People Bought Assets And Were Unable To Deliver
A report from the Mercury News in California. “Choked by traffic and overwhelmed by skyrocketing housing costs, a greater percentage of Bay Area residents than a year ago now say they yearn to flee the region. In a new Bay Area Council poll released Thursday, 40 percent of the region’s residents said they want to move away in the new few years, a marked increase from the 33 percent who said in 2016 they wanted to leave. Even worse, the new survey found that young adults are more inclined to leave: 46 percent of millennials want to lead the charge out of the Bay Area in the next few years.”
“‘It turns out that we were wrong about millennial preferences, the stories were wrong that millennials wanted to live in a hyper-urban environment and that it would be OK to raise families in a condo,’ said Micah Weinberg, president of the Bay Area Council’s Economic Institute. ‘Millennials are putting off family formation, but when they have a family, they want what their parents had: a house on a nice lot pretty close to work.’”
The Seattle Times in Washington. “After a brief winter slowdown in rising rents, tenants across the Seattle region are back dealing with the same old discouraging story: Rents are shooting right back up again. But there is some promising news: Hot neighborhoods with lots of apartment construction are finally starting to see some slight rent relief, and a lot more building is on the way. Seattle is expecting nearly 9,000 new apartments this year — thousands more than any year in the city’s history — with even busier construction forecasts set for 2018 and 2019. The region as a whole, from Tacoma to Snohomish County, is experiencing its second-biggest apartment boom ever, with more than 60,000 units in the pipeline this decade, according to Dupre + Scott.”
“Mike Seeley, a University of Washington sophomore, is moving into a house with friends near campus, and they received a 10 percent rent increase compared with the prior tenants. He said the landlord told them to expect annual rent hikes of 3 percent to 10 percent going forward. ‘These houses aren’t luxury apartments. They’re sort of rundown,’ Seeley said. ‘As a college student, it’s never something you want to hear — you have to pay more for stuff.’”
The Dallas Morning News in Texas. “Apartment renters in Dallas-Fort Worth are starting out the year with a big jump in rents. The D-FW area had one of the biggest rent increases in the country - up almost 6 percent from first quarter 2016, according to RealPage Inc. The spike in D-FW apartment costs came even though demand for rental units was basically flat. Net leasing for the first quarter was actually a decline in 129 units.”
“Currently there are 50,588 apartments under construction in the D-FW area and about 30,000 of those units will open this year. Developers completed 7,062 new apartments in North Texas during the first quarter - the largest delivery of new units in almost 17 years, according to RealPage. Dallas-Fort Worth has almost 10 percent of the 581,556 apartment units that are under construction around the country. ‘The tiny net loss of residents looks like a blip,’ said RealPage chief economist Greg Willett. ‘Demand was stronger than would be expected seasonally in fourth quarter, so maybe households just got a little off typical cycle for move dates.’”
From Biznow on Washington DC. “DC had the fifth-highest rent in the nation in March, according to Zumper’s national rent report, but the median cost of a one-bedroom in the District dropped 7% from March 2016. While some DC neighborhoods experienced rent growth, comparing the report to last year’s shows that rent prices in neighborhoods with large amounts of multifamily development, such as Capitol Riverfront and NoMa, have dropped.”
“Capitol Riverfront: The waterfront neighborhood in Southeast DC is in the midst of a massive multifamily boom. The staggering number of deliveries, including a citywide high of 1,843 rental units coming this year, is clearly having an impact on rents. The median rent in the neighborhood this March is $1,990, down from $2,220 in March 2016. One-bedroom rents in Georgetown, while tied with Shaw/Logan Circle for the highest in the city, seem to be on a downward trend. The neighborhood averaged $2,500 this month, down from $2,700 in March 2016.”
From Bloomberg on New York. “Manhattan landlords, who have seen retail occupancy plummet after boosting rents to record levels, are trying to avoid big price cuts. Instead, they’re writing checks. The concessions, which can pay for anything from lighting and displays to a complete overhaul, are becoming a key component in some new leases, particularly for large, flagship stores in high-profile areas, such as Madison Avenue and Fifth Avenue, according to Steve Soutendijk, an executive director at brokerage Cushman & Wakefield Inc. ‘We’re seeing tenant-improvement and concession packages that retail landlords never, ever contemplated before,’ he said.”
