A Hit To Their Bank Account
A report from the New York Times. “If not for the financial crisis, it’s entirely possible that American TV viewers would never have heard of shiplap or considered Waco, Tex., a cool place to visit. Chip and Joanna Gaines, the hosts of HGTV’s hit show ‘Fixer Upper,’ popularized farmhouse chic as they went about their inexpensive but stylish home renovations. The Gaineses pulled the plug on ‘Fixer Upper’ last year. The couple wanted ‘to catch our breath a bit,’ Mrs. Gaines said.”
“Their exit at the peak of their popularity was a shock to their fans. Especially since they had achieved their larger goal. The housing market in Waco is ‘booming,’ and there’s even a bus tour of ‘Fixer Upper’ homes. Perhaps, like savvy investors, the couple sensed another bubble about to burst.”
The Burlington Free Press in Vermont. “In February 2015, Michael and Denise Metz put their property at 6 Turtle Moon Road in Charlotte on the market for $2.1 million. Nearly three years later, on Jan. 3, 2018, the house finally closed for a price of $1.13 million, nearly $1 million less than the original asking price. And that tells you a lot of what you need to know about lakefront property in Chittenden and surrounding counties. The market remains relatively soft.”
“‘It’s not a high-end market around here, in Vermont,’ said Jay Strausser of Four Seasons Sotheby’s International Realty in Burlington. ‘We are highly taxed in this state. There are still more wealthy people moving out of this state than are sitting put. I don’t see the state addressing that issue.’”
The News Press in Florida. “A Cape Coral mansion at 5832 Armada Court has sold for $4.125 million, marking the highest-priced residential home sold since 2013, when the same home sold for $5.3 million. Ted Stout, Realmark Realty broker and son of Will Stout, the home’s original owner and builder, brokered the deal, which officially went for $3.9 million but inflated to $4.125 when counting furniture and a third lot adjacent to the property.”
“Originally listed at $5.9 million, the price drop about matched the amount of work that will go into fixing it up, Stout said. ‘It is a substantial sale, and that’s important for that Cape Coral market,’ said Michael Polly, president of Royal Shell Real Estate, which is listing the house next door, 5845 Armada Court, for $2.7 million. ‘They see the value of the property. It’s really four lots in that sale. Those lots usually go for $2 million apiece. There are 13 air conditioners in that property. That gives you an idea of the magnitude of that house.’”
From Curbed Hamptons in New York. “A 3-acre estate in the south-of-the-highway Georgica section of East Hampton has just taken more than $2 million off its original $16.9 million asking price. Located at 253 Cove Hollow Road, the shingled home is now asking $14,495,000. This is the first price cut that the property has seen since it was listed for sale in October of 2017.”
From Mansion Global on New York. “One wealthy resident of Manhattan’s One57, the blue-hued glass building on Midtown’s grandiosely named Billionaires’ Row, took a hit to their bank account on Monday when their penthouse sold for $42 million—almost $6 million less than they paid for it. The seller, listed in property records under the shell company Unit 58A Acquisition Corp., paid $47.78 million in cash in 2015 for the full-floor apartment, after entering into contract on the condo in 2012, two years before the building opened its doors to residents, according to property records.”
“In early 2017, the four-bedroom apartment hit the market for $52 million, but the price was later reduced. It was most recently asking $44 million, property records show.”
‘The housing market in Waco is ‘booming,’ and there’s even a bus tour of ‘Fixer Upper’ homes’
‘Home construction, hotel revenue and consumer spending pushed the Greater Waco Economic Index into record territory last month, and a West Texas economist who tracks area trends said only a national recession could derail the momentum Waco and its neighbors are enjoying.’
‘Housing construction “is shattering records through mid-year,” with the city of Waco issuing more than 300 permits to erect new homes during that period, an all-time high. The number of permits issued during the second quarter was up by 50 percent, “and is easily the highest quarterly total on record, not just for the second quarter but for any quarter,” Ingham wrote in his report.’
‘Russell Jones, who makes loans on commercial and residential construction and property acquisition, said demand is partly driven by investors from outside the city who have become enamored with Waco.’
