Steadfast Finances
A Personal Finance & Investing 101 blog that delves into current events, consumer education, and techniques to improve your bottom line.
Vulture Investing Watch: Great Example of City Condo’s Selling at Half Price
If you’re new to vulture investing, I’ll let you in on a little tip. It’s fun, it’s easy and quite fulfilling if you’re the type of person who shook your head wondering why everyone else was buying “stuff” after everything skyrocketed in price during 2006 and 2007.
The Marketplace video below is a prime example of how to buy real estate at a near 50% discount.
Check out the live entertainment and open bar! During the real estate boom, this place would have been standing room only and a bottled water would cost you $7 just like a baseball game. Now prospective buyers got a live band and copious amounts of social lubrication?
That’s vulture investing at it’s finest. Not only are you getting a deal but they liquor you up too!
So for all you first time home buyers or 20 Somethings who were interested in buying a home, but couldn’t afford the sky high prices for a simple 1 bedroom condo, now’s a good time to start looking around for bargains in your area.
7 Comments
Feb 19, 201010:35 am
That’s certainly one way to buy after the real estate bubble has popped!
I could only find a few as I’m not as familiar with esoteric REITs as I’d like to be, but here are a few to get you started:
EastGroup Properties Inc. – EGP
Washington Real Estate Investment Trust – WRE
If you’re determined to find more, I would suggest doing a Google search with the keywords “Florida REIT”. If you want to get more specific, add in “Florida REIT condos” to your search and see how it works.
Just remember, you also have the option of buying diversified funds like the Vanguard REIT index fund (VGSIX) or the iShares REIT ETF (IYR).
Feb 20, 20102:45 am
I found 2 companies that I liked: HME, and PPS the latter being down quite a bit since the honeymoon days. I shall analyze them and see if they fall within my strategy. Thank you.
Feb 20, 201011:37 am
Those are pretty solid choices Ramzi, well done!
Do you mind if I ask how you identified those two choices out of all the other REITs?
Price to Book is one of my favorite metrics to use for dividend related investments, and I happened to notice PPE was at 0.88.
http://www.zacks.com/research/report.php?type=financials&t=PPS
Feb 23, 201012:49 am
as you correctly said, I am inclined towards low PE and PB ratios, so if PPS’s book value is off by 12% thus making its P/B 1.00 it seemed more attractive than the others.
8:09 am
i live outside the US and don’t have the possibility to purchase a condo outright as traveling would eat up a lot of the profit plus the inconvenience of international travel. but i have a brokerage account.
can you suggest an ETF or REIT that mimics the potential performance of condos especially in the Florida coast?