“Apartment landlords are offering concessions and paying broker’s fees — a burden typically shouldered by the tenant in New York — to better compete as a glut of new towers gives renters more choices. ‘People bought assets predicated on achieving incredible rents and were unable to deliver,’ said Alexander Goldfarb, an analyst covering real estate investment trusts at Sandler O’Neill & Partners. ‘One of the oldest tricks in real estate is to maintain high face rents by funding a lot of incentives up front.’”
The Journal Sentinel in Wisconsin. “A proposal to develop a large upscale apartment building in Milwaukee’s Walker’s Point neighborhood has been canceled, with the developer citing both an oversupply of new apartment units as well as rising construction costs. David Winograd said market conditions have changed since he began working two years ago on his proposed 234 Apartments. ‘A lot more high-end stuff is coming on line now than when we started,’ Winograd said.”
‘It turns out that we were wrong about millennial preferences, the stories were wrong that millennials wanted to live in a hyper-urban environment and that it would be OK to raise families in a condo,’ said Micah Weinberg’
Oh bother Micah! Well, we’ve pissed off a trillion yellen bucks or so on this completely made up story. Pensions and life insurance companies will go down in flames. Entire skylines have been ruined. Easy come easy go, right Mel Watt?
End the Fed.
“The departure of millennial professionals to other regions of the country could harm the Bay Area’s economy, the council warned.”
They never cared about what people want or need. They are harvesting a crop.
And the crop is called MONEY, at any and all costs…
“It turns out that we were wrong about millennial preferences, the stories were wrong that millennials wanted to live in a hyper-urban environment and that it would be OK to raise families in a condo,” said Micah Weinberg
Arthur Miller is laughing from his grave.
Yeah, this stuff is comedy gold.
“they want what their parents had”
Sorry that’s over.
With 40% of the people planning to leave, it’s the bay aryan housing market that is over.
————
“they want what their parents had”
Sorry that’s over.
————
A loving family in a shelter with a little plot of land has been a driver of humanity ever since man figured out how to feed himself without chasing migratory animals.
But you’re probably right that this *is* over, for a while anyway. Our economic system is structured on knowledge work while retaining in-person connections. That means small lots of people working on computers in small workspaces. That’s a hallmark of cities. The plot-of-land model works better with a small number of people and a large workspace, such as scattered factory towns.
Maybe that’s why society is messed up. We got ahead of our evolution.
Donks Fables
In other words, “it’s not different this time”.
“…we’ve pissed off a trillion yellen bucks or so on this completely made up story.”
Made up stories happen.
‘Currently there are 50,588 apartments under construction in the D-FW area and about 30,000 of those units will open this year. Developers completed 7,062 new apartments in North Texas during the first quarter - the largest delivery of new units in almost 17 years’
‘Net leasing for the first quarter was actually a decline in 129 units.’
Oh dear…
They will just convert em to condos.
Condoze for whom? All those Millenials with kids who are climbing all over each other for a $325K picket fence? They’d have better luck converting them into senior communities. Oh, wait… probably not wheelchair friendly.
“Condoze for whom?”
HUD could put the poor in ‘em.
If HUD did that, it would be terribly unfair to the middle class. We make fun of these luxury apartments, but they are new, and they are nicer than Grade B. Why should the middle class have to pay for everything out of their own pocket, while the poor would get to live in re-purposed Grade A for less? That’s the kind of thing that gets Trump elected. And haven’t we already seen stories of Section 8s getting choosey about granite countertops? The SJW’s don’t like the “welfare queen” concept, but it sure looks that way.
If the prices crashes enough, the cost to the taxpayer will be low.
If HUD did that, it would be terribly unfair to the middle class.
Do Ben Carson or Mel Watt care about the middle-class?
Ben Carson: “First of all, we don’t know what final numbers would actually be. And No. 2, housing is part of the infrastructure of this country, and it will be treated as such. There will be other sources of funding for housing and housing reconstruction,” he said.
If the prices crashes enough, the cost to the taxpayer will be low.
The cost shouldn’t be low. The cost needs to be ZERO. Why should the irresponsible be leapfrogged over the responsible?
$325K is achievable to two kids making $50K each.
4x income (or a 300% premium) for a depreciating asset like a house isn’t an achievement.