“I’ve seen interest in properties priced as low as $30,000 to as high as $150,000,” said Jones, speaking by phone. He said he also is seeing increased demand from builders wanting to erect speculative and custom homes.’
I should host a reality show on price slashing. Right now it could air 24/7.
That is a most excellent idea, Ben. I will start shooting a series of “Boo Randy in a bubble bath” vignettes to air on your show that will explain, a la Margot Robbie in “The Big Short,” the finer points of bubble finance. This is sure to generate a cult following among the female demographic.
https://www.youtube.com/watch?v=anSPG0TPf84&t=32s
I suggested a possible title below: ‘Dump that Shack’
A variant business on time shares does that in my neck of the woods:
https://dumpyourtimeshare.com/
“Reduce It Or Ride it to the Bottom”
I got my market update and suggested listings for Boise.
Almost all show price reductions.
Applies to buyers and owners: “Just Walk Away”
“and a West Texas economist who tracks area trends said only a national recession could derail the momentum Waco and its neighbors are enjoying”
what about a global recession that pushes oil back under $50/barrel
I will admit.
While working in Ft Worth with the bullet hole house searching engineers…
I took a day trip down to Waco.
Chip and Joanna’s store plaza was crazy. Lines out the door to buy their suburban farm chintz. Tour buses. The wait for a table at their restuarant was 2.5 hours. True insanity.
Waco is ok. But almost like hundreds of other Texas towns. It is at least an hour drive to Ft Worth so jobs can’t pay that much as Ft Worth jobs don’t pay that much. Don’t know who is buying the expensive housing there.
Sounds like the Pawn Stars shop here in Vegas. Or at least the way it used to be. I drove by there a couple weeks ago or so. It was mid-morning on a Saturday and I didn’t see a line.
Other than 2banana, have you guys been to Waco?
MrsSpiffy went to Baylor and refers to Waco as “The Ghetto of Texas” and openly wonders how they edited the show to make it look presentable…
I took a wrong exit and drove through once. It used to be known as a speed trap.
I’ve been there. I asked the hotel front desk lady about the remains of the Branch Davidian compound and if it was worth a visit. She said it was just an empty field.
Janet Reno’s killing fields.
The seller, listed in property records under the shell company Unit 58A Acquisition Corp., paid $47.78 million in cash in 2015 for the full-floor apartment, after entering into contract on the condo in 2012, two years before the building opened its doors to residents, according to property records.
More shell games created with hot-money flows of Yellen Bux, none of which benefited the real economy or anyone but the financial grifters who run shell companies and profit from money laundering and speculation.
Sh@t or get off the pot and buy a house!
i F’in hate the rich &/or corrupt that stash and cleanse money offshore. After the cleanse some of it - they bring it into the US, HongKong, Dubai, Italy etc (in a country other then their default tax country) as clean money (non capital gains). One of the first thing they do is buy real-estate with the $s.
https://www.forbes.com/sites/kenrapoza/2017/09/15/tax-haven-cash-rising-now-equal-to-at-least-10-of-world-gdp/#496ecdb70d6a
https://gabriel-zucman.eu/files/AJZ2017b.pdf
Meanwhile (whether you hate Window or not) Bill Gates is giving away his fortune. So is the founder of Ikea and a few others
‘Bill Gates is giving away his fortune’
And for the third time, IIRC.
Just occurred to me that if real estate is such a perfect vehicle for money laundering than it kind of becomes the Bitcoin of the rich. It doesn’t really matter what the prices are…only that you can get your money laundered and then sell it to the next dirty money guy for a similar price. Appreciation is gravy but not necessary. Might as well turn them over every few months…
Modern “art” at outlandish prices is serving the same purpose.
But there are people who need housing and nobody needs bitcoin, or modern art.
so was this laundering from the middle east, africa etc. Or was this a misguided attempt to show off by having a condo on billionaires’ row.
This is yet another reason why regular people get upset and vote in tax/spend politicians. Unfortunately the rich have loop holes and the middle class and upper middle class get hit.
