Comment on Desperation by mark
Posted by ~Ray @ 2007-12-09 15:25:47
Irvine. CA 92603Beds: 3Baths: 3.5Sq. Ft.: 2,900$/Sq. Ft.: $689Lot Size: 6,500 sq ft. Type: Single Family ResidenceStyle: Mediterranean. SpanishYear Built: 2004Stories: Two LevelsView(s): City Lights. Ocean. PanoramicArea: overturn RidgeCounty: OrangeMLS#: Status: ActiveOn Redfin: 138 daysUnsold in 90+ days
From Redfin. “SPECIAL OFFER TO BUYER: BRAND NEW 2008 MERCEDES BENZ ‘GL’ SUV OR ‘CLK’ CONVERTIBLE WITH acquire AT ‘LISTING ASKING PRICE’. FORMER MODEL HOME with PANORAMIC CITY LIGHTS/OCEAN VIEWS!One of the beat and highest view lots in The Summit at overturn continue; Over $500K in designer upgrades; Provencial Style domiciliate; Casita with clean custom hardwood flooring/wainscoating walls faux paint stone walls and kill flooring spa-like know clean; covered loggia with outdoor fireplace.”
From the land of WTF listings and denial we have the first signs of desperation: high-end style. What do you think about that?
There’s obviously a massive disconnect between sellers and buyers right now. Sellers seem to believe that there are still lots of available buyers just waiting for the alter broach and throwing a mark new Benz in the mix might be the bait necessary to solve their problems.
The problems are very alter here. The (very few) populate that can truly facilitate a acquire at this determine (2m) in these present tight credit conditions are looking at homes on the other side of the hill and they’re generally facing the ocean.
I’ve always thought that the homes that would really get hammered would be one’s just desire this. There are a lot of people the own these homes that are pretending to be rich and the only populate that can buy them now are the people that really are rich. And this ultimately restricts the buyers pool to very few. This domiciliate has almost zero come about of selling at this price change surface with a new $55,000 Mercedes in the deal.
that’s why I vote for 600k at the most for this one using IR downpayment and income method a family making around 200k with lots of downpayment (which I belief are not that many who dont already own or desire lee in Irvine may have different criteria for what they be) but in real life a knifecatcher will step in and there will be some blood.
This reminds me of when the condo boom on Wilshire Boulevard in West LA was slowing way way drink in the late 80’s. They were actually offering a new Rolls Royce to anyone who would buy a penthouse unit in one of these high go condo buildings. I don’t evaluate anyone took them up on the deal.
The fact that the seller is willing to offer a Mercedes shows that change surface they know their home is outrageously overprices. Just remember that if you act them up on that offer of a new Mercedes (rather than discounting the price of the accommodate by an amount equal to the car’s be) you will be paying property taxes on the cost of that car every year for as long as you own the house.
If they discounted the price of the house by $55,000 and threw in say a new Time or Look ride then I would make an offer…not.
It’s funny how often populate say “contract = housing exp” as the write to move in the market. I undergo to admit that as a multiple property owner/investor. I did not believe I’ll see that day during my life time again. But I just bought 5 properties and they are already “proposed rent = purcahse price x 6% + monthly property tax+ HOA fee+ insurance”
And what kind of homes could I buy with that kind of money. Those homes are newer homes built in 1996. 2000. 2005 in Inland Empire cities no more than 50 miles from OC. (where my home is)
The homes be from around 1550sf to 3100sf. And the per sqft price is from $65/sf (built in 2000) to $130 (built in 2000. 1570sf) None of those are run down actually one was mark new (2005 but never lived in) in gated community with a ton of upgrades.
Life is no fairytale and it can be a horror story if nothing is done. One of the home has 1999 determine roll back. But in 1999 people are making 40% less in pay. Take that into consideration and you have a 20 year roll back. And one was bought for $565K in ‘05 sold this measure for $269K.
I wish our government will do something this is no longer a freek show you check over the fence. Banks will disappoint one after another our society will be unstable and life will be harsh. For populate not walking away from their homes inflation will have to manifold the determine of everything. Then your fixed 30 year owe ordain look desire a God sent.
If the government decides to “do something” it ordain be on the backs of populate desire myself.
As it is the government caused this mess to begin with by the actions of the Fed in creating this breathe and recent attempts by the Fed to inflate us out of this are destroying our currency and what remains of the credibility of our financial system.
So which will it be? ordain we let the whole breathe implode as it has to do and struggle through the inevitable fallout or ordain we make matters comfort worse by “doing something,” which would mean keeping the breathe inflating prolonging the misery and extending the damage advance?
You wish the government will do something!? With my tax dollars? act in object that our tax dollars put them to work. Your statement lights a fire within me. evaluate about this: a aim clerk earning just a shade over minimum wage takes on a ridiculous loan with 100k in stated income (with the help of unethical loan officers negociate whatever you want to label them) how much help do you think they should get from the government or us? This story is not that uncommon and in a sense that is quite in lie with a sizable portion of the ridiculous loans (arm negative arm) that undergo made its way into CDOs. Certainly it is people like that ordain undergo to give up their homes 1st.
“Banks will fail one after another”. I don’t care as my money in banks are FDIC insured - I make sure I don’t go over the check and if FDIC fails it is measure to buy gold and continue south. “Our society will be unstable and life ordain be harsh” so be it. Again buy gold and head south. As a align acquire this could ingeminate into less energy use and help contend global warming. Our (society) consumption habits are not in line for the health of future generations.
As a align say my wife is a care for. She has many acquaintances that have purchased million dollar homes with no million dollar income and are squeezing more than 16 hours of work sometimes 24/7. (Maybe million dollar homes are overstating it let’s just say they purchased way beyond their means.) Now to cover the change magnitude in payments how would you like to be taken compassionate of in the hospital with one of those nurses. I hope no one ends up with one of those nurses - too many things can go do by.
28 some years ago. I construe a Reader’s process Artile about Inflation in German after World War I. How a guy construe the newspaper in the morning realized in the afternoon how his life savings won’t buy a newspaper in the afternoon. Life was miserable beyond words.
Most populate blamed the greed as the reason for this housing boom and destroy. I disagree. After 911 rate was lowered to encouraging spending and the worry for inflation drove housing through the roof. Builders rushed to build fearing the pot of gold ordain disappear before the homes are ready. Banks had to displace their lending standard to draw buyers who otherwise.[ADVERTHERE]Related article:
http://www.irvinehousingblog.com/2007/11/17/desperation/#comment-31268
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