Let’s dig in shall we.
Today’s house dujour is 818 Penn St. A whopping 1057 sq ft home that boasts two bedrooms and one bath. But wait, it’s got “newer” windows, is on an R2 lot and has a “bonus” room.
So what genius thought that pricing a home at $992/sq ft was a good idea?
Scott McCain at Palm Beach Realty. Never heard of him.
Here’s the thing. There are TWO real estate agents in town. There’s the godfather, Bill Ruane and the wannabe godfather Alex Abbad. There are a handful of other players in town but for the most part if you want to buy or sell your home in this town there are 6-7 agents that can make that happen. Because this town is so small and incestual this group of players collectively know the ins and outs of the local real estate market. If you aren’t in the clique, good luck.
Back to Penn St. It is currently the second cheapest single family home in town.(with the cheapest being a tear-down) Despite that it’s a home for a couple not a family. BUT, wait it’s an R2 lot. You’ve got visions of being a developer and having rental income while you site back and watch your property value increase 20% a year.
Until you have the cash or cojones to build your future AirBnB you will be writing a check for about $5200 after you have dropped $225 thousand dollars for your 20% and closing costs. Where is the logic in risking $225K in a frothy market while you can rent a bigger (x2), nicer and newer house for about the same monthly payment? Oh, you want a tax write-off? If you are willing to risk $200K for a $32k tax write-off you need to seek the help of a professional.
Go ahead. You want the american dream, drop your hard-earned savings while we are on the precipice of a recession (we are probably already 6 months in). Or better yet let some mortgage broker find you a creative loan so you can go with 10% down or interest only. Nothing bad has ever happened getting creative with mortgages has it?