Another Auction --Heron's Watch 7 Condos

[spinDrAtl]

I don't know anything about this particular property but there are some people out there who buy something just because they want to use it weeks or months at a time and then throw it into a rental pool or do it themselves just to bring in a little income.

Every buyer is not an investulator though some might like you to believe that.

 

[SHELLY]

Every buyer is not an investulator though some might like you to believe that.

Suffice to say, investulators are a dying breed.


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[flyforfun]

This will be interesting...i am very curious to see what these go for as i am very familiar with this development.

lowest one in MLS at around $185K...they rent for around $1K/month.

Lets do quick cash flow evaluation here...

$12,000 annual rental income

($2,640) HOA dues -- I'm pretty sure its around $220/month incl Insurance

($1,000) Transitional Vacancy and Repairs/Improvements

($1,500) RE Tax

$6,860 in annual operating income

Just breaking even, this will support a mortgage of $86K (7%, 30 yr)

So I guess around $90k would be a good price??!!

People think thats crazy, but seriously the residential rental vs for sale market is sooo out of whack...this may be an extreme example, but it goes to show you that good investments cash flow. I totally understand buying beach real estate because of the intagables (emotional aspect), but don't kid yourself that its an investment.

EG, just remember that if you had purchased $1000.00 of Nortel stock one year ago, it would now be worth $49.00. With Enron, you would have had $16.50 left of the original $1000.00. With WorldCom, you would have had less than $5.00 left. If you had purchased $1000 of Delta Air Lines stock you would have about $49.00 left.

But, if you had purchased $1,000.00 worth of beer one year ago, drank all the beer, then turned in the cans for the aluminum recycling REFUND, you would have had approximately $214.00.

There, is a time to buy, and there is a time to sell.....now is the time to be buying RE at the beach cause it's not going to get any cheaper! :roll:

 

[robertsondavies]

Hey Fly For Funn.. the quote you just used, which was famously pasted to every inbox in the world, was from 2002-03 period when the stock market bottomed, not today. your quote mentions how $1000 would have evaporated with investments in the newsworthy blowup stocks of 2002 such as Nortel, Enron...

Not sure if you're now aware, but things have changed. If you had invested $1000 in a good number of stocks in February 2005 you would have $1500 or more in your account. Conversely if you had invested $1000 in SoWal Real Estate in February 2005, you would have about $500 in value (if it was truly marked to market) today- not including the cumulative impact of any negative cash flow which would exacerbate the above 50% drop. Individual experience may vary (i.e. some real estate may only be down 35% from the top, on a good day) -- , if you're lucky to find the small handful of buyers who think that there is no airport in the area currently)

it takes a lot of balloons to attract those buyers to your property, because even the gullible know what the onset of "Auctions" after years of no supply to sell, effectively means to the market here.

latr

 

[SHELLY]

EG, just remember that if you had purchased $1000.00 of Nortel stock one year ago, it would now be worth $49.00. With Enron, you would have had $16.50 left of the original $1000.00. With WorldCom, you would have had less than $5.00 left. If you had purchased $1000 of Delta Air Lines stock you would have about $49.00 left.

There, is a time to buy, and there is a time to sell.....now is the time to be buying RE at the beach cause it's not going to get any cheaper! :roll:

Actually, FFF, you've got some pretty old stock market references you're using to make your point.

$1000 worth of NT purchased last year would be worth $900+change today...Enron and Worldcom were already history, so one couldn't buy their stocks a year ago....and finally, come April 30, $1,000 in Delta stock will be worth absolutely NOTHING since Delta will be flushing their old shareholders down the crapper when they emerge from BK.

I also think you're wrong about buying RE now too.

<P.S. And I'm not just saying this trying to get you to like me >


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[full time]

"I also think you're wrong about buying RE now too."

Sorry FFF, I think Shelly might be right about this one. Had you bought a home last year at this time in Walton County, you could have purchased it for (on average) $500,000.00. This year, same time ......... $700,000.00. Oh well - there's always next year.

