re: Beach Condo Real World Deal

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I don't know how people are making buys like these, or why, unless they are just paying cash. It seems like there has to be a reckoning coming. The rates of increase in condo values in the AL/FL gulf coast do not seem sustainable.

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Tons are cash. But most are bought by retirees or almost retirees. They look for a 2nd home they can winter at for weeks or months of the year, and then can spend time with their grand kids during the season for a bit.

If you can break even on cost or close and then make money on appreciation, this board really misunderstands financial planning for those with a $8mil+ net worth or so. For most people it makes sense to not have a ton of money in the stock market and diversify.