Tuesday, May 22, 2012

Real Estate, Bottomless Cheapness?

My buddy who traffics in Naples real estate just sent me this listing.

Only 80k for 1,000 square foot condo in the development we stayed in January 2009!!!

It's a pretty good location; very, very close to Vanderbilt Beach and major roads; in northern Naples so close to the airport; there's a pool; etc.

It's also a bank sale so buyers won't have to pay any back taxes, utilities, or HOA fees.

It sold for a ridiculous $255,000 back in September 2006.

At this price I could ALMOST justify buying because the annual upkeep wouldn't be much more than only two months of snowbirding (5-6k).

Almost. I'm going to keep waiting. I'd rather buy when rates are higher, regardless of the market price - and after the stock market crashes.

(Note this place also sold in 1988 for 67k. Of course back then gas was $1 per gallon and America wasn't $16 trillion in debt.)


Anonymous said...

Who can say? In my experience the bottom (or top) is something you reliably observe in the rear view mirror. By the time chumps like me get around to noticing it's already way past.

I'd add that the markets are localized. We appear to have turned the corner in the San Jose, CA area but just 60 miles away in Stockton real estate is still in free fall.

Buyer beware!

CaptiousNut said...

It's mathematically impossible for real estate to bottom when rates are 4%. It just is.

Of course no one except for me is saying this. Fools!

THD Credit Consulting said...
This comment has been removed by the author.
thomas.j.fennell@gmail.com said...

Would you be so kind as to email me a *breakdown* of the math? I would appreciate it. Thank you in advance.