From: "Tyrone" 
Newsgroups: misc.invest.real-estate
Subject: Re: Ocean City, New Jersey Real-estate
Date: Fri, 18 Mar 2005 05:10:48 GMT


"Mr ED"  wrote in message
news:1111110173.186245.26380@z14g2000cwz.googlegroups.com...
> I have been looking into purchasing a new construction condo in Ocean
> City.
> I have some friends that purchased a new condo three years ago and
> their property value has more than doubled.
> I have found a couple of units going for around $400,000.00.  I have
> been doing research on investments and this seem to be a wise choice.
> I have considered offsetting part of the mortage by renting out the
> unit for part of the summer.
> I'm looking for some more advice on why I should or should not make
> this investment?
> Any one with a similar story I would like to hear from you.  Thanks
>

You should NOT make this investment because:
You have no idea what you are doing.
It is not an investment, it is a gamble.
You are gambling that the value will continue to increase because of
appreciation.
That may or may not happen.
You need to generate a bare minimum rent of around $50K plus a year to
even begin to see daylight.
Instead of paying retail and hoping and praying to sell at high retail,
try buying something below retail instead.
If you buy at or below wholesale, you always have a market when selling
and can always beat the competition if necessary.