Florida homeowners are being encouraged to buy underwater condos to save money, according to a report.
In a report released Monday by real estate consulting firm PwC, underwater condos are the ideal solution to keep home values up in the market, as they are usually available in very low-cost packages.
For example, a condo in Miami-Dade County costs $932,000, while a unit in Orlando costs $1,542,000.
But underwater condos will cost a fraction of that, PwLAW found.
“The best-case scenario is you can save up to $500,000 in real estate taxes,” said Scott Laughlin, PWLAW senior vice president of real estate.
“It’s not that expensive.
There are people out there who are willing to do it.”
Laughlin added that it is possible for underwater condos in certain locations to be sold for more than the amount they were listed at.
He also said that there is no limit on the number of units that can be purchased at once, but that they will not be eligible for the same tax breaks as regular condos.
In the past, there have been concerns about underwater condos, particularly in the Florida Keys, which are known for being expensive.
PwLaws said that the biggest risk is that they could become unsellable as buyers sell and don’t renew the lease, which is often a big concern in areas with high foreclosure rates.
“If you are a homeowner who wants to move up in your home value and have a great vacation, this is the way to do that,” Laughlin said.
“But the biggest thing is that the price could be significantly less.”
