| Name: |
cobra
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 7:18:31 PM
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First I would like to know how a comman man can buy lake property if he has to buy today. I have looked into purchasing property on lake martin and I have come to the conclusion that I will never be able to afford . Here is my calculation
Loan amount: $800,000.00
Term (months): 240 months
Interest rate: 6%
Monthly payment: $5,731.45
Total Payments: $1,375,547.63
Interest paid: $575,547.63
Tell me who makes that kind of money other than doctors and lawyers and a few business owners?.
I will forcast that if lake martin real estate keeps with its current trend then comman working class people will have to take a second job in order to pay the taxes.
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| Name: |
ridgeman
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 7:45:35 PM
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Welcome cobra
Your right, it would be hard for the common man to own lake property.
fortunately I bought my property before it went crazy. If i had not bought when i did i could not afford it. it seems the lake has got high dollar prices all over, not much under 500k. I wish you luck. but think about it this way the longer you wait the more the prices are going up.
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| Name: |
JIM
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 7:46:55 PM
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People that have are have had rich moma and daddies.
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| Name: |
roswellric
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| Subject: |
Or
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Date:
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7/27/2006 7:54:46 PM
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run cat houses :-)
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| Name: |
noagenda
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| Subject: |
JIM.....NADA!
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Date:
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7/27/2006 7:58:09 PM
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My parents were working class (pipefitter and fulltime mom). They gave me good advice and plenty of patience and love. I can assure you that riches did not play a role in my ownership. Years of hardwork, sacrifice, living below my means(also learned from my parents) and a little risk taking that turned into a good investment. Don't be hatin!
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| Name: |
Feb
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 8:08:04 PM
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Some of us have never gotten a dime from anyone else. We have worked hard and long hours for thirty or more year, taken few if any vacations, saved our money, invested wisely. (worked our way and payed for, studied hard and achieved) an advanced educations, and many of us have few of the other cherished items that others posess. It has not been quick or easy. Buying a few years ago may of been less costly but was not cheap then either.
There are probaby things Cobra and JIM have had, have or will have that some of the rest of us will never enjoy.
I guess the word that will answer your specific question is "sacrifices"..
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| Name: |
cobra
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 8:22:12 PM
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I guess I have always been on the conservative side. My Dad never had to borrow money to pay for things. He made the $$ and if he really needed it he bought it. He was very successfull in business but also very conservative. He owned very little property when he died almost 20 years ago.
I can remember fishing on lake martin in the late 50's with him and cannot remember seeing many homes then. The people back then just worked to try and supply for their family. Recreation was not much of an issue then, at least lake recreation.
I will still be looking for that bargain but as everyone here knows those bargains are about gone.
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| Name: |
jawjagal
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 8:27:01 PM
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and timing.
We are not really succesful in the stock market, but out forte has been real estate. We bought both Destin and Lake Martin BEFORE their REAL popularity...as I have said before...BEFORE ATLANTA FOUND THEM.
There endeth the lesson.
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| Name: |
cobra
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 8:40:51 PM
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!!!!! There are probably things Cobra and JIM have had, have or will have that some of the rest of us will never enjoy. !!!!
Not sure what you mean by that statement but if it is like I think you mean you are dead wrong.
I worked for 28 years and only took 6 vacations. I was self-employed and could never find the time much less the money. Many of those years I went to work at 7 and came home about 12 hours later. Oh I made the sacrifices all right. I was just not able money wise to make that right investment you did.
I was also drafted in 1966 because I was not keeping the so-called B grade that was needed to keep you safe back then. I served my country for 4 years .I know, I could have went back to college after my term but I never did.
People can always look back and see what they should have done. I was never really good at forecasting the future
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| Name: |
Maverick
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 9:01:36 PM
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Cobra - See the thread entiltled "Here is One For You Feb" maybe this thread might provide you with alternative options with regards to purchasing lake property.
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| Name: |
Feb
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 9:22:31 PM
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I meant nothing critical of you or anyone else Cobra. My only intent was we are all fortunate in various ways. JIM has a fine Son he is rightfully proud. I am sure you have things you should be justly proud. None of these things come without a price.
You ask a question and then want to get huffy with you receive various responses or opinions. I think if I recall correctly - you have ask the same question but with a slightly different slant on the Forum. I will have to go back and look at your past post. I have no desire or right to explain why you personally can or can not afford or choose to do in life.
