Fl. real estate, anybody have any experience?

Discussion in 'Chit Chat' started by gunslinger, Feb 25, 2007.

  1. Granted the real estate in FL. has spiked and now is in decent pullback. However the number of baby boomers turning 60-65 in the next 10 years (then retiring/second home in FL) should be more than enough to sustain the market over the next decade. But, I could definitely talking outta my ass b/c I just dont know that much about real estate.

    Anybody out there have investments in Fl re? What are your thoughts on my thinking? I would like to hear your eexperiences.
     
  2. You would think FL would still be one of the top places to retire, maybe not now but some years from now. Lots of people moving out now because of high property tax and insurance.

    http://www.drudge.com/news/89208/more-florida-residents-moving-out
    For the first time in 30 years, United Van Lines Inc. says it moved more people out of Florida than in, and analysts see that as a sign that consumers are looking elsewhere for a cheaper slice of life.
     
  3. Thanks Fight I appreciate the response. Not exactly what I was looking for but gave a litgtle insite as to how the storms>>>insurance>>>rates have affected home owners.

    Still Az, Nv, dont have the ocean , basically retiring in those 2 states is to committ yourself to living your last days in the desert.
    Fl is still relatively cheap compared to the rest of the country, I would have to believe the mitigating effects of the hurricanes will be forgotten in a few years, especially when 80 million people decide to spend their golden age.

    Anybody else care to chime in? Maybe CC is not the correct forum if I am seeking replies.
     
  4. Baron

    Baron ET Founder

    I own property in Florida and I'm almost positive that the spike in outflows of residents was due in large part to the destruction from 4 major hurricanes the year before. Those events spooked a lot of people but they'll return at some point. With the number of baby boomers increasing, I seriously doubt that investing in Florida real estate will ever be a bad investment over the long term.
     
  5. it all depends when you bought or are thinking of buying. I agree with you that alot of people got spooked not only by the actual hurricanes but by insurance for those hurricanes which is absurd at this point. I think that once we get through the excess ( al the condos and homes for sale) we will continue to rise.....but looking out of my windows all i see are cranes nothing but cranes .... but then again Miami isnt all of florida...
     
  6. I think sellers are in denial, particularly in Florida. In most areas there are hundreds of properties for sale at all price points , and many more that aren't even listed because the sellers know it's a waste of time. There still is some activity if the property is attractive and priced right, and everyone has their fingers crossed that things have stabilized.

    I am skeptical. I think the insurance crisis is far from solved. Another few damaging hurricanes, and today's rates will seem like bargains. Historically, Florida has seen boom and bust real estate. Certainly no one would call the current sitaution a bust. A consolidation maybe. The worst could be yet to come.
     
  7. thats why the market is teetering on stable....once they ( sellers ) realize then is when the "bust" hits the fan. My nextdoor neighbor didnt take the one offer she got ( her house has been on the market for quite some time ) because it was 30k under what she wanted. I told her next year you will be begging for someone to take it at 100k under ur asking price...she thought i was joking. :D
     
  8. Many of those leaving Florida for the Carolina's and Tennessee were more than a little put off by this winter's freeze. After years of being coddled by above average winter temps those in the know are realizing that the Smokey's are freakin' cold in January!

    Keep in mind that during the late 80's the Carolina coast was a hurricane magnet.

    Those inland or on the non-panhandle portion of the Gulf coast can skimp on storm insurance. 90% of Hurricanes hit either the Atlantic shore or the panhandle.

    The Florida legislature is very serious about property tax relief. There's a viable movement afoot that would virtually eliminate property taxes and increase the state's sales tax.


    As El Cubano alluded, SoFla is booming. Miami/Lauderdale/Boca/WPB is still the destination of choice for wealthy South American's who are nervous about Chavez/Morales/Lula etal. Also no shortage of Canadians and New Yorker's.

    Orlando's strong service sector job market attracts younger adults who can find work, live cheap and spend quality time outdoors.

    Florida has some decent bargains. I'd look for towns that offer amenity lifestyles at a discount to the major metro's. Vero Beach and the Space Coast come immediately to mind. Even in Ft. Lauderdale there's some really cute older homes in solid yuppie neighborhoods at around a half mil......
     
  9. OK, so I'm talking my position.

    However, the expected demographic shifts of Florida are immense over then next 25-50 years. A demographic researcher predicted 1,000,000 new households into central florida over the next 50 years. That's between 2 - 4 million people. Or more. Wow. I think those numbers are not fluff either.

    There is no question that Florida is becoming a lot like California - rising property values and wages, a lifestyle that is associated with the state, etc... people born here tend to stay here, people who come here tend not to leave...

    True about the halfbackers leaving florida for other southern states like alabama and south carolina, but they were pretty marginal anyway. The retirees coming to florida now are well heeled (the villages, etc...) and can support their lifestyle.

    There is no question that insurance bills and taxes can be significant. Time will take care of both of them to some extent (cooling of the RE market, insurers recovering catastrophic losses with premiums absent further payouts) and probably there will be some legislative relief along the way from our new populist (i.e. republican in party affiliation only) governor.

    With that said, there is certainly no rush to buy into florida as there is certainly immense overcapacity (particularly in south florida) in the market which hasn't even begun to start truly hurting. Why not do a little trading, and time your entry?