Posted by Ronald * Starr on October 11, 2001 at 19:52:36:
Rich–(FL)----------
Maybe you can sell a couple of lots to Jimmy Napier.
I was down in that area some years ago and it seems nice.
Maybe you could lease out your vacant lots to people who want to park their planes there, even if they don’t have a home there. Or are there rules against that? How about running a milk cow on the vacant lots and selling fresh dairy products to the neighbors?
Yes, vacant lot investing usually does not produce interum income. However, whenever there is a upswing coming, buying vacant looks good to me. At least around these areas (Oakland, CA and nearby) lots swing more wildly in price than do houses. Buy before an upturn, sell quick before a downturn.
I don’t know if I’ll be down that way anytime soon, but if so, I’d like to fly around the countryside. My brother has taken up in his little old plane and we cruised around at about 80 miles an hour, I think, in the countryside of OR.
What effect if any do you see the baby boomers having on the real estate market? From my research, it sounds like investing in Condo’s in cities and Vacation type properties might be the way to go… Thoughts?
Posted by David Krulac on October 10, 2001 at 18:56:11:
Tyler,
I concur with Ron and Phil (Weren’t they the Everly Brothers).
One boomer real estate idea that is starting here is 55 and over communities. SFH or townhouse/condo with no kids, maintenance included and geared for boomers with money to spend.
Posted by Ronald * Starr on October 09, 2001 at 21:35:02:
Tyler-------------
I agree with what Phil Fernandez told you. One possible glitch here is that “This is no Secret.” It is not hard to get to this state of your thinking. And many other people may also. I’ve been talking about this for about 10 years with my buddy. He’s building a second house for himself and his wife up in NE Idaho.
But, not everybody knows it. You may be able to find a niche market where property values will accelerate dramatically in the next few years because of baby-boomers. You might want to ask local real estate salespeople in possible target markets about other investors already jumping into the market.
Now, if you can continue your thinking further about the effects of the baby-boomers on real estate, you might figure out something that few other people have thought of. And make some big bucks from that. Am I saying I’ve thought of something like that? No, not at all. If I did I’d share it with you. Hmmmm. How about some baby boomers got a little extra money but not enough to drop on a whole second house. Maybe put together a group of 5-8 investors in vacation homes and you put in no cash, but do all the investment work? And they pay all of the expenses. And you share in the profit when it is resold. Could this be done with more than one property? Hmmm.
Maybe there will be some sort of boom in some of those horrible time-shares out there? The ones that sold for $9K to $15K and you can buy for $3K to $5K on the open market. And for $700 to $1500 at tax sales?
Hmmm. How about private marina slips? Will those go up in value sharply as the free-spending baby boomers buy boats too big to tow home every weekend? Or how about boat storage yards near recreational water spots? Could those provide a good investment?
How about houses on private airstrips where the owners taxi over to their hangar next to their home? Might these go up sharply in value as more people are in their peak earning years?
Well, maybe you see what I am getting at. Think and you may hit a riche niche.
Posted by phil fernandez on October 09, 2001 at 20:54:01:
Certainly the baby boomers are now all between 40 and 60. The question is what do typical 40 to 60 year olds do in regards to real estate.
Just my opinion, but most of this age group has probably bought their housing and progressed through perhaps two or three different houses building up equity along the way.
Once one reaches about 45 or 50 they start thinking, geez the kids are going to be out of the house soon, let’s do something for ourselves. Usually that means a 2nd home. Maybe in the mountains, maybe in a warm climate or maybe like me, on an island. So I think you are right about 2nd homes. We as baby boomers are now buying these. So you do have a demand for this type of property.
Can you capitalize on this. Only you can tell us that.
Posted by Rich[FL] on October 10, 2001 at 16:08:18:
Hey! I “resemble” that. I live at a private airstrip! With these things, they are VERY tricky to figure out. Also, keep in mind that you’re dealing with a MUCH smaller clientell - the maximum # of pilots in the country is only about 650k, with a significantly smaller number working near where there is an airpark.
With airparks, the covenants and restrictions are immensly important, both for the long-term protection of the airpark, and the protection of the residents’ rights. As an investor and a pilot, I’d love to get involved with them. As an owner in one now, I’m a little “gun shy” of them.
Posted by Ronald * Starr on October 10, 2001 at 21:16:40:
Rich------------
Sounds like one should approach investing in airpark properties very carefully. Just as with most real estate investing, in my opinion.
I had a house near one in Cameron Park, CA and went over there several times. I liked what I saw, even though I am not a pilot.
My brother, Roger, is a pilot and was trying for a few years to get into an airpark at Aurora, OR. I guess he has given up. He and his wife built a new house a couple of years ago which is not connected to an airpark.
I would never suggest that an investor just rush out and start throwing money away on an investment without knowing more about it. I suggested the airpark-type investment to stimulate some thinking about less odvious effects of baby boomers on real estate values.
I hope you enjoy where you are and make some good appreciation from it.
Posted by Rich[FL] on October 11, 2001 at 08:34:02:
Ron, it’s too bad you’re brother has given up on trying to get into an airpark. It really does have advantages, not to mention it’s a lot of fun (most of the time!)
The idea of airparks has been steadily growing in recent years, because of the rising expenses of keeping an airplane at a regular public airport. It makes more sense to “live with your plane” to help reduce expenses. Since the terrorists acts last month have increased security concerns and activities at airports nationwide, there may be more of a desire (need?) to build more private residential airpark communities so we won’t have to contend with the sometimes arcane security rules designed for commerical airlines. Afterall, you wouldn’t want to be forced to go through security checkpoints just to hop in your car for a weekend trip (or any trip) would you?
We have many vacant lots available in our airpark right now (for various reasons I won’t go into for now!) and many of them are real cheap. I am considering purchasing a few in the near future in anticipation of just this possible move. Of course, this is really just land speculation and not necessarily “true investing” as is generally discussed here, but it does have possibilities (can you say - no tenants? )
Anyway, if you (or anyone) comes down to the “world’s most beautiful beaches” on Florid’as Gulf Coast for a vacation sometime (Panama City), give me a shout and I’ll be happy to give you a tour of the area - by air! And we can discuss real estate on the side .