Nope, you cant just add the two incomes. Thats two people, two cars, two sets of hobbies, two wardrobes, etc.
And oxide above is correct, giving out freebies to welfare queens while millennials are busting their humps is how you elect trump.
The old three times income rule of thumb generally applied to couples in the days before everything went crazy.
Millennials are really getting hammered. Here’s a chart of average tuitions going back to the 1980s: https://nces.ed.gov/fastfacts/display.asp?id=76
The constant dollar column is eye-opening - college is twice as expensive as it was back in the 1980s. Government continues to pump money into student loans, jacking up the cost of college.
So Millenials deal with bubble-level house prices, sky-high education prices and massive increases in health care costs.
These are all symptoms of a declining standard of living.
What’s really strange is that in a world of increasing wealth and technology, that the American standard of living would be in decline.
I wonder how many Millenials really voted for Trump. The media narrative was young people were a block for Hillary, but people vote with their stomachs/pocket books.
“These are all symptoms of a declining standard of living.”
That is what debt does. Massive debt, pushed by the Feds, decreases all our standards of living. Well, unless you are a top level parasite.
It’s the rape of a nation, and it’s been going on all around the world.
You forgot books. Make sure you’re sitting down when you look at those prices. It should be illegal, the price gouging is so bad. Has anybody spoken out about the fact that this isn’t even about educating our young anymore, it’s entirely about greed?
“You forgot books.” No, we haven’t. See, I’m a Physics prof. We have been fighting book prices for over a decade now. Our current undergrad 1st year Physics text is over a decade old. Two editions back. Since the stuff hasn’t really changed for over one hundred years in most of the subject, we are not changing texts. Saves the students $300 for this at least.
Now, I’m sending my sons to acredited institutions, but these are not Ivy League or West Coast Tech. This is undergrad, and so it’s good enough. Most of the time, better is the enemy of good enough.
Regards,
Roidy
I quickly realized what a scam the college textbooks were back in the 1980s. They would release a “new” edition, which was the same book slightly rearranged (a few reworded paragraphs, and the study questions at the back were slightly different), and then your old edition that you paid $75 for was now worth only $3 at the bookstore. If the book was going to be used the next semester, it would have been worth $35 or so.
Massive scam. And some of the very best textbooks I have ever read (on AC and DC motor theory) were written in the early 1900s (and were in publication through the 1940s). I found those at used bookstores and they were extremely helpful at one of my jobs.
Yes, the whole “higher ed” thing is a massive scam. Attaining a BS or BA degree should be a lot of work. What it shouldn’t be is a debt hole. In fact, many students do not have a huge debt to pay off when they are done as long as they and their parents are clear about what they are doing. I was clear in my thinking and goals. I owed some money on my undergrad debt, but it wasn’t something that I couldn’t EASILY handle.
What frustrates me is students who are led to the slaughter at the beginning of their lives. They’ve been told about the myrad possibilities for employment in their undergrad field, or they go into a field that is wholly inappropriate at the school “of their dreams.” One then gets horror stories about Masters of Social Work and a $70k debt load from a toney Ivy League School. This was on TV a few years ago.
I get into a whole load of trouble because I directly inform students about their majors, classes, and such when they are eagerly informing me of their Medical School goals with a 2.5 GPA. This is when I “crush their expectations.” I do it politely, gently, and directly to the point; it requires doing by someone.
Regards,
Depressed Roidy
“What frustrates me is students who are led to the slaughter at the beginning of their lives.”
There’s clearly too much apathy about it.
“This is when I “crush their expectations.” I do it politely, gently, and directly to the point; it requires doing by someone.”
Someone has to carry the torch. Kudos!
They recently broke ground on a thousand-unit complex just down the street from me. That’s just one complex in one town here.
#fakerenters
‘People bought assets predicated on achieving incredible rents and were unable to deliver,’ said Alexander Goldfarb, an analyst covering real estate investment trusts at Sandler O’Neill & Partners. ‘One of the oldest tricks in real estate is to maintain high face rents by funding a lot of incentives up front.’
