There isn't anyone on this board that is in this for the long term....therefore....you will eventually lose. Keep holding onto those lots, paying the taxes, etc. A lot is truely like a now defunct internet company. Lots of hype, no real revenue. The only players that will make money in real estate in the future wil be those who have a 25 year time horizon. You heard it here first. Take a good look at other markets and you will have an idea of what to expect in the future with realestate.
My gut feel says you've not invested in any real estate in the past decade or so. Econ 101 talks about supply vs. demand. As I stated previously .. they're not making any more land. Yet the demand is there .. baby boomers wanting 2nd homes, retirement homes, investments. So no, I won't eventually lose ... buying real estate on Hilton Head Island in the past 10-15 years has been incredibly profitable. And eventually people will lose? Tell that to my fiance who bought a house on an island near Charleston, SC in 1997 for $290K. She's had offers to sell at $800K. Not a bad return .. 175% in 7+ years. People WANT to be near the ocean which is different that speculating in Omaha or some land locked place.
not true....but not 25 years thats for sure..but id hold 10 years if i can...and they are paid for..i didnt take out a loan agaisnt my house to buy the properties...peace and thanks for the advice
Going forward, you are going to need to look at realestate in terms of 10 years, and more like 15 to 20. Prices have gotten out of hand. Imagine a 25% pullback on anything right now, coupled with negative cashflow for many years. I don't think that many will be able to hang on for that long. This is of course just my opinion, but these are the assumptions I have included in my realestate investing POA.
Well.....your gut feeling might just be an ulcer that's acting up....perhaps you should get it checked I do own real estate, My home has a beautiful ocean view in SD, CA, and turns out It was the right house at the right time and I have done well with it. I will live there for a long time. However, People don't need a second home, and when times get tough, it's the first to go. With the prices being paid right now, It is unlikely that many investors will be able to stay the course and absorb the negative cash flow when times get tough. If you want to make money in RE going forward, your horizon has to be 15 years+, and you better plan for negative cashflow and little appreciation. It's the most likely scenario going forward.
It is entirely possible that markets hit the high today, and do not see new highs for 25 years or so. I hope that you seriously consider this possibility in your investment plan.
When in history did people start buying stocks for their appreciation instead of their dividend, maybe its time to forget about real estate in terms of cash flow, and more on the demand value. I don't know.
my investment plan was to hold and hold long term...if i lose i lose...what can i say...i only brought it up cuz im up 30-40% this from recent sales....do you really think 25 years from now prices will be the same and or lower..I highly doubt it..but hey who really knows...thanks for the advice...
Yes, real estate is a lot different then tech stocks ... the Bubble is much bigger and people are even more blind to the fact that it's a bubble! Regards, Slave2Market ------------------------------------------------------------------ The specter of a South Florida real estate bust This has the making of a ghost story. As night snuffed out the last remnants of twilight in Fort Lauderdale, I looked up at the tall new residential tower by the New River and shuddered. It was a 31-story tower of darkness. Lights shone from no more than a dozen of the 315 condos. The rest were a study in black windows and empty balconies. As if the condo dwellers were phantoms. But are they spectral beings? Or just speculators? Speculation madness has gripped the real estate market in South Florida, particularly the high-rise condos going up along the beaches and in the old coastal urban centers. Real estate analysts estimate that anywhere from 50 to 75 per cent of our new luxury condos are being scarfed up by high stakes real estate gamblers. Last month, Raymond James & Associates warned that ''anecdotal reports'' indicated speculators and investors accounted for 85 per cent of Miami high-rise condo sales. No one actually knows, said Michael Y. Cannon, managing director of Integra Building Resources' Florida operation. Cannon, who predicted condo bust of the early '80s, said this time around the data is either sparse or a few months old and not of much use in market careening ahead at such reckless speed. But Cannon knows that we're in the midst of a speculation epidemic. He calls it ''hyper flipperism,'' as buyers put up their 20 percent for condos under construction and try to flip the contracts, at a profit, before the buildings are completed. There are reports of condos changing ownership two or three times without an actual human being ever moving in. http://www.miami.com/mld/miamiherald/news/columnists/fred_grimm/11331805.htm