I have never walked a mile in your shoes and will not attempt to judge you in anyway. I don't think you would of wanted to walk some of the miles I have to include my military time and sacrifices. I would not want to again even if it meant not having Lake property. I certainly appreciate it and others things since I feel my Wife and I have earned them, and they have not been given to us. In fact, for many of us our Lake property is not our primary tangible asset.
Most of my former remarks were in regards to JIM's sarcastic remark he has made several times before. I know he has stated he was never left with anything, but I doubt he wants his child or children to have to feel or be the same.
Have I made myself perfectly clear Cobra? Do not take something I have posted out of context and try to slam dunk me. My statement was made in context with the entire response I posted. I will ensure I respond to none of your future post.
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| Name: |
cobra
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| Subject: |
A question for lake home buyer
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Date:
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7/27/2006 9:50:31 PM
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ok ,
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| Name: |
boataholic
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| Subject: |
A question for lake home buyer
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Date:
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7/28/2006 6:50:52 AM
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The "common man" was priced out many years ago. Marginal lake property costing half the amount you quote is now barely affordable for two income high salaried couples (think nurse, accountant, computer geek). Without property to trade up or an inheritance only the rich will be able to buy Lake Martin property in a few more years. Simple supply and demand. The "common man" needs to head to Lake Mitchell, Yates Lake, etc, and then sit back and enjoy the brilliance of his own foresight in 25 years.
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| Name: |
Edge
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| Subject: |
JIM.....NADA!
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Date:
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7/28/2006 7:42:49 AM
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AMEN!
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| Name: |
CranBob
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| Subject: |
A question for lake home buyer
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Date:
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7/28/2006 9:42:49 AM
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I don't post often but read what is written here most days. I was fortunate to buy our first place on the lake about 12 years ago. We had children at Auburn and wanted a place convenient for them to come over as well as close for us to go to games. I have also worked hard for nearly 30 years traveled most weeks some times gone for weeks at a time Internationally on the other side of the world.
We bought our last place 9 years ago and it cost 1/3 of my house in Birmingham but has now passed it in "value".
Both of our daughters have degrees and work professionally in Birmingham but I doubt either will ever be able to afford a place of their own on the lake. We are just thankful we will be able to leave ours to our children/grandchildren to enjoy.
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| Name: |
dagwood
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| Subject: |
A question for lake home buyer
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Date:
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7/28/2006 11:25:47 AM
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Cobra,
I'm in the same boat as you. I am by no means a wealthy man nor have I ever wanted for anything. I'm a chemical engineer and have saved a decent nest egg for retirement but cannot spend such a large chunk of my retirement on a lakefront home on Lake Martin as much as I would love to. The reality is as long as the demand for this property is strong and there are enough affluent buyers out there it will continue to climb. Will the bubble burst? For home sellers, I hope not, for buyers the adjustment would allow more of us to enter the market for that type property. Like others stated, there are other lakes with less costly property. Look at lakehouse.com in louisiana specificially on Toledo Bend.
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| Name: |
SandyCreekman
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| Subject: |
to afford that type of home...
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Date:
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7/28/2006 2:23:14 PM
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you would have to have an income of over 2M per year or have a huge nest egg from inheritence or lots of luck on the stock market,etc. That's not at all common man, but only the upper 99.9 percent of those in the country. Most likely the person would be very successful small business owner, executive with big company, surgeon, or very successful attorney, probably charging more than hourly rates, but rather in the class action or big plaintiff cases. Your avg. Doc and Attorney can't afford that type of place.
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| Name: |
boataholic
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| Subject: |
to afford that type of home...
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Date:
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7/28/2006 4:52:41 PM
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No, not 2M. His 5700+ a month example becomes maybe 6500 with taxes and utilities which = 78,000 a year which is maybe 130,000 before taxes. Figure out how to increase your income by 130,000 and you've got it. Reachable by anyone in the high 200's income range, maybe lower 200's if you are frugal. Well within the reach of a good doctor or dentist, but not to me.
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| Name: |
jawjagal
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| Subject: |
what about...
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Date:
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7/28/2006 5:04:44 PM
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the lakes Widowee or Logan Martin....?
I would think Widowee would be a good place to get in cheap and profit from it's upcoming popularity.
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| Name: |
ridgeman
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| Subject: |
what about...
