Discussion in 'Wall St. News' started by Brandonf, Nov 13, 2008.
Those prices were unthinkable a year or two ago to just about everyone who has not read marketwizards.
I love fire sales, but I wouldn't live in Florida weather for longer than a week... even in the Winter.
The dirty little secret are those HOA monthly dues. Check out how a home that they would auction for $150k would have to cough up close to a grand a month just to keep the maintenance staffers around to keep the place from falling into complete dis-repair.
About 3-4 years ago, a well known market blogger (name escapes me) stated that in 10 years, after the housing blowout has really come full circle, condo's and assorted other low demand housing areas, presumably owned by the government at that point would be willing to forego the cost of the property in exchange for anyone willing to pay the property taxes and association dues.
I know someone who paid $135,000 for one of these a couple years ago...
Yeah the condo fees and taxes are high, but at this point this is not a bad price to pay to live a mile from the beach.
135 for the condo two years ago would most likely be with 70 or 80 today - in many parts of fla.
What Brandon was showing were rather new looking places with very good sq footage.
Now I have no idea there are minimum bids with that auction. But I feel those prices as I was a real estate investor and resident in the Sarasota area.
I was up big and then I was down big in a 2-3 month period. I barely got out of there solvent - having lost years or real estate and trading profits.
Those fee's do seem high, and certainly it effects your actual price of ownership in the place, it's something far too many people forgot about. I've actually looked at a house in that particular community before, and I'm not sure but I seem to recall the association fee's included your taxes, insurance, some utilities (TV, Internet I think) as well as lawn care service.
Thing is... the original prices were ridiculous. Take one look at the dump and you have the answer behind the sub-prime mess. I'd offer in the 60's... seriously.
Those houses are absolute garbage - and yes, I happen to know a little bit about construction. Production, baby. They knocked those out by the dozens per week.
By the way, the person who said the HOA fees are crazy is right - that's the way it is all over Florida, though - between taxes, HOA fees, and casualty insurance (Hurricanes, etc.), if you CAN GET IT, you're doomed on your carrying costs.
This is why Florida is one of the great unwinds of history, right up there with Nevada, Phoenix and other parts of AZ, and many, many parts of California.
The Economist magazine had the best article of all time in 2006 on how bad this bubble would burst in housing - not just here, but all over the globe, including Spain, the UK, and elsewhere - man, were they spot on.
You are watching the beginning of the biggest bubble (70 trillion) popping in the history of the world.
And by the way - these Florida dumps are more like 70% off, not 50% off.
What about those $10 to 15K dumps going on auction in Michigan and nY states. Are they just a shell i.e. no plumbing or electricity or they are in crime infested areas i.e. slums that no one dares to go even in broad daylight.
Some home were being sold for $1. What is the story behind those.
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