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Beachlover2

Beach Fanatic
Jun 17, 2005
819
60
SoWal
his gain from what he was originally asking and what he paid 35 yrs ago would have been over 75k per year, plus he lived in the house for free. I dont know if this qualifies as greed or not, more power to this guy, if he can do it, so can I and you and you and you!!!!! (see a problem here?)


I don't call paying taxes - insurance - utilities - upkeep - new a/c - remodeling during the 35 years etc exactly living for free. My parents bought their house 50 years ago for 18K - today the land is worth 300K - but explain to my mother on her fixed income that she is living for free when she is having a tough time paying taxes. etc. Don't penalize him because he stayed in his home all these years.
 

tistheseason

Beach Fanatic
Jul 12, 2005
1,072
93
54
Atlanta, GA
I wish I had the money to buy it. I grew up visiting some friends on Calhoun Drive every summer. It was basically the only vacations we had as a child. The best was every 4th of july sitting on the dock watching the fireworks displays for every town over the bay. If only I had a $1.79 million. . . .ahhhh nostalgia.

Seriously, I am surprised it wouldn't be gobbled up at that price. An acre on the bay!
 

BambooBay

Beach Lover
Apr 9, 2007
72
0
Santa Rosa Beach
www.30A.com
I know what you're trying to say about greed, Rambunkscious, but I think the large numbers are just playing tricks on your emotions.

Here are the facts:

Even IF the man in that article sells his home for $3 MILLION, his investment will ultimately have been a very poor one.

Why?

Since 1920s, the average annual return in the stock market has been 10.3%. At that rate, if the man in the article had invested his $131,000 in the stock market in 1972 (instead of buying a home in Destin for his family), he would now have amassed $4,049,620... More than DOUBLE his $1.7 million asking price!

Over 35 years, $1.7 million is less than an 8% return on his original $131,000 investment.

Again, there is absolutely NO GREED or wrongdoing WHATSOEVER on behalf this guy. He's just a guy trying to get a fair market value for a home that he's owned for 35 years. If the guy's greedy, he should be asking $5 million for the house. As it turns out though, he's giving someone a heckuva deal. Personally, I hope he gets DOUBLE what he's asking for it now--it will ultimately help every single one of us.
 

drsvelte

Beach Fanatic
Jul 12, 2005
305
3
Sandestin & Red Stick
[if the man in the article had invested his $131,000 in the stock market in 1972 (instead of buying a home in Destin for his family), he would now have amassed $4,049,620./QUOTE]

I think he purchased the home in 1981-82 not 1972, so your present value of market returns is overestimated.

Hey, he can ASK whatever he wants. That's not greed; that's what's makes a market. Whether he gets a BID is another thing.
 

Miss Kitty

Meow
Jun 10, 2005
47,011
1,131
71

Seabreeze

Beach Comber
Apr 18, 2007
43
0
ATL & SRB
If I dropped the price on my house by a mil, I'd owe the bank a ton of money! Must be nice to be listing at a price so high you can afford to reduce it like that. Where, prey tell, does all the money come from? Anyone know?
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
I know what you're trying to say about greed, Rambunkscious, but I think the large numbers are just playing tricks on your emotions.

Here are the facts:

Even IF the man in that article sells his home for $3 MILLION, his investment will ultimately have been a very poor one.

Why?

Since 1920s, the average annual return in the stock market has been 10.3%. At that rate, if the man in the article had invested his $131,000 in the stock market in 1972 (instead of buying a home in Destin for his family), he would now have amassed $4,049,620... More than DOUBLE his $1.7 million asking price!

Over 35 years, $1.7 million is less than an 8% return on his original $131,000 investment.

Again, there is absolutely NO GREED or wrongdoing WHATSOEVER on behalf this guy. He's just a guy trying to get a fair market value for a home that he's owned for 35 years. If the guy's greedy, he should be asking $5 million for the house. As it turns out though, he's giving someone a heckuva deal. Personally, I hope he gets DOUBLE what he's asking for it now--it will ultimately help every single one of us.


This home wasn't an investment or even a second home. It appears to be his primary residence. I would take 8% (excluding carrying costs) on my primary residence any day of the week. On a second home or a piece of real estate as an investment, I agree that it would have been a lousy investment (return is much, much lower than 8% after considering carrying costs).
 

SHELLY

SoWal Insider
Jun 13, 2005
5,763
803
Here's the key paragraph in this whole story:
---------------------------------------------------

Fisher (Doc's RE Broker) said that at a meeting about commercial real estate a few weeks ago with three bank presidents, “they wanted to let us know they are still lending money but that appraisals are on coming in lower than the contract price.”
She cited an example: “I had a house listed on the bay, $1.75 million, an excellent house. I got a contract, waited two weeks for the appraisal, and it came in 30 percent low. It killed the deal. In my 10 years in real estate, I’ve never had that happen.
-------------------------------------------------------



Never had that happen?....Get used to it Pat.

.
 
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BambooBay

Beach Lover
Apr 9, 2007
72
0
Santa Rosa Beach
www.30A.com
This truly is a great time to be a Buyer! In 5-10 years, we'll all be saying, "Do you remember when we coulda bought that house on an acre on the Bay for a mere $1.79 million?? Boy, I wish I knew then what I know now!" ;-)
 
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