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Date:
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7/28/2006 6:53:30 PM
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TOO LATE.
JUST CHECK IT OUT, IF IT IS ON THE WATER IT IS HIGH PRICED.
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| Name: |
AUCATZ
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| Subject: |
Wedowee and other lakes
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Date:
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7/29/2006 8:59:17 AM
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We live in Valley, AL, 20 minutes from Auburn and Opelika. Lake Harding and Lake West Point are closer for us than Lake Martin. Harding prices went out the roof several years ago. West Point is a Corps of Engineering lake, and also the dregs of the Chattahoochee flow from Atlanta, so we don't want to live there. We checked out Wedowee a couple of years ago and the prices there are steep also. In addition, Wedowee is pretty isolated (yes, more so than Martin in places), so I'm not comfortable living there at this time. There are rumors that there will be a new development on Wedowee in the next few years - one that will be similar to StillWaters. I have no solid data on that though.
We've looked at/for places on Martin for over 30 years, and never thought we could afford one without going into a lot of debt. We finally bought a place last year and got a good deal. Will we be able to sell it and move into something we like more? Doubtful, unless we go into more debt. Because - as our investment has doubled in the last year, so has every other piece of property.
I don't know how the regular person will afford to have a place on Lake Martin within a few years either. It's almost out of reach now for most of us.
Just my 2 cents worth...
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| Name: |
cobra
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| Subject: |
Wedowee and other lakes
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Date:
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7/29/2006 9:33:53 AM
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I tend to agree with that statement. I believe the Internet has helped make the prices go high. Also when money magazine and just about any paper you pick up have articles on lake martin. People from all over the US are coming here to escape high real estate taxes. I know of 2 people that sold their homes in other states and came here. They said these prices were a bargain compared to the place they left. Is lake martin real estate worth those high$$$$$, as long as people continue to buy then I guess yes. Will the bubble bust?? Probably not in my life. That’s just my 2 cents.
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| Name: |
MotorMan
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| Subject: |
Lakes have a pecking order
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Date:
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7/30/2006 4:54:17 PM
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In Wisc we have Lake Geneva. It is halfway netween Chicago and Milwaukee. When lots (tear downs) hit one million, Pewaukee lake hit $250k. The Minocqua chain hit 100k and lots on little lakes in thev north hit $30k.
I call this the Lake Geneva effect. It would be foolish to think the fourth biggest, second deepest, and cleanest lake in Wisc only 60 miles from Chicago money should sell for the same as a place 30 miles from the nearest store that is so cold, it does not thaw until May 5 some years.
Its as they say; location is everything. You can buy a lot on Murphy Lake for $55k right now.
I bought a lot on the Fox river in Omro, WI for $3500. in 1971. Sold it 1n 1996 for $18,000. In 1971, a lot on Pewaukee lake would have been $40,000, now close to the millionmark.
A friend of mine just paid $600,000 for a 3200 sq foot house in CA on a 0.15 acre lot in Los Banos. I think hes crazy, but its his money.
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| Name: |
Osms
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| Subject: |
Lakes have a pecking order
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Date:
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7/30/2006 8:18:09 PM
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Ain't too sure about anyone that would LIVE within 1000 miles of a lake that doesn't thaw until May 5--LOL
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| Name: |
Feb
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| Subject: |
Lakes have a pecking order
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Date:
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7/30/2006 9:58:52 PM
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I have always been amused at how many ice fishing rigs you find in local antique stores in the Lake Martin vicinity. They must be real antiques from the glacier age.
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| Name: |
MotorMan
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| Subject: |
Lakes have a pecking order
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Date:
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7/31/2006 6:22:52 AM
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My simple answer is this:
A common man can afford a lake cabin. Just not one on the cleanest southern impoundment east of the Mississippi river.
The Murphy lake lot I referenced could be built on with under $120,000 into the whole house and lot. And its a private lake.
Pick a cheaper lake to enjoy a cabin.
In "The Honeymooners", they paid $60/mo rent for their little flats in ~1955. NYC. This might be a $600,000 condo now. Some places get exprnsive, some less so. Pick a cheaper Lake than Martin.
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| Name: |
BamaBob3
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| Subject: |
A question for lake home buyer
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Date:
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7/31/2006 10:02:48 AM
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Back in the early 60's we leased for $99 a year. They went up to around $300 a year.
