Villa life is appealing in the low country, lock and leave with little or no maintenance, who wouldn't want a villa! Villa's also make great investment properties, visitors love the proximity to the beach that many of the villa complexes on the Island offer. There are many many complexes to choose from, just make sure you are asking the right questions.
There are a few questions that you need to ask your agent when you are villa hunting, some of these things can mean the difference between being able to obtain financing and having to bring a stash of cash to the table.
1. Is There a Recpetion Area?
If the villa complex you are falling in love with has a large welcome area with a reception desk, or an area you 'check in' to, many banks see this as a Hotel, and will not finance it.
2. Is There Pending Litigation?
Ask your agent about pending litigation against the property or the regime. This is a quick call to the regime manager to get an answer. If there is pending litigation, financing will be nearly impossible until the litigation is settled.
3. Are the majority of units owned by investors?
If more than 50% of the units are owned by investors, it may mean you need to bring all cash to the table.
4. Does it have a Lock-Out Unit?
Lock out units are the second or third bedroom of a unit that has a bathroom and frequently a very mini kitchen. The owners of a villa with a lock out unit essentially have two units in one. The single unit can be 'locked' so two separate families or individuals can rent the space.
5. Is the unit part of a Timeshare?
Timeshare is a real property transaction, but not one that banks will finance.
Alex Smith and Ben Russ with PrimeLending can help you with any questions you might have about financing any home or villa, as always the agents at RE/MAX Island Realty are here to help with all your Real Estate needs.