I’ve been studying the apartment finance thing. Turns out all sorts of funny business goes on. If net operating income is down or projected to be down, the airboxes are simply worth less, in the eyes of owners, bankers and buyers. So this old trick is kinda fraudy, if you ask me. And check this out:
‘Lending for New York City real estate projects was down in 2016, particularly in the multifamily sector as the rental apartment market wavers.’
‘That caution may be wise. Average net rental prices in Manhattan have declined for seven consecutive months, according to appraisal firm Miller Samuel. Landlords have been offering concessions, on average 1.2 months free, to lure renters and without eroding the underlying value of the building. According to Miller Samuel the average rent with concession was $3,260 in February, compared to $4,118 before concessions.’
‘Gabby Warshawer, head of research at CityRealty, notes that one reason for the concessions “is that if a landlord has higher rents on the books, it makes the property more valuable in general, thus increasing the value when the landlord looks to sell or refinance.”
Agree on the surface it looks like fraud, but due diligence should uncover this, so I don’t feel bad for anyone who buys on face value of rents. I think you’ve commented before that with trillions in yellenbucks floating around, everyone’s ability to properly valuate transactions (apts, CRE, SF, etc) is skewed. Hell, more and more reports describe a generation of traders who’ve never seen a down market so will 1) not know it when it arrive, 2) won’t know how to trade it, and 3) likely cry in their cheerios when it occurs. Sooner the better.
‘These houses aren’t luxury apartments. They’re sort of rundown,’ Seeley said. ‘As a college student, it’s never something you want to hear — you have to pay more for stuff.’
But Mike, the new owners paid a ton for that place and painted the parking lot! So while your student loans will take decades to pay off, the rich people who jacked up rents 70% will be depreciating the building against their other incomes. A greed-fest brought to us by the federal gov-ment!
I am not sure if there are any locales with a worse stock of rental houses than the greater Seattle market. They are literally moldy rot boxes.
“They are literally moldy rot boxes.”
I’ve heard the same complaint about houses in Western NC. I don’t have personal experience, though.
moldy rot boxes in Seattle. interesting.
as I perform seemingly endless repairs on my 40-year old stucco shack, I’ve always wondered how structures in heavy rain hold up over time?
don’t know that I’d be too happy spending the money or free time required for the extra-wet upkeep.
hell, my house in a moderate climate seems to devour all my time now as it is!
there’s a country song about it somewhere.
Having lived near Seattle since 1995, I can comment on that. It’s not that bad IF you keep your building’s envelope (roof and walls) in good condition, and you have decent foundation drainage which keeps your crawlspace dry.
I bought a rambler with good roof overhang, so in most cases, only the very bottom of my (solid cedar) siding even gets wet. When windy, maybe half of the windward side gets wet.
What does totally suck is the MOSS that grows on everything, roof, siding (not mine, but on my neighbor’s painted siding, it has a green patina), driveway, sidewalks, etc. You have to treat that annually on the roof and keep pressure-washing off the driveway and walkways every year or two.
Hey Ben- What would be your favorite city to live in?
I don’t like cities, but if I had to chose I’d say Austin Texas in the 60’s, 70’s or early 80’s. Did you know Austin used to be a super cheap place to live?
When I was in Tampa FL a few years ago it was nice. The people are easy going. And I liked Richmond VA too.
“When I was in Tampa FL a few years ago it was nice. The people are easy going.”
That’s actually true. Aside from the usual bs criminal and domestic violence episodes which you have anywhere, for some reason Hillsborough County is remarkably chilled out. And it is also the best managed county I’ve ever lived in. It’s almost like an island of sanity, because as soon as I cross the county line into Polk, Pasco or Manatee/Sarasota, it gets weird.
People here are generally decent and friendly and most are not posers. Too busy working. I tend to run it down, but from time to time I’m reminded, this isn’t such a bad place to be. Really the only thing that bothers me is the long hot and humid summer. I should learn to live with it.
I like a place where they put couches on their front porch and sip from colorful 40 ounce cans of malt beverages in the middle of the day. Natty Ice Dude would fit right in.
^
Natty wouldn’t like it here. Too hot, no fly fishing, a shortage of boob jobs on the women, they can’t afford them. We got some rivers that have some good tubing, though. And you can fish off the bridges.
Lol, we do have pockets where people have living room furniture on the front porches. Appliances, too. And drink malt liquor.
The best assortment of wig shops I’ve ever seen.
