Unfortunately folks - that ship has sailed - and it sailed around two and a half years ago. Got your attention though, didn’t I?
The issue with this attractive yet implausible investment strategy is that the average consumer really doesn’t know what the market is doing until (at least) 6 months later. Even REALTORS need 2-3 months to spot a trend. That’s not to say that the really good ones can’t predict trends based on past experience (somewhat accurately)…but even they never really know what’s happening until after it starts to happen.
For example - many people think the Real Estate Market here in Spring Hill, Florida peaked in 2005…some even think it peaked some time in 2007… In actuality, if you look at the market statistics, the market peaked in June of 2006. We sold the most homes, for the highest overall sales prices, and at the highest $/SF that month. After that it dropped…and boy did it drop fast! Give me a call on my cell at 352-397-5182 or shoot me an email at Josh@HernandoLuxuryHomes.com and I’ll give you the specifics on exactly what happened.
What resulted from this Real Estate bubble, is that many would-be investors decided to jump on the bandwagon in late 2005, (experienced investors were out of this market a year before that and waiting for it to drop so they could start buying again) …factor in a 6-12 month build-time for spec homes at that time, and you can see how our inventory of available homes for sale in Hernando County jumped up from 700 in late 2005, to over 3,000 by late 2006 (as of this writing, we have approximately 4,000 homes on the market here in Hernando County). Many of those would-be investors lost an awful lot of money following dreams of real estate riches. One even said to me “I should have just written the builder a check for $50,000, shook their hand, and said thank you”…(they built 3 spec homes at the same time putting a total of $20,000 down…the builder let them out of two of the contracts but put the full $20,000 on the remaining home…they ended up losing approximately $50,000 on the deal and are now renting out their home for approximately $1,000/month paying at least a portion of their mortgage. They paid $203,000 for it and in today’s market it’s worth about $150,000.
The hard reality is that investing in real estate - no matter how great the market may seem at any given point in time - is still akin to a very expensive hand of poker. If you look at it in any other way, you are choosing to close your eyes to the possibility that you CAN LOSE. And many did…and the veteran investors are sitting in the wings right now waiting to buy your foreclosure - or working on your short-sale property.
Want to know what to do in today’s market? Give me a call at 352-397-5182 or shoot me an email at Josh@HernandoLuxuryHomes.com and together we can go over some options for you that will absolutely let you get involved in real estate investing in Hernando County, Florida with minimal risk and with a great potential return on your investment.
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About the Author
Josh Hanoud is the #1 Top Producing Agent at Tropic Shores Realty in Spring Hill, FL and in the top 3% of all real estate agents in Hernando County, Florida (2007). He also happens to be the co-founder (along with Natalie) of the
Hernando Luxury Homes website which aims to showcase the best properties that Hernando County and the surrounding Nature Coast has to offer. Whether buying, selling, relocating, or investing - Josh & Natalie are proud to offer a higher level of service. Contact them today at 352-397-5182 or Josh@HernandoLuxuryHomes.com to see what they can do for you.
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