The Period Of Joyous, Abundant Business Is Over
It’s Friday desk clearing time for this blogger. “That chill in the air? It’s called fall…as in falling number of houses sold. ‘With pricing on the rise you might think that’s a little bit of a concern but we’ve got int rates that are unheard of and it’s been that way for some time so we’ve actually seen a little bit of a drop in interest rates so for buyers now is the time for them to be thinking of making a purchase because we’re in a little bit of a lull,’ said Kath Hammerseng, the incoming President of the Minneapolis Area Association of Realtors.”
“Okay…so it’s a buyers market. ‘On the other hand sellers are in a great place. Overall our marketplace has 2.5 months of inventory right now so it should be very much in favor of sellers and in some areas in some segments of the market it is that,’ Hammerseng said. Nevermind…still a seller’s market, right? ‘It is a little bit confusing. There’s a lot of data here. We’ve got some areas where people are receiving multiple offers for their property in certain price points we also have some areas where it’s very difficult,’ Hammerseng said.”
“It took eight years and a nearly $13.5 million in price cuts to sell an the home at 81 Briar Patch Road in East Hampton. The 12,000-square-foot, seven-bed, nine-bath home was listed in 2009 for $39.5 million, and the sale closed this year for $25.925 million. The 10,500-square-foot home at 356 Wickapogue Road in Southampton got a nearly 18 percent price cut this week after sitting on the market for two years. Originally listed at $19.5 million, the three-acre property is now for sale at $16 million.”
“Some luxurious apartment buildings in the part of Los Angeles known to locals as ‘DTLA’ might feel more ghost town than downtown right now. Renters simply aren’t shelling out (or can’t afford) to live in DTLA’s slew of new luxury high rises. All things considered, CoStar Group’s Steve Basham says investments in DTLA will be profitable if developers are willing to stick with it; don’t count on any quick rewards right now, but expect a good return in 10 to 20 years, he said.”
“A Toronto-area family who decided to walk away from a new house they agreed to buy says they are shocked to find out they still have to pay real estate commissions, even though the deal never went through. Marcello and Anita Mastroianni decided this past spring to sell their semi-detached home in Vaughan, Ont., north of Toronto to buy a larger house for their growing family. They say their agent told them their house would fetch at least $1 million once they listed it, so they made an offer to purchase another home nearby for $1.3 million.”
“But within weeks of signing the paperwork, the real estate market in the Greater Toronto Area began to cool sharply and both homes dropped in value. The Mastroiannis decided to walk away and not close the home purchase. They knew they would lose their deposit, but they didn’t realize they would be on the hook for so much more. They received a notice from their real estate agent, Vince Tarasca, which stated he was going to pursue them for the commissions that he lost.”
“He said of the Mastroiannis: ‘…they refused to close, stringing sellers, agents, mortgage brokers and lawyers along the way… This is a case of a client taking advantage of the current situation of the housing market due to buyer’s remorse.’”
“Turkish Deputy Prime Minister Ali Babacan sounded the alarm in 2014: Industrial investment was in decline while a construction boom was luring entrepreneurs to build shopping malls and luxury housing projects with the promise of quick profits. He stressed the need to encourage investment in industry, warning, ‘Or else we are becoming an economy that builds very luxurious buildings, spending its money on stone and concrete, without producing.’”
“Tekin Acar, head of a leading cosmetics chain, told one media outlet that his company has canceled contracts with 10 new shopping malls. ‘People are going bankrupt one after another, and this is going to continue,’ he said. According to Abdullah Kigili, owner of a long-established clothing brand, the party is over for the shopping malls. ‘The period of joyous, abundant business is over,’ he said.”
“Anxious vendors are turning to social media as well as traditional listings websites in the hope of selling their homes as the housing market softens. Off-the-plan resale apartments and suburban houses are being listed with labels of ’urgent’ and ‘huge discount,’ particularly in Melbourne and Brisbane where concerns have been raised over the volume of apartment supply. The listings come amid a regulatory clampdown on investor lending aimed at cooling housing prices while the Reserve Bank recently again singled out the Brisbane apartment market as cranes dot the skyline.”
“Brisbane listings on the website include a Bowen Hills apartment ‘lower than original contract price’ and ‘totally negotiable’ along with house and land packages. Even in the heated Sydney market, a ‘charming’ Bankstown two-bedroom ‘needs to be sold ASAP.’”
