For $37.52 a square foot, y'all could buy this foreclosed Naples, Fl condo - 7985 Preserve Circle #1114. (It's right across from Arrowhead GC on Immokolee, a track I happened to play in January.)
Less than 2.5 years ago, this condo sold for a whopping $310,000.
The loan underwriter - Freddie Mac!!!
My real estate guy down there informs me that this condo may have theoretically been worth 200k at the peak - but never 310k by any stretch.
AND, he tells me that condo would sell for close to 60k today. So Freddie Mac will have gotten ripped off at both ends.
Check that. Us taxpayers will have been ripped twice on this property!
See also - Fannie Mae Reincarnated - It's Called FHA.
Addendum - What's interesting about this 1,250 square foot condo is that its annual upkeep of $8,263 (condo fees + taxes) vastly outweighs the purchase carrying cost since a 50k house can currently be financed for less than $300 per month, or $3,600 per year.
In other words, owning this condo will cost almost $12,000 per year - EVERY YEAR - and that's fantastically presuming fees and taxes NEVER RISE. Why would anyone commit to those payments when they can seasonally rent for so much cheaper? Remember the place I leased in January was bigger, nicer, in a far superior location, and only cost $2,200 for the entire month.
Conclusion - the real, rational, market value of the that condo could soon be $0, or less.
3 comments:
Might make economic sense to use it as a "grow house".
Is that a reference to illegal narcotics???
The state doesn't consider them illegal in CA and the feds only pursue the one in a million huge "farmer"!
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