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Zac

Beach Lover
Oct 15, 2012
148
6
30A
Thanks to the Fed, Americans can NOT earn anything putting money in the banks. On top of that, you will lose money due to inflation. This forces people to invest their money in assets. The two major options are the stock market or Real Estate. While the Dow Jones has shot up to the 14,000 range, Our economy is exactly booming. I think this is mostly due to the fact that people(world wide) have to invest their money somewhere and the US stock market is the safest option compared to say the markets in Asia or Europe. However, the stoack market has a lot of risk that go along with it as well.

Real Estate has responded well in the Southern/Coastal States. 30A and South Walton Beach is a unique situation. The zoning is unbelievable and is really an awesome place to live. For places like Alabama, Texas, Louisiana, Oklahoma, Tennessee, ect. it is one of the closet places to travel to that has a nice beach town. With interest rates at historically all time lows buying a vacation house (and leveraging it) is an extremely attractive option for a safe investment that offers rental income to off set cost and generate revenue while the property increase in value. 30A attracts mostly a high class crowd and there is relatively low amount of property available. Perfect example is how people with pay extremely higher prices to say "I have a house in Rosemary Beach or Seaside." Lots of the people that live out here have a lot of money and they are going to pay up for what they want. On top of that there are a ton of investors with cash on the sidelines just waiting to rush in on the next foreclosure that is a good deal.

Also, the lending process has gotten a lot more tight on making sure they give loans to people who can afford to pay the mortgage. This means that there are going to be less people defaulting on their loans and these great deals on short sales and foreclosures have already dried up. I hear a bunch "Oh I'm going to wait on some more foreclosures to hit the market and pass on this good deal." If the banks dropped 10 new foreclosures that were great deals priced below market value tomorrow morning, they would all have contracts(if not multiple) on the by that night. One must be ready to pull the trigger on a great opportunity when they see it because it will be gone very quickly....and its not even March yet! Once March gets here all bets are off and people who have been looking around this winter are going to be very frustrated because supply is going to be very limited and they are going to be competing with very motivated buyer who may only be here for ONE WEEK and need to make a safe investment!
 

chanster

Banned
Dec 7, 2008
187
14
zac your article is 100% correct. The stk mkt has been running 4 straight yrs and the economy is as dead as it was 3 yrs ago yet real estate is still down pretty big although on 30-a its way way off the bottom.inventory is super low and all the good stuff is long gone. the real time to buy was 24 or more months ago. It seemed it bottomed sometime in 2009 ish to 2010s and stayed on the bottom a while
 

30A Skunkape

Skunky
Jan 18, 2006
10,286
2,312
53
Backatown Seagrove
Thanks to the Fed, Americans can NOT earn anything putting money in the banks. On top of that, you will lose money due to inflation. This forces people to invest their money in assets. The two major options are the stock market or Real Estate. While the Dow Jones has shot up to the 14,000 range, Our economy is exactly booming. I think this is mostly due to the fact that people(world wide) have to invest their money somewhere and the US stock market is the safest option compared to say the markets in Asia or Europe. However, the stoack market has a lot of risk that go along with it as well.

Real Estate has responded well in the Southern/Coastal States. 30A and South Walton Beach is a unique situation. The zoning is unbelievable and is really an awesome place to live. For places like Alabama, Texas, Louisiana, Oklahoma, Tennessee, ect. it is one of the closet places to travel to that has a nice beach town. With interest rates at historically all time lows buying a vacation house (and leveraging it) is an extremely attractive option for a safe investment that offers rental income to off set cost and generate revenue while the property increase in value. 30A attracts mostly a high class crowd and there is relatively low amount of property available. Perfect example is how people with pay extremely higher prices to say "I have a house in Rosemary Beach or Seaside." Lots of the people that live out here have a lot of money and they are going to pay up for what they want. On top of that there are a ton of investors with cash on the sidelines just waiting to rush in on the next foreclosure that is a good deal.

Also, the lending process has gotten a lot more tight on making sure they give loans to people who can afford to pay the mortgage. This means that there are going to be less people defaulting on their loans and these great deals on short sales and foreclosures have already dried up. I hear a bunch "Oh I'm going to wait on some more foreclosures to hit the market and pass on this good deal." If the banks dropped 10 new foreclosures that were great deals priced below market value tomorrow morning, they would all have contracts(if not multiple) on the by that night. One must be ready to pull the trigger on a great opportunity when they see it because it will be gone very quickly....and its not even March yet! Once March gets here all bets are off and people who have been looking around this winter are going to be very frustrated because supply is going to be very limited and they are going to be competing with very motivated buyer who may only be here for ONE WEEK and need to make a safe investment!

