Fire sale on FL real estate?

[Olav23]

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.


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)

 

[LOL!]

In some communities, the builder was going to distribute the costs of the roads and infrastructure to all the owners. Buyers bought with a clause that said something like "owners are responsible for the costs of the infrastructure". The costs would not be bad if all 500 lots were sold, but if only 50 lots were sold, then those 50 owners get to divide to total cost of the infrastructure. That is, the builders bills got passed on to the limited number of buyers.

If I find a link on this, I will link it in.

 

[farmerEd]

This is your LAST CHANCE to get a new Centex inventory home at a drastically reduced price.

Somehow I doubt it will be your "last chance"...

 

[Spanky]

It seems that Centex is selling at a loss to adapt to a changed market.

 

[Moemg]

Most of the Florida builders have drastically reduced the homes or they are giving away free pools or other goodies .There is a glut of unsold properties here .A lot of condos that haven't sold are being rented cheaply and they are throwing in flat screened Tv's .Apparently investors are offering the builders rock bottom prices on their inventory .Great time to buy if you don't have a house to sell first .Port Charlotte is a so so community not near the gulf .

 

[al_bundy]

in the next 1-2 years it will be even cheaper when banks sell off the foreclosed flipper homes along with the ARM adjustments where people can't afford 7% rates

and of course the payments being hyped on the website are based on a low teaser ARM rate as well even after 20% down

 

[twaddle]

I find it fun to watch the psychology of the market unfold. We were in denial for a while. Now, as prices start to fall, people are looking for speculative bargains. I wonder if prices will fall far enough that we don't want anything to do with real estate. Will we ever see houses as a necessary evil? A depreciating asset that is required to keep the weather out?

 

[lazygood4nothinbum]

cheap construction built on cheap property in an area that never was worth much, highlighting how overpriced the product was in the first place. over an hour and a half to tampa's international airport. you get what you pay for.

 

[ziggy29]

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?

Check out how much it will cost to insure this property. Property insurance in coastal Florida is becoming a real killer with the hurricane exposure.

Also, how does a "formerly" $256K home dropped 41.4% result in a payment lowered by 56.1%? Are they also "closing out" the mortgage rate? Or are they assuming the same down payment on a $150K home as on a $256K home?

Anyway, given the cost of insurance and property taxes, even if the mortgage was $562 per month, you'd have to get a lot more than that in rent just to break even in cash flow given insurance and taxes.

 

[FinanceGeek]

...

I wonder if prices will fall far enough that we don't want anything to do with real estate.

...

As soon as that happens, and I believe it will in some areas of the country, THAT's the time to be buying...

 

[pedorrero]

It's depressing ... I took a walk down my (short) street Sat. evening and checked the "info tube" price for two homes on my street. Ask $199K for a nicer home than mine, built in 2004, never lived in. I don't know how much they reduced it over that time. Does not bode well for me selling mine any time soon!
Spring Hill (North of Tampa) if it matters.

 

[dex]

I think with global warming most of Fla. will be under water. Are these houses raised about 20 feet?

 

[youbet]

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

I haven't looked into the real estate market for decades so I'm not up to date with the new lingo........

Does "Twin-villa home" mean it's a duplex? You know, one of those houses built with a common wall making it into two houses so save on land and construction expenses? But you wind up with neighbors with whom you're very, very cozy.

"Lake view" means the less desireable lot you buy when you can't afford lake front. Right?

It frequently turns out then when the seller embellishes the sow's ear to appear as a silk purse, the buyer winds up with the pig's tail.

 

[tryan]

Yeah, this is just the begining ... sit tight for a year or two. More/Better chaos/opportunity is coming.

 

[Moemg]

I haven't looked into the real estate market for decades so I'm not up to date with the new lingo........

Does "Twin-villa home" mean it's a duplex? You know, one of those houses built with a common wall making it into two houses so save on land and construction expenses? But you wind up with neighbors with whom you're very, very cozy.

"Lake view" means the less desireable lot you buy when you can't afford lake front. Right?

It frequently turns out then when the seller embellishes the sow's ear to appear as a silk purse, the buyer winds up with the pig's tail.

You got twin villa right but lake view is Florida lingo for view of the retaining pond .

 

[teejayevans]

As anybody tried to get a mortgage in the last 2 months?
I'm wondering if the people who would normally be buying
these on speculation can't get a mortgage now?
TJ

 

[Spanky]

"Lake view" means the less desireable lot you buy when you can't afford lake front. Right?

Lake view means it's cheaper in cost and taxes than lake front. It may be safer from flooding than a lake front during a hurricane.

 

[Spanky]

I'm wondering if the people who would normally be buying
these on speculation can't get a mortgage now?

They are in the process of declaring bankruptcy resulting from previous speculations.

 

[Moemg]

Retention ponds. Typically, retention ponds are found in housing and commercial developments that were built in wetlands or wet areas. They are dug to accept the nutrient and pollutant laden water that drains from paved roads and yards of the development to prevent deterioration of "downstream" natural lakes and rivers.Retention ponds. Typically, retention ponds are found in housing and commercial developments that were built in wetlands or wet areas. They are dug to accept the nutrient and pollutant laden water that drains from paved roads and yards of the development to prevent deterioration of "downstream" natural lakes and rivers.




They are not lakes ! No lake view ! No lake Front ! Retention pond view !

 

[brewer12345]

As anybody tried to get a mortgage in the last 2 months?

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.

 

[dwk]

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

 

[Moemg]

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.

 

[tryan]

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.

 

[FinanceDude]

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.........

 

[builders rep]

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.

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.


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)