Quote:
Originally Posted by jetskier
The issue is that real estate requires ongoing investment. If you buy this property you will have to pay for:
- Taxes
- Condo Fees
- Utilities
- Insurance
That could easily run $10k per year. If you carry this for a couple of years the basis would likely be about $150k...sell it at $180k with a real estate commission and closing costs, you are running about $165k. So, you made 9%over two years with risk (presuming that the market comes back and this all plays out). Put the money in a CD and you will do about the same without the risk. So, this would have to come down to well below $100k before a speculator would want to invest.
Jetskier  |
However, you do not get any enjoyment out of money in the bank, only interest. With lakes region property, you get the ability to own part of the best place on Earth. There is huge hidden value in that, in my opinion.
That said, it is a lot less expensive to enjoy the lake when the values are going up than when the values are dropping like they have the past three years.
I believe good buying times are ahead and we will be looking to sell what we have so that we can buy something much better in the next year or so.
Timing is the big question. You need to make the deals near the bottom which is still in the future.
R2B