I have been reading some news on real estate investing this morning and noticed some of the bigger players are starting to talk. For example Donald Trump is saying that real state is better investment than gold right now. With the price so low what he is saying is right (if you look at the cost to build these homes).
Some of the stuff we buy is as low as eight dollars a foot. If you look at the cost to build a home that's almost 7 times less than building a new property( $50 dollars per square foot to build new average). Not only is that a hedge against inflation, you can't even build for what we pay for these properties. These are very high quality homes that you want to build if you could. If you built the homes we are buying in today's market you be looking at $75 – $150 per foot if you consider the fine wood floors, antique wood molding, lead glass windows, and so much more updates including China cabinets made of antique wood, lead glass doors in most dining room areas. You can't get this stuff anymore and the prices on them today will probably be never be seen again.
The fact that the market is so affordable as far as the value for these properties is because of the change in lending and appraisal requirements. They are already talking changing the lending rules and we will see a big change in prices of real state. It will be a 15% – 30% gain in value only because of the simple fact there will be less inventory to buy and the cost to build new properties. You have to remember this market is almost totally investors right now buying very good deals. You have the most savvy, informed type investors in market today.
So when the retail market becomes back basically people who want to live in the homes for the rest of their lives than the prices will surely go up.
I remember in 1985 I started buying condominiums in the Mesa Arizona area. I was picking up condos for right around $15,000 – $30,000 (that was $20 a square foot then) for three to four-bedroom condominiums good areas. They were not highly desirable areas like we have today they were just decent areas. I rented these properties out for between $550 – $700 per month. I remember my first one in Mesa Arizona my partner Kurt and I had just finished up remodeling a four-bedroom condominium. We ran an ad in the Arizona Republic (there was no Internet in those days) and we had a line of potential tenants by our front door the next morning. We knew then that the marker was right to start buying these properties. In fact we purchased 10 condominiums over the next few years. They later sold for an average of $80,000 per property.
So as I always say you look at the quality of the real state in the area that you're buying in at these ridiculously low prices per square foot. If you can't build it for that then eventually the prices will go up to that at least whenever the market turns. In buying properties at an average of $10 – $15 per square foot in costing at least $50 a square foot to build you do the math. Brett young Valley Realty Rooftopinvestment.com
Some of the stuff we buy is as low as eight dollars a foot. If you look at the cost to build a home that's almost 7 times less than building a new property( $50 dollars per square foot to build new average). Not only is that a hedge against inflation, you can't even build for what we pay for these properties. These are very high quality homes that you want to build if you could. If you built the homes we are buying in today's market you be looking at $75 – $150 per foot if you consider the fine wood floors, antique wood molding, lead glass windows, and so much more updates including China cabinets made of antique wood, lead glass doors in most dining room areas. You can't get this stuff anymore and the prices on them today will probably be never be seen again.
The fact that the market is so affordable as far as the value for these properties is because of the change in lending and appraisal requirements. They are already talking changing the lending rules and we will see a big change in prices of real state. It will be a 15% – 30% gain in value only because of the simple fact there will be less inventory to buy and the cost to build new properties. You have to remember this market is almost totally investors right now buying very good deals. You have the most savvy, informed type investors in market today.
So when the retail market becomes back basically people who want to live in the homes for the rest of their lives than the prices will surely go up.
I remember in 1985 I started buying condominiums in the Mesa Arizona area. I was picking up condos for right around $15,000 – $30,000 (that was $20 a square foot then) for three to four-bedroom condominiums good areas. They were not highly desirable areas like we have today they were just decent areas. I rented these properties out for between $550 – $700 per month. I remember my first one in Mesa Arizona my partner Kurt and I had just finished up remodeling a four-bedroom condominium. We ran an ad in the Arizona Republic (there was no Internet in those days) and we had a line of potential tenants by our front door the next morning. We knew then that the marker was right to start buying these properties. In fact we purchased 10 condominiums over the next few years. They later sold for an average of $80,000 per property.
So as I always say you look at the quality of the real state in the area that you're buying in at these ridiculously low prices per square foot. If you can't build it for that then eventually the prices will go up to that at least whenever the market turns. In buying properties at an average of $10 – $15 per square foot in costing at least $50 a square foot to build you do the math. Brett young Valley Realty Rooftopinvestment.com
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