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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MoneyPenny who wrote (19359)	4/13/2004 4:19:09 PM
From: TH	Read Replies (1) \| Respond to of 306849

MoneyPenny, As you are aware, just about everyone in Michigan wants to retire to Florida or the Carolinas. So, that level of activity and property value increase does not surprise me. One of my consumption crazed friends bought a huge second home in the Orlando area. He is 38 and won't retire for at least 25 years, but he felt it was an investment he couldn't miss. So the 90% investor rate does not surprise me either. He has had a difficult time renting it, and many months he is not cash positive. I have a feeling that many homes in his "investor" sub are often vacant. I have no idea of the occupancy rate, but I would bet its about 50/50 year-round. The weeks it does rent, it commands a nice premium, so it covers a lot of the vacant weeks. Close to Mickey and that terrible International Drive -g- After the boomers are gone from Michigan, there will be a glut of housing here that reduces values to the point that maybe the sale of a home will make a nice down payment on one in Florida. The bigger question for your area is if we have a hard economic decline, do people stop vacation plans and cause foreclosures on those investor properties that require positive cash flow to remain solvent? I really don't know. Thx TH