From Mansion Global on New York. “One wealthy resident of Manhattan’s One57, the blue-hued glass building on Midtown’s grandiosely named Billionaires’ Row, took a hit to their bank account on Monday when their penthouse sold for $42 million—almost $6 million less than they paid for it. The seller, listed in property records under the shell company Unit 58A Acquisition Corp., paid $47.78 million in cash in 2015 for the full-floor apartment, after entering into contract on the condo in 2012, two years before the building opened its doors to residents, according to property records.”
“…so was this laundering from the middle east, africa etc…”
Its got to be money laundering at some level.
What clear headed person would pay the enormous holding costs?
Downtown Los Angeles, CA Housing Prices Crater 10% YOY As Housing Sales Industry And Media Collaborate To Conceal Information From Public
https://www.zillow.com/downtown-los-angeles-ca/home-values/
*Select price from dropdown menu on first chart
Their exit at the peak of their popularity was a shock to their fans.
Hahah…that reminds me of growing up in Wyoming in the 70s. When a show we liked went off the air we just assumed that the actors had made so much Hollywood money that they no longer felt like doing the show and were retiring to Beverly Hills. We had no idea that the show was already out of date in the places that actually mattered and that very few of the actors actually had any real money…
Here’s the title:
The Housing Bubble Burst All Over Reality TV
New York Times-6 hours ago
Note these yokels bailed a year ago, and this so called gateway media is just picking up on it. They also missed the $100 million shack thing as a bubble indicator, along with canyons of empty super-lux condos all over the planet, etc.
Waco sux. I wouldn’t live there if you gave me a shack.
I think they just had a 5th kid, plus Chip was in a nasty dispute with former partners in Magnolia who sued him when he failed to mention he had a tv contract while he was buying them out some years ago.
Waco - it is half way between Austin and Dallas. Ever since the Chicken Shack closed, this is the most favorable thing I can say about it. My grand dad used to take his cattle to auction in Waco, among other places. Heitmiller Steakhouse used to be a place people went to but their quality went down really bad, they’re closed now.
There’s an old saloon north of Waco, off Tokio Rd. Been there since the early 1900’s. Bikers go there now. They serve burgers. If you go back there it is a cool place.
“There’s an old saloon north of Waco, off Tokio Rd. Been there since the early 1900’s. Bikers go there now.”
Waco, bars, beers, grudges & guns!
On May 17, 2015, in Waco, Texas, United States, a shootout erupted at a Twin Peaks restaurant where members of several motorcycle clubs, including the Bandidos, Cossacks, and allies, had gathered for a regularly scheduled meeting about political rights for motorcyclists.
2015 Waco shootout
Date: May 17, 2015
Location: Waco, Texas, U.S.
Caused by: Rivalries between motorcycle clubs … Methods: Shooting
Parties to the civil conflict:
Bandidos Motorcycle Club … Cossacks Motorcycle Club
Waco Police Department
Casualties
Death(s) 9 …Injuries …18 … Arrested … About 177
Waco police, including a SWAT team, had gathered to monitor them from outside, and opened fire on the bikers after the shootout started. Nine bikers were killed, seven of them members of the Cossacks Motorcycle Club, while eighteen others were injured.
Twin Peaks was a straight up turkey shoot, overzealous militarized law enforcement with nothing better to do. Most of those bikers arrested got the charges dismissed. A handful, 2 or 3, actually got charged.
Google ‘Al’s Tokio Store’ to see the place I’m talking about. Google says it is permanently closed but I spoke to someone there over labor day, so maybe that is a misdirection to keep the tourists away.
Oh, the joys of buying a shoddily-constructed, grossly overpriced shack at the peak of a housing bubble. But hey, at least they didn’t throw away money on rent.
https://www.dailymail.co.uk/news/article-6159843/Angry-couple-new-s-hole-house-sale-Facebook-50-000-slashed-price.html
A couple whose new build dream home turned into a nightmare thanks to shoddy workmanship have put it up for sale on Facebook for £50,000 less than they paid.
Furious Johnathan and Jillian Widlake want shot of their detached Devon home just ten months after they moved in and described the property as a ’s***hole’ in the advert.
