Terry's Tidbits

I’m often asked, “When is the real estate balloon going to pop in Florida”?  My answer is the same today as it was three years ago; it’s not, at least not in the very near future, in my opinion.  With nearly 79M baby-boomers nearing or ready to retire within the next few years, where do they want to go… the sunshine calls for them.  The climate in North Central Florida still gives them three seasons, (sort of).  Convenient driving distance to both coasts, area attractions of Orlando, Daytona and Tampa gives the children and grandchildren a same day visit while still making it to Grandma and Grandpa’s house for a late dinner. 
 
North Central Florida is a great place to live, even if you’re not ready to retire.  The opportunity is still there to make money in the real estate investment market but you are going to have to do your homework.  The properties just needing paint and carpet for a great return are there but you are going to be paying a premium for them.  Homes that I was buying just five years ago for $35K are now $85-90K in the same condition, but keep in mind that the finished product was selling for $75-80K, now they are selling for $135K plus.  The returns are less per dollar invested but a $25-30K payoff is still a good return, regardless of how you look at it.  Keep this in mind, the greater risk you take, typically, the greater the return.  There are homes you can buy for $185K, invest an additional $25K and get a return of $50-60K, but the dollars invested are greater, it’s all in what you can afford.
 
The rental market locally is currently operating with a 25-30% vacancy ratio which gives the renters out there a lot of leverage when deciding on where they want to live and how much they are willing to pay in monthly rents.  Investors are still buying condos with additional bedrooms for their children to rent rooms for their children’s friends that may offset some of the costs of their student housing.  I would not recommend someone buy a condo with the purpose of making money right away as a rental, those days are gone for now but I do foresee that some condo bargains are going to be available within the very near future.  The surge of apartments converting to condos will offset the market with too many condos, thus prices will stabilize or fall depending on the location of the conversion.  Condos within walking distance to the University of Florida, Shands Hospital and central Gainesville will always be at a premium, so your investment should be stable for years to come in those areas.
 
So you don’t want to invest in real estate, you just want to buy a home to live in North Central Florida.   Check out the real estate section and click on the Gainesville MLS or Ocala MLS.  You will be able to see what the realtors see.  Choose a home, drive the neighborhood, and make a decision if you want to live there without the pressure of a sales associate.  If you want to see the interior of the home, contact the Martinback Group and we will gladly make an appointment with the homeowner and let you make your inspections.  We try to make the home buying process as painless as possible. We may have forgotten what it feels like to be buying that first or next house but we can assure you, we will do everything in our power to ease your nerves.

Terry Martin-Back
Contractor/Broker