Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Condomania
Old 08-21-2005, 04:16 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Condomania

Read an article (MONEY magazine?) about some folks whose
entire employment is finding, buying, renting and reselling
(flipping) condos. Sounds like something I would have enjoyed
15 or 20 years ago. The article claimed that (nationwide) condos
had way outpaced the average appreciation of SFHs. I forget
the numbers but it was a remarkable difference.

JG
MRGALT2U is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Condomania
Old 08-21-2005, 06:34 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
Re: Condomania

The condo market is one part of real estate that isn't doing well here in Atlanta.
People who are looking to sell are losiong money or if lucky breaking even.

Take a read of the Sunday New York Times - there is an artile about the housing bubble.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 07:57 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 3,431
Re: Condomania

Here's the link to the NYT article dex referenced, "Be Warned: Mr. Bubble's Worried Again"


http://www.nytimes.com/2005/08/21/bu...61e037&ei=5070
omni550 is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 08:06 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,968
Re: Condomania

Hmmm

Condos must go in long cycles - we had an abandoned one burn in New Orleans recently - never made it through the last cycle - either squatters or some who refused to move after condemnation had to be treated for smoke inhalation. Whereas two - on the way to the swamp - near - on water have finally taken down their RE signs after 10-15 yrs - finally sold all the units - ? I guess
unclemick is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 08:14 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: Condomania

Quote:
Originally Posted by unclemick2
Hmmm

Condos must go in long cycles - we had an abandoned one burn in New Orleans recently - never made it through the last cycle - either squatters or some who refused to move after condemnation had to be treated for smoke inhalation. Whereas two - on the way to the swamp - near - on water have finally taken down their RE signs after 10-15 yrs - finally sold all the units - ? I guess
Location is everything, just like in all real estate.

JG
MRGALT2U is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 08:25 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: Condomania

Quote:
Originally Posted by omni550
Here's the link to the NYT article dex referenced, "Be Warned: Mr. Bubble's Worried Again"


http://www.nytimes.com/2005/08/21/bu...61e037&ei=5070
I read it. My opinion? Everyone has an opinion.

JG
MRGALT2U is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 08:57 AM   #7
Full time employment: Posting here.
Arif's Avatar
 
Join Date: Jun 2005
Posts: 761
Re: Condomania

Quote:
Location is everything, just like in all real estate
I think you can still make money in RE. Just like the stock market in 1999-2003 not all stocks tanked with the tech downturn. Didn't WB beat the market those years? Same with real estate.
Prices have appreciated maybe 3-5% per year here in Augusta so I don't expect it to fall 30-40% once the bubble busts. I can honestly say that I haven't been tracking real estate long enough to witness a downturn in condos. What is hot in one area might be frozen in another. For instance, I wouldn't buy a condo here (even with JGs money). But SFHs below market value can be had all day long if you're willing to fix them up and flip or rent.
__________________
You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.
Arif is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 11:20 AM   #8
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
Re: Condomania

Quote:
Originally Posted by MRGALT2U
Read an article (MONEY magazine?) about some folks whose
entire employment is finding, buying, renting and reselling (flipping) condos. Sounds like something I would have enjoyed 15 or 20 years ago. The article claimed that (nationwide) condos had way outpaced the average appreciation of SFHs. I forget
the numbers but it was a remarkable difference.
Quote:
Originally Posted by MRGALT2U
I read it.* My opinion?* Everyone has an opinion.* JG
Including you... let us know if you stumble across the actual article or any facts from it.
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 12:29 PM   #9
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: Condomania

Condos IMHO only do well in certain cities. Atlanta is not one of them.

Quote:
Location is everything, just like in all real estate
JG -

I don't have the experience you do in real estate and most of my opinion is from observation. Seems like there are 2 kinds of real estate. The kind you buy for income and the kind you buy for appreciation. Income properties to me are in the not so nice areas of town but make excellent rentals. Appreciation properties to me are in the nice areas of town but not necessarily the nicest house. Also seem to be the kind you want to buy/hold as your own. So I guess I am saying that location does not matter so much for income properties. Disagree or agree?
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 12:51 PM   #10
Thinks s/he gets paid by the post
cube_rat's Avatar
 
Join Date: Jul 2005
Posts: 1,466
Re: Condomania

Quote:
Originally Posted by MRGALT2U
The article claimed that (nationwide) condos
had way outpaced the average appreciation of SFHs. I forget
the numbers but it was a remarkable difference.

JG
We bought our townhouse outside of San Francisco last year and we just had it reappraised at 150K higher than our purchase price!!! No, I don't feel lucky. I feel the current real estate bubble in the bay area is about to deflate. Luckily, we have wiggle room in our equity. We actually made a down payment unlike a lot of these Bay Area buyers with nothing down and horrendous I/O loans.
__________________
fuzzy? cute?
cube_rat is offline   Reply With Quote
Re: Condomania
Old 08-21-2005, 06:43 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Dec 2002
Posts: 3,875
Re: Condomania

Quote:
Originally Posted by Nords
Including you... let us know if you stumble across the actual article or any facts from it.
Click on the NYT link in this thread man. That's what I was talking about.
I am pretty sure it was the latest issue of MONEY with the big condo
investment article. If you want more info, look it up. Should be easy to find.

