Level Of Speculation Unknown
The Seattle Times has a story on investors turning from stocks to property. Then the writer reveals that has already occurred. "Last year, speculators went into overdrive in Las Vegas, Phoenix, many parts of California and southern Florida, buying perhaps 15 percent or more of homes sold."
"In some subdivisions, up to 60 percent of the owners were investors, which was leaving the regular homeowners in an uncomfortable situation. The market became flooded with rentals."
"In South Florida, such restrictions generally don't exist. 'We're seeing three times as many buyers as there are units,' said Jack McCabe, who says exuberant investors create artificial demand. 'Three-hundred- and 400-unit buildings sell out in a weekend. In my very, very conservative estimate, 40 percent of these sales are speculator-driven, and in some projects, it's as high as 80 percent.'"
"Overall, the speculation picture is muddy because there is no single definition of 'investor.'"
4 Comments:
I noticed there were no posts, so, totally off subject, if you want to see a funny cartoon on Greenspan....
http://biz.yahoo.com/happyhour/
Alright, I noticed the lack of participation here.
I have a friend that got let go from a sales rep position at an unfortunate time. His wife was 9 months pregnant. Pretty bad luck.
He didn't bother with a job search for his new family. He hooked up with a real estate speculator with 15 years experiences in multiple Western Markets. They have about $3,000,000 in hard money (silent partner investor) and look for distressed/REO homes buy, fix up and flip. They have their own crew of semi-skilled immigrant construction labor. As far as speculators go fairly honest work, they actually fix foundations and roofs.
He did not even miss a beat from being suprised and let go to matching his former solid income splitting the deals 50/50 with his new partner.
That is great work if you can get it and can stomach the chance of the music stopping and being left without a chair.
However, the fact that a good solid middle class income can be replaced that easily by speculating in real estate gives me pause...
A rising market covers a multitude of business sins.
un-freaking beliveable!
$100,000 that easy and they are holding out for more money!
to paraphrase Gary North, if someone puts free money in your hand, close your hand...
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