Special offer

How to make money when the dock is worth more than the house!

By
Real Estate Agent with Southland Realtors

 

While this blog is primarily for people who like to flip houses and/or buy foreclosure properties, it is always about great ideas for making money in real estate. I ran across a great article on the Real Estate Journal online, a division of the Wall Street Journal. The article, which can be read in it's entirety by clicking the link at the end of this blog, is about what happens to a dock on waterfront property when restrictions against building new docks are put into effect.

People love their docks, and some have bought waterfront properties with docks in these restricted areas, and knocked down the old or less desired house. They then rebuild the house or leave the land bare with the dock, and resell for a premium. In some cases, areas that did not have restrictions suddenly pass them and some people will buy properties or land, and build a dock as an instant appreciation feature. And the value that the docks add to the total properties value is huge, and to avoid getting into the numbers, you gotta read the article to get the full scope.

Another similar strategy, in some hot markets like Charlotte, Atlanta, and other markets. Some older neighborhoods with modest homes are seeing another anomaly taking place. As people now desire bigger  homes and more square footage than homes 30 years ago, some are buying 2 homes that are side by side and tearing both homes down. Then replacing them with a much bigger home. If enough of these happen in a given subdivision, it can transform the whole face of the neighborhood and property prices start to go up accordingly. In Charlotte (my home town), Uptown has been transformed over the last 8 years from mostly office and minority neighborhoods, to being the new place to buy a home and to go out for the evening. Given this, poor and neglected inner city neighborhoods are being discovered by investors. More and more of these homes are being rehabbed and sold for good size profits as the neighborhood starts to attract upper middle class home owners.

A few interesting ideas on making profits in a challenging market. If anyone has other ideas, please

www.realestatejournal.com/secondhomes/20070702-casselman.html

 

Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO

Harry:

We have a similar problem here.  The Corps of Engrs. has planed where a dock can be built/and not built.  A dock or boat slip even is like gold!   

Sep 21, 2007 09:08 AM