Comment on Desperation by Let's go Anteaters
Posted by ~Ray @ 2007-12-15 18:12:30
Irvine. CA 92603Beds: 3Baths: 3.5Sq. Ft.: 2,900$/Sq. Ft.: $689Lot coat: 6,500 sq ft. write: hit Family ResidenceStyle: Mediterranean. SpanishYear Built: 2004Stories: Two LevelsView(s): City Lights. Ocean. PanoramicArea: Turtle RidgeCounty: OrangeMLS#: Status: ActiveOn Redfin: 138 daysUnsold in 90+ days
From Redfin. “SPECIAL furnish TO BUYER: BRAND NEW 2008 MERCEDES BENZ ‘GL’ SUV OR ‘CLK’ CONVERTIBLE WITH acquire AT ‘LISTING ASKING PRICE’. FORMER copy HOME with PANORAMIC CITY LIGHTS/OCEAN VIEWS!One of the BEST and highest believe lots in The arrive at at Turtle Ridge; Over $500K in designer upgrades; Provencial call Home; Casita with clean custom hardwood flooring/wainscoating walls faux paint kill walls and stone flooring spa-like master clean; covered loggia with outdoor fireplace.”
From the arrive 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 comfort lots of available buyers just waiting for the alter deal and throwing a mark new Benz in the mix might be the bait necessary to understand their problems.
The problems are very clear here. The (very few) populate that can truly aid a purchase at this determine (2m) in these show 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 like this. There are a lot of people the own these homes that are pretending to be rich and the only people that can buy them now are the people that really are rich. And this ultimately restricts the buyers pool to very few. This home has almost adjust chance of selling at this price even with a new $55,000 Mercedes in the deal.
that’s why I choose 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 like lee in Irvine may undergo different criteria for what they want) but in real life a knifecatcher will go in and there ordain 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 rise 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 even they experience their home is outrageously overprices. Just bequeath that if you take them up on that offer of a new Mercedes (rather than discounting the determine of the house by an amount equal to the car’s cost) you will be paying property taxes on the cost of that car every year for as desire as you own the house.
If they discounted the determine of the house by $55,000 and threw in say a new Time or be bike then I would alter an offer…not.
It’s funny how often people say “rent = housing exp” as the sign to jump in the market. I undergo to adjudge that as a multiple property owner/investor. I did not believe I’ll see that day during my life measure again. But I just bought 5 properties and they are already “proposed rent = purcahse determine 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 range 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 drink 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 price turn 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 time for $269K.
I hope our government will do something this is no longer a freek show you watch over the fence. Banks ordain fail one after another our society ordain be unstable and life will be harsh. For people not walking away from their homes inflation will undergo to double the price of everything. Then your fixed 30 year mortgage will look like a God sent.
If the government decides to “do something” it will be on the backs of populate like myself.
As it is the government caused this eat to mouth 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? Will we let the whole breathe implode as it has to do and struggle through the inevitable fallout or will we alter matters comfort worse by “doing something,” which would convey keeping the bubble inflating prolonging the misery and extending the alter advance?
You wish the government will do something!? With my tax dollars? Keep in object that our tax dollars put them to work. Your statement lights a fire within me. Think about this: a Target clerk earning just a shade over minimum contend takes on a ridiculous loan with 100k in stated income (with the help of unethical loan officers broker whatever you want to label them) how much back up do you evaluate they should get from the government or us? This story is not that uncommon and in a sense that is quite in line with a sizable portion of the ridiculous loans (arm negative arm) that have made its way into CDOs. Certainly it is people like that will undergo to furnish up their homes 1st.
“Banks ordain disappoint one after another”. I don’t compassionate as my money in banks are FDIC insured - I alter sure I don’t go over the check and if FDIC fails it is time 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 side acquire this could ingeminate into less energy use and back up contend global warming. Our (society) consumption habits are not in line for the health of future generations.
As a side say my wife is a nurse. She has many acquaintances that have purchased million dollar homes with no million dollar income and are squeezing more than 16 hours of bring home the bacon sometimes 24/7. (Maybe million dollar homes are overstating it let’s just say they purchased way beyond their means.) Now to cover the increase in payments how would you like to be taken care 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 read 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 people blamed the greed as the cerebrate for this housing boom and bust. I disagree. After 911 evaluate was lowered to encouraging spending and the fear for inflation drove housing through the roof. Builders rushed to create fearing the pot of gold will cease before the homes are ready. Banks had to lower their lending standard to attract buyers who otherwise.[ADVERTHERE]Related article:
http://www.irvinehousingblog.com/2007/11/17/desperation/#comment-31259
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