Unquestionably Nattyboi’s style!
Isn’t that like 80% of the south?
Maybe instead of selling whisky, Trump could create a booze more on the level of his supporters: “MAGA Malt 40.”
You’ve never been to the south much. A lot of it has been overrun with yankees and Californians. Most of Texas has got the “expensive is good” disease. And with that, “you can’t put a couch on your porch, it’ll bring down the price of my garage majal!”
In the south, people do their drinkin’ outside because they can do it without freezing their bejabbers off. And even when it’s hot, they can sit outside and drink without frying eggs on their toenails. Because, you know, it’s a damp heat.
I have no clue where the wig shops are, but I’ve seen the boombda shops. That’s here they sell padded girdles so the ladies can look like they’ve got Jennifer Lopez’ booty. First time I ever saw one of those in a store window I did a double take.
And there’s room for a RageCage….
http://3.bp.blogspot.com/_bll4t6lNvW0/TFbKpHxmYTI/AAAAAAAAFEs/oa5JBAivls4/s800/donkey-on-porch-horse-approaches.jpg
“You’ve never been to the south much. A lot of it has been overrun with yankees and Californians.”
I’m tellin’ ya. Moved here in 1980 to get away from the bluenoses and then they followed.
If you wanted to avoid the bluehairs, then why Florida, of all states? They’ve been moving down there for retirement since the *invention* of retirement in the early 1950s. You should have gone to the upper south/Appalachia. But now those places are being infested with boomer halfbackers too.
I think the traditional South was more bluenosey in some ways. You walk into a supermarket or a hardware store on a Saturday afternoon and you can tell who’s an educated professional and who works with their hands. The more prosperous types make an effort to dress quite nicely. Up in Yankee land the difference between the classes is less pronounced.
jeebus, oxy, I said “bluenose”, not “bluehair”.
Definition #1:
http://www.dictionary.com/browse/bluenose
Specifically to me, hypocritical yanks who act like their stuff doesn’t stink.
I haven’t had a couch on my porch since I had college roommates. Ahhhh…. the good old days.
Now we call it “patio furniture” not expensive if you work hard/smart.
Yes, crazy hot and buggy in the south 6 mos a yr, that is why it is dirt cheap. Too man unskilled, non-working “Democrats” too.
Housing my friends…. Housing.
Santa Monica, CA Housing Prices Crater 6% YOY As On Skyrocketing Vacancy Rate
https://www.zillow.com/santa-monica-ca/home-values/
MM: “You walk into a supermarket or a hardware store on a Saturday afternoon and you can tell who’s an educated professional and who works with their hands.”
What a snooty way of phrasing it. I thought you were supposed to be above things like that.
I have lived in Manatee County for 20 years, 10 years in Hillsborough before that, and the previous 51 years in Polk County as I am a native Floridian. I believe I am sane, at least as much as you are. You espouse a knowledge about Florida that is totally off base in many instances. Please stay with what you actually know and try not to generalize.
My experience living in Hillsborough County has been very positive, compared to living in South Florida and in the Orlando area. I have also found it much easier to do business with people from Hillsborough than the other counties on my work circuit. This is my subjective experience, not a generality. To the point where I refused to work outside of the county because it just wasn’t worth the hassle. Clearly, YMMV.
‘Austin Texas in the 60’s, 70’s ‘
That was the era of the Armadillo World Headquarters, a great era for Austin. I learned about that from my older brother. He had a great Texas music memorabilia collection, 2000+ records, really cool stuff, old concert posters / flyers. Unfortunately it all went up in flames during the Oakland Hills fire in ‘89 I think.
how can u cut taxes when your already running a huge deficit?
Is some miracle growth story gonna replace the lost revenues from the tax cut. C’MON man.
Lead, follow or get the heck out of the way.
Personally i would gthootw.
Tariffs. Collecting past due accounts from other countries. Whopper fines on rogue corporations. Dumping vast expensive bureaucracies. And that’s just for starters.
“Dumping vast expensive bureaucracies.”
That’s what I’d like to see Trump do - take a hatchet to the bloated government.
hope he can do it w/o house n senate
man are they going to whimper n wallow
“That’s what I’d like to see Trump do - take a hatchet to the bloated government.”
