Investing In Florida- Should I?
There has been alot of buzz for a year or so on expansion of N. Miami Beach, West Palm beach, my cowerkers have invested a year ago in preconstruction condo in W. Palm Beach, it is being finished now and they plan to sell for $450,000 (bough $350,000). When I spoke to my coworker he told me now is not a good time to invest in Florida because of many condo highrisers being built in 2005 and more in 2007 and so this becomes supply outpases the demand.
I on the other hand think that for a decently priced condo on the beach there will be a market in the future eventhough the area becomes very populated.
Can anyone give a perspective if I should proceed or realy hedge on my colleagues advise and play by year?
Z. :-(
Don't invest in Florida, there is no money to be made here anymore.
OK...in all seriousness, there are articles published almost daily on how serious the supply does not match the demand now or in the next 30 years in Florida. There were also a lot of people forecasting doom about the hurricanes, I just read that Lee County permitting was up 53% compared to last year.
http://www.usatoday.com/news/nation/2004-12-13-housing-side_x.htm
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Ray,
Well as Mark Twain used to say, there's lies. Damn Lies and then there's statistics.
The link you posted doesn't seem to go to the article you refer to. But a big jump in permits in Lee county in the wake of the huricanes doesn't surprize me. Most of that jump could be hurricane repair.
Not that I'm saying there isn't also a big increase in new construction-- only that the stat. you cite doesn't proove it.
Commerc...
I reviewed the article (thanks Ray), based on the stats, Calif, Fl, Texas are the biggest ones that are in need or more units but can this be due to earthquakes and hurricaines or as this article describes based on future population? What does Texas have to put it on the list?
Ray are hurricaines the only reason why you consider Florida a poor investment?
Z.
CK, yes, the article was for demand in housing for Florida, look at the chart on the bottom.
Z, I was joking, I think FL is a sound investment for years to come.
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Here's that other article - http://www.news-press.com/apps/pbcs.dll/article?AID=/20050106/RE/50106001/1076
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Ray,
THanks for your input.
Z.
There is still tremendous upside potential on the west coast of Florida. Pasco county and North
What are prop taxes in FL now. I heard they were high...? Could put a damper on CF, and I heard they reassess every year? True?
Francine,
I am not familiar with Pasco county, what makes it so attractive? Do they have beaches?
How familiar are you with Singer Island?
Z.
What makes Pasco county so attractive is this. Pinellas county which includes Clearwater and St Pete have been totally picked over. Prices have skyrocketed and there is a huge demand. If you buy in Pasco the prices are still 30-40% cheaper but it's close enough for people to commute to Clearwater. I just made 30% on my house in Holiday in less thatn one year. You can still get a great little investment property for under $100K
Did your co-workers sell the condo as soon as it was completed and made money on the appreciation? I had thought about doing this myself.
Maybe you can help me with this question. I'm wondering if having only paid the minimum deposit and a 10 to 20% of balance of the condo before construction is completed, could I find a buyer before my closing and then "flip" to them after I close, making a profit on something I only legally owned for say 30min???? Does this sound similar to what your co-workers did????
Yes this is exactly what the coworker did, they owned it though for a year, you have to wait for 80% sell-out by the developer before being able to flip. If you are thinking in Florida, I read many articles that indicate alot of the ownership approx 40% if by investors so in for example in 2007 when the building is up and you want to sell, there will be many others selling as well.
Bikr,
Is your townhouse on the beach or across from?
What do you think of downtown Miami investment?
Zhaba
bcperry01,
Getting a simultaneous deal is kinda difficult unless you are willing to sell for less, about builder selling your condo after 80% of his are sold sounds good but all the people who are buying those have the same intentions as yours , 80% of the condos bought here are by investors now, so think twice before investing in those condos and even if you do, prepare to close and hold for some time if you have to.
I would rather invest in single family homes where the deposit required is only 5% rather than 20% for condo and in worst case you can leave your deposit and walk away thinking atleast you tried.
Come North to Alabama, we have seen incredible appreciation on and around our beaches and our prices/taxes are alot cheaper. Weve been doing preconstructions as well as rehabs on the beach foryears and looks like next year will be the best. Thank god for hurricanes. Hurricane ivan knocked all the old wood structures down and new structures are taking there place. Looks like the entire coast is under construction. Investors and end user buyers looking for deals are making it simple to make money. Buy anything, mark it up however much you want and sell it!! Ride the wave while you can.
I am not familiar with Alabama and the coastline there, can you give me some areas that are near coastline and what are the asking prices (if you know). I read an article that in the next 20 years or so three states will need the most housing; California, Florida and Texas, all the babyboomers are interested in southern states.