A Second Home in Miami, Should I Buy a Condo or a Home?
A Condo vs a Home as a Second Property in Miami
The decision over a Miami home or a Miami condo as to which is better as a second home is very much a personal one and of course neighborhood dependent. Although there is no universal answer to this question, buyers might find the below questions extremely helpful in deciding which type of property best fits their needs.
A Second Home in Miami – A Home Vs a Condo
- The neighborhood you want to live in
- Some areas offer pre-dominantly single-family homes while others offer more condos
- How big a property do you need?
- How willing are you to manage a property?
- Condos of course require less involvement than houses
- What is the budget?
- The budget will tell us which areas will offer you most value for money
- How many times a year will you visit the home?
- What yearly budget are you allowing for property maintenance?
- Although a home is more labor intensive, a condo has higher maintenance fees which are mandatory fees
- Would you want to rent it out when you are not there?
- A house can be rented out whenever you want, while renting out a condo is subject to the condo’s rental guidelines (Generally speaking once or twice a year)
- How important are amenities and convenience?
- Condos are more convenient while offering more amenities.
- Highly concerned over security?
Best Type of Second Property in Miami – Working Example
For example, you want a more contemporary living space, you need more than 2,500 SF and you have a budget of $1.5M. In this case a house is going to work far better. Simply put, the average price per SF for a home is generally lower. For example a single-family home in Coconut Grove will run between $440-540. For a decent condo you are going to be looking more along the lines of $700-$800 per SF.
Of course the maintenance fees on a Condo will require a higher monthly financial upkeep (A typical carry cost of a single-family home worth $2M and 4,000 SF may be around $700 per month (This includes insurance, yard and pool). While a $2M Condo of say 3,000 SF would have a maintenance of around $2,000 per month. Traditionally single-family homes make for a better investment (long term – single family market is less volatile than the condo market), but they are certainly more labor intensive. With that said I have plenty of clients who have a regular handy man who looks after and regularly checks on the property. Additionally you also have the flexibility to rent out homes as frequently or infrequently as you like.