PeachParts Mercedes-Benz Forum - View Single Post - How is your local real estate market doing?

t walgamuth · #10 06-06-2012, 06:20 AM

I cannot say much with certainty about the market here. I think we were hit less hard than most places because we had not inflated as much, but prices have fallen. Sales have been slowly getting better I think.

In my own rental property, the residential side is currently profitable and with no vacancy. My properties are in excellent locations and are good units.

My commercial property is not profitable at present and has some vacancy, about 18%. about half the vacancy appears poised to be leased soon. On the commercial property the property tax is about double what it should be. If not for the tax it would probably be profitable at present.

A recent appraisal showed the value to have dropped on my big commerical/residential property to have dropped about 1/3 from six years ago.

My guess is most property here has dropped from 30 to 40% in value from the high.

Most of the long time real estate developers around here have gone broke and are out of business. Making money in it, traditionally depends on rising prices.

I am currently working on getting some of my debt forgiven. If I can pull that off without incurring too much tax liability I will be able to survive long term probably for sure.

My residential property at present is too profitable to sell. The market for it paradoxically is probably not that good either.

There are deals to be had (apparently) for those with cash to invest but the market is not for the faint of heart.

I am currently poised to refinance my home. It is marginally worth it but I will be able to save about $20,000 between now and when it is paid off and we will shorten the life of the loan by about six months. If the appraisal comes in high enough to fold our second mortgage into it that will protect us from the second adjusting to a higher rate in the future.