“In the hopes of avoiding hefty agent commissions while still attracting buyers, Melbourne-based accounting and finance graduate Wenhai Zhang has listed an apartment for off-the-plan resale on Gumtree. He is helping to find a buyer for his friend who moved from China to study in Australia and bought the home, then found it difficult to get finance after restrictions on lending to offshore buyers were introduced. Other Chinese buyers are in a similar position and trying to sell their apartments, he told The Weekend Australian.”
“‘I did contact some Chinese agents, so they have a lot of apartments off the plan on their hands,’ said the 23-year-old, who is also from China.”
“Act Party leader and Epsom MP David Seymour says he can’t afford to buy his house in Auckland. Seymour earns about $190,000 a year as an MP (plus benefits). When asked if he didn’t think his statement was offensive to New Zealanders who are truly struggling, he said it wasn’t offensive because ‘it’s actually true.’”
“‘I rent a house with a couple of flatmates that cost $2.2 million last time it sold.’ Seymour points out that $2.2 million is ‘10 times’ his income. ‘The money I get after tax would give me $1000 a year left over after I paid the mortgage. That’s not enough for the rates.’ The interviewer pointed out that maybe Seymour just had his heart set on a ‘really expensive house.’ ‘It makes the point, doesn’t it?’ Seymour replied. ‘If someone earning $190k is having trouble, then clearly the market is stuffed for everybody.’”
‘CoStar Group’s Steve Basham says investments in DTLA will be profitable if developers are willing to stick with it; don’t count on any quick rewards right now, but expect a good return in 10 to 20 years’
Smart as a whup, these Costar guys.
Hey, at least they are not going to lose money. It’s just that the returns will be slower than expected.
2037 will be here before you know it.
BTW, the original report (which I posted here) about this market had one complex half empty. They are definitely losing money.
No they’re not. It’s negative appreciation - which is still appreciation. Get with the lingo Ben! Your gloom and doom is bringing people (and the market) down!!
They are adding something like 20% to the supply of DTLA apartments…and the vast majority are expensive. Did they expect the market to absorb them all quickly and easily?
BTW, lots of these apartments are still under construction…bad sign if they are running into problems already. Ouch.
In DTLA - Well here in LA we just say “Downtown” I don’t know where they got the DTLA BS - they were building apartments to turn around and sell.
A friend of mine was managing a new building and as soon as occupancy was high enough, they sold it and he was sent packing.
He knew it though so it didn’t come as a surprise - only came as a surprise as to when.
My friends and I laugh at these new buildings with “Live-Work” lofts.
Like anyone freelancing can afford a $3500 apartment.
Our “live-work” apartments are $1500 a month 1 bed/bath 1950/60s dingbats or walkups utilizing the dining table for kitchen space.
*dining table for work space
lots of these apartments are still under construction ??
And more in the pipeline….
Something tells me that other people’s money is at stake here…and also that we are at the stage of Housing Bubble 2.0 immediately preceding the Minsky moment meltdown when lots of greater fools are destined to get wiped out.
With an unlimited balance sheet to prop up stocks it seems like the markets will never be allowed to have a significant correction again. This message has been sent pretty loud and clear.
Whats a guys to do? Buy sh@t you know is grossly overvalued or stay out completely?
If everything is propped up by printed dollars indefinitely, then that grossly overvalued stuff is actually valued properly, in a Weimar sort of way.
The key being “indefintely.” If it were truly indefinite, then the best course would be to park all that cash into those assets and watch it zoom up. Sell off bits only when needed to buy food and gas.
Of course, if any of us reg’lar schmoes tried this, everything would crash the moment the day after we emptied the mattress.
My retirement accounts are still fully invested. Knowing that returns will almost certainly be weak over the next 10-20 years is much different than expecting a crash in the near-term–and I have at least 10-20 years to go before retirement, and have no idea when the next crash will come, and how extreme it will be.
I’m not adding anything in my taxable accounts unless I perceive a company really getting beaten to hell unjustifiably (my most recent purchases were retail REITs trading at below NAV and an 8%+ dividend yield).
If I were to buy stock in a company today, it would need to be a high quality company that I would be OK holding for 10+ years.
The only stock on my radar to potentially buy is GE, but it would need to fall another 20% for me to want to make that leap.
