the housing market is not easy to predict. even moreso, i wouldnt listen to opinions on the S. Florida market from people that live far away (i.e. hawaii)....but listen to reasoning for their opinions and base your decision on what seems most likely to you.
If we could predict the future.....we (and I mean Rx members epecially) would be filthy rich! Us gamblers would bet the farm on any sporting event if we knew the outcome! The one thing I would hate to see is if you listen to our poll answers and end up getting raped on the deal.
Not taking into account inflation makes this an extremely difficult poll to answer...i think prices will go up...but taking inflatioin into account....????
BOL
If we could predict the future.....we (and I mean Rx members epecially) would be filthy rich! Us gamblers would bet the farm on any sporting event if we knew the outcome! The one thing I would hate to see is if you listen to our poll answers and end up getting raped on the deal.
Not taking into account inflation makes this an extremely difficult poll to answer...i think prices will go up...but taking inflatioin into account....????
BOL
I couldnt guess that number. We have an election in that timeframe, and so many other unknowns. Fed Chairman Ben Bernanke is going to be under pressure with the money supply soon, and this congress is still spending like times are good, though tax revenue is not increasing at the same rate their budgets are. Bad scenario.
A sister, and brother live in West Palm Beach. Ill ask them. They are in the same market, and price range in their homes.
A sister, and brother live in West Palm Beach. Ill ask them. They are in the same market, and price range in their homes.
What are you looking for? Cost is the amount of dollars to build the house, including land acquisition cost. Price is what someone pays and value is what it is worth by comparison to the market. If you are ignoring inflation, are you talking cost adjusted for 2007 dollars. Cost include soft and hard, defined as loan fees and fees of construction. Hard cost are just that, the cost of board and nail. All three, cost, price and value have an inflation component to it, so you can't ignore inflation.
When I got my condo here in Central Florida about 1.5 years ago, I asked my real estate agent the same question. At the time I had an agent because I was looking at houses as well, but ultimately decided on a condo because the unit was in a good location (Winter Park) and just being built so I could pick and choose the various amenities and details before it was finished.
She was very honest even though she knew I was between renting and buying (heeeelllllooo lady, commission) she said that I shouldn't expect an ROI within the next 5 years in the market at all (meaning, even outside my price bracket) but not a drop either.
I ultimately decided to buy anyways because I can't stand seeing my money thrown away toward rent. Oh well, that was just her opinion (although she came with alot of experiance) but based on it I'd say little or no gain.
She was very honest even though she knew I was between renting and buying (heeeelllllooo lady, commission) she said that I shouldn't expect an ROI within the next 5 years in the market at all (meaning, even outside my price bracket) but not a drop either.
I ultimately decided to buy anyways because I can't stand seeing my money thrown away toward rent. Oh well, that was just her opinion (although she came with alot of experiance) but based on it I'd say little or no gain.
I think that bubble might have already burst! Miami is leading as the Nation's worst place a real estate investor can thrown a chunk of money. 2 years ago I had clients investing 250k, and turning the property in weeks for 750k. Don't expect to get that same windfall anytime real soon. With that said, however, 5 years is a long time. 5 years ago, no one would of guessed what the real estate market went through in the recent years. Realtor.com has a cool, free feature. You can type in any home address you want, and it shows how much it was bought/sold for in the recent years. It's quite interesting to see how some homes around this state have profited some saavy individuals in the past few years.
I don't think you can ever go wrong with property close to the beaches. That's a no-brainer. As others have said, location is a huge factor in your ROI. I still firmly believe real estate investing is the safest place to put your money, providing the time of purchase falls right. Sure beats the hell out of putting a chunk of money on Michigan in a damn bowl game!!
Historically, housing has always gone up, although not on a straight line basis. Your holding period of 5 years maybe to short to recognize large gains, never the less, the value of the home has nearly always tracked inflation, so my guess would be in the 1.5-2.5 % annual compound rate of growth over the next years.
