[CJFlorida]

Originally Posted by sunrico90

What will be the best approach if you want to invest in purchasing land or houses? Should I purchase auctioned houses in Miami or purchase land in north Florida?

Would comparing prices prior to 2005 would be a good approach?

Is investing on RE still a viable approach?

There will be opportunities for people with good credit and some cash for a down payment. I would not be in any rush, usually people call false bottoms many times on the way down. Don't touch raw land unless you will be building your primary residence on it some day and can justify its current cost....investment land is an area for real experts and can be very risky. Lots have gone from $2000 to $100,000 back down to $10,000 in many areas of Florida. Thats not a ride I want to be on.

Approach residential investment real estate like any other business....its a good deal when you have positive cash flow. If you can rent a property out for more than it costs you to maintain it, and compensate yourself for your time requirement, it is a good investment.

[jbravo]

Originally Posted by sunrico90

What will be the best approach if you want to invest in purchasing land or houses? Should I purchase auctioned houses in Miami or purchase land in north Florida?

Would comparing prices prior to 2005 would be a good approach?

Is investing on RE still a viable approach?

I'd try 2001-2002. Where? Your preference but it's still way early for South Fl , although, Brevard, Indian River, Martin and West Palm are at 2004 prices already. (even per zillow inflated prices!)
Hey, throw a positive rep point my way, my posts keep getting orphaned (just joking )

[sunrico90]

CJFlorida Jbravo,

Thank you for the advise... I'm researching a few locations

[LM1]

Originally Posted by CJFlorida

investment land is an area for real experts and can be very risky. Lots have gone from $2000 to $100,000 back down to $10,000 in many areas of Florida. Thats not a ride I want to be on.

CJ and I disagree on a few things about real estate, but this is 100% accurate.

Remember that the house itself is simply the disposable product. They can throw up a house at any time... Sure, the costs of labor or materials might fluctuate a bit one way or the other, but the "house" itself is what can be easily replaced.

Land speculating in volatile RE markets is akin to options trading.

It's all risk, all reward and the fluctuations can be wild (for example, I recently purchased a couple lots in West-Central FL for $6300, which two years ago were selling for $45,000, ten years before that were selling for $900 each).
Really, land speculation has no place in a typical persons portfolio unless you have a killer, 1% sort of rarefied insight in the R/E market, a good supply a Malox and a risk tolerance on par with those rock climbers who scale huge faces without any safety gear. Your finances have to be structured in such a way that you can withstand immediate, often times profound losses with the knowledge that your insight and skill will cause you to have the best of it over time and you will make it all back.
This isn't "Investing For Everyone 101" kinda stuff. It's fairly complex. Anyone else who tries it is simply gambling. You might win a couple, but the longer you stay, the house-edge takes over.

One is much better off going to Vegas and putting that same money on the red roulette square than one- as a layperson- is speculating on land in a market like this.

[Hero]

Interesting article: Florida Taking Its Toll (Brothers) On Daughter's Condo - Realty Check with Diana Olick - MSNBC.com

With more and more people cancelling, I'm surprised to see condos still popping up. There are more condos in their early stages than I would expect.

[CJFlorida]

Originally Posted by LM1

CJ and I disagree on a few things about real estate, but this is 100% accurate.

Remember that the house itself is simply the disposable product. They can throw up a house at any time... Sure, the costs of labor or materials might fluctuate a bit one way or the other, but the "house" itself is what can be easily replaced.

Land speculating in volatile RE markets is akin to options trading.

It's all risk, all reward and the fluctuations can be wild (for example, I recently purchased a couple lots in West-Central FL for $6300, which two years ago were selling for $45,000, ten years before that were selling for $900 each).
Really, land speculation has no place in a typical persons portfolio unless you have a killer, 1% sort of rarefied insight in the R/E market, a good supply a Malox and a risk tolerance on par with those rock climbers who scale huge faces without any safety gear. Your finances have to be structured in such a way that you can withstand immediate, often times profound losses with the knowledge that your insight and skill will cause you to have the best of it over time and you will make it all back.
This isn't "Investing For Everyone 101" kinda stuff. It's fairly complex. Anyone else who tries it is simply gambling. You might win a couple, but the longer you stay, the house-edge takes over.

One is much better off going to Vegas and putting that same money on the red roulette square than one- as a layperson- is speculating on land in a market like this.

Great post. That $900 to $45,000 to $6300 is a prime example of the fluctuations in Florida land in a relatively short time period.

[Dave_n_Tenn]

Just an FYI...

and this is purely anecdotal... my wife is in real estate (I'm not, thank goodness) and has had more closings in the first 6 weeks of 2008 than all of 2007. One thing to note is... the surprising number of European buyers... especially from Germany. All but two of the sales were foreclosures.

Interestingly..... the buyers from Germany all requested to stay in the home at least one night before deciding to make an offer. Very common in Europe, very difficult to arrange here.

Don't read into this as anything more than information.

[CJFlorida]

Originally Posted by Dave_n_Tenn

Just an FYI...

and this is purely anecdotal... my wife is in real estate (I'm not, thank goodness) and has had more closings in the first 6 weeks of 2008 than all of 2007. One thing to note is... the surprising number of European buyers... especially from Germany. All but two of the sales were foreclosures.

Interestingly..... the buyers from Germany all requested to stay in the home at least one night before deciding to make an offer. Very common in Europe, very difficult to arrange here.

Don't read into this as anything more than information.

The NAR has been targeting Europeans with advertising. Some will fall for the nonsense and catch the falling knife of Florida real estate. But not enough to make a difference.

[firemed]

Originally Posted by Dave_n_Tenn

Just an FYI...

and this is purely anecdotal... my wife is in real estate (I'm not, thank goodness) and has had more closings in the first 6 weeks of 2008 than all of 2007. One thing to note is... the surprising number of European buyers... especially from Germany. All but two of the sales were foreclosures.

Interestingly..... the buyers from Germany all requested to stay in the home at least one night before deciding to make an offer. Very common in Europe, very difficult to arrange here.

Don't read into this as anything more than information.

Well Yeah, The dollar is crashing! European buyers are getting a great deal with the dollar so low! Next year it should be lower yet.

[Wild Style]

good read (link)