"DSK" wrote in message
.. .
... Demand is increasing exponentially
with the baby boom population retiring.

Ya think? Seems to me that more people are downsizing as they retire.



NOYB wrote:
Houses in Florida don't have basements...and as a general rule are seldom
two stories, and are on tiny lots. Moving to Florida is considered
"downsizing"...everything but the price.


???

You think retirees with less income than they had when working, who are
looking for less expense, less driving, and closer care, are going to buy
increasingly expensive & expansive homes?


I think you don't have a clear understanding of the average Naples retiree's
financial situation. Less expense isn't exactly a top priority to someone
worth $10, 50 or 100 million.

1,400 properties sold in Collier County for more than $1 million from
January through August of this year.

Presently, there are more than 450 homes listed at $2 million or more...and
100 of them are priced at $5 million and more.

It isn't your average shuffleboard-playing retiree settling down here.


But then, I don't know a lot about real estate

No kidding.




... When you live in the house, you can afford to ride it out.


Not necessarily. And you're overlooking a very key fact- if your
appreciation doesn't dramatically outpace your loan (which could easily
given any of the above scenarios), your home performs extremely poorly as
an investment.


I only look at my home as an added bonus investment. It's not my primary
means of investment.

Ah so. That reduces the risk considerably. But it also contradicts what
you said earlier, that you are planning to pay off your business loan and
reap an increased income in the future; not putting money into other
investments.

I currently put away $25,000+ per year in qualified pension plans...and have
done so since 1999. When my business loan is paid off in 4 years, I plan
on using some of the newfound income to pay down the principal on my house.
The rest I'll probably put away for my kids' college.



... And what price can you put on the enjoyment of living on the water
with a boat in my backyard and only 2 miles from my office?

Personally, I put a higher value on living more frugally, having a large &
exponentially growing net worth along with investment income that will see
my wife & I comfortably thru retirement, and independence from the whims
of local gov't & the fickle real estate market.

OTOH I bought a pretty expensive boat which isn't going to (fiscally)
appreciate at all. So obviously I place a high value on *that*.

I put a high value on my boats too...which is precisely why I bought a more
modest-sized home than I had before, but on the water with a boat dock.

Water access is very difficult down here. If we had adequate ramps and
marinas, I'd be living in a less expensive house inland.