Smiling JOe
SoWal Expert
Rambunkscious, I'm curious, are you currently trying to rent out a property?
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Good Time To Be A Renter
- Thread starter Rambunkscious
- Start date
Smiling JOe
SoWal Expert
Some weren't willing to buy lots at $5000 each so there is no way in hell that they'd change their mind and spend $150,000 only eight years later.
Rambunkscious
Beach Lover
No, I am not trying to rent out a property. I myself am an owner. I am just saying if you buy today, not years ago, when you calculate the interest, tax, insurance, hoa fees and get a total, this total will be higher than the current rental rate, might even be a lot higher.
The rent number and the own number will eventually equalize when the value of the re drops accordingly. Since the cap gain rate is now zero or less, it was not used in the calc.
Agree re over time is a home run, just not now. Renting is a home run now.
The rent number and the own number will eventually equalize when the value of the re drops accordingly. Since the cap gain rate is now zero or less, it was not used in the calc.
Agree re over time is a home run, just not now. Renting is a home run now.
Smiling JOe
SoWal Expert
Don't you have to buy at some point in time in order to own? Can't have that home run if you are renting. Are you suggesting that real estate prices will lessen to the degree that properties in SoWal will begin to break even or even provide positive cash flow? In many resort areas, not just SoWal, I doubt that is the case. SoWal is sexy, and most positive cash flow properties which you will find scattered about the country are not purchased due to their sex appeal. SoWal property speaks to the emotions of buyers. I will add that for a long time, beach properties were considered luxury items, no different than fancy cars or nice boats. Luxury items typically have no cash flow. Do you think that properties in the Hamptons, or the coastal properties in California, Oregon, and Washington State, provide positive cash flow?
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Bobby J
Beach Fanatic
When I read some of these threads it makes me wonder if people realize property in Sowal is selling... Yes, the market is down but It seems really good deals do not make it long on the market. I agree with SJ. Folks that are buying are not concerned with the outcome of the market over the next 24 months. They want a house or land here and believe in the history of this area and the future. They feel that there will be some bumps along the way but at the end of it all this unique area will stand the test of time.
Rambunkscious
Beach Lover
Smiling Joe, you have some interesting points, mostly about these certain
"sexy" properties not having to generate positive cash flow. This may be true
for some people who dont care if their luxury items like cars, beach homes,
cigarette boats do not produce cash flow yet people still buy them.
Certain people buy things for the sole reason that they just like the item.
I will concede the sexy part along with the fact you have to buy to own, I even know a very few people who are able to do something like that with no concern of "how is this thing gonna pay for itself?"
You may be right here but I dont think you could sell this idea to a banker ( I am not a banker). Do you really think that these properties sex appeal will
over-ride the need for a positive cash flow?
"sexy" properties not having to generate positive cash flow. This may be true
for some people who dont care if their luxury items like cars, beach homes,
cigarette boats do not produce cash flow yet people still buy them.
Certain people buy things for the sole reason that they just like the item.
I will concede the sexy part along with the fact you have to buy to own, I even know a very few people who are able to do something like that with no concern of "how is this thing gonna pay for itself?"
You may be right here but I dont think you could sell this idea to a banker ( I am not a banker). Do you really think that these properties sex appeal will
over-ride the need for a positive cash flow?
Rambunkscious
Beach Lover
Bobby J, your post was very good & I stand corrected, I think.
Bobby J
Beach Fanatic
I think so. Not sure that is a good thing but if you are speaking of the 30A area and the future of it, my bet would be "sexy" will win out. Too many folks want to live/own here. Take a map and draw a circle 500 miles out and look at all the major cities that encompasses. Once we get through the initial market adjustment folks will start gobbling this area up again. People like to buy and will continue to do so once the attention is off the housing market.
Bobby J
Beach Fanatic
Thanks. None of us are really sure about anything. I just like to look at what this area is all about. I think we have gotten away from that over the years here. We have one of the most unique places I have ever been! Maybe, I have not traveled enough but I have never been to an area with all this protected state land and parks. The coastal dune lakes can only be found in two other places in the world! We have some of the finest dining and shopping in the country. The music scene here is amazing! Oh yeah, I forgot the beaches! WoW! They are not so bad. The fishing is not too bad either. I guess we all have gotten a little frustrated about this market but I think our answer will come when we look at what we got! Some of us will lose what we got, but we will walk away knowing what is most important. It's not the positive cash flow, the next flip or what is the airport going to bring. Its the beauty that has always been here. It's free. We have to learn how to manage that better.