Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Daytona Beach condos are still selling hot

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December 08, 2005

Daytona Beach condos are still selling hot

Just as to negate my previous post, this one comes from the local paper - Florida's "independent voice of Volusia & Flagler counties".

According to it, "many area developers and Realtors, some of whom are investors themselves, remain bullish about the future and discount any hint of gloom or doom, even as the inventory of houses and condos keeps going up sharply."

Hey, I am just one-man opinion and I think it is a wishful thinking on the part of these developers and realtors. Still, some of what some of them are saying, make sense somewhat, so here it is:

"I think it's a bunch of hogwash," said Doug Cook of Cook Development, which is now working on the third of five planned luxury oceanfront condominiums in Daytona Beach Shores. "The demand is still very strong," he stressed, noting that "we normally sell out our buildings before they break ground . . . This area is still a bargain."

Mr. Cook's condos go from mid-$500,000 to $2 million, which is not a bargain in my humble opinion. One thing I can agree is that "he isn't worried about interest rates going up because 65 percent of his customers are second-home buyers who pay cash." Cook also says that he "weeds out" those who won't close, so very few flippers are able to buy his units.

Well, this guy makes sense, I only hope he has enough second-home buyers who can afford to pay $1,000,000 cash for hurricane prone Florida and consider this a bargain. Unless Daytona doesn't get hit too much by mother nature. Another question is how many more Cooks are banking on the same bargain hunters in Florida and elsewhere?

The others point on the fact that many of the expensive condos and homes are bought by foreigners from Europe and Latin America. Also, area's population will likely double in 20 years sustaining the housing demand.

I think that there are so many properties built in Florida already, it can accommodate most of foreigners who wish to buy and live there. Or may be I am wrong. As far as doubling population in 20 years, that is not that much for such long time period.

We shall see...

 
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