Thanks for responding to my previous email regarding the Handy Man Special at Anchorage Villas in Shelter Cove.
I'm going to answer your questions and comment within your original email. My answers are in red:
If you were going to begin "making a move" to be in HHI for retirement in about 5 years, would you start with something like this? Or, would you go ahead and sink into a $500-$700 home, and fix it up?
It depends on whether you have a community that you absolutely love and want to be part of now. It seems the best and most logical choice for your family would be to purchase a villa now, and then roll it into a larger single family home down the road. If they purchased a villa now at TODAY'S prices with TODAY'S inventory, then they will surely find great deals. They would purchase now, and then wait for the market to come back in order to sell or roll into something else.
Many experts feel that we've either already hit the bottom or we're darn close. In fact, according to our local MLS, home & villa sales in the HHI market were down slightly more than 10% in 2007, but the median price remained relatively stable, dropping less than 3%. This shows that price reductions are slowing down.
The goals for buyers should be "buy low, sell high"...and I feel that "low" is either upon us or very close.
Another important note to keep in mind is this: our villa inventory is huge right now. Take a look at the following stat:
YTD December 2005 Villa Inventory: 791 (36 days on market)
YTD December 2006 Villa Inventory: 1104 (101 days on market)
YTD December 2007 Villa Inventory: 1189 (131 days on market)
This bodes well for a potential buyer. Buyers have many choices which allows for negotiations.
Take a look at the table again below showing the available Anchorage Villas. You'll see the highest priced unit is at $389k. John, that is the exact same unit with a very similar view and location as the handy man villa.
To answer this question, I would say "yes", I'd pursue a villa first, then once they're ready to move down here permanently, then roll it into a single family home.
If you were to buy this Villa for $250. Dump about $20K into remodeling, and sell it in 2-3 years. Will it be back to $350 or about that? I mean, does this particular unit have the appeal of the others, or are there reasons why the seller is willing to dump it so cheap??? Anchorage Villas are very popular as 2nd homes or rentals. They are located in Shelter Cove Harbour community which is one of the most sought-after spots on the Island. Currently, they offer a very affordable opportunity for families to own a "part of Shelter Cove".
Take a look at the following table which shows the list prices of Anchorage Villas SOLD from May 2005-January 2006:
May 2005 –
I walked into this villa yesterday to take photos and I was very impressed with the villa's location, view, and proximity to the pool. This villa is also located somewhat close to the entrance which is convenient.
The In-Laws are getting close to making a move. I want them to do something now while the market is so good. Plus, we would have a place to come for vacations, now.
Good point. TODAY'S prices are very appealing.
I am afraid if they wait till next year, the market on HHI will have already begun to correct itself.
Many experts agree with you. Prices will start to creep up or stabilize, and inventory will gradually decline.
Do you think the market will be better , or worse, on HHI, one year from today?
I truly feel the market will be "better" in one year. Right now, the market is great for buyers and bad for sellers. In one year, I feel the market will be better for sellers, but still great for buyers...although I feel the best time to buy is now.
Hit me back John.