Bluffton: why so many new homes for sale? (Hardeeville: 2009, apartments)

[TootsieWootsie]

Why so many new townhouses and condos for sale in Bluffton? These are homes from, say, 2002-today. There has to be some reason (i.e., lay offs, flooding, hurricanes, etc.). What is going on in Bluffton near Hilton Head?

[GJBenn85]

Simple, Bluffton saw most of its growth in 2001-2006. A tremendous number of new homes (particularly what are deemed "more affordable" than plantation homes) and so-called condos (really apartments) were built. A lot of them were built or originally purchased based on speculation.

Flooding and hurricanes are not the issues. This was discussed in your other thread, yet you still seem to be focused on them.

[TootsieWootsie]

Sounds like you can pick up some great deals then.

[geezerman7]

hey Toots,

indeed...there are opportunities...but the parade of distressed properties is just beginning. the problem may go from micro (individual short-sale and pre-foreclosure houses....to macro...where some entire plantations/developments start to feel a bit of financial stress. for example, people at berkeley hall and colleton river are willing to puke their houses out...for 60 cents on the buck. one has to wonder if they know something toots and geezer don't...lol.

separately, the cost of carry at colleton river is $2, 500 per month...if you include dues, assessments, reserves, insurance, property taxes and maintenance. that's huge for a second home!

i agree...nows the time to buy...just be careful...it's still a caveat emptor market

[TootsieWootsie]

$2,500 a month is not what I'm going to spend. I think that is just ridiculously high, but I'm cheaper than that. Arkkkkk...let someone else pay that one.

[oz in SC]

I believe it is simply a matter of way too many homes and not enough people...

As to developments having problems,Traditions out towards Hardeeville is having issues I believe.

[geezerman7]

Oz and Toots,

I'm starting to wonder if the brokers have an ethical and/or legal responsibility to clearly disclose the financial condition...or impending financial problems...to prospective buyers. I ask because...without mentioning names of individuals or communities...someone i know was given somewhat incorrect info from the "front office" of a plantation...prior to bidding on a house. naturally, the person in the office was also an owner...and not wholly objective. I think the only major doomsday scenario is if the "initial developer" of these newer plantations...who usually retain "a lot of lots"....cave to the financial crisis.

[rubber_factory]

Not in Bluffton.. but a developer recently went bust on the NC coast near where I live. So not far away, it is happening.

Company behind Brunswick, Pender subdivisions files for bankrupcy | StarNewsOnline.com | Star-News | Wilmington, NC

Goose Marsh, which has been dormant for months, was planned for 700 homes. Only one house is occupied at Goose Marsh, according to Jana Berg, assistant Brunswick County attorney. “The county has already declared (the developer) in default of its obligations to build infrastructure,” Berg said. “They had posted a letter of credit to guarantee installation of the required infrastructure, and we have collected the funds” – $175,000.
The lone house does have utilities, including water and sewer, Berg added. Buyers who got mortgages for their homes in Goose Marsh couldn’t close, and one person who paid cash for a home was left without any of the planned amenities, former Dilsheimer employee David Britt told the Star-News earlier this month.

[geezerman7]

Oz...

I agree with your basic supply and demand comment..."too many homes and not enough people."

i looked at some houses 18 months ago and the brokers were under the assumption that baby boomers would be migrating there for decades...when..in fact...every baby-boomer i knew over age 55 already had a second-home...as did the younger baby-boomers with excess cash.

continuing along the baby-boomer theme....i fervently believe the golf frenzy is done/over/kaput. it's so..umm...twentieth century. (FYI...i love the game). why are houses at colleton river and wexford selling for 80% of replacement value?...and still falling. the new influx of buyers doesn't want to pay the burdensome fees. "welcome to berkeley hall...where are people aren't exclusive, but our annual fees are."

i'm not a doomsdayer...in most of these communities, it's a buying opportunity now...IF...it'll be your primary residence.

[GJBenn85]

Originally Posted by geezerman7

i'm not a doomsdayer...in most of these communities, it's a buying opportunity now...IF...it'll be your primary residence.

I think that is the key. There are a significant number of second homes in this area but the more modest neighborhoods such as Indigo Run and Hilton Head Plantation are not taking the same hit as Colleton, Belfair, etc., likely because the annual cost of maintaining a second or even primary residence is a fraction of the cost. In HHP and Indigo, for example, the property taxes, POA dues, and insurance can easily be covered by the funds (likely with excess $) needed just to maintain the mandatory golf membership in the "exclusive" Bluffton golf plantations.