Best Investments

[Smiling JOe]

I drove through RedBay last week, and yes, I passed by both houses. Personally, I have not heard much talk about that area, but "when" the PCB airport is approved in Nov, I think that will give cause for developers to seek out areas such as RedBay, Bruce, Ebro, and Ponce de Leon.

 

[Kurt]

What do you think about Red Bay? Anyone heard of plans in that area?

Property on Hwy 81 is being bought up as it is throughout Walton County. 81 is in a good location between 331/SoWal and the airport road - Hwy 79. Although there is plenty of acreage a little closer, like along Hwy 20 between 331 and 81 that will be developed first.

 

[beachmouse]

Heck why don't they just put them all on a rental program and sell them in a few years after the airport goes in? After all for those of us that not only invest in land but in stock wouldn't this make more sense. JOE is up 100% over the past 12-18 months.

Because they'd be effectively renting at a loss until the airport issue is settled. For renting a property with a long term lease, your rent needs to be 10% gross value of the property every year in order to justify the investment. For short term rental, I'd guess you need somewhere in the 25%+ gross range because of much higher maitenance and management expenses.

Considering down here, ads will brag that a short term unit is getting almost 10% gross, I'd guess not many people who bought recently are getting anywhere close to 20% gross.

Yeah, you can anticipate increases in property value, but remember that those increases can vary more widely than the stock market. You can have a 2-3 year period of time where values increase in the 20-30% annual range, and then a five year period of time where you're back to 2-3% annual range. The bean counters don't like that kind of uncertainty.

And the trend in the industry says that the real money comes from managing properties, not from directly owning them. The big hotel companies all seem to be selling off the properties they own to franchisees. Even around here in the bigger resorts like Seaside, Sandestin and Bluewater Bay, the parent company manages units, not owns them directly.

 

[lenzoe]

Property on Hwy 81 is being bought up as it is throughout Walton County. 81 is in a good location between 331/SoWal and the airport road - Hwy 79. Although there is plenty of acreage a little closer, like along Hwy 20 between 331 and 81 that will be developed first.

You wouldn't happend to know the MLS area numbers for those locations, would you?

 

[Kurt]

You wouldn't happend to know the MLS area numbers for those locations, would you?

Some of the realtors on the board may be able to help you.