They'll make lousy enders, too, of one's credit rating and hopes of home ownership.

Posted by: Michael Herdegen at September 30, 2005 8:20 AM

Also, over the past 11 months, insider selling by executives has reached record levels at 8 out of 12 of the largest publicly traded home-building companies, according to Richard Bernstein, chief U.S. strategist for Merrill Lynch.

So, either most of the executives in the home-building industry are fools, or...

Posted by: Michael Herdegen at September 30, 2005 9:03 AM

They *cost* more than a million dollars. Whether they're *worth* more than a million dollars...

Location, location, location -- a lot of million-dollar homes started out their lives 30-40 years ago as $50,000 homes, and have appreciated in value due to the sparcity of alternative real estate in the area. As long as the homeowners never plan to change locations in the same area that's fine, but unless you're prepared to retire/relocate to a cheaper part of the country or live out your life at your current address, you or your heirs never really get to see any of that extra money.

The problem is the same as with any Ponzi scheme. Late comers will get it in the neck.

Our small (1,750 sq ft) non-waterfront retirement home/w pool in an old Florida town nobody ever heard of which we built in 1990 for less than $100,000 is now worth upwards of half a mil. Up till a couple of years ago, our little bit of heaven was, in the words of my youngest, "in a 50's time warp." Our taxes were ridiculously low because we offered no amenities or services that upscale people wanted. There's a trailer park in the middle of town next to the post office and a public library which until fairly recently was privately owned and financed, costs $2.00 for a two-year membership. If you love books, you'd love this place.

Well all that is going fast.

Fifty foot wide building sites on A1A (the road that runs along the Atlantic ocean) which were about $40,000 15 years ago, are now being "snatched" up by big-time speculators for near the one mil mark. There are no buildings on the beach side of A1A here, so we have over 20 miles of unobstructed ocean views and a strictly enforced 40 foot height restriction, but who knows for how long. When visions of sugar plums start dancing in your neighbors' eyes, it's time for the smart people to move on, but move on to where? That is the question.

erp - Land is opening up along the Mississippi coast right now.

erp:

Space Coast.

Example of what's available:

2819 Square Feet
4 bed, 3 bath, 3 car garage.
Priced from: $288,100

This home includes a den to one side of the foyer entrance that makes a nice office. Dining and living rooms welcome guests into the home. The kitchen has an island workspace and pantry. The family room in the back is a nice spot to entertain guests. Three bedrooms and two baths nearby allow for plenty of privacy. The master bedroom on the opposite side of the home includes a sitting area, private porch access, his and her walk-in closets and a master bath with soaking tub and separate shower.

Posted by: Michael Herdegen at September 30, 2005 10:49 AM

So, Michael what's wrong with the Cocoa Beach location, other than the density and traffic, I mean?

The area along the Mississippi shore might be a little damp right about now.

We were actually thinking about the area around Valdosta GA?

Well, density and traffic are rather subjective.

I've spent some time in Cocoa Beach visiting relatives, and I find it to be pleasant and bucolic.
But, I'm an urban kind of guy. My favorite American places are Las Vegas and Denver.

Posted by: Michael Herdegen at September 30, 2005 12:07 PM

Nothing is more expensive.....how does it go?