Shelly would be so proud of you!:clap:
 

Bob

SoWal Insider
Nov 16, 2004
10,364
1,391
O'Wal
zac your article is 100% correct. The stk mkt has been running 4 straight yrs and the economy is as dead as it was 3 yrs ago yet real estate is still down pretty big although on 30-a its way way off the bottom.inventory is super low and all the good stuff is long gone. the real time to buy was 24 or more months ago. It seemed it bottomed sometime in 2009 ish to 2010s and stayed on the bottom a while
then explain earnings if you think the economy is as dead as 3 years ago....the problem with the economy is offshored/outsourced labor and little construction. There aren't enough blue collar jobs. Without the Fed, no one would be buying real estate but for cash deals.
 

Zac

Beach Lover
Oct 15, 2012
148
6
30A
then explain earnings if you think the economy is as dead as 3 years ago....the problem with the economy is offshored/outsourced labor and little construction. There aren't enough blue collar jobs. Without the Fed, no one would be buying real estate but for cash deals.


IMO, the main reason a lot of companies are putting out good earnings(mostly) because they have been laying off people or "trimming the fat." The big companies have cut jobs down to such a minimum that now the only way to grow the company further is going to be through acquisitions of other companies. However, while the big public traded companies are doing good, there are not enough jobs being created to dent the unemployment rate. I agree with you for the most part, Bob. Real Estate sales isn't my main source of revenue and I manage my money well enough where if RE was still falling I would be alright, as to your "living in a van" statement. To be clear, I didn't mean to come off bitter at the Fed. I'm only stating the current situation and what I think is about to happen. 5-6 years ago people could literally live off the interest that they were earning in the bank. Today that's not an option. The fed has reduced it to almost nothing and that makes people go buy assets with their money and give them an option of cheap leverage. That is the biggest reason the economy is bouncing back. There does not seem to be any indication that interest rates are going to rise significantly anytime soon so look for Real Estate to continue to be be a very popular option
 

chanster

Banned
Dec 7, 2008
187
14
zac i can assure you i know more in my pinky than do you about the stk mkt and economy. If zero interest rates worked then why is japans mkt down 80% from 24 yrs ago still down 80% as there rates have been zero for 15 yrs.go look at all the exon #'s the last 2 yrs. payroll monthly growth is about the same as 2 yrs ago. retail sales last week for jan were almost zero.the feds strategy is to friend money buy bonds and hope people take that money and buy risk assets like stocks. they hope people fell wealthier and spend that money in the economy.earnings growth this past qtr is the worst since 2009. after many yrs layoffs are about over thud
 

LuciferSam

Banned
Apr 26, 2008
4,752
1,069
Sowal
Actually, if you have money and fear future inflation, one of the best things to do right now is to spend it on expensive things that you really do need. Examples might be home repair, upgrades, vehicles, to name a few. It would be better to to get that new roof than let your money sit around in savings wouldn't it?
 

Zac

Beach Lover
Oct 15, 2012
148
6
30A
zac i can assure you i know more in my pinky than do you about the stk mkt and economy. If zero interest rates worked then why is japans mkt down 80% from 24 yrs ago still down 80% as there rates have been zero for 15 yrs.go look at all the exon #'s the last 2 yrs. payroll monthly growth is about the same as 2 yrs ago. retail sales last week for jan were almost zero.the feds strategy is to friend money buy bonds and hope people take that money and buy risk assets like stocks. they hope people fell wealthier and spend that money in the economy.earnings growth this past qtr is the worst since 2009. after many yrs layoffs are about over thud


Well if you know so much about the economy and stock market, make some calls and please inform us about where the smart place to put money is right now. Although I follow the stock market everyday watching bloomberg and cnbc, I'm not about to tell you to go buy a certain group of stocks. I will say that the home builders (including DR Horton) have been up huge this past year, and since Feb 1 2013 there have been 9 lots and 33 houses put under contract or close JUST IN WATERCOLOR ALONE! (BOOM) This thread was me stating the facts about interest rates being low and making a(n obvious) call saying the Real estate market is about to take off and those numbers back it up. If you have all this knowledge about the economy (and Japan's?) then please give me some investment ideas. I'd love to hear them... Apple? Exxon? Herbalife? Yen? Right now my money is on prime Real Estate along 30A and selective areas in Destin and PCB
 
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