His chance is coming. Government shutdown is looming. That’s where the rubber meets the road. It’ll be interesting, the greatest show on earth. That’s where he gets to stick it to those who so desperately need it.
wont deep pockets yellen just buy some more bonds so they can keep paying the bills?
Suddemly r’s will support the debt increase and d’s oppose.
Amerikka, what a fukushima!
And there’s all those “intelligence” agencies. I swear, the products that come out of those black holes are real stinkers. If you had a toaster oven that operated like US “intelligence”, your house would burn to a crisp.
See Kansas, they tried and failed hard.
http://www.kansas.com/news/politics-government/article114837818.html
‘they tried and failed’
See, this is why you’re on the bench. Instead of trying something new, you just tear down others who try. Meanwhile, “we can’t build shacks in Caaali! We can’t fix dams, we’re running out of water, it’s flooding. Waaa!”
Hmm, that sounds like a government teat-sucker.
Instead of trying something new, you just tear down others who try.
It’s helpful to learn from the mistakes of others.
LOL! The starters live in my town.
Pay to play.
We control growth to keep it from becoming the NEW Austin.
Like, trying to cook a frozen turkey in a vat of boiling oil. Good try! Results matter.
Kansas can always raise taxes and you can send more in today
Cant get blood out of turnip.
Maybe from beets…the red juice is not blood, but close enough.
It shouldn’t be a problem to set the taxes back to what they were before Brownback’s changes.
Brownblack? Never trust a man with 2 colored names.
Never trust a man with 2 colored names.
It’s Brownback, not Brownblack. It’s probably an Anglicized version of a German name. Your concern about “2 colored names” sounds like a bizarre prejudice. How many people with “2 colored names” have you actually met?
I know MightyMouse who calls himself Mike.
Kansas just tested the case of trickle down and it failed.
https://i.guim.co.uk/img/static/sys-images/Guardian/Pix/pictures/2015/4/21/1429612367934/0ea3c982-04f8-450a-89cb-dc5d1e452c60-2060×1236.jpeg?w=700&q=55&auto=format&usm=12&fit=max&s=451ba8608323d4501585f177e4dabc0a
You run a yuger deficit?
I’ve never understood that either. Running a deficit, roads are bad, school buildings need repair or replace, gov’t buildings are old and decrepit, much requires doing. Yes, it takes money. I do not mind paying taxes, myself. I never did mind. There’s a lot to be said for civilization. Now, we are going to provide tax cuts for super rich. These people are going to send that tax cut to there the return is max’ed in the next quarter. Like they more of it than they already have. Nothing personal, but screw them.
Regards,
Roidy
Santa Cruz County, CA Housing Inventory Skyrockets As Demand Craters 21% YoY
http://files.zillowstatic.com/research/public/County/County_Turnover_AllHomes.csv
We need to have janet yellen buy some stocks so the rich can get some free money and put some folks to work!
Doodleydoo says punch bowl not completely off the table.
ISIS, AQ if you are listening. One word, Fed Reserve!
And Ameikkans will be grateful rest of their lives.
The NoMa area of DC (NOrth of MAssachusetts Avenue) is a hole. It used to house the old Industrial Revolution factories and warehouses near the RR tracks that pulled into Union Station. Much it of it was torn down to leave empty polluted fields full of homeless, gangs, and graffiti which was highly visible from Metro’s Red Line trains. Only in the past 10 years have they tried to gentrify it with shiny new buildings. But it’s still surrounded by “the poors.”
heh. Some of those “poors” probably have more money than you do. They just have a different lifestyle.
Some of those “poors” probably have more money than you do. They just have a different lifestyle.
#alternativefacts
Yep, I love my 1998 Mercury Tracer and no teeth!
“Yep, I love my 1998 Mercury Tracer and no teeth!”
WOW. Hillary Clinton, is that you?
