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PTWizard

Beach Lover
Jan 17, 2005
80
0
Columbus, OH
Assuming everything gets built our as you say--did you forget about all the people in the 1400 planned homes in Watersound North that will also have access to the beach at Watersound? It won't be as deserted as you think once all those homes are built out. In addition, have you thought about how all those folks from Watersound will get to the beach at Watersound Beach? In the end, Watersound will be just as crowded as any of the other planned developments along 30A. If it was only the 400 or so homes in Watersound that get access to the beach, then it would be pretty quiet. Not with all those other folks from Watersound needing beach access, parking, etc.

I love Watersound Beach. However, I agree that someday it may end up being a VERY crowded place in the summer months.

I believe that in time Paradise by the Sea will be discovered as one of the few truly low density beaches on 30-A. There's no public beach access, it will be a gated community, no build out restrictions, deep lots with average lot frontage of 60'-70' and only 51 lots for 1700' of beach. Also, at this point, only 47 homes can be built in this development since a couple of the homes utilize multiple lots. At least one other home is planned to do the same. Located within walking distance of Rosemary Beach, Seacrest Beach and Alys Beach you have the best of both worlds. Even so, the two most recent sales of tier 1 lots with incredible wide open gulf views both sold at under $1,000,000 this year. Compare that to south of 30A prices in Rosemary or Alys. I think it's a bargain, especially compared to other places we've evaluated on both coasts and the gulf.
 
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flyforfun

Beach Fanatic
Oct 20, 2006
311
39
Birmingham, Al
How many of those houses under construction or in design mode are owned by builders or investors? My guess is a large number. Therefore, when many of these homes are complete they will be dumped on the market with the current glut of homes adding to the inventory problem.

If you look closely, a large percentage of recently completed or to be completed homes have been placed on the market. This trend is likely to continue as a large percentage of the lots sold by JOE were sold to investors rather than end users.

Currently, there are 105 homes and lots on the market representing nearly 25% of total available inventory. We need more end users before the market will turn around.

the beaches are beautiful but there is only a small sliver of the population that can afford a $2 million second home.


Regardless if they are an investor or end user, Watersound is about privacy, quality and attractive clean beaches. Believe it or not, that is what people with money are looking now days. If you are not in that small sliver of population, you have no idea the tax advantages or the investment strategy of owning a second home of $2 million or more. I much rather own a 2 million dollar home that may go up or down in value, than stock that's values are "dummied up" by people who cook the books and never get's caught unless a whistle blower turns them in.

My father in 1958 purchase a lot a mile from the beach for $300.00. He sold that lot in 1998 for 45K. The same lot sold again in 2004 for $110K. As long as you don't over leverage yourself, real estate is a smart move. I am certain there are some in these high end developments that have done just that. There are plenty of buyers hunting for those folks, just so they can sell the property 12-24 months from now at a 30-50% gain. The secret down at the beach is not to ever over extend yourself.
 

Beachbummette

SoWal Insider
Jul 16, 2005
5,748
207
Birmingham and Watersound
FFF,
As blind as some of us were about the down turn of this market you will discover the same thing about the continued growth of this market. There are some on these boards that act as if the market has completely stopped. I had my second best year ever! The simple fact about SOWAL is alot of folks, with alot of money like it here!

:clap_1: Congrats Bobby J:clap_1:

Congrats Bobby J! Real estate agents who work, and show up early Sunday mornings when they have a buyer on the hook will always have a great year. :clap_1: The people who realize that this is still the most beautiful beach on the gulf will find the money, cause the last time I checked, God's not making any more white sandy beaches.:rotfl:

or will show property during a tropical storm!:D
 

goofer

Beach Fanatic
Feb 21, 2005
1,165
191
Congrats Bobby

It is funny that hard work and success seem to go hand in hand !!! You love what you do and so even though it is work, you do it with great enthusiasm.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
I much rather own a 2 million dollar home that may go up or down in value, than stock that's values are "dummied up" by people who cook the books and never get's caught unless a whistle blower turns them in.


