Back to Basics

Back to the Basics

With today's technology it is very easy to get too much information. When I was in grammar school (I am 52) one of my jobs was to chart the progress of certain stocks on graph paper. Every morning before going to school in Harrington Park, NJ, I would take my fathers list of stocks and go upstairs to his home office in the attic and post the previous days closing price from the Wall Street Journal on some large ledger sheets bound in a black leather book. My father had one page for each stock he either owned or wanted to own. It was a wonderful way to learn, and I remember the pleasure I had in looking back on a few months of work, done one check mark at a time. Once I connected the check marks I could see a trend. My father would mark in colored pens his purchases and his sales. He did this on Saturday mornings, when he worked at home.
Today, I can track a stock price minute by minute. In fact, I can make a trade in my Waterhouse account and actually see it register. I can also check last weeks housing starts and I can find out how many listings on the MLS lowered their price during the past hour.
We should, however, take some lessons from the guru of stock investing, Warren Buffet. Mr. Buffet doesn't check his stocks every day. In fact, Warren once asked a question something like this; " If you could check the price of your house every day and it did not go up every day for 25 days in a row, would you sell it?" Of course not.
I remember a column I wrote in October of 2004 "When Does the Paint Dry?" that talked about a similar topic. In it I said :

Right now in Florida we are in the middle of a real estate boom that when we look back on it, we will be able to more clearly see the steps that the boom is going through now. When we look back, we may see clearly the 17% or 20% (or what ever the number is) appreciation that happened. Right now, it is impossible to see that a home is going up 2% a month or 20% a year. No one, and certainly not me, can predict appreciation and just because a home appreciated 24% in one year DOES NOT MEAN that during that year it went up a certain percentage a day, a month, or a quarter.

Little did I know that we were having appreciation that was more than twice the 17% or 20% that I thought we were experiencing. Just as now there is no way we can know that our appreciation is still running along at 10 to 15% (which I will look at a year from now, by the way). I think we will find we are doing nicely, thank you, at the rather pleasing and calmer 10 to 15%. Let's not try to gauge a real estate market by the headlines and the daily news. Let’ s make that check mark annually on ledger paper. (Thanks Dad for that basic lesson)

Some of the basics lessons in life we never forget, even if we don’t always follow them. When ever I take a couple of aspirin, I remember my mother taught me; "Always drink I full glass of water" she would say, "The aspirin will work better". I have no idea if she was right, but in fact to this day I never take aspirin or a vitamin with out thinking of her and indeed most times I drink the whole glass.

In real estate, knowing the basics and following the basics are two different things. When everything you bought or possibly COULD buy went up in value at a rate that we could see almost on a monthly basis - the basic rules went out the window. But here, for your review, scrutiny, and pleasure are my basic rules that you might want to remember and use.

Location. Buy the best location you can afford. Buy by the water, the view, the good neighborhood. You can never change the location – make sure it's the best.

Alternatives. Once you make a decision to buy, examine all your alternatives, find out what else you can buy for the same amount of money or in the same location.

Examine the true cost. Not just the price, but the cost in maintenance, travel, taxes, utilities.

Know your Exit Strategy and be comfortable with it.

Those are the bare bone basics that I think apply to almost any real estate purchase.


Buying a Pre-construction Condo?
If you are thinking about a preconstruction condo here are some of my basic "tips" about what to look for (In addition to above).

1. Parking. Is there enough? Is it convenient?
2. Garbage. Where is the chute? How will the dumpster be emptied? Is it near your parking space?
3. Storage. Is there any?
4. Warranties. What are they?
5. Who is the management company?
6. What appliances are included? Washer and Dryer?
7. Is there a guest apartment available for you to use?
8. Who is the builder? Look at his other projects.
9. Read the condo docs.
10. Can you put shutters on?
11. What will traffic be like? Noise?
12. Where will the sun come in?
13. Where are the air conditioners? (noise)
14. Does your furniture fit?
15. When will construction start and what are your options with delays?
16. Is the price locked in?
17. Can the specifications change?

I appreciate you emails and comments and can always be contacted at Gregg@ma-realty.com. We have been very busy at Market America Realty and Investments and season is indeed back in full force. Please visit www.investinwaterfront.com for news about the communities we are marketing.

Key properties include:

The Citadel - condominiums 3.5 miles from the beach starting at $249,900.
Grand Isle - My personal pick for best buy right now in waterfront marina living. Virtual Tour Here
Villas at Venezia - A marvelous infill condo project off Metro.
Reflection Key - Preconstruction condos starting uner $300,000

I have updates for you on our other new projects:

Cyperlin is our Class A office building in which we are selling office condos. We have added an eighth floor of amenities which will include a work out center for the occupants, a board room and a break room. These will all be plush, luxury amenities with a gorgeous view.

Our Windsor Lake Estates project is closer to a development order. This is a 147 acre project of single family homes. We will start selecting our preferred builders next month and will announce availability in about two months. (No web site yet) This is a gated community of one half acre lots with lakes off of Burnt Store Road.

Also in our pipeline (coming soon): Office condos from 800 sf; a commercial office park with warehouses and flexspace, andour own waterfront marina project. Stay tuned!

I am looking to hire a part time (9 -1) receptionist/office manager - an ideal position for someone with children that wants to back into the work force. Emails only - send resume please to Holly@ma-realty.com