This is a partial transcript from "Your World with Neil Cavuto," October 31, 2005, that was edited for clarity.
DAVID ASMAN, GUEST HOST: What if I told you buying real estate in the Big Easy is a good bet?
My next guest says, yes, it is.
Joining me now, Barbara Corcoran — she is the founder of The Corcoran Group (search).
BARBARA CORCORAN, FOUNDER, THE CORCORAN GROUP: Nice to be here.
ASMAN: Are you buying real estate in New Orleans? (search)
CORCORAN: No. I'm not putting my money where my mouth is. I stay with what I know best, close to home.
ASMAN: So, but there are people who are looking at some fire sales who might think, geez, is it possible? Should I do it?
What would you tell them?
CORCORAN: Here's the rub.
In New Orleans right now, in many of the disaster areas, there are so many people who want to buy real estate, because they think, over the long haul, it's going to go up. And they are right. But the problem is, with the real estate that's habitable, that's manageable, where you could put a tenant in there or buy it for yourself, there's a long line of 200 people who want that single house. So, it's simply dreaming about buying these properties...
ASMAN: You cannot get any kind of insurance.
I mean, granted, the government is spending a gazillion dollars on making New Orleans safe for the future.
ASMAN: But, still, getting insurance for your new home there is going to be high-nigh impossible, right?
But a lot of investors are savvy enough not to worry about that. The real rub here is the areas where you could buy real estate and hold on to. You can't be a person who is afraid of things, because you're going to have to hold on to them five, six, seven years in areas like the Ninth Ward (search), which is totally under water. It's not like you are talking about the French Quarter (search) here, where the houses are pretty.
ASMAN: Well, what about the French Quarter? Some of the places in the French Quarter going up for sale, should people buy them?
CORCORAN: They're up for sale. They're taken off the market.
Sadly, New Orleans says no closings, because they have an antiquated that all the old records have to be searched. And they were sunk in the basement of a courthouse.
ASMAN: Oh, my gosh.
CORCORAN: And so, there are no closings.
But, if you could get your hand on it, they're costing you right now close to 25 percent more than you would have paid, say, four or five weeks ago, but, still, there are not enough to go around.
The best bets, or the scariest bets, however you want to look at it, are the ones in the Ninth Ward, where no one wants to touch them. They're like trailer parks. And who is going to put their money there? It's just too scary a proposition.
ASMAN: We will see what happens. Barbara Corcoran, good to see you.
CORCORAN: My pleasure.
ASMAN: Thanks very much.
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