Other than that, I’m really not looking at public markets at all for new investments today…certainly not on a blanket basis.
Ignore The Boy Who Cried ‘Bubble’ at your peril.
Opinion: Investors, this is your last warning about the U.S. stock market
By Thomas H. Kee Jr.
Published: Sept 21, 2017 9:12 a.m. ET
A big change is coming: Liquidity is about to dry up in the global financial system
Getty Images
Federal Reserve Chairwoman Janet Yellen
As liquidity dries up in the global financial system, investors need a wake-up call.
I have been running Stock Traders Daily, a proactive financial newsletter offering trading strategies, since the internet bubble in 1999, and I communicate with investors regularly. I’m hearing that investors do not respect the changes in liquidity that are coming.
The U.S.’s Federal Open Market Committee (FOMC) is taking steps to remove a massive amount of liquidity from the financial system for the first time in years. The European Central Bank (ECB) may announce similar moves next month.
Boy who cried wolf
It is hard to fault the average investor because they have heard repeatedly that the market may crash. It is almost like the boy who cried wolf; they have heard it so many times and it never happens, and now they don’t believe it will.
During the past five years of warnings from analysts, myself included at the beginning of the stimulus cycle, liquidity was being aggressively provided by central banks. The result: increased demand for global assets, including stocks, real estate and bonds. When liquidity is that strong and unyielding, it is difficult for any asset class to decline.
Stocks overvalued
This brings us to a very important point: Artificially abundant liquidity is the driving force behind global asset rallies. Without central banks’ “help,” the S&P 500 Index would not be anywhere close to being valued at 24 times earnings, where it is today. Historically, that multiple is 14.5.
…
They sure didn’t do a good job stemming the last crash, did they home equity boy? If they were so powerful, we wouldn’t have seen the DOW plummet to less than 6,500.
Minneapolis, MN Real Estate & Homes for Sale
4,953 Homes
https://www.realtor.com/realestateandhomes-search/Minneapolis_MN
Minneapolis, MN Price Reduced Homes for Sale
962 Homes
https://www.realtor.com/realestateandhomes-search/Minneapolis_MN/shw-pr/show-price-reduced
That’s ugly. I had no idea Minneapolis was cratering that severely.
One day you are spending that sweet equity, and the next…
‘…they refused to close, stringing sellers, agents, mortgage brokers and lawyers along the way… This is a case of a client taking advantage of the current situation of the housing market due to buyer’s remorse.’
It is a negotiating tactic of the buyer.
If they know that they are the only buyer interested.
They wear the seller down, looking for more concessions and givebacks.
Almost the opposite of a buyer “falling in love with a house”
The correct response of the seller is to dump the buyer, try to keep the escrow deposit and find another buyer.
But many times the seller is too worn out and doesn’t want to start from square one again. Especially in a down market.
‘now is the time for them to be thinking of making a purchase because we’re in a little bit of a lull,’ said Kath Hammerseng, the incoming President of the Minneapolis Area Association of Realtors.’
I’d like to help you out Kath, but it’s too cold up there for me.
‘On the other hand sellers are in a great place. Overall our marketplace has 2.5 months of inventory right now so it should be very much in favor of sellers and in some areas in some segments of the market it is that,’ Hammerseng said.’
Now you’re getting a little wishy-washy.
‘It is a little bit confusing. There’s a lot of data here. We’ve got some areas where people are receiving multiple offers for their property in certain price points we also have some areas where it’s very difficult’
My, that is a lot of data.
Isn’t 2.5 months of inventory a lot? That translates to 75 DOM. Seems high to me.
Collapsing housing demand, falling housing prices, rampant unemployment, economy on the ropes and a bitter cold winter on the horizon….
Yup…. buying a rapidly depreciating house in Minneapolis is a great idea!
Isn’t 2.5 months of inventory a lot? That translates to 75 DOM. Seems high to me.
Not really. My understanding is the “inventory” includes homes that may already be pending, or under contract. It also includes homes with completely unrealistic pricing, or that are complete disasters (and require massive renovations that only a few buyers are willing to undertake)–and thus sit on the market for way longer.
Historically, the assumed break point between “buyer’s” and “seller’s” markets is approximately 3 months of inventory.
2.5 months is generally in the range of what I would call balanced…shaded toward “seller’s” market.
With 25 million excess empty and defaulted houses across the country, I’m sure there are more than a few extra driving down prices in the Minneapolis area. Eden Prairie is a perfect example.