Let's see....crooked appraisals...liar's loans...cash-kick backs..."perfidious puffery"...mortgage fraud---There's no deceit to see here folks, just keep moving along.
 
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fisher

Beach Fanatic
Sep 19, 2005
822
76
Regardless if they are an investor or end user, Watersound is about privacy, quality and attractive clean beaches. Believe it or not, that is what people with money are looking now days. If you are not in that small sliver of population, you have no idea the tax advantages or the investment strategy of owning a second home of $2 million or more. I much rather own a 2 million dollar home that may go up or down in value, than stock that's values are "dummied up" by people who cook the books and never get's caught unless a whistle blower turns them in.

My father in 1958 purchase a lot a mile from the beach for $300.00. He sold that lot in 1998 for 45K. The same lot sold again in 2004 for $110K. As long as you don't over leverage yourself, real estate is a smart move. I am certain there are some in these high end developments that have done just that. There are plenty of buyers hunting for those folks, just so they can sell the property 12-24 months from now at a 30-50% gain. The secret down at the beach is not to ever over extend yourself.

Please do tell about the tax advantages of owning a second home.

There are none if you don't rent or you use the home more than 2 weeks per year. Even if you rent, you can only deduct expenses up to the amount of your rental income.

Second homes are a cash drain while you own them if you don't rent and many times even if you do rent. They only result in a true gain when you sell IF the gain is enough to cover your carrying costs (insurance, homeowners fees, taxes) and maintenance costs while you owned the property AND the commission you pay upon the sale of the property.
 

flyforfun

Beach Fanatic
Oct 20, 2006
311
39
Birmingham, Al
Please do tell about the tax advantages of owning a second home.

There are none if you don't rent or you use the home more than 2 weeks per year. Even if you rent, you can only deduct expenses up to the amount of your rental income.

Second homes are a cash drain while you own them if you don't rent and many times even if you do rent. They only result in a true gain when you sell IF the gain is enough to cover your carrying costs (insurance, homeowners fees, taxes) and maintenance costs while you owned the property AND the commission you pay upon the sale of the property.


Fish you are absolutely correct if don't place property on a rental program or its not corporated property. I have owned real estate in a lot of places, and no where have I had returns to come close to match beach property. It's certainly not a risk free investment, but what is? Expenses can always be managed. You don't really need a RE agent to sell, and if you do commission's are negotitable. If you design a home that is low maintenance that helps long term expenses. If you build a home using the fortress guidelines you can even get a reduction in insurance premiums ( http://www.ibhs.org ). Second homes are only a cash drain if you are not using or enjoying it. It's basically a matter of value. People will always find value in owning beach property.
 

flyforfun

Beach Fanatic
Oct 20, 2006
311
39
Birmingham, Al
Let's see....crooked appraisals...liar's loans...cash-kick backs..."perfidious puffery"...mortgage fraud---There's no deceit to see here folks, just keep moving along.

Shelly true to some extent especially if you are a rather nieve investor in the RE market. You can be a smart investor in the stock market and get ripped off by a much larger number of people including your own broker or financial planner.
 

OnMackBayou

Beach Lover
May 15, 2005
227
0
Mack Bayou, Sandestin
flyforfun, I'm sure 99% of us get your drift and are happy for you. Most of us who have been thru Watersound understand why you feel the way you do. Watersound is a special place and always will be. That's all that matters. You've found your paradise and that in itself is priceless.

The other details regarding the level of crowding on the beach, taxes, insurance....at this point you've figured that in to the equation and you are still in paradise.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
Shelly true to some extent especially if you are a rather nieve investor in the RE market. You can be a smart investor in the stock market and get ripped off by a much larger number of people including your own broker or financial planner.

They haven't even scratched the surface on all the deceit, trickery and fraud that went on during the last couple of years in the real estate game. There are many investors who are holding RE or contracts right now that don't even realize they've been duped yet--this thing will take some time to unwind.
 
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