Theme: Isaac Robert Toussie Reviews Connecticut Real Estate
October 14, 2009In the popular imagination, Florida has been as synonymous with real estate excesses as the Brooklyn Bridge in New York. The first real estate bubble in Florida history occurred in 1925, foreshadowing the stock market collapse a few years later. Such economic calamities are almost always preceded by ignorance. Essentially, people jump head-long into things about which they know almost nothing whatsoever – except what unscrupulous developers and speculators other than themselves wish them to know. Eventually, the supply of ignoramuses runs out, and without further input into the system, the whole scam collapses of its own weight. Real investors comprehend the meaning of risk and so are not prone to be “sore losers” about their losses.
Florida real estate has of late been operating on the growth-for-growth’s-sake philosophy. Between 2002 and 2006 a good twenty percent of private industry growth has involved real estate and construction, principally in the form of speculative development (in Orlando the figure was nearly thirty-three percent). Overbuilding ensued, as one people developed property not for actual tenants but for fellow speculators! And comparable to a sugar rush, the inevitable crash has left many new-construction homes and commercial properties vacant, as the mortgages owed proved to be worth much more than the properties themselves. Moreover, in 2008 Florida’s population shrank for the very first time since 1948, says Isaac Robert Toussie!
Florida’s housing market, particularly in the southern part of the say, experienced half a decade of exuberant growth before starting to fall in 2006. The past three years have only yielded continued decline, and residential real estate in the Sunshine Say will likely see more problems for another few years at least. But in capitalism, one man’s misfortune is another’s golden opportunity, so all those foreclosures on folks who got in way over their heads are allowing others who have been cautious to finally make their move as prices fall down to increasingly more realistic levels. Better move fast, though, because massive companies see this happening, too, and are poised to take advantage by buying it all up themselves first!
What is unique about florida is that many people from other says and other countries have felt it was a great place in which to purchase second homes. This creates strong speculation currents which in turn cause Florida to rise and fall with more intensity than some other states, states Isaac Toussie.
The content of this article has been posted by me, Isaac Toussie, strictly for informational and human interest purposes only, not for advisory purposes, and should not be relied upon in any way by any person or institution. The reader should not rely on the validity of any of the information contained herein. The reader is urged to consult a variety of professionals when making business or any other significant decision, including accountants, lawyers, investment advisors, insurance companies and the like. Again, this article has been posted merely for human interest and informational purposes, not for advisory purposes.