If you’ve been considering purchasing a condominium or a townhouse in Panama City Beach to give you a little story that might encourage you when it comes to not only buying and enjoying a condominium now but for resale value and purchasing at a later time.
I’ve been working with a couple for several years now and when they first started toying with the idea of buying their first house we discussed the possibility of a condominium versus a single-family house. They weren’t too keen on the idea at first but knowing the condominiums were far less expensive than a single-family house, it kind of forced us to go in that direction. We started looking at condominiums and there were several to choose from, especially in Panama City Beach, which specializes in condos and resort homes.
We found them an excellent home at the Shores of Panama, located at 9900 Thomas Dr. for $145,000. This was simply a one bedroom condominium but it suited their needs as a young couple. They enjoyed playing on the beach and exploring the area but needed a place to call their own and to gain some equity. This home was just 864 ft.² but with one bedroom, a comfortable kitchen and living room and a spacious balcony, it was exactly what they needed. The plot on the lower end of the pricing scale and the home was not furnished and needed a little bit of cosmetic work. Over the last 2 to 3 years they have worked on the property and upgraded several items inside the home such as lighting fixtures, cabinetry, countertops, and hardware. They also have been collecting appropriate furniture that matches the decor and theme of the area.
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For the last 2 to 3 years they have been working on improving the home and while enjoying the benefits of a condominium. The Shores of Panama is a great location with lots of amenities including a waterfront swimming pool, hot tub, spa and on-site concierge services.
Recently decided to sell and look for something a little bit larger. While they put in their dues with a condominium, that condo unit increases equity over the last 2 to 3 years. They were now looking at a single-family home also in Panama City and surrounding areas of Destin and Panama City Beach. After proper appraisal from comparative properties in the area, we can reasonably list there one bedroom, 864 square-foot home for $175,000. This is a $30,000 increase over the last 2 to 3 years simply by improving the home and “waiting” for inflation to increase the value.
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Because this couple didn’t have a lot to put down in the beginning, they were able to get an FHA loan with a 3% down payment. However, now with the equity in their home, they were able to pay real estate commissions and put a hefty 10% down payment on a single-family home, reducing their monthly mortgage payment, obtaining a conventional loan without mortgage insurance, and they were able to start building equity in a home they’ve truly love.
Read more: Can I Buy a Condo with a VA Loan?
In the meantime, their condominium went on to sell to a pair of retirees that were looking for a furnished condominium with everything completed and move-in ready. My client’s condo was the perfect spot.
Buying a condominium, especially as your first home, is a great option for gaining equity and being able to put that equity in a larger home in a few years. If you’re unable to make a large down payment, buying small with an FHA loan might be exactly what you need in order to work your way.
If you’d like more information on this option please contact us at any time. Because our agents specialize in helping people specifically try and sell condominiums in Panama City Beach we can offer you the tools is necessary to make an informed decision.