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surveyor
Participantone man’s undersupply….
Builders are running (not walking) away from land options right now in a big way. Does that sound like an undersupply situation to you? It surely doesn’t sound like that to me.
What’s irrational is the idea that homes have to be built in large developments.
I agree, homes don’t have to be built in large developments. However, they usually have the biggest profit and the most leeway in terms of negotiating with the sellers, city, county in terms of concessions and services. In terms of desirability, and economies of scale, the large land parcels, those can certainly be considered “undersupplied.”
A lot of times we here in piggington’s fight over definitions (just like me and my wife). While large builders may consider San Diego to be undersupplied in terms of developmentable land, there is more than enough for small businesses and investors. Those builders who do not have any “product” to work in San Diego, they have already closed shop and consolidated their operations out of San Diego (examples? D.R. Horton – they closed their Carlsbad office last year).
Participantone man’s undersupply….
Builders are running (not walking) away from land options right now in a big way. Does that sound like an undersupply situation to you? It surely doesn’t sound like that to me.
What’s irrational is the idea that homes have to be built in large developments.
I agree, homes don’t have to be built in large developments. However, they usually have the biggest profit and the most leeway in terms of negotiating with the sellers, city, county in terms of concessions and services. In terms of desirability, and economies of scale, the large land parcels, those can certainly be considered “undersupplied.”
A lot of times we here in piggington’s fight over definitions (just like me and my wife). While large builders may consider San Diego to be undersupplied in terms of developmentable land, there is more than enough for small businesses and investors. Those builders who do not have any “product” to work in San Diego, they have already closed shop and consolidated their operations out of San Diego (examples? D.R. Horton – they closed their Carlsbad office last year).
Participantland options
I personally was involved in one project in Valley Center that the builder walked away from (lots of people in Valley Center didn’t want it, but the builder walked away because the market was getting soft. Luckily the builder only put in about $1mil). The landowner is currently shopping around for another buyer, but like a lot of sellers, he wants too much money for the property.
The property in question is about a 1/4 mile west of Valley Center Road, behind a cow and farm operation.
Participantland options
I personally was involved in one project in Valley Center that the builder walked away from (lots of people in Valley Center didn’t want it, but the builder walked away because the market was getting soft. Luckily the builder only put in about $1mil). The landowner is currently shopping around for another buyer, but like a lot of sellers, he wants too much money for the property.
The property in question is about a 1/4 mile west of Valley Center Road, behind a cow and farm operation.
Participantout of land
In my industry, there is a general acknowledgement that San Diego is running out of large, quality, development grade land. There are still some large parcels, to be sure, scattered throughout the county, but they are definitely diminishing. Most development will be “infill”, where they are filling in the gaps or putting small parcels together to make a development.
Does that mean that it will have an effect on the price of San Diego land? Probably, probably not. To anybody who argues that San Diego running out of land is a reason why housing prices should go up higher, I would respond that it is probably more complicated than that. We might have a situation like San Francisco, where they have already built out the entire area and their “sphere of influence” starts expanding into neighboring counties. For that to happen, however, would take about another 50 to 75 years in my opinion.
The large swaths of land that can support a large development are located in Alpine, Valley Center, way northeast of Escondido, Lakeside, Santee. As you can see, those places aren’t exactly on the first quality location places to live.
Scarcity of land is one small factor, but it is not the only factor.
Participantout of land
In my industry, there is a general acknowledgement that San Diego is running out of large, quality, development grade land. There are still some large parcels, to be sure, scattered throughout the county, but they are definitely diminishing. Most development will be “infill”, where they are filling in the gaps or putting small parcels together to make a development.
Does that mean that it will have an effect on the price of San Diego land? Probably, probably not. To anybody who argues that San Diego running out of land is a reason why housing prices should go up higher, I would respond that it is probably more complicated than that. We might have a situation like San Francisco, where they have already built out the entire area and their “sphere of influence” starts expanding into neighboring counties. For that to happen, however, would take about another 50 to 75 years in my opinion.
The large swaths of land that can support a large development are located in Alpine, Valley Center, way northeast of Escondido, Lakeside, Santee. As you can see, those places aren’t exactly on the first quality location places to live.
Scarcity of land is one small factor, but it is not the only factor.
ParticipantRETD
I’ve mentioned this before, but there is a way for people who make huge amounts of money pay little or no taxes legally.
The ironic thing is that it is a real estate tax deduction (the real estate professional tax deduction).
Taking that into consideration, even a household income as “low” as $150k would benefit…
=shrug=
ParticipantRETD
I’ve mentioned this before, but there is a way for people who make huge amounts of money pay little or no taxes legally.
The ironic thing is that it is a real estate tax deduction (the real estate professional tax deduction).
Taking that into consideration, even a household income as “low” as $150k would benefit…
=shrug=
Participanthh
household income $200k, both college educated, two kids.
Participanthh
household income $200k, both college educated, two kids.
Participantcash 1700
I haven’t listened for awhile, but one of the Cash 1700 real estate shows (usually on at 8:00 to 9:00) talks about investment properties in Panama. Apparently some kind of boom is happening there and it’s also been parlayed as a good place for retirement (low costs).
If I catch the show I’ll post it.
Participantcash 1700
I haven’t listened for awhile, but one of the Cash 1700 real estate shows (usually on at 8:00 to 9:00) talks about investment properties in Panama. Apparently some kind of boom is happening there and it’s also been parlayed as a good place for retirement (low costs).
If I catch the show I’ll post it.
Participantrisk risk risk
Given that you bought it in 1998 and assuming that you haven’t extracted most of the equity from it, that property probably has maybe $200k worth of equity in it. My recomendation would be to make that $200k or at least half of it work for you and create more money by investing it in properties outside the bubble areas of California, Florida, Nevada, and Arizona.
Assuming that you had $200k of equity, you could probably use $100k to buy a $500k 20 unit property in Missouri, Tennessee, or Utah which could cash flow about $500 per month.
If your wife is not working, you will be able to reduce practically all your income taxes to zero.
I was in the same boat as you a few years ago – I had a property, was unsure whether or not to sell it. I decided to keep the property and make it work for me.
Caveats: this process is very risky and will require a lot of personal education in order to do well. The time for success is long.
Still, if you use time and real estate properly, that $100k could become $2.8 million in 15 years (25% return, which is what I’ve been getting).
Good luck.
Participantrisk risk risk
Given that you bought it in 1998 and assuming that you haven’t extracted most of the equity from it, that property probably has maybe $200k worth of equity in it. My recomendation would be to make that $200k or at least half of it work for you and create more money by investing it in properties outside the bubble areas of California, Florida, Nevada, and Arizona.
Assuming that you had $200k of equity, you could probably use $100k to buy a $500k 20 unit property in Missouri, Tennessee, or Utah which could cash flow about $500 per month.
If your wife is not working, you will be able to reduce practically all your income taxes to zero.
I was in the same boat as you a few years ago – I had a property, was unsure whether or not to sell it. I decided to keep the property and make it work for me.
Caveats: this process is very risky and will require a lot of personal education in order to do well. The time for success is long.
Still, if you use time and real estate properly, that $100k could become $2.8 million in 15 years (25% return, which is what I’ve been getting).
Good luck.
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