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OK. So I broke down and bought a house in Florida?
Old 02-15-2008, 06:18 AM   #1
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OK. So I broke down and bought a house in Florida?

That's it, I could not resist it any more. We have been renting for almost 3 years. We have put our money where MY mouth is and bought a house 5 years old in St. Augustine, North East Florida. 3 bed 3 bath great room, separate study, Dining room, Florida room, 2 car garage.

I am speculating based on my purchase that at some point in the next 5 - 10 years it will be worth more than what I paid for it.

Here are some specks:

1) Custom Home, Marsh Creek Country Club Gated Golf Community.
2) Lake Views Front and Rear, No houses directly across the street.
3) No Houses to the rear just preserve (Palm Trees, Deer Wildlife Etc.)
4) Not on Golf course.
5) 3200sqft with pool.
6) Basically single Story with Bonus configured as a Guest room above 2 car Garage
7) Concrete and stucco construction, excellent for our climate here
8 )Dual zone climate controls so guest suite can be turned on or off at will independent from the main house.
9) 2 miles from St. Augustine Beach, on Anastasia Island, very few island lots available any more, only private golf community on the island.

It was a distress sale advertised 10% below current comps. I paid 25% below. The house next door is an example it is on the market for 25% more. Not selling of course. We paid cash with only the inspection as a contingency, so we got a slightly better deal.

This home now represents about 25 - 30% of our total net worth.

My speculation is that the general market will drop another 20% in the next year, thus still at my current buy price.

We are putting about 3% into the house to add features We like. The home is in excellent condition, recently painted inside but could use some touch up outside. we plan on being here a minimum of 5 years maybe 10.

I intend on living in the home when I have completed all the work, we are currently renting.

The great question: Will we loose money, only time will tell.

Your comments are appreciated.

SWR

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Old 02-15-2008, 06:28 AM   #2
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Congratulations! That sounds like a beautiful house in a very nice location (lakes, wildlife preserve). Location, location, location should be in your favor! Also, I like the idea of a big house with all on one level except a bonus room over the garage. I would want it myself, except that personally I have ruled out Florida and many other states due to hurricanes and my desire not to repeat my Katrina experiences. It should be really pleasant in the mornings to walk outside and see the lakes and wildlife right outside your home.

I have no idea about its speculative value or whether or not you will lose money, though if I had to guess I would say you probably made a good decision. Either way, you have an extremely nice place to live while you are waiting to see what happens with area home prices.
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Old 02-15-2008, 07:14 AM   #3
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Want2Retire:

Thanks, our rental lease is up in a couple of months and we really were missing a home of our own. I like a large home also, but more for re-sale and return than anything else. Larger homes in nice communities tend to return more over time. In these parts, especially in this type of community, the folks from up North and California tend to buy them.

I simply hope i am correct.

SWR
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Old 02-15-2008, 07:22 AM   #4
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Congratulations , It sounds like a great house and I love that area . In southwestern Florida it seems like prices are at or near the bottom so I don't think you'll lose money .
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Old 02-15-2008, 07:31 AM   #5
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I think you made a very shrewd decision. St. Augustine is in a great area, and you probably won't do much better in the real estate pricing cycle. We've camped Anastasia and toured the area which is very nice.

Great move, enjoy your new life down here.
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Old 02-15-2008, 07:57 AM   #6
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Good decision for the long haul.

Will Rogers: "Land? Better buy some. They ain't makin' any more."
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Old 02-15-2008, 08:05 AM   #7
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Nice area. Real estate will bounce back, especially for this type of desireable setting. But keep in mind, from what you say, it is not just about the money. You missed having a home. Lets you be more settled, lets you change it to the way you like, etc. Not all decisions, even some of the big ones, are about getting the highest return.
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Old 02-15-2008, 08:10 AM   #8
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Nice area. Real estate will bounce back, especially for this type of desireable setting. But keep in mind, from what you say, it is not just about the money. You missed having a home. Lets you be more settled, lets you change it to the way you like, etc. Not all decisions, even some of the big ones, are about getting the highest return.
Well said, Sandy. Especially with houses -- best "investment" is not always the best choice. In fact, the two houses we have enjoyed living in the most are the two we made the least profit on in the end. Mostly circumstantial, sub-optimal timing, etc. but we never regretted it.
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Old 02-15-2008, 08:15 AM   #9
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Quote:
Originally Posted by Walt34 View Post
Will Rogers: "Land? Better buy some. They ain't makin' any more."
In Will's defense, he never heard of these guys: Palm Islands, Dubai UAE
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Old 02-15-2008, 10:09 AM   #10
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I added a photo

SWR
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Old 02-15-2008, 10:14 AM   #11
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That's a beautiful home!!
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Old 02-15-2008, 10:27 AM   #12
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That's a nice house! Would you mind sharing the purchase price (to the nearest $100k) - for reference.
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Old 02-15-2008, 10:35 AM   #13
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MLS 97989
Approx. 2474sq ft
3 Bedrooms / 2.5 Bath
Rented until 10/08 @ $1650/mo


503 Lakeway Dr.
Offered At: $447,000
Location Marsh Creek Country Club / Marsh and Lake Views

Great patio home with large lake wrapping around the property on 2 sides for stellar views from all sides.Swaying marsh grasses teaming with exotic birds, perfect for the nature lover! Large shade trees make the perfect place for a hammock to relax and enjoy the flora and fauna. Split floor plan offers privacy with bedrooms for children or guests upstairs.Large spacious kitchen is perfect for the gourmet chef!

This property is priced to sell below appraised value & ready for you to call home.Watch sunsets from your enclosed lanai,or cozy up in front of your wood burning fireplace on a cool evening. Enjoy living in Marsh Creek Country Club, Anastasia Islands only gated golf course community,minutes from white sand beaches,historic downtown,& great shops & caffes.Call this one home today.Great home,great investment.Get it first & enjoy all the benefits!

Congratulations! Good for you buying when you find what you want.

BUT, for all West Coast/ gotta cash flow/ BASHERS check the rent on this Florida baby. That's a GRM, gross rent multiplier of 22.5!! That rivals us here in SFBay plus you have to imagine some HOA fees subtracted off the monthly rental! Now if you're not getting the typical California 11% compounded appreciation rate who's the crack buying delusional homeowners?

4% appreciation my *ss!
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Old 02-15-2008, 10:37 AM   #14
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Deep breaths Hono deep breaths
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Old 02-15-2008, 10:55 AM   #15
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Deep breaths Hono deep breaths
I'm better now, had a sip of green tea and finished my yogurt and granola. Yep, I'm getting near my happy place. Ooommm.
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Old 02-15-2008, 11:08 AM   #16
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Congratulations Shok.

I know you have Southern ON connections and hope you were able to use some greatly appreciated $C to enhance the deal.
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Old 02-15-2008, 12:36 PM   #17
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Old 02-15-2008, 01:01 PM   #18
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In Will's defense, he never heard of these guys: Palm Islands, Dubai UAE
Well if you read closer they didn't "make" new land, thay just "reclaimed" it. I think the prior owners were underwater.
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Old 02-15-2008, 02:17 PM   #19
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I added a photo

SWR
GORGEOUS!!! Again, my congratulations and I just know you are going to enjoy the house so much while you live there.
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Old 02-15-2008, 03:11 PM   #20
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This is my next door neighbor. I think they are smoking. I paid ~25% less than they are asking, and I have an additional 500sqft. They tell me they are not needing to sell, so I said why list it? They said some Northerner will buy it...eventually, they always do. Apparantly they sold the last 2 homes they had this way.

http://chuckdenton.com/Listings/List...X?LID=25710875

SWR
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