I appreciate people saying to me that they are waiting for the market to bottom out. I understand that. But here is something to contemplate. There will be nothing new delivered between now and 2012.
It is going to cost $200 per square foot more to build than it did when all this was built 3-4 years ago. As for the distressed market is concerned… if you remove Treo, La Vita and Acqua Vista from the mix you eliminate 80% of the distressed market! Holy cow!
The inventory of 700+ condos will not be inundated with anything new. Stop looking at CCDC’s website! That stuff isn’t getting built! I am using a lot of exclamation points for emhasis! The cranes you see in the sky in downtown are for hotels, apartments (rentals) and for commercial/office buildings.
This is a huge time to buy. Rates are still pretty good but to get the money is getting tougher. 100% financing is gone- your above 720 credit score isn’t a VIP pass to a loan anymore. Make sure you have money to bring down and you’re not buying more than you can handle.
Developers are now going to be buying up land, lots of land! The lots that cost $40 Million in 2005 are now appraising at around half that(estimated). This is the time that developers are lining up to make their big bucks in five years from now. The cost to build in four years is substantially higher than four years ago- please take that into consideration. You don’t have to try to undercut the market with ridiculous low ball offers to make yourself feel good. Getting down here and hanging out for five or more years will make you feel really good. I look forward to digging up this blog on April 30th 2013 and saying- “I told you so!” but not in a “nanny nanny boo-boo” way but in a “congratulations on your great investment five years ago” way. A positive way.
With everything, make sure you find a place you can live in for a number of years and be comfortable. Make sure you aren’t borrowing too much. Make sure you have quality consultation for your investment and not someone that is trying to sell you something. The last comment is a plug for us. Come in and find out for yourselves. But don’t miss out on this opportunity.