The Widlake’s problems began soon after they put down a £27,500 deposit on the £300,000 property in March last year.
“The Widlake’s problems began soon after they put down a £27,500 deposit on the £300,000 property in March last year.”
Bahahaha … reminds me of the signers of my Dotted Line Specials; Their problems begin as soon as the ink is dry.
😁
To be honest - pretty minor and fixable stuff.
*****
They claim the home was ‘very poorly built’ and have had to endure leaky windows, unpainted walls, blocked drains, warped floors and a leaking garage.
“Their exit at the peak of their popularity was a shock to their fans. Especially since they had achieved their larger goal. The housing market in Waco is ‘booming,’ and there’s even a bus tour of ‘Fixer Upper’ homes. Perhaps, like savvy investors, the couple sensed another bubble about to burst.”
Perhaps they are taking time off to work on developing their sequel, ‘Dump that Shack’.
Realmark Realty broker and son of Will Stout, the home’s original owner and builder, brokered the deal, which officially went for $3.9 million but inflated to $4.125 when counting furniture and a third lot adjacent to the property.”
——————————————————–
I think this will be the next trick the Experts and Analysts use: Sell a house with a bunch of stuff already in it. Tools, cars, appliances, furniture, artwork……..
Many Boomers value their pile of junk as a gold mine, and for some weird reason think it’s worth more in some cases, such as a Harley or an RV. My inlaws bought a Wyland statue and think it has increased a lot in price, but I can go on the website right now and get it for the same price they paid for it ten years ago.
It’ll be like the Showcase Showdown on The Price Is Right. Their house may not be worth the asking price, but let’s throw in a brand new treadmill! How about this handsome COFFEE MAKER! What about a NEW CAR!
You use what works. It helps that people are really quite stupid.
Banksters gotta bankster.
https://www.zerohedge.com/news/2018-09-12/australias-banking-system-may-be-bloody-big-butterfly-which-triggers-next-financial
Major financial service providers have stolen about a billion Australian dollars from customers through “fee for no service” deals. They charged people for services they never received, such as regular analysis of their financial position. One bank, formerly Australia’s central bank, even charged dead people a fee for no service. Having discovered the problem, the banks sat on it for two years.
A bank which provided commissions to anyone who introduced new borrowers to them was caught giving a tailor $488,000 for his help in securing $122 million in home loans.
In what could be the biggest class action in history, five million Australians are lining up to sue their pension funds, which are often owned by the banks. Instead of investing their customers’ savings in the highest interest offering products, the banks just held on to the cash in their own accounts. Because of the long periods of time during which pension funds hold savings, even small differences in interest rates add up to huge lost returns per person.
“…only in Australia has the court system established a precedent where, if you can prove your mortgage broker or banker manipulated your loan application, you can keep your home and cancel your mortgage.”
Seriously?! Wow!
BTW, I’m wondering how “conveyancers” fit into all of this?
On a website describing their duties, one of them is: “Helping ensure you make the relevant application to a bank for finance to fund the purchase.” Sounds like they’re involved in the mortgage loan application process.
One member of another forum I visit is a conveyancer in Oz. And he has been nearly absent for several months. Hmm…
Reminds me of some Hummel figurines that belonged to my parents. I ended up with them after they had both passed away. According to a book I referenced, they each should have been worth $200-$300 or more. But I ended up getting more like $70 each.
If something sells for $200 retail you are lucky to get half on the resell market.
So your numbers are not that far off.
I wrote in this space about our disappointing garage sale earlier this year; despite numerous items in excellent condition, we didn’t even make $100. It’s amazing how little so much stuff is worth. Makes you wonder why we strive for it.
Fixer upper used to offer “free equity” w every buy !
I guess we are starting to see the retrospective articles from the 2008 financial crisis. Just in time for the next time the banks ask for bailouts in 2019 or 2020.
some of the article is decent … hopefully it starts to wake people up.
https://www.seattletimes.com/nation-world/a-decade-after-the-financial-crisis-many-americans-are-still-struggling-to-recover/
Humans ….