We were outraged when they offered the lot to us for 50k+...take it or leave it. We got a mortgage as a family of 5 contributors and each have been paying 1/5 of the mortgage. That's all well and good.
Since then...the tax assessment has been ( 3 in ten years as I recall)
125%
250%
and this year 65%.
Just for the land. There seems to lie the problem. Great for those who got in under the wire...if we keep up with the taxes.
Even divided by 5 it would be a huge commitment now.
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| Name: |
Feb
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| Subject: |
A question for lake home buyer
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Date:
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7/31/2006 10:20:48 AM
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Hi BamaBob3, Not sure exactly how much you paid and exactly what year. Lets say you paid $60,000.00 for your place in 1960, then that amount equates to approx. $396,000.00 in 2005 money.
All this means is if you went out last year to buy your lot then it would cost almost $400,000.00. Click below to see the econmics formula for value of money compared from then to now.
So, if there is any truth to this formula then some of the lot prices today may not be so expensive after all. Lets see what did a VW Beetle cost in 1960 and one now?
URL: Current Value
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| Name: |
Tallyman
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| Subject: |
A question for lake home buyer
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Date:
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7/31/2006 2:31:47 PM
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If there is another hurricane on the Gulf coast this year, LM prices will really soar. People around these parts (the Big Bend of Florida), are just looking for an excuse to move to inland water and Mother Nature may give them one.
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| Name: |
BamaBob3
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| Subject: |
A question for lake home buyer
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Date:
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7/31/2006 4:31:41 PM
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According to that calculator, the 60k in 1993 would be worth 81k in 2005. This doesn't seem accurate since the appraised value is now 300+k. Am I missing something? If the calculator is accurate the the values would seem to be way over-valued...but as we know, the market is sustaining these values for now.
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| Name: |
Feb
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| Subject: |
A question for lake home buyer
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Date:
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7/31/2006 4:51:21 PM
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I will take a stab at it Bama and allow someone else to polish it off. I would assume the economic evaluator is primarily considering past inflation; therefore the inflationary periods prior to 1993 were possibly significantly higher (I think they were). The inflation index is different for each individual year.
You mentioned $50,000 plus purchase price in the 1960s. So, I just roughly rounded to $60,000 and used the earlies year (1960) for the 60s. I wish the calculator/evaluator were up to 2006, but I imagine it is because we do have the inflation index yet for 2006.
So, give us a closer number for purchase price and the exact year for a better approximation.
Somebody else jump in and correct my ignorance or help us out here. Where is the number's guy named Maverick?
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| Name: |
Feb
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| Subject: |
we do not have for 2006.
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Date:
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7/31/2006 4:58:14 PM
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| Name: |
Maverick
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| Subject: |
A question for lake home buyer
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Date:
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7/31/2006 6:23:21 PM
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Here is the answer based on the avg for 2006 thus far.
$60,000 1960 dollars is equal to $411,282 2006 dollars, based on historical CPI.
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| Name: |
Feb
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| Subject: |
Thanks Maverick
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Date:
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7/31/2006 7:32:50 PM
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| Name: |
Osms
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| Subject: |
Feb & Maverick
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Date:
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7/31/2006 10:06:16 PM
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Feb and Maverick: Bamabob BOUGHT the property in 1993 when APCO offered it for sale. If he had bought a lot in 1960 it may have cost less than $1000.00. I've heard stories of give away prices then. He was merely stating that they paid $99/yr for the lease. What is current value of $1000 invested in a lot in 1960 per your formula--about $6854.70!!
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| Name: |
Feb
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| Subject: |
Feb & Maverick
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Date:
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7/31/2006 10:29:49 PM
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Thanks Osms, Seems I misunderstood bama's post. You are pretty close to correct if not exact. It certainly would be nice to steal a decent lot for less than 7 grand. After reading bama's second post I can see the clarification.
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| Name: |
Maverick
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| Subject: |
OSMS
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Date:
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7/31/2006 10:34:23 PM
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1960 - $1,000
Today - $6,854.73
1993 - $50,000
Today - About $70,000
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| Name: |
Maverick
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| Subject: |
Calculator Website
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Date:
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7/31/2006 10:35:34 PM
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Knock yourself out feb
URL: Inflation Calculator
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| Name: |
Feb
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| Subject: |
Thank You Sir, Its Now Marked
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Date:
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7/31/2006 11:01:25 PM
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