Quote:
|
Originally Posted by Midge538
The overly ambitious plan to go on building through 2014, in a softened economy and a dramatically collapsed real estate market, has the developer facing tremendous and mounting carrying costs for all of those unsold lots and spec homes that we see.
|
Take a look at this piece of news about the Florida real estate market:
http://money.cnn.com/galleries/2008/...x.html?cnn=yes
Look at the
5-year real estate price trend - UP
50 to 90% over the past 5 years ! INCLUDING the most recent period of "the dramatically collapsed real estate market."* TV has a multi-dacade horizon, especially for bonding the infrastructure through the Community Development District bonds.*
There is one especially critical item they need to monitor closely.* Somebody has to pay the bond debt over the period between financing the infrastructure, and passing on the debt to the ultimate home buyer/consumer.* Who is that?* If sales are significantly below that needed to absorb the bonded debt, what happens?* Do the investors in the bonds get whacked?* Does some entity "guarentee" the bonds?
__________________
Brockton, MA 1946-49 * Fort Lauderdale 1950-66 * Northern Virginia (Army) 1967-69 * North Lauderdale 1970-72 * Coconut Creek 1973-87 * St. Louis 1988-89 # Northern Virginia (again) 1990-2000 * Destin, FL 2001-08 * The Villages - Amelia/Hadley