Real Estate Supply

[SHELLY]

Recently I read a brief article in Florida Realtor, Jan 2006, p8, entitled "Mortgage Free," which stated that the US Dept of Housing and Urban Development and the US Census Bereau reported "that close to 40% of the nation's residential properties do not have mortgages." This covers owner-occupied homes and rentals. The name of the report is "Residential Finance Survey: 2001."
I know that number has changed since in the last five years due to many people taking out home equity loans

Personally I think Florida Realtor is REALLY going out on a limb with this ditty--using 2001 figures?? -- Now that's a stretch! (I see you caught that too!)

Three things come to mind:

1) LOTS of homes have changed hands since 2001

2) many buyers would have been CRAZY to have paid cash when the banks were essentially giving money away in the last couple of years.

3) From 2001 to 2004 homeowners have pulled $330 Billion out of their homes and another $160+ Billion predicted for the year 2005.

My guess is that Florida Realtor reporters must have all been on vacation in December and had some high school intern come up with that "timely story." :funn:

 

[Paula]

Definitely... go Donna, go Donna, go Donna. I'd like to know what other strategies the rich have for living with luxuries but not paying too much. We do the "put everything on the credit card and get miles and then fly for free -- but not first class" as well. The four of us went to Hawaii last year and will be going to Italy next year on that strategy.

So, what other strategies for living luxuriously and paying less have you learned. I'm a ready and willing learner! I know planning ahead pays off - I booked the Hawaii and Italy tickets the day they allowed frequent fliers to book them, usually a year in advance.

 

[Santiago]

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.

Thank you for this post.

 

[Smiling JOe]

Shelly, I don't hear many people on this board saying, "Buy a Gulf-front Condo in the Florida Panhandle today!" So what is your beef? I think that many people agree with your general statement that the Condo flipping market is no place to be buying currently. WE UNDERSTAND THAT SO PLEASE STOP SCREAMING IT AGAIN AND AGAIN AGAIN.

 

[Just_In_Thyme]

If you yell loud enough and long enough and repeatedly then eventually it will be true right?

 

[Rita]

Shelly, I don't hear many people on this board saying, "Buy a Gulf-front Condo in the Florida Panhandle today!" So what is your beef? I think that many people agree with your general statement that the Condo flipping market is no place to be buying currently. WE UNDERSTAND THAT SO PLEASE STOP SCREAMING IT AGAIN AND AGAIN AGAIN.

Thank you SJ!

I don't think shelly is paying much attention to her reading audience. Most of her posts seem geared toward people who are not regular posters on here. There may be a forum on a board elsewhere who could benefit more from shelly's diatribes. (Maybe one where more of the posters are beginning investors.)

Some good points are made, but I really dislike the relentless bashing.

The folks I'm getting to know on this board are anything but "pie in the sky" investors. They seem to know the amount of risk they are willing to take. And beyond that, as a group, they seem to be some of the most logical, clear-thinking people that I've come across.

shelly has a right to share all the input she wants, but that doesn't mean I have to like the WAY she does it.

Oh - I guess I can be counted amongst her "crazys" for not borrowing all that low interest money (with all the fees and escrows attached). :roll:

 

[GreenWaveDave]

The Bulls are runnin again- I love it! ..........


Go Trojans!

 

[SHELLY]

So what is your beef? I think that many people agree with your general statement that the Condo flipping market is no place to be buying currently.

Being an economist at heart, I've been following the real estate boom, as I had followed the tech boom before it. Yeah, I know folks say they are not at all alike...but they do have many similarities, especially in the realm of behavioral investing.

Since I live in the area, I have a front-row, in-your-face view of the real estate boom which provides me with fodder for a thesis I'm contemplating. "Behavioral investing and the economic and environmental impact of the real estate boom"--with emphasis on pre-construction condos, speculative land deals, 1031 investment, exotic financing and the resulting economic and environmental impact.

I'd also like to give a SHOUT OUT to Kurt for allowing "another" point of view to be so openly expressed on this board! :clap_1:

 

[Santiago]

Being an economist at heart, I've been following the real estate boom, as I had followed the tech boom before it. Yeah, I know folks say they are not at all alike...but they do have many similarities, especially in the realm of behavioral investing.

Since I live in the area, I have a front-row, in-your-face view of the real estate boom which provides me with fodder for a thesis I'm contemplating. "Behavioral investing and the economic and environmental impact of the real estate boom"--with emphasis on pre-construction condos, speculative land deals, 1031 investment, exotic financing and the resulting economic and environmental impact.

That's nice. Please see Smiling Joe's post above.

 

[SHELLY]

Donna ...is one well-informed, common-sense person.

AGREED! :clap_1: