When a recent cover story in Time magazine stated, “owning a home may no longer make economic sense,” the Wall Street Journal soon responded with a story explaining why home ownership is a good thing.
Mixed messages and conflicting perspectives on the business of real estate—for consumers, developers and builders—keep many in a state of uncertainty about market recovery and what happens next.
Cotton & Company, the international real estate sales and marketing firm based in Florida, sees their clients profiting from the market right now.
“Buyers just closed on 25 residences at a Boca Raton project we’re working with, One Thousand Ocean—and more that 50 residences have been sold over the past six months at West Bay Beach & Golf Club in Naples. The dollar volume of closings at One Thousand Ocean has reached more than $140 million,” explains Stephann Cotton, CEO of the firm bearing his name, adding, “Anyone selling at the right price is finding good absorption—sales people and asset managers that are getting discounted properties to the right buyers are making money; and banks are doing new mortgages—of course, lawyers are making money now.”
Mortgage rates and home prices are at historic all time lows—yet many people seeking to invest are looking for stable, healthy levels of recovery before investing, despite reports that the nation is emerging from the recession.
“People who have cash readily available and recognize the potential of the down market are making money,” explains Laurie Andrews, COO at Cotton & Company, she adds, “With the capital markets strained, investors with cash are paying a fraction of the price for prime properties. If buyers are looking for a higher yield on their dollar, real estate should be a top consideration.”
The strategic advisory and market entry consulting firm, KOLL-EOS, recommends investors review their goals and options carefully before buying residential real estate.
“Any decision on whether housing is a good investment must consider two important factors: the time frame a buyer is likely to stay in the house and specific regional factors,” says Ricardo Koenigsberger, Managing partner of KOLL-EOS. “With respect to the time frame factor, the current housing decline is deep and is likely to take some time to recover—whether there is a double dip down or not—and if a buyer is likely to be in a house a long period of time, the risk of the market not having recovered is mitigated and it is more likely to have been a good decision to buy now.”
About Cotton & Company
Cotton & Company is a leading real estate sales and marketing firm that has represented more than 1,600 communities over the past 27 years. Cotton delivers effective marketing strategies, internet-based data management, advanced digital expertise and new media marketing campaigns for residential real estate destinations. Cotton & Company specializes in sales management and repositioning assets to meet the changing needs of the emerging market. For more information visit: http://cottonco.com
About Koll-Eos
Koll-Eos is a vertically integrated strategic advisory and market entry consulting firm that integrates high caliber structured finance expertise with robust real estate operations infrastructure. Koll-Eos principals have managed $12.25B+ of aggregated investments for hedge funds, private equity funds, and operating platforms. Together with The Koll Company, Koll-Eos maintains eight offices nationwide with 80+ personnel. For more information visit: www.koll-eos.com
