Seneca Lake Topics: comments on prices

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	Name:	boataholic -
	Subject:	comments on prices
	Date:	4/6/2007 2:03:36 PM

Very interesting idea on the 3x and 10x theory. At first I was inclined to disagree because many of the current properties for sale have houses worth far less than the lot. But I now realize it only confirms that there is still a lot of money to be made on lake property. For example, many of us reject the idea of buying in the Ridge because we know if we had 1.2 million to spend we could buy an equal or better lot with few restrictions and a mediocre house for 650,000 and tear it down. But the Ridge is selling, so it isn't overpriced, the other properties are just underdeveloped. That is why the market is currently adjusting at some 20-25% per year. Eventually, all those mediocre houses will be gone. At somewhere between 3x and 10x, teardowns and condos and subdividing becomes unattractive. Unfortunately, it looks like the trend towards mega-mansions, condos and developments like Glynmere is economically inevitable.