Contour Enthusiasts Group Archives Forums General Common Interests real estate/rant/comments please

Ok now we are quoting from the old post and about rates from last summer?

Oops! Didn't look at the date!

Damn, you've got a good memory...

I think mb is trying to confuse.

Beachfront real estate in Florida has been treating us REALLY well.. The economy may still suck, but it sure isn't affecting the rich! You should have gotten into this 2-3 years ago, because the price of admission is way too high now, and with impending rate hikes on the horizon, it's no longer a sure thing.

To give you an example of how crazy things have gotten down there - We bought some beachfront land in Melbourne Beach about 20 months ago for $300K. A year later, we had offers in the $600-700K range. Just last week, we got an offer of $1.3Mil for the land, and we're pretty confident we can get the bid up to $1.5Mil. Ironically, you can buy an actually house, literally across the street, for $250K. But there's no more beach to be bought up, so prices have skyrocketed. Supply and demand.

We've been involved in real estate for 15+ years, and it's definitely never a sure thing.. We sold 3 of our holdings last year for a loss (not a huge loss, considering the tax benefits we reaped from them over the years), but it goes to show you, you never know.. Something to think about.

there is also a very strong market for the rehabilitation of distressed properties. whether office, industrial, or residential, many areas (governments) are offering incentives through taxes or site improvments for developers willing to invest in depressed properties. i am looking at D or lower class office and industrial properties to rehab in Boston suburbs. with an architecturally sensitive facade, and primarily equity financing, i can imagine an ROI 100 to 150 basis points higher than the average cap rate.

there may also be a serious opportunity for developers to rehab old buildings for use as childcare centers in the suburbs. many states (including MA) are cracking down on inadequate early learning senters for children. child care has become heavily regulated in recent years and by creating a space for operators to move into without many modifications, there could be some consistent returns.