Eden Prarie, MN Housing Prices Crater 7% YOY
https://www.zillow.com/eden-prairie-mn/home-values/
Insane housing costs does not equal a strong economy.
Insane housing costs does not equal prosperity.
The closer an economic system gets to socialism, the more misery it inflicts.
++++++
Liberal California fails at fighting poverty, conservative Texas succeeds
FoxNews.com | 21-Sept-2017 | Chuck DeVore
California’s poverty rate is 20.4 percent and the Texas rate is only 14.7 percent.
Why the dramatic difference in poverty between California and Texas – proportionately 38.8 percent higher in the Golden State, and affecting the lives of millions of people? And what can we as a nation learn from the success of Texas and the failure of California to hold down their poverty rates?
Three big factors are responsible for California having more poor people and Texas having fewer as a portion of their state populations:
California has high state and local tax rates, while the rates in Texas are low.
California has a generous welfare system that acts as a disincentive to work, while Texas incentivizes people to get jobs.
And California’s many burdensome regulations raise the cost of living and act as roadblocks to development, while inflating housing costs. So a family needs to have a higher income to get out of poverty in California than it needs in Texas.
California has the nation’s highest marginal state income tax rate – 13.3 percent. Texas is one of seven states without a state income tax. A ranking of all state and local taxes for median income households in every state shows that California ranks No. 8, while Texas comes in at No. 30 on the list.
Some 1 out of 3 Americans who receive federally qualified welfare payments –Temporary Assistance for Needy Families – are Californians. And California has expanded Medicaid (called Medi-Cal there), to cover 13.5 million people. About one-third of state residents are enrolled in the health insurance program for the poor funded by the federal government and the state.
As for affordable housing, California lawmakers know they have a problem. But their proposals to fix it are more of the same: bigger government, more borrowing, and higher taxes to pay for more government housing – while telling homebuilders what to build.
California’s defenders claim that the Golden State provides a great deal for its diverse population. Only 52.5 percent of California residents are non-Hispanic whites or Asian – the two large racial or ethnic groups with above-average income in America – compared to 66 percent nationwide.
However, in Texas, only 47.4 percent of the population is made up of non-Hispanic whites or Asians. Using this metric, demographers would predict that Texas, not California, should have a higher poverty rate.
California’s problem is housing costs, not Medicaid. This is well known.
And Texas has one big problem that is incurable…
“Why Texas is no longer feeling miraculous”
https://www.nytimes.com/2017/09/22/opinion/sunday/texas-unemployment-businesses.html
The LARGEST investment and fiscal decision of your life.
And you don’t READ THE CONTRACT????
+++++
A Toronto-area family who decided to walk away from a new house they agreed to buy says they are shocked to find out they still have to pay real estate commissions, even though the deal never went through.
I just can’t find it in me to feel sorry for this guy, although it looks like, before the storm, he’d already substantially lowered his expectations for the quick flip. This area, by the way, is low-lying and floods often:
“To house hunters searching online, the home for sale in St. Petersburg’s Shore Acres neighborhood couldn’t have looked more appealing — fully renovated and shaded by the leafy canopy of a magnificent ficus benjamini tree.
“Immaculate 3 bedroom, 2 bath interior on a beautifully landscaped corner lot,” gushed the Multiple Listing Service description.
Then Hurricane Irma came along and — boom! — the 30-foot tree crashed onto the lawn and owner Brett Schroder saw his hopes for a sale likely gone with the wind.
…
The huge ficus missed the house and “For Sale” sign. But with the tree more horizontal than vertical now, the house is directly exposed to the hot rays of the morning sun.
Schroder, a real estate investor, bought the home at the corner of Alabama Avenue and Overlook Drive for $189,000 in May. The kitchen and a bathroom had been updated but he did some other work and put the house back on the market in late June for $269,900. The price had been cut to $235,000 when Irma hit nearly two weeks ago.”
http://www.tampabay.com/news/business/realestate/after-irma-topples-tree-home-sale-may-be-gone-with-the-wind/2338335
Math time!
Closing costs (both ends) will be around $11,000. Renovation costs plus new landscaping assume at least $20,000.
So:
$235,000 -189,000 - 11,000 - 20,000 = $15,000 MAX profit.
Now, feeding the alligator every month…
Ladies and Gentlemen,
The official ringing of bell.
