Real Estate Supply
- Thread starter redfisher
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Excuse me for bucking the cynical posts, but thinking of one's home (primary or otherwise) as an investment is sound financial planning. Well located real estate has been and will continue to be one of the most successful investments one can make, if only one can come up with the initial capital. California is the nation's most expensive real estate market, yet has remained a place where well located properties continue to appreciate at a higher rate than anywhere in the nation. South Walton will reflect this trend in the long run, so long as it protects its natural resources and quality of life. The best real estate in the world is along coastlines and South Walton offers one of the world's most beautiful.
Shelly, the real estate world doesn't need another cheerleader, but you are entirely too cynical. Real estate trends are much more resilient that you seem to believe and good real estate locations (read = coastal areas) seldom experience more than a temporary lull in market conditions. You could look it up.
Shelly, the real estate world doesn't need another cheerleader, but you are entirely too cynical. Real estate trends are much more resilient that you seem to believe and good real estate locations (read = coastal areas) seldom experience more than a temporary lull in market conditions. You could look it up.
Interesting letter from a pre-construction condo "investor" and what happens when it comes time to come up with the mortgage payments. 
Gee Whiz--you mean I have to pay for these condos?
Gee Whiz--you mean I have to pay for these condos?
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Donna said:
But what happens if, after scratching up "initial capital," one can't maintain the mortgage payments, taxes, insurance, maintenance, utilities or feed the kids? Lots of folks found they can come up with the "initial capital" (80/20 piggyback, subprime loan) to "buy" more house than they need, but a slowing RE environment makes that investment far too risky, especially when one's primary family residence is at stake.
Shelly, the same thing will happen to those folks as the people who borrowed on their stocks to buy more stocks back in 2000. However, that does not prevent primary residences from being sound investments. They can be excellent investments and sometimes the profits can be tax free.SHELLY said:
I am beginning to believe that you are a stock broker. :funn:
An obvious point SJOe. Thanks for making it. The % of people purchasing in SoWal that might fit shelly's scenario would be very small. (I would think)Smiling JOe said:
TooFarTampa
SoWal Insider
SHELLY said:
About 6 months ago I discussed the market with a local RE agent who I would say is well entrenched, knowledgable and honest. We talked about cash buyers, who are the Holy Grail in markets of million-dollar-plus homes. Most of the time -- and this is not as true perhaps as it was five years ago, but I still believe it is generally true -- buyers of $1 million houses are cash buyers. Or will be again. Especially secondary homes.
Well, as of six months ago those cash buyers weren't showing up. Logic tells you that their return will happen, but they will trickle into the market, not flood it. For the market to be in a healthy balance again, we have to go back to fundamentals, which mostly means cash or almost-cash buyers. And we WILL get them. Slowly. And those condos being built will sell off. Eventually. But I think it's going to be a long process.
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SHELLY said:Please do
Donna didn't sound like a "bull" in her post to me. She may or may not be, but one thing for sure, she is one well-informed, common-sense person who approaches problems with an attitude that things can get done and she is in there willing to help out however is needed.
Read through her posts on all subjects and you will learn a lot, but not necessarily on bullishness.
I would like to take this opportunity to thank all of you for bothering to post and share your knowledge and experiences. Everyone knows about diversifying, but many of you have brought out interesting points here and there that I had not thought about. Keep them coming.
And a successful New Year to you all - no matter how you define "success".