The Times - something to think about!

[dodgey memory]

There is an article in the Bricks and Mortar section of todays The Times about buying a villa in Florida. Quite interesting. I thought the price $230,000 was brilliant for a 4 bedroom house at Highgrove (off H27, just how many more can they cram along there) then I realised this was in 2003. That got my thinking (always dangerous) Do you think that eventually saturation point is going to be reached in Orlando? There seems to be no end to building. Already this seems to be most telling on the road system.

[wrpac00]

I think your absolutely right. There has a got to be a saturation point and I don't think we are that far away from it. From reading on the forum and others owners are finding bookings getting less each year.

A lot of owners, current and new, rely heavily on renting to make ends meet and with more homes available to rent the butter is going to be spread thinner which I think will force people to sell up. I think the days have gone when you bought a place as an investment, not unless you can hang on for about 10 years.

[chunkichik]

Its got to happen at some point and although part of me would like my own villa, perhaps it would be more fun to rent out a different one each time, it would take a good few years to get through them all[msnsmile2]

[chrizzy100]

I think we can only wait and see......if you're buying for all the right reason........because you love Orlando etc......and if you have the money to buy without renting.....then the prices should not worry anyone.......be they going up or down......I have noticed a slow down on the Cape in home sells......houses are now on the market longer......but then I'd think twice about paying $360k for a wooden shed with only 4 rooms......

[chunkichik]

Chrizzy, you've shattered my dreams!!!!! perhaps I am a bit old for Dawson's Creek after all[msnembarrased][msnwink]

[Cruella DeVilla]

We are one of the lucky ones that can afford not to have guests in but choose to share our house as Mummy always said I had to
As long as there is demand there shall no doubt be supply at whatever crazy costs!

[chrizzy100]

<blockquote id="quote" class="ffs">quote:Originally posted by chunkichik
Chrizzy, you've shattered my dreams!!!!! perhaps I am a bit old for Dawson's Creek after all[msnembarrased][msnwink]
[/quote]


We have been looking for a smaller home to keep on the Cape.....but no luck so far.....we may buy near the golf course....and rent out.....the houses there are now cheaper then ours........so its a thought......I'd not buy anywhere near water on the Cape or anywhere for that matter...Ins costs an arm and a leg up here... if you can get it at all if you're by water..........

[Snapper]

I always tend to think that property is a very long term investment. It's a simple game - you try to get someone else to buy the place for you by using rents to cover the mortgage (more or less). Do this for 25 or 30 years and you own the property which should be worth a chunk of dosh. That way of looking at property investment always works.

If one looks to 'invest' in property in the hope that the price goes up and you can make money that way then, in my humble opinion, that isn't property investment. That's speculation. You could just as easy speculate the stock market, only the entry and exit charges for the stock market are much lower ($10 per trade compared to $10,000 per trade for property).

While property does tend to go up there's no rule that says it always will, and there's no rule that says it might not drop for a year or two. You've just got to do the sums. If you can rent out property and cover the costs then you're onto a winner, as long as you are looking 10 or 20 years out. If you can't and you are just dabbling hoping that the price will keep going up then you're taking a huge risk. Some huge risks pay off ... some don't.

[Nostromo]

<blockquote id="quote" class="ffs">quote:Originally posted by Snapper
I always tend to think that property is a very long term investment. It's a simple game - you try to get someone else to buy the place for you by using rents to cover the mortgage (more or less). Do this for 25 or 30 years and you own the property which should be worth a chunk of dosh. That way of looking at property investment always works.

If one looks to 'invest' in property in the hope that the price goes up and you can make money that way then, in my humble opinion, that isn't property investment. That's speculation. You could just as easy speculate the stock market, only the entry and exit charges for the stock market are much lower ($10 per trade compared to $10,000 per trade for property).

While property does tend to go up there's no rule that says it always will, and there's no rule that says it might not drop for a year or two. You've just got to do the sums. If you can rent out property and cover the costs then you're onto a winner, as long as you are looking 10 or 20 years out. If you can't and you are just dabbling hoping that the price will keep going up then you're taking a huge risk. Some huge risks pay off ... some don't.
[/quote]

That is a very good and interesting observation Snapper. It made me think of our own current position and future plans. Both of us are in our late 40s and in good health and all being well, we hope to retire together in about 12 years time, by which time a sizeable chunk of our repayment mortgage will be paid up. Barring a major property bust (which is possible, I suppose) we hope that out house would be worth a fair bit more than what we paid for it back in 1997, including the extra rooms that we put in. We plan to retire to somewhere warmer than the UK - either Florida or more likely our native India and live off the 'profits' of the sale of the house plus the good pension schemes that we have taken out. But to a large extent this depends on property prices staying stable at least, if not actually going through the roof.

[Snapper]

If you were to downsize a bit Nostromo you might even be able to rent out your UK place and use the income from this to cover the purchase of a smaller place in the sun. Kind of like buying a villa in reverse.

As soon as you own one property outright with no mortgage you have tons and tons of options. Only 8 years to go ... doesn't sound too long if I say it quickly!