St Joe slashing more jobs here in the Great NW

[Smiling JOe]

It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting.


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...and in the mean time, look forward to seeing more subcontractors and their help drinking Budweiser on the sites. Currently, a builder is fined $500 per beer found being consumed on the jobsite by a builder or subs. With the guys who monitor and assess the fines being removed, you can also forget about the ban of working on the houses under construction on the weekend and after hours.

 

[hi n dry]

Is this move by St Joe an indicator of a significant lack of confidence in the long-term future of Florida real estate?

 

[Smiling JOe]

Is this move by St Joe an indicator of a significant lack of confidence in the long-term future of Florida real estate?

I think it has more to do with shareholder confidence in JOE's stock price, or lack thereof. I challenge you to look around the world and find better deals than in SoWal when you consider all that this land and beach offers. This area will come back strong -- just need to weed out the day traders.

If you want to take notes from the stock market crash of 2000, look at all the people who bought the DOW when that market burst and are now holding those shares at all time record highs. The people who are buying in at the bottom right now, will find appreciation with time. Time will pass as will news stories of national real estate market bursting and people will no longer be terrified of purchasing a vacation home. I don't think we will ever have the prices of Nantucket, Martha's Vineyard and the California coastline, but I think you will continue to see prices increase here in the mid to long term. You just have to find the better valued properties and purchase selectively.

JOE is making this decision for the wrong reasons, in my opinion. They simply care about share price. JOE is up around 40% from Jun '06.

I think this chart of JOE stock shows my example well and also be used to demonstrate what has/is happening in the real estate market. People who bought in '05 may be hurting. People who bought in 04, may be okay, people who bought pre-05, may be smiling a bit if they forget about holding on through 05. People who buy in the market bottom which we are currently in, will probably see some upside in the future.

 

[flyforfun]

It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting.


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Shelly, the HOA meetings I have attended have always been interesting. I anticipate a decrease in association costs and much greater efficency in all area's.

 

[SHELLY]

Shelly, the HOA meetings I have attended have always been interesting. I anticipate a decrease in association costs and much greater efficency in all area's.

Probably might happen during the "honeymoon" stage where the townsfolks attempt to become Mayberry RFD....but I think HOAs who try to cut association costs will find that facilities and services will suffer. It will be difficult for free-lance HOAs to match what the SoWal developers provided for the price. Remember, they had a much greater profit motive to keep the places looking spiffy and they were in a better position to secure labor and materials at lower costs than any do-it-yourself HOA.

 

[fisher]

Shelly, the HOA meetings I have attended have always been interesting. I anticipate a decrease in association costs and much greater efficency in all area's.

Keep dreaming about this too, FFF.

 

[fisher]

Does this mean Watersound/Watercolor property prices might get even cheaper as association fees shoot skyward ?

How much lower can a formerly $500k lot go? Do I hear $150k?

Lot prices are already down to 2004 levels. I wouldn't be surprised to see them fall close to original lot and house prices from 2003. That would mean nice lots in the $250k range and cottages in phase I for under $1 million.

 

[fisher]

Joe, actually what we have been informed is personal who are directly associated with property management are affected. This void will be handled by other management firms that the HOA will have to contract with. Basically what they are doing is shifting more cost of managment to home owners. As a homeowner in WS, we fell pretty confident that we will do a much more efficent job in this area than St. Joe, and I am certain other communities feel the same. What I have been told is that St. Joe still will control through the design review process property build outs and fines.

Actually, what Joe is doing is outsourcing the management of the HOA (accounting, maintenance, etc.). This announcement does not mean that Joe is turning over CONTROL of the HOA's to the homeowners. Joe will continue to be the only vote that counts in HOA matters in Watercolor and Watersound.

 

[flyforfun]

Actually, what Joe is doing is outsourcing the management of the HOA (accounting, maintenance, etc.). This announcement does not mean that Joe is turning over CONTROL of the HOA's to the homeowners. Joe will continue to be the only vote that counts in HOA matters in Watercolor and Watersound.

Fisher you and Economic Meltdown Shelly fear change. You both see change as negative...never a positive spin on anything. Real estate goes up and down, but the beach will always be there. Neither of you own property in those developments. Our HOA's have been trimming budgets and have made lots of positive changes. Nothing changes in the DRB, and there is 140 homes currently in the process. Once St. Joe sells 50 more units, our HOA will have full control. When you buy into these developments all of this is spelled out, so its not a big deal unless you have never had to take care of yourself and manage a budget.

 

[goofer]

...and in the mean time, look forward to seeing more subcontractors and their help drinking Budweiser on the sites. Currently, a builder is fined $500 per beer found being consumed on the jobsite by a builder or subs. With the guys who monitor and assess the fines being removed, you can also forget about the ban of working on the houses under construction on the weekend and after hours.

SJ....I respectively disagree with you on this point. The general contractors I have seen and talked with in WS are all straight shooters and stand-up guys who have a reputation to protect. Most successful general contractors deal with the same subs over and over so there is a simpatico and continuity on the jobsites. Granted, I have not talked with all the GC's and I am certain that some are better than others. But I do know that Ray Jackson, who is building my house is topshelf. I also know that Peter Horn of ARTISAN is also topshelf. The really good GC's run a tight ship and monitor the jobs very closely. They continually work with the most professional subs. All I can say is that I am EXTREMELY satisfied with Ray Jackson and the subs that are working on my project. I have spent considerable time at WSB and will continue to monitor my project. I am amazed at how clean the subs keep my jobsite. I have built 3 custom homes prior to WSB and I can say this project has been the smoothest and most professionally conducted.