the 1990's. Overall I think that's a good thing - the quality of life factor will reign supreme again. Amen to that.
The market will normalize, and it will be for people who really want to be here, and they will be able to reap some benefits while enjoying their property.
I doubt our property will ever be cash-flow positive overall, but if we hang onto it long enough, there will be an income stream.
Let's not forget that SoWal has a VERY generous rental policy for owners, particularly owners of single family homes. I know it is hard for some to believe but there are many beautiful areas where short term vacation rentals are simply not permitted! Even Sanibel Island requires its houses to be rented for a minimum of 1 month. If you want to rent for a week there, you have to find a Sanibel condo or hotel room or go to Captiva, where supply is limited and prices are very high.
Since SoWal is completely unincorporated, property taxes also are much lower than they are in other incorporated areas around the state. When you factor in the height restrictions, the height above sea level, and of course the world famous beaches -- you can't convince me that SoWal isn't a great place to own ... IF you are one of those people who is meant to own a second home. Some people just aren't. Mr. TFT and I dreamed of owning at the beach even when we were in college. And I know that our kids are going to have great memories of coming here, and we are making great friends.
So to us it is all worth it.SoWal Insider
By the way, this is a really good thread, and I hope happyrenting doesn't feel bad for starting it. The pros and cons will resonate on one side or the other for all the would-be buyers reading it, and aid in smart decisions. In the end, we want people entering the market with their eyes wide open and feeling good about their decision. 
Beach Fanatic
This is a really great thread - I have enjoyed reading each post. I am on the sidelines for now, but may be a SoWal owner someday (after much thought and more savings).Some of you are particularly good at expressing the emotional benefits you receive from owning instead of renting. The idea of creating a family gathering spot is of real interest to me... somewhere my kids can bring their kids... some place in which I have a vested interest. That is a different kind of "investment" and one that is very appealing to me.
Beach Fanatic
Another thought - for every happy seller there is an equally happy purchaser. Flyguy's 6-27-08 thread is Exhibit A of this. Here's hoping they all continue to be happy with their decisions to sell or buy.
Beach Fanatic
By the way, this is a really good thread, and I hope happyrenting doesn't feel bad for starting it. The pros and cons will resonate on one side or the other for all the would-be buyers reading it, and aid in smart decisions. In the end, we want people entering the market with their eyes wide open and feeling good about their decision.
I agree, TooFarTampa. Happyrenting seems to have made a great decision given what happyrenting wants. Congrats go to anyone who makes a thoughtful decision (whatever it is) and makes it happen, especially in a tough market in uncertain times.
Meow
I agree, TooFarTampa. Happyrenting seems to have made a great decision given what happyrenting wants. Congrats go to anyone who makes a thoughtful decision (whatever it is) and makes it happen, especially in a tough market in uncertain times.
I think happyrenting has moved on.
I really enjoyed this thread and hearing all the different stories!
Beach Fanatic
I think happyrenting has moved on.Group hugs, boyz first!
I really enjoyed this thread and hearing all the different stories!
Checking your forum account
Please wait while we verify your forum account.