Real estate for Dummies

[Miss Kitty]

Okay, I understand that there are more and more million and gagillionaires out there everyday. I am curious...are these mostly people making money from investments/inheritances vs. people just plain ol' working hard and saving wisely? I guess I would call that fast money vs. slow money.

 

[Robert]

It may take some more time, but eventually the $$$ will follow the big returns and even if 30A goes back to nice annual increases of 8-12%, this will drive the investor and flippers somewhere else.

I don't agree with this. As folks have said, the market is a little soft right now but real estate goes in cycles. It's my belief the cycles in SoWal will be shorter than most locations because of the proximity to the Gulf. People want to be by water and SoWal has lots of water. IMHO, there were external factors that led the the market slowdown in SoWal, namely: Iraq War (hopefully will be winding down), Dip in the econmy (due to oil prices, should stablize soon), Tropical storms coming 2 months early (hope it ends early) and Bad press such as shark attacks (gotta hate that) to name a few. As these things get corrected or fall off the radar, the race will be back on. There is no shortage of people that can afford the higher market. I think even with the devastation that Katrina caused. Because of Katrina even more people will have their arrows pointed towards SoWal and the Gulf. If you own property here, hold on to it. If you don't, buy some.

As stated earlier, the "big boys" are coming too. I know of 5 different residential developments that are in the works, all north od 98 but close by and all over 1,200 acres in size. One, west of us, is 2,700 acres and is projected to contain 10,000 lots, 3 18-hole golf courses, 12 private lakes, 30 acres of community area and 30 acres of commercial area. Just to purchase the dirt was over 30,000,000. Too much money for them not to promote the area. "If you build it, they will come." (I love that movie.) SoWal is the diamond amonst the rubies.

SoWal may have been due a market correction but prices will not drop significantly and then they will start to rise again in the very near future.

Nostrodamus speaks.....

 

[Mermaid]

Donna and wetwilly, beautifully said, the both of you. It makes sense to me. :clap_1:

 

[Smiling JOe]

As stated earlier, the "big boys" are coming too. I know of 5 different residential developments that are in the works, all north od 98 but close by and all over 1,200 acres in size. One, west of us, is 2,700 acres and is projected to contain 10,000 lots, 3 18-hole golf courses, 12 private lakes, 30 acres of community area and 30 acres of commercial area. Just to purchase the dirt was over 30,000,000.

What the heck are you talking about? Where is "west of us?"

 

[Robert]

What the heck are you talking about? Where is "west of us?"

<---- That way.

I can't be specific right now because of my business.. It is true though. Ten year project that one is slated. I can tell you that if you look on the Walton County Appraiser's web site you can find the ones in Walton county easily. Search 800 acres and up. A lot of these properties are being assembled.

EDIT: A giant one in Bay county too. And I just heard it's also going to start down in Mexico Beach area too, here shortly.

 

[wetwilly]

Donna and wetwilly, beautifully said, the both of you. It makes sense to me. :clap_1:

Thanks Robert makes some very good points too!!! There is a correction happening right now IMO for whatever the reasons but again I think it will be shortlived, not cause prices to fall or drop below prices paid a year ago, and the "positive" factors that Donna, Robert, and others have pointed out will allow this market to sustain any correction and continue to appreciate if the variables (Walton Co and others) plan and keep the eye on the ball.

Also, while this potential corrction is happening for supply/demand and other reasons (Iraq war, Hurricanes, economy/oil, shark attacks), the market is always traditionally slower in May-Jan. I said slower and these are cycles and can't always be explained.

 

[Mermaid]

Sorry, Robert, hit the Post button too quickly. That's a mouthful of info you wrote. Thanks! In some ways it makes me sad, though. All that development can only significantly change the character of 30-A and its enivrons.

 

[Cork On the Ocean]

Donna and wetwilly, beautifully said, the both of you. It makes sense to me. :clap_1:

Ditto (and robert too) :clap_1::clap_1:

Based on my personal experience, most of them are new money. Early retirees under 60 and professionals in their 40's. Also some locals that have made it on their own in our real estate market. I see very little old money but I'm sure it's here too.

 

[hutch]

When I need more money, I just print more or raise your taxes.
Uncle Sam