• Oct. 4, 2007 - Vultures Circling - What Do These Investors Actions Tell Us?
We're seeing more and more stories like this - this type of investor sat on the sidelines but now they are jumping back
in, snapping up bargains that may even neutral cash flow until they appreciate again. I keep hearing potential buyers claiming
that rents are softening but the statistics, even the ones in the article below, do not bear that out. When you see these
folks who have been on the sidelines since August of 2005 getting back into the market it's an indicator...they sense this is
the time to buy. - Mike W
VULTURES CIRCLING?
Florida's condominium market is beginning to attract "vulture investors" - speculators who snap up large numbers of properties
during market downturns to reap the benefits of discounted prices. Investor Matthew Martinez, for example, expects to sink
$200 million into Sunshine State condos, looking for discounts of at least 15 percent. Martinez targets condo conversions,
which he plans to revert to rentals to generate money until property values rebound. The strategy could pay off. Average rents
across the U.S. from 2004 through 2007 likely will register a growth rate of 14 percent, according to Marcus & Millichap
Real Estate Brokerage. Over the same time span, the average rent will have risen 21.2 percent in Orlando, 20.5 percent in Fort
Lauderdale and 18.6 percent in West Palm Beach. However, some investors hesitate to make purchases right now, believing the
market has not bottomed out just yet.
Source: CNN Money (09/27/07) Christie, Les
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Real Estate Market statistics, buying, selling strategies, financing, insurance for Sarasota, Siesta Key and the barrier islands from Ann & Mike Winger, REALTORS with REMAX Tropical Sands.
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