RE Speculation on Long Island

Tuesday, January 02, 2007 | 12:30 PM

On New Year's Eve Day, I was visiting my kid brother's family. They live in the fictional town of Suburbia, Long Island.

The next development over is a section of Woodbury called "The Gates" (don't ask). This has long been a very nice upper-middle to upper class part of town, known for rambling ranches and big splits on one and two acre plots. I hadn't been thru there in years. My bro said he had something to show me (he is, amongst other things, a successful Real Estate speculator). 

So while the wives played with the kids and chatted, we took the convertible out (it was 56 degrees on 12/31/06) and tooled thru the neighborhoods.

I couldn't believe the sheer number of knockdowns. It seemed that every 3rd house was either brand new, under construction, or had already been leveled.

The RAZR has a decent camera on it, so I took quite a few snaps:

This is the original sort of Houses that were all over this nicer part upper middle class suburbia. This Ranch is bigger than the photo shows, with a garage off to the right:
1_split

These are what are replacing the ranches and splits:

2_big

How the prices developed was an interesting aspect of this: According to public records, most of these knockdowns were purchased over the past 24 months. Specs paid between $1.0-1.3M -- essentially for the land, as they razed whatever buildings were on the property. The new homes had been first listed for $2.4m or so, but that was optimistic. Prices slipped to then $2.2m, and they are now holding at $1.99m -- with few takers. But  its a nice neighborhood (location location location), and as prices drop further there will be plenty of buyers -- the only question is at what price point?

What I found so fascinating were the number of empty lots (knock downs) and half-finished homes -- and according to the neighbors we met, quite a few have been that way for a while.

If any builders/developers here can provide insight, I'm curious as to what it costs to put up one of these bigger homes -- not the land, just the construction costs. A few of these 5,000 sq. ft.homes were actually very handsome (not the boring red brick McMansions, but others). I am curious as to how much profit there is in these jumbo homes. 

One thing to note in light of the earlier Lennar news:  As Beezer's CEO observed, about 75% of the home building business is still in private hands. (See WCW)

I'll toss the rest of the snaps I took after the jump  . . .

These are all of the snaps I took:

A few of the more handsome homes:   

1_nice

Gotta like the architectural design:

2_real_big

Same home different angle: This one is closer to 8,000+ sq. ft.

3_real_big

Red brick is apparently on sale:

4_sal_e

(Guess what the heck this red hood is attached to:)

5_sale

Owner occupied:

6_sale

This has been half finished for quite some time:

7_sale

Tuesday, January 02, 2007 | 12:30 PM | Permalink | Comments (51) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00d8350da1b869e2

Listed below are links to weblogs that reference RE Speculation on Long Island:

Comments

Cost of building? Its all over the map - figure on between $50 to $250 per sq/foot. Depending on the quality of construction, materials used, local labor demand, part of the country, phase of the real estate cycle, ego of the owner, etc. etc.

Posted by: Bluzer | Jan 2, 2007 12:38:47 PM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner