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Thursday, May 13, 2010

Will the Sinking Prices Make Some Neighborhoods "Boiled Frogs?"

There is an old wives' tale about how a frog if placed in boiling water will jump out but if the water temperature is slowly increased it will stay in the water until it is boiled to death.

Although false, this does illustrate many things in life…  
like gradual change can be accepted while rapid change will be met with resistance (people jumping)!  
"Boiled Frogs" has been used metaphorically to illustrate many different business and/or life points such as in the song by Alexisonfire.

As I see the number of short sale and foreclosure homes being sold to investors I can envision some older neighborhoods in Brevard County Florida transitioning to investor owned rental neighborhoods.

This transition may in fact be a slow process..a gradual heating of the water.

I have nothing against investors or rental properties however I feel there needs to be a balance in any neighborhood.

Condo associations have long known this and most limit the percentage of properties that can be rented out at any given time. 

What can be done to prevent this from happening? Probably not a whole lot however it is good to be aware of the dynamics in your own neighborhood.


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