Wednesday, April 16th, 2008
The more I dig into some of the areas I’m looking at, the more I’m feeling sorry for folks in the area. Most of the properties I’m seeing were last sold in 2004, 2005, and 2006, for two or three times what the property is worth today. (who knows how much they’ll be worth at the end of the year.) I can’t even begin to imagine what it feels like buying a beach house for $950,000.00 and then listing it two years later for $650,000.00, then $550,000.00 and then $455,000.00. If things go the way the experts are predicting, these homes might get back down to their 2001 or 2002 price levels, which means that same house may end up being listed for $200,000.00 – $300,000.00. Can you imagine taking a $700,000.00 loss on an investment you thought would net you a couple hundred grand in profits plus rental income? That has got to suck.