Village of South Walton

[spinDrAtl]

Got an email from these guys regarding end of year sales.

Studio flats - 99k
1 BR - 209k
3 BR - 399k

Back when this place was built, it seems like the studio flats were going for around 99k preconstruction (2003 or so?). Some folks tried to flip them for as high as 209k. Granted those units probably fronted 30A and these current ones are back behind the front buildings but prices have been dropped from the last 'clearance' of 159k. Prior to that the developer had them up around 179k or higher, I think.

Anyone (realtors maybe?) have opinions on these new prices and if they represent good buys?

 

[SHELLY]

Anyone (realtors maybe?) have opinions on these new prices and if they represent good buys?

I'll save you the trouble of asking ever again. Here's the answer...regardless of when you ask that question:

"Now is a great time to buy!"

Case in point: Here is a full page ad the NAR put in newspapers across the country in November 2006. http://www.realtor.org/files/home_buyers___sellers/good_time_to_buy_ad.pdf



<sarcasm off>

.

 

[RiverOtter]

got that same email

 

[livingiSoWal]

I think its a pretty good deal. The closest Studio is priced at 125k and was purchased for 113k in 2004. If they are not bought soon though, the prices will keep going on down. And Shelly, nows a better time to buy then yesterday was. We are a day closer to the market being back. ha

 

[beachmouse]

What's gross annual rent on similar units been this year?

 

[livingiSoWal]

That I could not tell you. I'll see if some one makes a claim in the MLS.

 

[livingiSoWal]

Unit 207 has 19k on rentals in the books for this year, and i believe that staement was made in June, but don't quote me.

 

[beachmouse]

19K on a 209K property suggests it's a pretty fair price (I've always heard 10% gross was the right ratio for investment/commercial property)

19K on a 99K property, and you might actually be close to cashflow positive once HOA fees, management fees, shrinkage, and whatnot are accounted for.

 

[Little Fish]

Beachmouse:

I've not heard of anyone experiencing a 10% cap ratio on rental properties in the Panhandle... unless of course, you're talking about a property that was purchased many years ago prior to the boom. Therefore, if you can believe the unit does rent for $19K/yr., I agree it appears to be a good deal.

Little Fish

 

[beachmouse]

I think my parents get something around a 10% cap ratio on their place in Maravilla that they bought in 2002.

But for most properties in the area, it always was more about being a stakeholder in the area/lifestyle than it was about making a decent return on your investment, and prices seem to have always reflected that to some degree, even when it wasn't a boom year.

I see 10x cap rate as a true fair market price if people aren't emotionally invested in the property, or expecting high appreciation rates.