Opinions requested regarding SoWal real estate pricing...

[Beach Dad]

I am so glad I posted my message. Thanks so much for your comments. I was counting on the wisdom of this board and points made by all have confirmed my gut feel. You folks didn't dissapoint.

Here4Good... from what I have seen and what I seek, I agree with your assessment of Pt. Washington. It seems to offer all we desire in an area (I have a 10 and 6 year old so I still need to do some research on the local schools). I have a free place to stay with relatives here, so my family will be joining me following the school year end.

I think if I had to make my decision today, I would rent for a year as close to the beach or Pt. Washington as possible, and think seriously about building in your area. However, I am meeting tomorrow with a good friend who is a realtor in the area that I trust and respect. The intention of my post was to make myself think about all angles before outlining my search goals.

Funny thing, my brother in law is an architect here (McWhorter Architects... got to give him a cheap plug). We used a plan he designed for the HGTV Dream Home in Rosemary Beach and built in New Braunfels, TX in the hill country. My home sits on an acre of land and I have it listed for $335K, hoping it will sell. What a difference in markets huh?

 

[Indigo Jill]

I am really tired of hearing this line of crap...

If you buy, you are building equity...

If you rent, you are throwing money away...

I'm not talking about a $1.25M home located in an area that is seeing free falling prices. I'm talking about purchasing a home in an area that isn't seeing free falling prices. You can create scenarios to support your rationale, I can create scenarios to support my rationale.

And you know what? I'm really tired of hearing this line of crap too!

 

[full time]

"Well if I meander on over to the rental department I can magically rent a home over 2,000 sq ft for $2,000/month in the same neighborhood... And this comparable size home in this neighborhood would be going for about $1.25 million..."

Post some pictures of that "1.25 million" rental home. If that's really the price, good chance you ain't renting it for a year at $2,000.00 a month. Katrina gifts don't count.

 

[pgurney]

Lets assume as you have stated that the market will stagnate for a few years
So say I bought it at $1.25 million and I even put down 20%(doubtful to have $250,000 cash on hand for a down payment... but I am giving the benefit of doubt in this argument toward the buying side... I also won't even use this downpayment against you as far as the opportunity you have wasted by putting $250k into the house rather than letting it grow in a mutual fund or even a high yield savings) my mortgage with insurance taxes and interest would be no cheaper than $7000/month... This is assuming annual taxes at $7500/year and Annual Insurance at $2500/year... pretty low assumptions...

One other thing to consider in this analysis is mortgage interest deduction. I'm not saying that it works out with these numbers quoted, but it's always made the difference for me when deciding whether to rent or buy.

 

[destinsm]

"Well if I meander on over to the rental department I can magically rent a home over 2,000 sq ft for $2,000/month in the same neighborhood... And this comparable size home in this neighborhood would be going for about $1.25 million..."

Post some pictures of that "1.25 million" rental home. If that's really the price, good chance you ain't renting it for a year at $2,000.00 a month. Katrina gifts don't count.

Village of Blue Mountain Home 4 Bed 3 Bath...
$2,000/month with $1,000 of first months lease with a signed 1 year lease...
http://www.emeraldcoasthomesonline.com/(lgormwndeim4lf3zqxhcpa45)/propertyDetails.aspx?mls=451173

Village of Blue Mountain Homes for sale...
http://www.destin123.com/Village_Of_Blue_Mountain.htm

 

[John R]

Village of Blue Mountain Home 4 Bed 3 Bath...
$2,000/month with $1,000 of first months lease with a signed 1 year lease...
http://www.emeraldcoasthomesonline.com/(lgormwndeim4lf3zqxhcpa45)/propertyDetails.aspx?mls=451173

404 - Not Found
The page your requested could not be found on this server.

Village of Blue Mountain Homes for sale...
http://www.destin123.com/Village_Of_Blue_Mountain.htm

none of the homes listed on the page referenced match the specs of the rental home described.

 

[Here4Good]

I think if I had to make my decision today, I would rent for a year as close to the beach or Pt. Washington as possible, and think seriously about building in your area. However, I am meeting tomorrow with a good friend who is a realtor in the area that I trust and respect. The intention of my post was to make myself think about all angles before outlining my search goals.

Funny thing, my brother in law is an architect here (McWhorter Architects... got to give him a cheap plug). We used a plan he designed for the HGTV Dream Home in Rosemary Beach and built in New Braunfels, TX in the hill country. My home sits on an acre of land and I have it listed for $335K, hoping it will sell. What a difference in markets huh?

Well, coming from Texas, at least you are used to high real estate taxes! Your home in Texas sounds dreamy.....is it on the market yet? Any links you can post? Maybe someone will want to trade!

 

[pgurney]

I think this is it: MLS 451173 on emeraldcoasthomesonline.
http://www.emeraldcoasthomesonline.com/(xfkxtm45hnzn5a2ykcfg1p55)/propertyDetails.aspx?mls=451173

Seems to me that would list for more like $850k to $900k when comparing to the second link.

 

[destinsm]

I think this is it: MLS 451173 on emeraldcoasthomesonline.
http://www.emeraldcoasthomesonline.com/(xfkxtm45hnzn5a2ykcfg1p55)/propertyDetails.aspx?mls=451173

Seems to me that would list for more like $850k to $900k when comparing to the second link.

I was just looking for a quick neighborhood comparison for rental and home purchase... It can be done for almost every neighborhood in Okaloosa, and Walton county and the same results would be found...

I apologize for not getting an exact match, but I thought same neighborhood, all new construction and roughly same size would have been enough to make my point...

 

[Camp Creek Kid]

Beach Dad, I think building is a great idea, especially since you are related to a great architect. Lot prices in certain areas are very competitive and construction costs have gone down considerably from the last 2 years. Materials costs are way, way down and you will be able to find a local builder who will give you a fair deal because they have to be competitive now that the market has slowed.

IMO, Point Washington is the place for you to look because it is centrally located in SoWal. You kids can walk to Bay Elementary (great, small school) and it is near Seaside Middle and the South Walton High School. Also, Point Washington is near Helen McCall Park where the football and baseball fields are located.