“Yep, I love my 1998 Mercury Tracer and no teeth!”
https://www.youtube.com/watch?v=0FEhoHOl8iE
you guys need to open a margin account and buy some SNAP
“Cutting taxes reduces government revenues, at least in the short term, creates either a budget deficit, or increased sovereign debt. The natural countermeasure would be to cut spending. However, critics of tax cuts would then argue that the tax cut is helping the rich at the expense of the poor, because the services that would likely get cut, is beneficial to the poor. Proponents argue that by putting money back in consumer’s pockets spending will increase, hence the economy will grow and wages will rise. At the end of the day, the outcome depends on where the cuts are made.”
http://www.investopedia.com/terms/s/sovereign-debt.asp
Here is one today about Detroit and how most of the home sales are all-cash, in particular for the poorer neighborhoods. Because the houses are so cheap, the banks won’t even do mortgages for them, which people are complaining about. Some people are buying up houses in bulk and hoping to rent them out, and then dump them in a few years to overseas investors.
http://www.crainsdetroit.com/article/20170330/NEWS/170339996/home-mortgages-remain-a-detroit-rarity
“Last year, only about 710 of 3,800 homes (19 percent) sold by conventional means in Detroit were financed with mortgages, the records show. The difference between the two types of home sales was huge. Homes with mortgages sold for an average of $155,000, records show. Cash sales averaged $30,000.”
“Peter Whittaker is betting big on the lower-priced, west side of Livernois. The venture capitalist and his investors bought 87 homes, sight unseen, in a six-block radius there about five months ago. He didn’t disclose the sale price, but nearby homes sold for $16,000 to $28,000 apiece in cash.”
“”We buy neighborhoods, to be honest with you,” said Whittaker of Birmingham, whose company, Global Properties Management, is based in Miami.”
“The business model: Spend up to $15,000 renovating each home. Rent them for $850 to $1,000 per month. Sell the homes in bulk to overseas investors in about five years. Stay on as property managers.”
…
Still not a very good place to live:
“Investor Peter Whittaker inspects the basement of a Detroit home he’s rehabbing. Because of thefts, he waits until tenants are lined up to install furnaces.”
Psst. Roanoke. I’m tellin’ ya, it’s the next hot spot.
One more for today, from Hong Kong. The author complains about the extremely high cost of living in HK, then blames capitalism and predicts social upheaval.
http://www.scmp.com/business/global-economy/article/2083535/rates-will-do-nothing-burst-hong-kongs-property-bubble
“Hong Kong’s dilemma will prove that recent ideas on just maximising profit stop working when consumers max out on debt.”
“History can be a cruel mistress. The Communist Party in Beijing is presiding over the end game in Hong Kong of the “ultra” capitalism that Marx predicted. The wealthy property elites will tend to destroy the system by taking so much of it that demand collapses, thus turning everyone else into serfs. That is what we are witnessing in Hong Kong.”
“There appears to be more upside to go in the property market until the working and middle classes initiate civil protest and insurrection.”
I have 1.7m in cash. Where should i invest?
(ARCC) >9% div
In a psychologist.
go long!
“I have 1.7m in cash. Where should i invest?”
Rain Man let’s play some cards.
https://www.youtube.com/watch?v=wAadouGkwMQ
Redmond, OR Housing Prices Tank 11% YoY
http://www.movoto.com/or/97756/market-trends/
Ivy League payments and entitlements cost taxpayers $41.59 billion over a six-year period (FY2010-FY2015). This is equivalent to $120,000 in government monies, subsidies, & special tax treatment per undergraduate student, or $6.93 billion per year.
Amerikka, what a fukushima!
Housing my good friend…. housing.
Woodland, WA Housing Prices Crater 11% YoY
https://www.zillow.com/woodland-wa/home-values/
Much of that goes to fund research, so it doesn’t make sense to calculate an amount per student.
Amerikka, what a fukushima!
auntie fed is gonna raise rates so she can lower them when this ponzi comes undone.
Remember my good friends…..
Nothing accelerates the economy, creates jobs and raises the standard of living like falling prices to dramatically lower and more affordable levels. Nothing.
Upper East Side Manhattan Housing Prices Crater 10% YoY
https://www.zillow.com/upper-east-side-new-york-ny/home-values/
Stop posting this drivel, HA. Nobody here is your friend, much less your good friend. And there are huge job losses associated with falling house prices.
You post so much incorrect information here that it is just staggering! Get a job with the MSM and you will fit right in.
“huge job losses”
The only shame in this is that the jobs which depend on people overpaying for housing and tragically enslaved by massive debts ever existed in the first place.
Would your job be one of these?