We are over the top. The long, long way down is about to commence.
++++
It’s Not Just China: No Lines For New iPhone 8 Virtually Anywhere
Sep 22, 2017 - ZeroHedge
Earlier we showed that in a striking lack of enthusiasm for Apple’s latest offering, the iPhone 8 which went on sale today, there were just two people in “line” in front of an Apple store in China: less than the security guards at the same location.
As various reports have pointed out, some Apple Stores have very short lines out front for the iPhone 8, if they have anyone at all. According to Reuters, that there were fewer than 30 people at Apple’s Sydney store, which usually has hundreds out front. And it described a “less lively mood in Asia” than for previous launches.
According to CBS LA, the Pasadena store was also missing a line of eager fans.
Previous releases of the iPhone attracted hundreds of Apple fans waiting in the early morning hours at several stores across Southern California. The Apple Store has a ticketing system, but that never stopped eager iPhone fans from camping out overnight.
But on Friday morning, all was quiet on Colorado Boulevard, except for employees inside the store handing out tickets.
While it is too early to conclude if the sudden disappearance of customers is troubling for Apple’s future says, it is hardly the reception Tim Cook - who carefully cultivates the image of pent up demand by parading the lines of people greeting its every product launch - wanted.
Saw this video the other day with someone commenting about how Jobs himself warned against what Apple is doing now.
https://www.youtube.com/watch?v=ZBma82g3Uag
The “big deal” about face recognition seems to be making a video emoji. Really?
I don’t know, I prefer unlocking my phone with part of my hand that is already holding my phone, rather than need to shove the phone in front of my face.
The watch with cell connectivity seems to not work very well.
And the iPhone 8 still doesn’t have a headphone jack.
Fewer and fewer reasons to stick with Apple.
Ben, the New World Brewery is where we had beers during your visit to Tampa in 2010:
“Steve Bird spreads his tools across a patio table. He has awnings to unbolt and paraphernalia to unpry, from the busted Bop City neon by the stage to the Simpsons “El Duffo o Muerte” mural in the courtyard. He’ll uproot a fountain and dismantle a roof and attempt to keep his bar intact. The decades-old walls have to stay, but the bricks that pave the courtyard, yep, he’s taking those, too.
“Some days, it’s like, Why didn’t I just quit?” he says, sipping ice water beneath a patio umbrella. “But I’m glad I’m doing it.”
Saving the spirit of New World Brewery is worth the effort. Bird’s Ybor City bar is shutting down after 22 years on Ybor City’s Eighth Avenue, pushed out by a condo and retail development.”
http://www.tampabay.com/things-to-do/music/after-22-years-its-last-call-for-beloved-ybor-venue-new-world-brewery/2338421
I really wish the fake legacy news would do its homework and do some real reporting.
Pushed out by condo and retail development???
That should be a MAJOR plus for his business!
Maybe the headline should read - another local business pushed out by skyrocketing rents.
Too bad 22 years ago, when the Ybor City was dump, he didn’t buy something on the cheap…
Snake have you tried Coppertail Brewing Co? The food is good and the beer isn’t bad.
So since I started poking around Folsom listings on Zillow, I wonder what the story is on this one? Check out the price history as they’ve tried to sell it since 2010. I can see there are lots of issues but it seems like it has a lot going for it, too.
https://www.zillow.com/homedetails/2345-Telegraph-Hl-El-Dorado-Hills-CA-95762/18594816_zpid/?fullpage=true
Looks nice and you are within close proximity to Tahoe for the winter months. I would be looking for kitesurfing spots on Lake Folsom and waxing snow boards for the winter months.
If you are in the tech sector, Reno/Sparks is supposedly going to become the next hot-spot for companies looking for lower overhead and more affordable housing when compared to the Bay Area. I don’t know your situation or what has brought you to the Folsom area, but maybe something to think about before pulling the trigger on CA real estate and a CA income tax nexus.
I’m already in San Jose due to tech. I have customers in Folsom and wouldn’t go there without a job already arranged.
Hmmm… lots of questions. Looks like the previous owners were slowly upgrading and just ran out of gas. Are you sure it’s not a money pit behind the walls? Get the super-duper inspection to find out *before* you fall in love with the house.
Also consider: sure it’s a got a fun and funky floor plan, but all those little steps up and down are a major trip hazard, especially if you’re getting up there in years.
