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Should I buy a condo in a building with plenty of foreclosures?

There is no “one size fits all” respond. My answer will depend on your particular circumstances. Will it be your homestead (primary home), secondary home or simply an investment property that you plan to rent.

No matter what your interests are, I guess at the end we all want to know if a condo purchased today at the Jade Residences will appreciate over the next 3 to 5 years and for how much.

My hunch is it will appreciate over the next 5 to 10 years and for an average annual percentage growth rate in the mid single digits. I’m a believer in demographic growth over time and its impact in the local economy. Want to read more about demographics, look up the economist Harry Dent.

If you are a buyer with a long term outlook, you should do well. But if you are looking for a quick profit, well, look somewhere else because most economist expect that real state price appreciation will underperform its historical trends of 1% to 3% annual appreciation (depending on the geographic area) for the next 3 to 5 years, before growing at a healthier pace.    

And going back to the Jade Residences, with 74 units for sale as of 26 July 2008 of which half are foreclosures, it will take another year or two before the foreclosure inventory is sold.

Remember the following quote from one of the worlds best know investors…

 

“Be fearful when others are greedy. Be greedy when others are fearful.”
- Warren Buffett -

This entry was posted on Saturday, July 26th, 2008 at 11:24 am and is filed under Brickell Area, Buying Real Estate, Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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