 

[goofer]

Did I just miss something ???

 

[spinDrAtl]

EG, just remember that if you had purchased $1000.00 of Nortel stock one year ago, it would now be worth $49.00. With Enron, you would have had $16.50 left of the original $1000.00. With WorldCom, you would have had less than $5.00 left. If you had purchased $1000 of Delta Air Lines stock you would have about $49.00 left.

But, if you had purchased $1,000.00 worth of beer one year ago, drank all the beer, then turned in the cans for the aluminum recycling REFUND, you would have had approximately $214.00.

There, is a time to buy, and there is a time to sell.....now is the time to be buying RE at the beach cause it's not going to get any cheaper! :roll:

This quote is just silly, IMO, in addition to being WAY out of date. You can always look back and handpick statistics to support anything you want. We all know about those colossal failures but there were stocks in that period that did okay. As others have pointed out, stocks overall are doing well right now but there are also those that are in the crapper.

There are also many people that are not being hurt in the slighest by this RE pricing pullback, though by saying that I am not dismissing the pain being felt by many who weren't part of the speculator crowd. The time to buy differs for an individual just as much as the time to change jobs or get married or any other decision to be made.

 

[flyforfun]

This quote is just silly, IMO, in addition to being WAY out of date. You can always look back and handpick statistics to support anything you want. We all know about those colossal failures but there were stocks in that period that did okay. As others have pointed out, stocks overall are doing well right now but there are also those that are in the crapper.

There are also many people that are not being hurt in the slighest by this RE pricing pullback, though by saying that I am not dismissing the pain being felt by many who weren't part of the speculator crowd. The time to buy differs for an individual just as much as the time to change jobs or get married or any other decision to be made.

Two, three or four years ago...is not the point. My point is simply all market's change...that is RE or stocks. Stocks are much more unpredictable than RE because there is just to many variables. You can end up with worthless paper when you invest in stocks, and in RE, you at least have something you can sleep in, watch the sun set and have a cool one while the waves roll in. Unless you choose good mutual funds managed by experienced folks, small time investors get killed in stocks. Right now is a buyers market for RE in Sowal and if you don't take advantage of it, you will miss Florida's next RE market....and that is the bottom line.

 

[spinDrAtl]

Two, three or four years ago...is not the point. My point is simply all market's change...that is RE or stocks. Stocks are much more unpredictable than RE because there is just to many variables. You can end up with worthless paper when you invest in stocks, and in RE, you at least have something you can sleep in, watch the sun set and have a cool one while the waves roll in. Unless you choose good mutual funds managed by experienced folks, small time investors get killed in stocks. Right now is a buyers market for RE in Sowal and if you don't take advantage of it, you will miss Florida's next RE market....and that is the bottom line.

Couple of points here: If someone is already invested in Florida real estate from before the bubble, they might not want additional exposure. If someone is a speculator, they never planned to sleep in it, etc. or even in the case where they have multiple properties for investment. Now if one is looking to buy a home to live in or a 2nd home to use, you may be correct.

Your statements regarding small time investors getting killed in stocks paint with too broad a brush. Some do, some don't. There are plenty of 'small time investors' who got destroyed in RE as well. Also, for anyone with multiple properties who is overexposed and cannot sell them (and there are many), being in RE instead of a worthless stock is not much solace for them. If they can't sell or cover the payments and carrying costs, they could lose their entire investment just like a stock. There are negative and positives to both. RE is very illiquid, unlike stocks. You can't set a stop loss or get out with a mouse click.

There, is a time to buy, and there is a time to sell.....now is the time to be buying RE at the beach cause it's not going to get any cheaper!

How many said that during the runup???? I'm not necessarily negative at all on RE, being an owner in Sowal, but your statements are way too general, IMO. If you can call the bottom with 100% accuracy, more power to you and pull the trigger.

Tell us - are you using leverage and buying everything you can? What are you buying and where? What kind of loan programs are you using? How much are you putting down? I for one would like as much information as I can get from those who know (seriously).