Is anyone familair with Daytona Beach Shores? (Orlando, Port Orange: for sale, real estate)

[idr591]

It seems like you can pick up some small (~800sq feet) bungalows directly between the beach and the intercoastal at a very reasonable price.

Is this area unsafe? Is there other major deterrants to owning a home in this area? Any information would be greatly appreciated.

[Guntersville Boomer]

I am from that area, was actually the Finance Director for the city many moons ago. It is really nice area and like you I have been watching the prices in that area, the Ocean's Condo's down there are also an amazing buy right now. If you also look down further toward Ponce Inlet there are some good buys in Wilbur by the Sea, I'd buy anything down anywhere along that area without hesitation, once the market turns around these places will be out of reach for many of us!

[daytonadewd]

DBS is a transient, "resort" retirement community. Many of the seniors who retired there in the '70's and '80's are now deceased, leaving their properties up for sale. There are many high rise towers on the beachfront, grocery stores, restaurants and storefronts catering to tourists and retirees.

It's a great place for family reunions and the grand kids will love the beach. There is very little crime/danger.

Your biggest concerns will be remodeling/updating/landscaping the property and pricing/obtaining homeowners insurance on any barrier island in Florida.

[idr591]

Originally Posted by daytonadewd

Your biggest concerns will be remodeling/updating/landscaping the property and pricing/obtaining homeowners insurance on any barrier island in Florida.

So are these homes un-insurable? How does that work when you go to obtain financing?

[Guntersville Boomer]

The State of Florida created an insurance pool for those who live near the ocean so insurance is available through there, They have also subsidized this insurance fund to help keep the premiums down, it must not be too bad or no one would be able to afford coverage. I doubt you will find a private insurer to insure a beachside home.

[daytonadewd]

Originally Posted by idr591

So are these homes un-insurable? How does that work when you go to obtain financing?

No. Just difficult and time consuming. Be prepared to spend several hours getting quotes BEFORE you sign the contract and obtain financing. It's also advisable to wait for coverage AFTER Hurricane Season, which ends November 1 (as carriers are not keen on underwriting you at a time they're most likely to pay out).

(My opinion) is that it's best to know what your coverage options are and your premiums will be, so there's no "surprises" later. Remember that my comment is that you're getting a good deal on the property, but you'll have to factor in the costs of the other "concerns" I mentioned, which still is relatively affordable for what you'd end up with.

I wouldn't be alarmed as it's the same thing California deals with earthquakes, fires and mudslides. It's business, and insurance companies don't like taking risks. Florida has Hurricanes.

It's also important to know what the "rating" is for the insurance underwriter. The state pool mentioned will cover you, but it's doubtful they will pay if there were a catastrophic event. (i.e. you pay for years but then when you need it, it's not there!)

If you're from up north, use your local relationships first with insurance companies there to see if they will underwrite you in Florida.

Good Luck!

[daytonadewd]

If you're also serious about the property, I forgot to mention that you'll want to budget approx. $1,500 for numerous inspections which could save you THOUSANDS per year (and a potential headache if it's a lemon).
Same as if you paid a mechanic to look at a used car before you buy it. There are also warranties and bonds you should also negotiate in your contract w/ seller.
You want this done as stipulations to your contract to protect you from walking away from the deal. I'm not a real estate professional but know about these things from experience and family/friends.

• Home Inspection (will tell you condition of infrastructure you'll need to repair/upgrade/replace)
• 4-Point Inspection (will save you money on homeowners insurance and may also be required to be underwritten anyway)
• Mitigation Inspection (will save you $$ on insurance premiums to find you discounts. Can also be re-done after you remodel for further discounts)
• Elevation Certificate (Narrows your premium for National Flood Insurance, instead of being based on general "Flood Map" calculation)
• Survey (For a few dollars more, can have this done with Elevation Certificate if you need to submit to city for remodel plans later anyway)
• Roof Warranty (how long roof is guaranteed)
• Termite Bond (Pay annual maintenance which could save thousands if there is future damage)
• Home Warranty (Guarantees electrical, pool, hot tub, A/C and appliances for up to 1 year after purchase. There are specific coverages and copays involved so be sure to review policy before agreement)

There is usually a few main reasons to buy a property and a million reasons not to. Don't stop dreaming!
If you do some homework and spend a few dollars upfront, you're protecting yourself from the risk and making the reality match your expectations and budget.
If this one doesn't work out, there are always other "fish in the sea!"

Please post your outcome(s) so we know what happened.

[Sgoldie]

Is that anywhere near where they had all the flooding a couple of weeks ago?

[BERTConstruction]

My Family has a second home there. Great location if you want to get away from Orlando. If you are buying though beware of the high property taxes, the high condo fees and the low chance of an insurance company writing the property insurance. If you are buying a single family home with cash then you only have to be concerned with 2 of the 3.
Good luck.

[daytonadewd]

Originally Posted by Sgoldie

Is that anywhere near where they had all the flooding a couple of weeks ago?

Yes, technically, but the flooding didn't occur in DBS, which is on the barrier coastal island.

The flooding happened on the mainland between US1 + SR5A (Nova Road), from the Tomoka River in Ormond Beach to Rose Bay in Port Orange. This area was a natural hammock that drained into Rose Bay and they decided to start building houses there 100 years ago and continued the same with the suburban sprawl from downtown Daytona Beach.

While there had been minor flooding in this area from saturated ground, there had never been a flood like this one. Apparently the storm drains kept filling up retention ponds and canals that overflowed into the surrounding neighborhoods.