I’d say that if you are relatively young, you have 15% to put down, you get a new job that is at least for 5 years, you really are just looking to settle, and you’re not depending on the house for retirement, then this seems about on par with renting. You could make out pretty well.
Oh yeah, it could be a total disaster. And there are lots of other pristine examples in what would appear to be perfect condition for the same price. This just looked “interesting” like there must be quite a back story there.
I’m not looking seriously and would be far more likely to choose the lowest stress option. Just wondering what people think when they see it and the price history.
Owner has owned it since 2005…Does not appear to owe much money on it either and the source of the loan seems to be fairly new and a relative…
Well first of all I suspect that the $819K jump is acutally a typo and should be $619K. I’ve seen that kind of typo on Zillow before. So that price history indicates that the owners started at a wishing price and are chasing the market down in typical fashion.
It’s definitely not low-stress option, unless you throw $50K at a contractor and tell them to turnkey fix everything at once.
It’s definitely not low-stress option, unless you throw $50K at a contractor and tell them to turnkey fix everything at once.
I’m not an expert…but looking at that pool and all the little details that are off I was thinking it could be more than that, assuming there’s a bunch more I can’t see.
But did you see back in 2010 they were asking for more than a million for it? I’m envisioning a very painful time in that person’s life back then. Now they seem to be accepting the pain and just trying to make it go away. If they don’t hurry up though it’s gonna be 2010 all over again for them.
Reno/Sparks is supposedly going to become the next hot-spot for companies looking for lower overhead and more affordable housing when compared to the Bay Area ??
I have heard the same whispers….Is your source of information through work ?? Someone told me that Google bought a large chunk of land outside of Sparks…
I don’t know about that. With Tesla up there I suppose anything is possible. But I’m curious why they would go farther than Folsom when houses are already so much cheaper there and there is already some tech to steal employees from.
But I’m curious why they would go farther than Folsom when houses are already so much cheaper ??
Affordability. No state income tax and really inexpensive housing. Check out the subdivision called “Pebble Creek” in Sparks and you will see what I mean.
Sparks, NV Real Estate & Homes for Sale
652 Homes
https://www.realtor.com/realestateandhomes-search/Sparks_NV
Sparks, NV Price Reduced Homes for Sale
93 Homes
https://www.realtor.com/realestateandhomes-search/Sparks_NV/shw-pr/show-price-reduced
Chosen at random:
45 Geraldine Ct, Sparks, NV 89441
4 beds 3 baths 2,465 sqft
For Sale
$610,000
Price cut: -$15,000 (9/20)
09/20/17 Price change $610,000-2.4%
09/11/17 Listed for sale $625,000+68.9%
04/18/14 Sold $370,000 +67.4%
03/14/97 Sold $221,000
https://www.zillow.com/homedetails/45-Geraldine-Ct-Sparks-NV-89441/7345641_zpid/
Looks kinda bubbly to me.
there is nothing in that valley worth 600k.
I was out in this little town called stagecoach awhile back, south of fernley. A guy was telling me the little shacks out in BFE were going for 250k. These are 100k homes on a good day.
Affordability. No state income tax and really inexpensive housing. Check out the subdivision called “Pebble Creek” in Sparks and you will see what I mean.
Maybe it’s the state income tax that makes the big difference? The houses only look about 20% cheaper than Folsom to me, which IMO isn’t enough to justify going that much further away from a big supply of tech employees.
“Looks kinda bubbly to me.”
Way more bubbly than CA even, when you consider local wages. $15 per hour is considered a great job.
“I was out in this little town called stagecoach awhile back, south of fernley. A guy was telling me the little shacks out in BFE were going for 250k. These are 100k homes on a good day.”
A shack in Stagecoach is normally like $35,000.
TRIC (Tahoe Reno Industrial Center) is a massive industrial master planned project where Tesla (and many others) are locating. Good access to I-80 and maybe, someday, good access to rail.
Tesla is there, PetSmart distribution, Jet.com, WalMart, FedEx, Google, Switch (data).
From a distribution standpoint, you can hit 16 Western states by truck within a day from Reno, making it attractive from a distribution standpoint.
Lots of $13/hr jobs.
‘you can hit 16 Western states by truck’
And they never knew this before? Also, what happened to the flying cars and self driving drones dropping cans of walnuts thru my window?
