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Fire sale Florida real estate
Old 09-03-2007, 10:29 PM   #21
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Fire sale Florida real estate

DW and I just got back from the Charlotte Harbor / Punta Gorda area. We were looking at possible rental /investment property. There are a number of problems that need to be fixed before prices will rebound.

They are;
Taxes: especially for out-of-state investors. The taxes on a $150K condo is between $2500 - $3000. Full time residents get a big break, paying between 50% - 70% less for the same property owned by an out-of-state investor.

Insurance: I'm willing to bet most people are paying at least 3x the price for insurance prior to the storms three years ago. I know of properties where insurance costs were jacked almost 8x for a policy with less coverage.

With all of the speculation, over-priced properties 2 years ago -- now the bottom has fallen out -- Builders have slash prices so you can buy a new home for less than a resale. It seems like every other house/condo is for sale -- I know its not that bad, but there is a ton of inventory. The sub-prime credit mess has people walking away from homes, foreclosures increasing.

I'm not sure how an investor is able to turn a profit. A 2 bedroom/2 bath condo -- in a gated community is being rented for $800.00 /per month. There is a monthly condo fee of $400.00, taxes are $225/month, insurance $100/month -- your paying out $725 not including the mortgage. These units were selling for $240K+ 18 months ago, now you can pick one up for $140K.

I don't think the market has bottomed out. And this market is not going to bounce back quickly. I'm not buying at this time. Anyone looked at this market?

Thanks!!!
dwk
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Old 09-04-2007, 07:59 AM   #22
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Originally Posted by dwk View Post
And this market is not going to bounce back quickly. I'm not buying at this time. Anyone looked at this market?

Thanks!!!

dwk


I see this market everday as I live in Sarasota .There are some real bargains to be had .A lot of people caught with multiple mortgages who are slashing prices just to get out .You are right about the tax situation .It is brutal to non residents and not great for residents .Don't even get me started on insurance cancellations are an everday occurance and if you can get insurance it's really pricey .I haven't been to Port Charlotte or Punta Gorda for years bu I've heard that a lot of the homes have mold problems from the hurricane that hit there in 2004.
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Old 09-04-2007, 08:08 AM   #23
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being rented for $800.00 /per month. There is a monthly condo fee of $400.00, taxes are $225/month, insurance $100/month -- your paying out $725 not including the mortgage.
This is exactly why the bottom is a ways out. When you can profit month-to-month by renting out a unit, THEN we'll begin to settle on a bottom. But not before.

The, obvious, reason for this is because investors will be brought back into the market to suck up the excess inventory.
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Old 09-04-2007, 10:00 AM   #24
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Quote:
Originally Posted by dwk View Post
DW and I just got back from the Charlotte Harbor / Punta Gorda area. We were looking at possible rental /investment property. There are a number of problems that need to be fixed before prices will rebound.

They are;
Taxes: especially for out-of-state investors. The taxes on a $150K condo is between $2500 - $3000. Full time residents get a big break, paying between 50% - 70% less for the same property owned by an out-of-state investor.

Insurance: I'm willing to bet most people are paying at least 3x the price for insurance prior to the storms three years ago. I know of properties where insurance costs were jacked almost 8x for a policy with less coverage.

With all of the speculation, over-priced properties 2 years ago -- now the bottom has fallen out -- Builders have slash prices so you can buy a new home for less than a resale. It seems like every other house/condo is for sale -- I know its not that bad, but there is a ton of inventory. The sub-prime credit mess has people walking away from homes, foreclosures increasing.

I'm not sure how an investor is able to turn a profit. A 2 bedroom/2 bath condo -- in a gated community is being rented for $800.00 /per month. There is a monthly condo fee of $400.00, taxes are $225/month, insurance $100/month -- your paying out $725 not including the mortgage. These units were selling for $240K+ 18 months ago, now you can pick one up for $140K.

I don't think the market has bottomed out. And this market is not going to bounce back quickly. I'm not buying at this time. Anyone looked at this market?

Thanks!!!
dwk
I have a client trying to sell a LOT only in the Sanibel Island area.........NO takers.........
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Old 09-04-2007, 11:17 AM   #25
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I work for Centex Homes as a Central Sales Consultant. If you are interested in finding out the true nature of our summer clearance sale please let me know. I am responsible for the area in Southwest Florida that extends from Naples to Port Charlotte. The sale opened to the general public on July 16th and will close on September 15th. If you have honest questions about Riverwood ( the community you referenced in the Port Charlotte area), our iinventory home sale, the market in general or other Centex Communities in this area, please let me know and I will do my best to answer them. I have been involved in Florida with the construction and home building industry for the past 10 years, have lived in Port Charlotte for the past 5 years and have seen the highs and the lows this market has to offer.

As far as our inability to contact you if you live in NJ or NY..........it is that those states have laws that limit soliciation. Other states have similar laws and restrictions but NJ and NY are more restrictive.






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Originally Posted by Olav23 View Post
One of my friends fwd'd me this link:

CNTX-1845 webshellhome

It sorta has that "everything must go!" feel to it since it is only for the next 10 days, but hard to believe what some of these new construction homes are going for.

