Should we keep Florida condo?

Question: We have a Florida condominium that we recently bought (last year). Although the whole of the Florida market has increased significantly in valuations, does it make sense to hold a Florida condo if it’s not covering its costs in order to acquire long-term appreciation of the condo itself? Carrying it is not a difficulty, but I read many articles that indicate if you have to be putting money into something it’s not really an “investment”.  Any tips in this regard? – T.F.


For starters, are you getting any personal use out of the condo? If you are spending a significant amount of time there, you have to consider the lifestyle factor in making your decision.

From a pure dollars and cents perspective, there is no way of knowing whether you will come out ahead in the long run. Some parts of Florida have seen a boom in property values recently (e.g. Orlando, the South-West). In other areas, such as the Panhandle, prices tend to be more stable. I personally know people who have held condos for several years and then sold at almost the same price they paid. So you would have to assess the prospects in your specific area, and then look careful at whether your unit has attributes that would make it stand out in the mind of a prospective buyer, such as a great ocean view.

If you are not making good use of the condo and it is draining money, then you should probably consider selling. Real estate markets can be very fickle.