JG
MRGALT2U is offline   Reply With Quote
Re: Condomania
Old 08-22-2005, 08:29 AM   #12
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,594
Re: Condomania

Having owned and rented out a few condos in my days, I've noted a couple unique issues:

1. Neighbor condo owners dislike rentors and - therefore - associated owners.
2. Condo fees always seem high relative to the service received.

The neighbor problem is escalated because people basically live on top of each other (unlike SFH).

The condo fee problem has to do with pleasing everyone at a professionals fee. Ruling by committee is always hard (and expensive).


__________________
FIRE'd since 2005
tryan is online now   Reply With Quote
Re: Condomania
Old 08-22-2005, 08:44 AM   #13
Recycles dryer sheets
 
Join Date: Jan 2005
Posts: 445
Re: Condomania

Quote:
Originally Posted by wildcat
Condos IMHO only do well in certain cities.* Atlanta is not one of them.


JG -

I don't have the experience you do in real estate and most of my opinion is from observation.* Seems like there are 2 kinds of real estate.* The kind you buy for income and the kind you buy for appreciation.* Income properties to me are in the not so nice areas of town but make excellent rentals.* Appreciation properties to me are in the nice areas of town but not necessarily the nicest house.* Also seem to be the kind you want to buy/hold as your own.* So I guess I am saying that location does not matter so much for income properties.* Disagree or agree?* * * *
Well I'm not JG, but I've had/have/having personal experience in condos...Would have to disagree with you Wildcat. Purchased in the high rent/nice areas of town. This is what I've concluded: buy in the nicest area that you can afford, with as most leverage as you feel comfortable with. Over time that's how you'll make the most money, looking back. For me, I don't like any debt, so that limits my options. On the other hand, if the market where the units are tanks, I really can sit for a long time to wait out an eventual (assuming) rise. Maybe it's because I'm female, and when I started- single, so nice area of town is alot easier/more comfortable for many reasons. Having nice condos in really nice areas usually restricts who will apply to rent. And in a big city, especially a place like metropolitan D.C. where people are constantly moving for a variety of reasons, you'll often have a big pool of applicants. Have heard quite a few horror stories from people who own/rent units in less desirable parts of many different cities. Long short, I think location does matter.
P.S. is offline   Reply With Quote
Re: Condomania
Old 08-22-2005, 11:09 AM   #14
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,594
Re: Condomania

This looks like the subject article ... enjoy.

http://money.cnn.com/2005/08/17/real...o_condos_0509/
__________________
FIRE'd since 2005
tryan is online now   Reply With Quote
Re: Condomania
Old 08-22-2005, 04:15 PM   #15
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: Condomania

Quote:
Well I'm not JG, but I've had/have/having personal experience in condos...Would have to disagree with you Wildcat. Purchased in the high rent/nice areas of town. This is what I've concluded: buy in the nicest area that you can afford, with as most leverage as you feel comfortable with. Over time that's how you'll make the most money, looking back. For me, I don't like any debt, so that limits my options. On the other hand, if the market where the units are tanks, I really can sit for a long time to wait out an eventual (assuming) rise. Maybe it's because I'm female, and when I started- single, so nice area of town is alot easier/more comfortable for many reasons. Having nice condos in really nice areas usually restricts who will apply to rent. And in a big city, especially a place like metropolitan D.C. where people are constantly moving for a variety of reasons, you'll often have a big pool of applicants. Have heard quite a few horror stories from people who own/rent units in less desirable parts of many different cities. Long short, I think location does matter.
Good points. I suppose the right answer is a person can make $$ in any kind of real estate. Some choose to do the low end and do well. Some choose the high end and do well. Depends on who you want to cater to. Know a guy who has a duplex in a low end area. Lives out of one side and has only had 2 tenants in 7 years. Has been lucky to have great tenants. Both haven't had a desire to own a house so he keeps rents reasonable and they stick around a long time. Location is pretty crappy.
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: Condomania
Old 08-22-2005, 04:54 PM   #16
Recycles dryer sheets
 
Join Date: Feb 2005
Posts: 189
Re: Condomania

New condo sales in Atlanta are booiming. It is the resales that are suffering for some reason.
treypar is offline   Reply With Quote
Re: Condomania
Old 08-22-2005, 08:09 PM   #17
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
Re: Condomania

Quote:
Originally Posted by atla
New condo sales in Atlanta are booiming. It is the resales that are suffering for some reason.
Sounds like too many new condos to me...
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 10:31 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.