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Old 07-02-2007, 07:00 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74

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Quote:
Originally Posted by JimKing View Post
Ocala is indeed a bubble market. There are currently over 8000 properties for sale in Ocala, not including for sale by owners. That is almost 4 times the historic numbers.....and growing each month.

There are over 300 rentals available in Ocala. Houses that sell list for $200,000 and over can be rented for $800-900/month.

Ocala is as much a bubble market as any other. It amazes me that almost everyone who is going to put their house up for sale says the same exact thing...."my market is different, I'm not worried."

The denial is unbelievable.
There's a reason why some areas have higher selling prices right now. Because some people are still overspending for their properties. If one were to look at the average days on market in these areas, I'd be willing to bet that they sit there quite a while before they sell.

If you're gonna sell, sell right now while a few people are still overspending on homes. The prices are dropping just about everywhere in Florida and will continue to do so until price can equate with affordability.

Between my income and my wife's income, we could easily afford a $300k home, but there's too many other variables to consider when buying a home. We both have student loans, two car payments, credit cards, etc. Just because we qualify for more, doesn't mean we're willing to spend more.

 
Old 07-02-2007, 07:02 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
Quote:
Originally Posted by UKOK View Post
Just another example of the insane disparity between the rental and sales market. You can buy this house in The Founders Club for $1.5 million:
Or you can rent the same house for $3,900 a month:
Using JK's formula, the owner paid between $468 to $585k for that home.

NYCF
 
Old 07-02-2007, 07:47 AM
 
3,269 posts, read 8,384,067 times
Reputation: 2000
Quote:
Originally Posted by nychiefsfan View Post
Using JK's formula, the owner paid between $468 to $585k for that home.
Yeah, except that you know they didn't. They are just trying to pass the bag on to someone else. The sorry thing is, somebody will probably get $100k off, think they got a bargain and happily buy it.
 
Old 07-02-2007, 08:28 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
Quote:
Originally Posted by UKOK View Post
Yeah, except that you know they didn't. They are just trying to pass the bag on to someone else. The sorry thing is, somebody will probably get $100k off, think they got a bargain and happily buy it.
I did a little research on that property. I eventually found the address and went to the Sarasota property assessor's webpage to get the numbers.

Here they are:
Current Selling Price: $1,500,000
Just (Market) Value: $279,200
Assessed Value: $279,200

The house was bought on 9/28/2005 for $309,000

Somehow, the value of this house (at least to the person trying to sell it) has increased 5x in less than 2 years.

This is why there's such a housing slump. It because people like this flood the market with unrealistic expectations.
 
Old 07-02-2007, 08:44 AM
 
Location: Heartland Florida
9,324 posts, read 22,266,425 times
Reputation: 4859
Who would even consider paying 1.5 million for that shack? I know of homes in Southwest Ranches for the same price that are much more beautiful and spacious. Even 300,000 is a stretch for that place- it looks like it doesn't even have a yard. YUCK!
 
Old 07-02-2007, 08:45 AM
 
270 posts, read 496,612 times
Reputation: 76
Quote:
Originally Posted by nychiefsfan View Post
I did a little research on that property. I eventually found the address and went to the Sarasota property assessor's webpage to get the numbers.

Here they are:
Current Selling Price: $1,500,000
Just (Market) Value: $279,200
Assessed Value: $279,200

The house was bought on 9/28/2005 for $309,000

Somehow, the value of this house (at least to the person trying to sell it) has increased 5x in less than 2 years.

This is why there's such a housing slump. It because people like this flood the market with unrealistic expectations.
the 309k price might have been the land though,the listing says it was built in 06....so the 05 number might not reflect the house...its still to much though...theres a house in my neighborhood that was bought for 860k,the lady turned around a year later and wanted,1.5mil...i couldnt believe it...it obviously hasnt sold yet....anyone with that kind of money wouldnt be caught dead living in polk county...
 
Old 07-02-2007, 08:48 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
I honestly can't say that the property I researched was bought by a homeowner or bought as part of an investment group that each laid of $309k to sell luxury homes for a profit. If that was the case, then the price might justify itself, if that was the intention of the investors.

People who can afford to invest $300k into something like this are the ones who can market homes like these to those who can afford them.

I don't know why there's such a markup, but I need to try to look at things from different perspectives as well. On paper, it looks like a rip-off, but it's possible that an investment group is trying to maket the homes to sell to the affluent for a big profit.
 
Old 07-02-2007, 09:09 AM
 
3,269 posts, read 8,384,067 times
Reputation: 2000
Quote:
Originally Posted by nychiefsfan View Post
I did a little research on that property. I eventually found the address and went to the Sarasota property assessor's webpage to get the numbers.

Here they are:
Current Selling Price: $1,500,000
Just (Market) Value: $279,200
Assessed Value: $279,200

The house was bought on 9/28/2005 for $309,000

Somehow, the value of this house (at least to the person trying to sell it) has increased 5x in less than 2 years.

This is why there's such a housing slump. It because people like this flood the market with unrealistic expectations.
Good detective work!

I think that's the land price. If that's the last transaction, then a builder owns the lot and built a spec house or a buyer backed out. Either way the builder finished it in 2006 and has been stuck with it since.

Seriously what can that house cost to build? I know it's in the Founders Club and all but only a sucker would buy it for 1.5mill when you can rent it for so cheap.
 
Old 07-02-2007, 09:11 AM
 
270 posts, read 496,612 times
Reputation: 76
Default ..........

has anyone been watching these real estate shows ?? flip this house,bought and sold,my first house,ect.....they are starting to show the slowdown in sales,its pretty funny,yesterday one of the tips was...."when making an offer single family home vs. townhome or others being offered by builders..remember the builders usually have less room to play with,as they have a set final price."...I started laughing,because as we all know builders have the biggest discounts,and incentives....."sure we could throw a pool into that price,and a mustang too.."so the girl in one of these shows,is nervous about buying her first house, the seller says we will give you 10k dollars for buying,$50 dollars more gets you a fridge,another $50 bucks gets you a 42inch plasma,the girls like wheres the catch?? seller says no catch,just good deals we got going on...Im sitting at home thinking maybe the price of the house is the catch,not the plasma...I never thought home related programs would be so funny...they also had a house in burbank,no front yard,it had front dirt..no central a.c. ..ugly house overall....they wanted to list at over 600k..another house sold for 1.2mil...and the agent got 6%.. he made a whole salary in one sale...thats to much if you ask me I dont care how much they work for that sale...
 
Old 07-02-2007, 09:21 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
Yanno, that would be a great idea right now. Imagine if you could get together 30 people willing to invest $200k into building a luxury subdivision. Finding the right property and area is key. For example, you can buy 40 acres in the panhandle, 20 miles from the beach for around $200k. If you had 1 acre properties and used 35 acres for homes, the remaining 5 acres could be used to pave roads.

Disclaimer: This premise is based on very simple math and with NO knowledge of actual costs. I'm just having a little fun with numbers

You could build 10 houses for $400 to 500k ea and use the rest for roads, taxes, etc.
If the houses sold for $1 mil each, the first 10 homes sold would get back everyone's investment, plus 4 million (in which 3 mil would be reinvested; the remained would be put into a high interest account).

Total investment: $6 million
Avg selling price of homes: 1 million

10 x 1 mil = 10 mil
less 6 mil investment
4 mil leftover

Invest 3 mil into 7 more homes
1.5 mil leftover
+ 7 mil for homes after they sell
= 8.5 mil

There's still 18 acres of available housing left. Do the math from this point forward.

Conversely, the idea could crap the bed and everyone would be out a lot of money. LOL
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