Quote:
Originally Posted by westernmassbob
Suff since you are a real estate hobbyist as you pointed out do you think the Surfside tragedy had any impact on high rise prices ? Obviously the current prices on most of the property down there would suggest NO but maybe selected types of real estate were effected. You couldn’t pay me to live in any of the high rise apartment buildings down there that were built in the 1980’s.
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Surfside collapse site also closed this month, $120 million , ~2 acres, a company out of Dubai bought it
https://www.damacproperties.com/en/
Surfside biggest impact is pushing fixed income people out of their homes due to assessments.
The Surfside collapse triggered inspections of older buildings. The building next to mine just got hit with $13 million dollar assessment after their inspection found 2 weakened columns.
It's roughly $68,000 per unit added to mortgage and HOA fees. $1500 a quarter for 15 years if you finance it.
Fixed income people don't have $1500 a quarter.
My sense of why prices have soared in the last 12 months is almost entirely due to inflation. Properties are selling for 40 to 100% more than a year ago.
My further sense is that buyers know they'll likely be retraction in prices, but over 20 years , real estate is a solid inflation hedge.
