Comments on: Real Estate Investors, Are They Getting Out or Just Moving On http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/ Real Estate Blog, Mortgage, and Development News Sat, 20 Mar 2010 11:25:08 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: The Feed Bag - Refried and Served Again http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/comment-page-1/#comment-72182 The Feed Bag - Refried and Served Again Sun, 16 Sep 2007 20:00:14 +0000 http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/#comment-72182 [...] Tom Royce makes a great point that real estate investment is now a whole lot more mobile. Real Estate Investors, Are They Getting Out or Just Moving On?  [...] [...] Tom Royce makes a great point that real estate investment is now a whole lot more mobile. Real Estate Investors, Are They Getting Out or Just Moving On?  [...]

]]> By: Jeff Brown http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/comment-page-1/#comment-71480 Jeff Brown Fri, 14 Sep 2007 16:49:46 +0000 http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/#comment-71480 Athol has it mostly right. The only point with which I'd quibble, is what will ultimately happen to the demand for San Diego housing. The so-called investor class hasn't bought SD homes for investment since Moses's son died. :) They've been buying residential or commercial income properties. I had dinner last night with a hi-tech guru who happened to own a pretty well located investment condo in the Fashion Valley area of SD. It's now worth roughly $550K. It rents for $2,200 monthly. He's breaking even after expenses - with a 50% LTV! When he bought it, (Moses was still in short pants.) He put 10% down and it broke even. Investors in San Diego have had little or nothing nada zip to do with the price of SFR's for quite some time. What's driven them up over the last couple decades has been (not by itself) the seemingly never ending inflow of folks from outa town. In fact, we literally tripled our population in about 30 years. Try that in your area and see what happens to your median home prices. Supply and demand is a wonderful thing. :) Athol has it mostly right.

The only point with which I’d quibble, is what will ultimately happen to the demand for San Diego housing.

The so-called investor class hasn’t bought SD homes for investment since Moses’s son died. :) They’ve been buying residential or commercial income properties.

I had dinner last night with a hi-tech guru who happened to own a pretty well located investment condo in the Fashion Valley area of SD. It’s now worth roughly $550K. It rents for $2,200 monthly. He’s breaking even after expenses – with a 50% LTV! When he bought it, (Moses was still in short pants.) He put 10% down and it broke even.

Investors in San Diego have had little or nothing nada zip to do with the price of SFR’s for quite some time.

What’s driven them up over the last couple decades has been (not by itself) the seemingly never ending inflow of folks from outa town. In fact, we literally tripled our population in about 30 years.

Try that in your area and see what happens to your median home prices. Supply and demand is a wonderful thing. :)

]]> By: The Feed Bag http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/comment-page-1/#comment-71210 The Feed Bag Fri, 14 Sep 2007 01:46:24 +0000 http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/#comment-71210 [...] Royce makes a great point that real estate investment is now a whole lot more mobile. Real Estate Investors, Are They Getting Out or Just Moving On? Required [...] [...] Royce makes a great point that real estate investment is now a whole lot more mobile. Real Estate Investors, Are They Getting Out or Just Moving On? Required [...]

]]> By: Sock Puppet http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/comment-page-1/#comment-71201 Sock Puppet Fri, 14 Sep 2007 01:18:28 +0000 http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/#comment-71201 <p>I think you're missing Tom's point a little here Kathleen. The investor and speculators say in San Diego both get out of San Diego. The speculator doesn't go back into the San Diego market until it suddenly heats up again in say 15-20 years (or whatever).</p> <p>The Investor class however just quit San Diego completely. Some were getting out 6-12 months ago. Some are already gone. Then they head over to Kansas City or Boise and the investment money never comes back to San Diego (in any form) again.</p> <p>So in short... places like San Diego are really going to get hammered back down to the median growth or even slightly lower as the overall demand for housing in San Diego drops with the exit of the investor class.</p> <p>I.e. "It's pretty bad".</p> <p>-Athol</p> I think you’re missing Tom’s point a little here Kathleen. The investor and speculators say in San Diego both get out of San Diego. The speculator doesn’t go back into the San Diego market until it suddenly heats up again in say 15-20 years (or whatever).

The Investor class however just quit San Diego completely. Some were getting out 6-12 months ago. Some are already gone. Then they head over to Kansas City or Boise and the investment money never comes back to San Diego (in any form) again.

So in short… places like San Diego are really going to get hammered back down to the median growth or even slightly lower as the overall demand for housing in San Diego drops with the exit of the investor class.

I.e. “It’s pretty bad”.

-Athol

]]> By: Kathleen http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/comment-page-1/#comment-71040 Kathleen Thu, 13 Sep 2007 17:31:14 +0000 http://www.therealestatebloggers.com/2007/09/13/real-estate-investors-are-they-getting-out-or-just-moving-on/#comment-71040 There is a difference between real estate investors and speculators. An investor stays in the market, but goes with a different strategy when making offers. A speculator usually counts on fast short term appreciation, and often buys at near retail, but early. Speculators are the ones that have to move out if there is little appreciation. There is a difference between real estate investors and speculators. An investor stays in the market, but goes with a different strategy when making offers. A speculator usually counts on fast short term appreciation, and often buys at near retail, but early. Speculators are the ones that have to move out if there is little appreciation.

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