HERE'S WHAT I THINK
Tallahassee real estate is a great investment
The Tallahassee real estate market has continually shown over the past fifty years to be an excellent place to invest for long-term wealth creation. Currently, the Tallahassee real estate market, stable with government employment and student population growth, is holding strong in a tough real estate market, compared to the rest of the state of Florida.
With an annual appreciation rate of 5% or more, Tallahassee homes are a smart way to beat the banks and stock market returns. Look at ROI exceeding 20% with the right amount of leverage in your Tallahassee real estate investment.
These Links Will Set You Free
- Link to Tallahassee's History Points The Path To The Future
- How do you argue with 18 years of history! A 5% annualized appreciation rate is all the proof we need.
- Link To A Case Study With Charts, Graphs, And Analysis
- This is a case study, using real market information, that shows that owning a home, versus leasing, yielded the Owner a return on his investment that was untouchable in other investment opportunities outside of real estate.
- Link to Promising, Below Cost Purchases
- There is no way to replace the low-end, it is selling below replacement cost.
YOUR TURN!
Tallahassee real estate is a great investment
Fetching blurbs now... please stand byYes, you're right!
TallahasseeRealEstate says:
Mojo, I am having a hard time believing that you are an accountant. You do not seem to have a grasp of the financial aspects of investing (real estate or otherwise). For example, you stated " don't think a piece of dirt is worth $100,000 in Tallahassee. For a long times, you can buy a home, and get 10% of home value as rent each year, or P/E of 10. you know what's happen now.
In the stock market, I can find many stocks selling at 3-5 times pretax earning."
My friend, Earnings and revenues are two very seperate things. You cannot use a PE ratio analysis in the stock market to compare to a PR ratio analysis in real estate and speak of them as congruent.
Perhaps you might want to consider an ROI analysis. Consider moderately leveraged, cash-flow real estate against anything you want in the stock market. If you go long-term (10+ years), there is no way to beat the real estate ROI in the stock market (unless you consider blind luck).
Posted March 14, 2008
johnston19 says:
Mojo, I might be convincing me to change sides. What one key metric would you consider most important before buying RE?
Posted March 13, 2008
TallahasseeRealEstate says:
Mojo, you are no contrarian, you are just spouting the same doom and gloom as the rest of the country.
Posted March 10, 2008
Dave says:
Mojo,
Do you own Real Estate?
Posted March 10, 2008
TallahasseeRealEstate says:
Mojo, posting often doesn't bring out "more" of you.
Posted March 09, 2008
TallahasseeRealEstate says:
Mojo, you say we have "many lender (sic) going out of business" but I haven't seent that. I hear your opinion, but have not seen the facts back it up.
Posted March 09, 2008
TallahasseeRealEstate says:
Thanks Michelle. OK Mojo, I'm seeing this side of the board growing, where are the other bears?
Posted March 09, 2008
Michelle says:
I live in Tallahassee and have seen more homes on the market now than I've seen in a long, long time. I'm thinking of buying a bigger house because I'm approved for a bigger loan and I figure rates are probably going to go up in a while. I know I'll be living here for many more years, so I agree with Joe that the return will be good.
Posted March 09, 2008
TallahasseeRealEstate says:
Mojo, You always have opinions, but never facts. Are you sure you've checked the batteries in your crystal ball?
Posted March 08, 2008
No way, Monkeybrain!
MOJO says:
Joe,
Things are getting real bad in real estate nowadays in Tallahassee. It begins to impact my tax buiness. With tax season just about to be over, I have lost few real estate clients.
I think the problem is that we have a standstill, buyers still wait on the sideline for lower prices, sellers refuse to cut prices aggressively to sell. Unfortunately realtors got stuck in the middle with very little activities. The only way to break this logjam is to have sellers to cut prices.
Posted April 11, 2008
MOJO says:
Joe,
You have to use leverage to juice up the return in real estate. And depending on steady increase in real estate value to make your investment work.
Leverage cuts both way, if the home prices fall, like now, loss on your investment can be huge. The problems that we have today in real estate are result of too many people borrow too much speculate in real estate.
Posted March 14, 2008
MOJO says:
MOJO is actully is a CPA, Yes, I believe merits in investing real estate, There are many tax advantages. But the price has to be right to make sense. If you buy anything at bubble-like price, return would be very low. I don't think a piece of dirt is worth $100,000 in Tallahassee. For a long times, you can buy a home, and get 10% of home value as rent each year, or P/E of 10. you know what's happen now.
In the stock market, I can find many stocks selling at 3-5 times pretax earning. Some of them are unregulated toll bridges, which means very high barriers to entry.
Why investing in real estate, where I can buy stocks selling for dirt cheap, and I know for sure it can grow at 10-15% per year?
Posted March 13, 2008
MOJO says:
The best time to buy real estate is about one year AFTER the building permit has hit the bottom. Why? After permits felt for a long time, builders simply don't have any money to buy lands anymore, thus land prices will fall. Once the costs of building a home fall low enough, a contractor can build houses again at a price people can afford. then, permits will gradually increase. Right now the permit is in a free fall. prices will fall along with the permit.
http://research.stlouisfed.org/fred2/series/PERMIT
Posted March 13, 2008
MOJO says:
MOJO does not own any real estate, but he is ready for bottom fishing. Sales volume would only be 50% of the peak, which means many homes would sit on the market for long long time.
In many ways, the lending standard has gotten tighter, but not tight. People still can get mortgage easily. Wait until mortgage underwriting standard gets really tight, let us see how prices will respond.
Free market is used to allocate resources, when we have a surplus of inventory, like now in Real estate, prices will fall, activities will decrease. The resources will be used to find more oils, and other commodities. Despite all the drawbacks, capitalism (free market)works
One more thing, did you know Ben Bernankee said that when a lender foreclosed a home, the recovery rate is only 50%, when you factoring legal fees, real estate commissions, lost interests, Taxes. OUCH, interest rates on mortgage are going higher to compensate lenders for the risks they are taking
Posted March 10, 2008
MOJO says:
Joe,
With all respect, I think I am still the only contrarian here. You sides are growing, My side is only me. I am a truly lonely contrarian. It is always warmer inside of herd
Posted March 09, 2008
MOJO says:
JOe,
Many builders are going to go out of business. I miswrite what I meant.
In Tallahassee, we just have lenders tightening up lending standards. Home prices just started to fall, like I said earlier, Tallahassee real estate is a lagging big cities by about a year.
How is rental market in Tallahassee? Are rents holding up OK?
Posted March 09, 2008
MOJO says:
If home prices fall, it's not a bad thing. It means buyers can save money. I think falling home prices is a wash in term of whole economy.
How is the rental market in Tallahassee, Joe? Do you have a hard time or easy time to lease out properties?
Posted March 09, 2008
MOJO says:
Ok Joe, The fact is we have lots of inventory, just like Michele said. High inventory means only one thing, lower prices ahead. At a right price level, inventory will get clear. The facts are also we have many lender gone out of businesses. The fact is delinquency are way up, NY times report that Home delinqency + pending foreclosures are the highest in the history right now. All pointing to one thing. lower prices.
Big cities like Miami and FT Lauderdales are leading price indicator for Tallahassee, usually by one year.
Posted March 09, 2008
mojo says:
Not so fast my friend,I think prices are over valued by 20-30%.
Posted March 08, 2008
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