I was told it was the biggest business park in the world.
“Good access to I-80 and maybe, someday, good access to rail.”
LMFAO. The rail line already runs along I-80.
Being a southern boy, I may not understand the geography correctly, but isn’t Tahoe a bit difficult for trucks to get in to and out of during winter storms?
It is a interesting house with character and great views.
And a 12 year track record of steadily going down in value?
Which seems kinds strange - is there a reason for it?
Also - property taxes went up 20% in 2015 for no apparent reason? Renovation work? Usual that only increases taxes if there is an add on to square footage.
Rattlesnakes.
Rattlesnakes.
Are you pointing out that the yard does look like good rattlesnake habitat, or making some other point?
There is probably something that is only apparent on-site. Professional photographers are employed to take pictures of real estate for sale.
“I can see there are lots of issues but it seems like it has a lot going for it, too.”
If you were trying to escape San Francisco you would be better than half way to Nevada, it has that going for it.
Realtors are liars.
Here is the Southampton house for $25M.
https://www.zillow.com/homedetails/356-Wickapogue-Rd-Southampton-NY-11968/82663446_zpid/?fullpage=true
It’s not worth that. I don’t think it’s worth the $9M it sold for in 2005. It’s half a mile from the beach. It’s ugly on the outside. The inside is unremarkable for that price range. The taxes are killer. I guess you’re paying for the Southampton name, but that’s about all.
You have to live somewhere…
“Turkish Deputy Prime Minister Ali Babacan sounded the alarm in 2014: Industrial investment was in decline while a construction boom was luring entrepreneurs to build shopping malls and luxury housing projects with the promise of quick profits. He stressed the need to encourage investment in industry, warning, ‘Or else we are becoming an economy that builds very luxurious buildings, spending its money on stone and concrete, without producing.’”
There is no such thing as an economy built on consumption.
Economists are liars.
Wait - he forgot about the coffee shops and selling real estate to one another…
The sound basis of any economy!
“Housing Market in California Slowing Down for Fall”
http://www.mortgageorb.com/housing-market-california-slowing-fall
Is this THE BIG ONE?
The New York Post
Real Estate
Real estate investors look to cash in on Harvey-ravaged Houston
By Gabrielle Fonrouge
September 22, 2017 | 11:49am | Updated
Real estate investors look to cash in on Harvey-ravaged Houston
Composite ; AP ; iStockPhoto
Some real estate executives in Texas are hoping to get rich quick with homes damaged by Hurricane Harvey.
Longtime investor Ray Sasser detailed the strategy at a real estate conference in Houston this month: Buy up to 50 flooded homes for a fraction of what they’re worth, fix them and flip them for a hefty profit, Reuters reported.
He said he first tried the strategy after Tropical Storm Allison flooded the city in 2001 — purchasing homes for almost half of their pre-storm value, spending about 15 percent on repairs, and selling many of them at full value a year later.
The quick success of the plan was actually surprising to him, according to the outlet.
“This can’t be true,” Sasser said.
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Bahahahahahahahahahahahahahahaha …
http://www.zerohedge.com/news/2017-09-22/blowback-mizzou-enrollment-tumbles-lowest-2008
Petaluma, CA Housing Prices Crater 10% YOY
http://www.movoto.com/petaluma-ca/market-trends/
“real estate always comes back in CA”
a little paper napkin balance sheet calculations:
Reduce balance sheet by 20 billion / month ( SELL BONDS) To whom @ these yields no one knows
20 * 12 = 240 billion / year
4.5 trillion / 240 billion = 18.75 years
most of u dotards will be in a rest home.
HousingHens and DebtDonkeys.
Reduce balance sheet by 20 billion / month ( SELL BONDS) To whom @ these yields no one knows
The reason central banks around the globe have been buying the bonds is because they are buyer of last resort. The notion that they can unload them is risible.
4.5 trillion / 240 billion = 18.75 years
The Fed really only added 3.7T; they were hovering around $800B before the crash, IIRC.
‘Or else we are becoming an economy that builds very luxurious buildings, spending its money on stone and concrete, without producing.’
That could be a description of the problem with the soon-to-collapse Fed/GSE-fueled luxury housing construction craze in the U.S.
“Major Cities Where Home Prices Are Plummeting”
https://www.gobankingrates.com/investing/major-cities-home-prices-plummeting/