Don’t accept an ambulance ride to the hospital if can take Uber and don’t take a helicopter either:
https://www.reddit.com/r/personalfinance/comments/62hmv1/24m_no_health_insurance_1700_ambulance_bill_22700/
“24/M No Health Insurance. $1,700 Ambulance Bill, $22,700 Hospital Bill, $50,500 Helicopter Bill.”
Queue collection agencies and personal bankruptcy.
wonder if they harass illegals over a bill like this………hmmmm
Or just tell ‘em you’re a transsexual muslim being persecuted by whitey and they will be so scared of being called a racist, you’ll get everything for free.
Thanks Im looking for loopholes when i need one!!!!
“Choked by traffic and overwhelmed by skyrocketing housing costs, a greater percentage of Bay Area residents than a year ago now say they yearn to flee the region.”
The Bay Area is climate change fearmonger central. It’s pretty amusing that it also happens to be where endless horrible traffic, due to a surfeit of automobiles per mile of roadway, ensures perennial production of an outsized contribution of greenhouse gas emissions.
There are also plenty of Teslas parked in front of 6,000 square foot houses.
Al Gore would be so proud.
Willow calls NYC up 1.9% while p people are sleeping off buildings
Whoops, leeping
Also zillow has dc area up even as human tornado chops heads
“Launched last year, Mike Tyson’s retail brokerage firm Trade12.com allows up to 400x leverage on FX, commodities and futures on stocks… and don’t worry there are plenty of education tools.”
even mike tyson is a stock picker now.
Bell ringing at the top…
so which US cities are falling the fastest
sf,nyc,chighetto?
we don’t have to talk about price hike any more
being that I have been in the market for a house, townhouse and or condo in the last 3 years and get burnt out after 9 months of straight shady outbids I started asking real questions a few years back. Here’s how it works..if your looking under a 700 for condo / 750-800TWN homes, or under a mill/1.5m you are competing with the entire working and upper-middle of the Region….because most people are looking within a 60 mile radius because that’s how slim pickings are for decently run public schools, you have to search with in pockets of pockets in cities…(unless of course you can afford Cupertino or PAlto/LosAltos). But here’s the shittier part. Your more than likely to get outbid by foreign investors and their faux family (hired real estate partners or hired rep’s)by anywhere from 50k-100k over. They either rent them out and help jack up “market value” for rents to ungodly amounts, and make entrance into home ownership (return on investment) unattainable for regular joe/families. Reasons being 3 fold…1) most of investments are “hot” cash, i.e dirty or in need of being laundered quick…if you pay 100% cash and over price chances are transaction will happen lightening speed, no questions asked….agents make there gold along with seller (insert foaming mouths here) very quickly. Money is now in tangible investment. Another reason for foreign investors to dump cash into housing in major cities US cities is you just bought your kids and family a green card and can send them to our colleges, even if you have to wait in line some years before (visas) come through. It’s still better than a polluted country with no home ownership possibility and a very corrupt government(worse than ours so far…we think). China doesn’t allow for home ownership, just leasing, and if they do the threat of government seizing is real, so the safe bet is to buy here in USA. The investors have whole realty agencies that are devoted to this, and this is a real thing and a real threat to our American legacy of the dream of stability in putting your roots in the cities in which you actually live. Morally, there needs to be a moratorium on foreign investments and people posing as legitimate families who live here. Read up on it. And if your in this market and you talk to realtors that are honest - this is truly going on. The other real problem is corporations buying out housing (weather SF,TWNH, CD) out right cash and over as well. Real buyers cant compete with them in the least. They use this tactic as incentives to lure in new employees who would otherwise research the housing market and their salaries and say “no thank you”…but if you provide a way for them to have housing, bought or rented at a decent price from their employer, why wouldn’t they move to beautiful Bay Area. Its totally stacked against the real person vrs investors and corporations. Nobody wants to call it out. But we need to out it so that agencies /agents/firm that do business with hot money that not only happily engage in this practice but encourage its behavior are shamed. I have been told Coldwell banker agents are some of the worst offenders - giving complete preference to contracts handed to their sellers by these strategies. The days of selling to a nice family at a reasonable profit are over. Its straight greed.
It’s the inevitable result of “housing must always go up to save the banks”.
I occasionally look at local (Vegas) realtor videos touting single family houses on youtube. Many don’t even address regular people, only investors.