Sun, sea and views. Condos are popular right now and it’s easy to see why, especially in desirable vacation hotspots. You might love the views, culture and communities but choosing whether to buy or rent has its own set of considerations.
If you’re thinking “should I buy a condo or rent?” then we’ve discussed the advantages of both below.
Renting a Vacation Condo
You might think renting is the best course of action because you don’t have to pay everything upfront and you usually pay a set weekly or monthly amount to the owner for use of the property. Air BnB or even a hotel cottage is a good option as you like to travel a lot and don't visit Bermuda enough to warrant anything more.
However, if you’re a frequent visitor to the island, because of business or family connections then a Vacation Condo might be something you want to consider.
You don't need to worry about the costs you might have to incur if you purchased a condo, such as mortgage payments, repairs and maintenance, taxes and assessment fees.
However, with this approach, instead of building your own equity in the rented property, you'd be helping the apartment owner build equity. So it can sometimes feel like a black hole for your money.
Vacation condos can serve as a gathering place for friends and family, which really does bring more happiness. But if you don’t own the condo, there’s also no guarantee that your chosen condo will be available at all times of the year. There may be other guests staying during the dates you wanted.
And if you’re someone who likes to return to the same location for vacations, it would be nice to have this sort of upscale living accessible whenever.
Please be aware that government regulations prevent Non-Bermudian home owners from renting out their home without express permission from the Government Ministry.
A non-Bermudian who owns a condo hotel residence (like the ones at Bermudiana Beach) - can rent out short term to both Bermudians and non-Bermudians with a work permit, residential certificate or to any non-Bermudian staying for less than 180 days in Bermuda.
Buying a Vacation Condo
The vacation condo/hotel product has been around for a while but it’s a new concept for Bermuda. For many people, it’s more advantageous to own rather than rent a vacation condo. If you don’t need a huge place and want a slice of paradise buying a condo is a better option than renting.
If you do buy a vacation condo, you can access luxury amenities like fully-equipped gyms or swimming pools, tennis courts, golf courses and beaches. However, there’s no guarantee you can stay whenever you feel like escaping the city. It might be booked by other vacation goers enjoying a getaway.
The pros of buying a condo may outweigh the cons for you. But it’s important to know what to expect before taking the plunge.
First, make sure you are aware of the regular Home Owners Association (HOA) costs you’ll have to pay. This fee covers maintenance of the building and common areas as well as amenities. There are typically no mortgages on second homes which beats worrying about rising rental rates. If you're wondering what are the rules of a homeowners association, just click for more information.
The perfect sub-tropical island vacation home, Bermudiana Beach Resort, Tapestry Collection by Hilton makes vacation home ownership a breeze. Whether you’re looking to buy a rental asset, want a foothold back in Bermuda or just love Bermuda and want to buy a vacation home here, this could be perfect for you.
When you’re not at your vacation home, your condo can convert to a hotel room or suite. Bermudiana Beach’s hotel management team will handle all your rentals for you. Your bookings, check-in, housekeeping and repairs and maintenance will all be taken care of.
You can use it as a second home and spend your own vacations there with your family and then rent it out to guests for the rest of the year. You can unwind and take it easy - both when you’re here and when you’re back home. Rest easy knowing you are building equity, as you relax.
Renting vs Buying: Which is More Affordable?
It depends on the area and the condo but usually, buying is much more efficient, especially if you go on vacation a lot. You have a place to come home to after a day lounging on the beach, teeing off or exploring.
It’s not about affordability, it’s about practicality. You can leave your wetsuit and Bermuda shorts at your vacation condo and jet off home.
Your budget could ultimately dictate your decision. Buying comes with upfront expenses like closing costs, deposit, bank fees and legal fees. However, if you have the cash, it’s something you should consider.ca
Everything You Need to Know About the Condo Buying Timeline
We understand purchasing a condo isn’t always a straightforward process, it can sometimes be discouraging to have a lack of transparency. To help you visualize the steps, we’ve created a useful timeline. From inquiry to settling into your vacation home, we’ve mapped it all out.