New Destin Market Provides Options

Buyers considering the purchase of a second home or condo, but learning that it may not be affordable have a growing market of options in the new Destin real estate market.

The closing prices of many condos and homes in Destin and South Walton have been reduced as a result of buyers’ refusal to pay higher prices.

Consequently, more affordable second homes have become available in the marketplace, but don’t appear readily available at lower prices to the average buyer. The listing prices for many properties are still at levels of a year ago, but in many cases the selling prices are turning out to be equal to two years ago when negotiated properly.

There are also other options to consider for second home owners and vacation condo buyers. Property in less developed areas surrounding Destin, which provide a beautiful setting for a home are more affordable. Buying the land and having a home constructed can save tens of thousands of dollars.

Smaller homes or properties without direct water access, but within a short walk to the beach are also alternatives for many potential owners of second homes. Maintenance and insurance costs are also less expensive further from the waterfront.

Owners of homes without direct water access won’t have their own dock or water frontage, but shared cooperatives like condominium developments offer a variety of amenities, including swimming pools, health clubs, gathering facilities and many other extras.

Some addresses are more fashionable, but less expensive lesser developed areas are beginning to show strength in the Destin marketplace. Buyers who are willing to compromise on location are able to get more for their money.

Tax advantages for many would-be second home owners are also beginning to have a more significant impact on the Destin real estate market. Federal and state taxes may be reduced with second home ownership and investment properties, and may even have nearly a double impact on reducing taxes by converting second homes or condos to rental properties on a limited basis.

Many are also opting to buy homes as their primary residence to qualify for more advantageous mortgage rates.

Second homes may be purchased with as little as a 5% down payment, but principal residences are increasingly being financed as high as 100%. Purchasing a second home or condo as a primary residence can work especially well for those who are looking to get into the Destin market for the first time.