Maybe it’s just the cold weather, but I have been dreaming of picking up a Florida foreclosure. Here is an example of what is out there for $130,000. This house previously sold for $390,000 in 2006 according to zillow. It is in a nice area where I spent a few years.
I just wonder how much could be left on the downside if you purchased were able to purchase this house for a $115,000 offer. Sure the economy is crappy, but could the value on a house like this ever fall below 100k? It may not go up in value for another 10 years, but if you were able to get some use out of it or an occasional seasonal rental, it might be worth a look.
VISIBLE MOLD IN HOMECASH OFFERS ONLYCASH OFFERS REQUIRE PROOF OF FUNDSSOLD AS-ISSELLER ADDENDUMS APPLY
Sounds like this particular one has a few issues. Florida has no state income tax and relies heavily on property tax for income with property taxes among the highest in the world. Would need to check the address to see the exact tax but likely quite steep.
On Florida, an aquaitance bought there in 2006, closed in early 2007 on a $380K house, stopped making payments 2 months ago and is waiitng for the foreclosure notice so that he can offer no more than $160 for the house and expect that he will get it. Otherwise, he is fine to write off the $100K he already has in as no point throwing good money after bad.
His brother bought a house there in 2004 for $200K, sold it in 2006 for $650K but jumped right bak in and bought 2 off the plans, just sold them BOTH for $280K total. Very fluid market and a huge number of investors tied up there, would not touch it for any money.
As an aside, plenty of Irish developer and investor money in Flrida and some of the houses will be left for the gators!!
Yeah, Florida is a little tricky with the property taxes. The county will initially try to tax you for their “assessed” value, which could be over 300k. You will have to would have to fight the assessment and prove that comparable houses are selling in the 130k range, which should not be hard to do. This should bring your prop taxes down in the $2,500 year range. Insurance would also be in the $2,000 range.
The house is not in a gated community, so there would be no association fees. If you put down a decent down payment around 30%, your yearly costs would be around $10,000 year. I currently rent a smaller place in Florida for three months a year at $2,200 a month. I’m not saying that I will buy the place, but just something to think about.
If you don’t know the extent of the mold problem, and Im guessing it’s pretty bad if they are forced to mention it , steer well clear
You may open yourself up to a law suit if you try to rent out a house with mold and removing it can be a real hassel at the least and a complete gut-job at the most
If you google mold removal, it should give you an idea of the expense that can be involved
I have owned two houses in Florida since the mid 90’s, so I know the deal with property taxes pretty well. Luckily, I sold up in 2006. My wife and I are both dual citizens, so that’s not an issue. I see this place has mold issues, but there are thousands and thousands of decent houses now priced around 100k. Maybe this 4 year old condo for $43,000.
Franken, no doubt that there are bargins galore in Florida at the moment, I htink the most interesitng are the well located opportunities around $200K as they should come back relatively quickly once the market settles, some of the older and less well located properties might struggle. Whereabouts are you looking?
The housing market in America is truly amazing. Here you have condo’s etc that are cheaper than equivalent places in Bulgaria.
Some of the cheapest property in the developed world seem to sit in certain parts of USA and some of the most expensive sits in other parts. There is a similar dynamic in the UK, although its not quite as extreme as the population denisty is a good bit higher keeping things a bit more fluid
It really just re-inforces my view that property in more peripheral parts of Ireland and outisde a 20 minute commute of the City Centre has a very very long way to fall yet
Some people argue that the US has alot of homes which have a 15-20 year shelf life at best. Made of cheap plasterboard etc. However, we stopped using brick ourselves about 10 years ago as well! Friend of mine just had to have the living room wall in his apt re-inforced so that he could hang a small plasma on it. On his initial attempt he found himself very close to illiegally entering his neighbours apt
I have read a few articles on Florida homes that were built during the boom years that used Chinese manufactured drywall. The drywall contained various dangerous chemicals that, when heated up at Florida temperatures, made the occupants sick.
The first time I ever saw the downside of plasterboard (drywall) was on a summer in Wildwood, NJ when I came home a bit tipsy and fell into a wall (literally!) in the hallway of the house we were renting.
Don’t get me wrong, plasterboard is the backbone of almost every new build in Ireland these days as well, and there are plenty of stories of builders having to rebuild homes here only a few weeks after the buyer moved in. But i am pretty sure the drywall concept was invented in America
I am thinking about Florida as well. Surely many of these houses are well below building costs and therefore look like a good long term bet. I appreciate that property investment is currently viewed as a fools game but that is often the time to invest, if you can stand the sniggering!
Jesus H. You are not an expert but you are ready to buy? You need to become an expert before you invest or you will loose all your money.
At least with securities people in general know they have to have knowledge to invest. With property people think they know all the need to know and jump in. It is a trap for the nieve.