“He earns less than half what he did in 2007 after much of his work dried up. His fiancee and her son left, he said, when he could no longer afford to pay her college tuition and car expenses. And although he still has his condo, its value has dropped and he owes about $100,000 on the credit line.”
I love the bleating of “We were only doing this to save the American family! We just didn’t get the message across well enough.”
Whatever Neal. We all know this was nothing more than a gross windfall for already well capitalized banks. The ’system’ wasn’t going to lock up. A crisis arose and the opportunity to take down some bit players and rise up others was too great to pass up.
Look at the rise of PNC bank since 2008. Sell some stock to the Treasury. Buy a bank. Double in size. Pay back Treasury with easy money made from selling stocks and bonds in a manipulated stock market. It’s 2018 and PNC is now bigly huge.
Remember back then in the 2008-2012 time frame how the market was being continually levitated, but nobody could put a finger on why since the gains were being pushed by after hours futures buying. The market was being hit by corps pushing out new shares but the market kept going up. Of course it’s all denied saying that it was institutional buyers and the gov doesn’t but stocks. They sure liked those MBSs though.
His fiancee and her son left, he said, when he could no longer afford to pay her college tuition and car expenses.
MGTOW sounds better and better every day. He dodged a bullet.
She found another fish to latch on to!
WGTOW has worked out well for me.
Financially it’s worked out well for me too, but not well enough to stave off the ridicule about cats and boxed wine.
This guy just won the lottery.
He gets to keep his condo, retirement accounts and half his salary.
I hope he realizes the bullet he just dodged.
Greater Fools and Knife Catchers better be careful about what they post on social media if they’re trying to borrow money for a shack.
https://www.dailymail.co.uk/money/guides/article-6156735/Why-post-social-media-stop-getting-mortgage.html
Banks, mobile networks and insurers are snooping on customers’ social media profiles before deciding whether to offer mortgages or other deals.
Lenders have long used financial records held by traditional credit reference firms when assessing applications for loans, mortgages and credit cards.
These reports, produced by companies such as Experian, Equifax and TransUnion (previously Callcredit), show whether customers have kept up with repayments on existing debts and other contracts such as gas, electricity and phone bills.
From the article: The app also has access to your contacts and advises you only to store the details of creditworthy friends and family on your phone.
So if you have a ne’er-do-well cousin as a contact, the bank can deny you a mortgage? I wonder if there’s grounds for a discrimination lawsuit in there somewhere.
The sooner you learn that Facebook is evil, the earlier you can start improving your life and protecting your privacy.
Banana, it’s much worse. From the article (edited):
Before it can dig through your social media profiles, you have to agree to give it access by setting up an account online or downloading its mobile app.
…access to your Twitter account,
…access to your Gmail account,
…LinkedIn,
…your whereabouts via its GPS tracker
…access to your contacts
This isn’t a case of idiots splashing their personal info on Twitter. They are looking at your email, your location, and your contacts (everything from your hairdresser to your broker to your ne’er-do-well cousin). Things that *everyone* has and doesn’t put on facebook. And it seems you can’t use their mobile app without it. Think on that for a second, please.
Cambridge, MA Housing Prices Crater 17% YOY As Construction Cost Fall ($50/sq ft for lot, labor, materials and profit)
https://www.zillow.com/cambridge-ma-02138/home-values/
*Select price from dropdown menu on first chart
Some more anecdotal evidence regarding loose lending in Phoenix.
I mentioned some time ago that I know of a couple who are buying a house and had to leave the boyfriend off due to poor credit. Well, it turns out their low down payment has been graciously “waived” by the bank so they can buy appliances. This person also has a 6 year loan on an underwater Lexus. And people say lending is tight???
I do have some good news, though. This piece of information was shared during a work lunch my wife was at. A mutual coworker who apparently doesn’t have a care in the world responded with laughter and said “You’re so f***ed”. A social faux pas for sure but refreshing to hear about.
But…but….
Trolls here say the banking sector was “tightened” up under “Dodd-Frank” and subprime mortgages don’t exist anymore.
The CNBC/MarketWatch hacks.