For instance, in Port Charlotte:

POMPANO COVE #061. Twin-villa home, lake view, 2BR/2BA plus den and 2-car garage. 1,557 A/C sq. ft. Old Price $256,169 New Price $149,990 Save $106,179 Old Payment $1,281/mo New Payment Only $562mo

This development has a golf course, gym, activity center, etc. It seems like a bargain, if you could even just turn around and rent it for $600 a month. Is it on top of a landfill? Next to a nuke plant? Falling into a sinkhole?? Or has the exuberance just left the market and in its place is over-correction?

I don't live anywhere nearby to be able to check it out, but it sure sounds good "in theory" over the net. :P


Also interesting, when I click through to the development, on the bottom of the house listings, I see:

If you live in one of these states (NY or NJ) our ability to communicate with you may be limited.

I wonder what that is about! (since I live in NY)
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Old 09-04-2007, 12:28 PM   #26
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Quote:
Originally Posted by Olav23 View Post
One of my friends fwd'd me this link:

CNTX-1845 webshellhome

It sorta has that "everything must go!" feel to it since it is only for the next 10 days, but hard to believe what some of these new construction homes are going for.

For instance, in Port Charlotte:

POMPANO COVE #061. Twin-villa home, lake view, 2BR/2BA plus den and 2-car garage. 1,557 A/C sq. ft. Old Price $256,169 New Price $149,990 Save $106,179 Old Payment $1,281/mo New Payment Only $562mo

This development has a golf course, gym, activity center, etc. It seems like a bargain, if you could even just turn around and rent it for $600 a month. Is it on top of a landfill? Next to a nuke plant? Falling into a sinkhole?? Or has the exuberance just left the market and in its place is over-correction?

I don't live anywhere nearby to be able to check it out, but it sure sounds good "in theory" over the net. :P


Also interesting, when I click through to the development, on the bottom of the house listings, I see:

If you live in one of these states (NY or NJ) our ability to communicate with you may be limited.

I wonder what that is about! (since I live in NY)
I wanted to respond to your questions but think I posted it originally in the wrong place. I work for Centex Homes as a Central Sales Consultant. If you are interested in finding out the true nature of our summer clearance sale please let me know. I am responsible for the area in Southwest Florida that extends from Naples to Port Charlotte. The sale opened to the general public on July 16th and will close on September 15th. If you have honest questions about Riverwood ( the community you referenced in the Port Charlotte area), our inventory home sale, the market in general or other Centex Communities in this area, please let me know and I will do my best to answer them. I have been involved in Florida with the construction and home building industry for the past 10 years, have lived in Port Charlotte for the past 5 years and have seen the highs and the lows this market has to offer.

As far as our inability to contact you if you live in NJ or NY..........it is that those states have laws that limit solicitation. Other states have similar laws and restrictions but NJ and NY are more restrictive.
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Old 09-04-2007, 02:02 PM   #27
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Not me. But from what I hear and see, if you were not on the bleeding edge of the go-go mortgage market, you can still get a loan without too much fuss, although it might cost more than it used to. So put down 20+%, document your income, have a 720+ credit score, and generally not appear to be asking for more mortgage than you can really afford, and you can either fit into the conforming box or you can find a traditional portfolio lender (actual bank) to do business with.
I had heard that the jumbos were a bit difficult to get without paying a real high rate... but then again, it was the news...
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Old 09-05-2007, 08:10 AM   #28
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you can still get a jumbo at normal rates if you straight to the lender and not a mortgage broker. hard to believe, but supposedly a lot of brokers falsified a lot of paperwork and submitted it.
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Old 09-05-2007, 08:11 AM   #29
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Originally Posted by builders rep View Post
I work for Centex Homes as a Central Sales Consultant. If you are interested in finding out the true nature of our summer clearance sale please let me know. I am responsible for the area in Southwest Florida that extends from Naples to Port Charlotte. The sale opened to the general public on July 16th and will close on September 15th. If you have honest questions about Riverwood ( the community you referenced in the Port Charlotte area), our iinventory home sale, the market in general or other Centex Communities in this area, please let me know and I will do my best to answer them. I have been involved in Florida with the construction and home building industry for the past 10 years, have lived in Port Charlotte for the past 5 years and have seen the highs and the lows this market has to offer.

As far as our inability to contact you if you live in NJ or NY..........it is that those states have laws that limit soliciation. Other states have similar laws and restrictions but NJ and NY are more restrictive.
thank you, but i will think about it in a few years once the real 50% off sale starts up when the banks start to sell off their homes.
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Old 09-05-2007, 08:23 AM   #30
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I had heard that the jumbos were a bit difficult to get without paying a real high rate... but then again, it was the news...
The jumbo loan market is starting to come back. I saw a PR yesterday from E-Loan indicating that they are now offering a 7.5% with no points and no fees. But here's the catch: you have to have a 740+ FICO, fully document your income, and have at least 25% equity in the property. Pricey money for such a high grade borrower.

Most portfolio lenders will be a little cheaper, but they will be strict on underwriting and they are likely to stick to 3/1 ad 5/1 ARMs.
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