Getting into real estate
Joined: Oct 2000
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From: Nashville
Originally Posted by DiamondDave2005,Jun 10 2005, 03:08 PM
My friend just moved to Sarasota, FL in April. She said real estate in her area has gone up 35% in the first quarter of this year. Her realtor just signed a contract on a house and assigned the contract to a new buyer for $50k over what he paid, before he even closed on the house!
She said they're very tempted to buy and sell, but they don't want to risk their money by accidentally buying just before the bubble bursts.
I can see how those condos went up in price so quickly.
She said they're very tempted to buy and sell, but they don't want to risk their money by accidentally buying just before the bubble bursts.
I can see how those condos went up in price so quickly.
The places aren't even built yet...... i would be leary that the builder didn't take my $50k deposit and leave town.
Some people have made way more $ on their houses than a normal person can save in 10 years. we have friends in Ocean City, NJ who bought a $150k house 4 years ago and people are BEGGING them to sell it for $550k now.
My house went from $230k to $300k in the past 7 years.
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Joined: Oct 2004
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It is SO insane. Me and my wife bought some townhouses in a very crappy part of OC in 1999 for around 85k, started selling in 2002 when they went over 200k and the last one sold in 2004 for 330k. Four times what they were bought for in a little over 4 years. Paying that much for a 35 year old condo in the shiet part of town is mind boggling, but people are more than willing to do it in Orange County it seems.
So at the end of 2004 the now ex-wife goes to Florida and starts buying new houses around the Orlando area, and by the time these things are even finished being built they've gone through the roof, around 35% at least in 4 months. It will be interesting to see how all of this plays out.
So at the end of 2004 the now ex-wife goes to Florida and starts buying new houses around the Orlando area, and by the time these things are even finished being built they've gone through the roof, around 35% at least in 4 months. It will be interesting to see how all of this plays out.
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Joined: Dec 2003
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From: Irvine, SoCal
The real estate market in many area right now are very similar to Southern California in the late 80's. Back then, house price doubled in less than 3-4 years, poeple camped out for up to 1-3 weeks to be able to put their names on the buying list for new constructions, then turn around sell their places for $10K to $20K and in some cases $50K. Then the housing market cool down, price started to drop and bottom at around 1996. From 1990 to 1996, most house in Orange County lost about 25% upto %40 in some local market.
I am afraid that we may have another real estate market busted the next few years, with all those interest only loans, second homes as investment ... I hope that I am wrong, because I do not like to lose my home equity, but I am prepared for it.
I am afraid that we may have another real estate market busted the next few years, with all those interest only loans, second homes as investment ... I hope that I am wrong, because I do not like to lose my home equity, but I am prepared for it.
Joined: Apr 2004
Posts: 2,897
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From: Cherry Hill, NJ
My father-in-law has had a studio-sized condo in a building on the boardwalk in Atlantic City for many years now, and retired to a 1-bedroom condo in the same building four years ago.
He paid $38k for the studio back in the '80s. It went down as low as $25k in the '90s. He put in on the market a few weeks ago and was offered $150k for it.
He paid $75k for the 1-bedroom unit just four years ago, and they're selling for $250k now. Not bad!
We bought their house from them back on '01, and it's almost doubled in value over the four years we've been here.
I think it'll level off if interest rates rise enough to affect all the people with interest only loans. There was an article in the Philadelphia Inquirer today, listing the percentage of interest only loans across the country. One guy in SF said he couldn't affort to buy unless he postponed principal payments for 10 years, but he's happy because his apartment has gone up $80k since he bought it.
He paid $38k for the studio back in the '80s. It went down as low as $25k in the '90s. He put in on the market a few weeks ago and was offered $150k for it.
He paid $75k for the 1-bedroom unit just four years ago, and they're selling for $250k now. Not bad!
We bought their house from them back on '01, and it's almost doubled in value over the four years we've been here.
I think it'll level off if interest rates rise enough to affect all the people with interest only loans. There was an article in the Philadelphia Inquirer today, listing the percentage of interest only loans across the country. One guy in SF said he couldn't affort to buy unless he postponed principal payments for 10 years, but he's happy because his apartment has gone up $80k since he bought it.
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