Many Sellers Still Think It’s 2013 Or 2014
The Sun Sentinel reports from Florida. “If you’ve been waiting to buy a house, you might have more negotiating power now than you’ve had in a while. As the traditional spring and summer buying season intensifies, some buyers are turning the tables and asking for closing costs and other concessions, while more sellers are suddenly wrestling with price reductions and expired listings. In February, the number of single-family homes and condominiums for sale jumped 12 percent in Palm Beach County compared with a year earlier, according to the Redfin real estate brokerage. Broward and Miami-Dade counties each saw 4 percent increases. Over the same period, more than a quarter of all Broward homes for sale had a price reduction, up slightly from a year ago, the Redfin data show.”
“Frank Corsello figured his four-bedroom West Palm Beach home would sell quickly, but that was eight months and two agents ago. He’s asking $345,000 — $20,000 less than when he first put it on the market. ‘Buyers are coming through. They all say they love it, it’s their No. 1 house — and then you never hear from them again,’ said Corsello, 68. ‘It’s a beautiful home, it really is, but I guess all sellers think their homes are beautiful.’”
“Real estate agents say many sellers still think it’s 2013 or 2014, when double-digit price increases annually fueled a frenzied market. At the time, investors and traditional buyers competed for homes, leading to bidding wars and offers over asking price. Owners were shocked at what their neighbors’ homes had sold for. When they tested the market themselves, they bumped up their own asking prices for good measure. ‘There are a lot of fixer-uppers that are overpriced — by a longshot,’ said Samantha DeBianchi, an agent in Broward and Palm Beach counties. ‘It’s scaring buyers off.’”
The Tampa Bay Times. “In the past two years, 450 buyers have paid cash for Tampa Bay homes costing more than $1 million. The vast majority of those buyers have been open about their ownership. But federal authorities suspect that’s not the case in New York City and Miami-Dade, where high numbers of anonymous, all-cash sales might be fronts for money laundering.”
“In March, the U.S. Treasury Department began requiring title insurers to identify and file information on the owners of limited liability companies — LLCs — that pay more than $1 million cash for property in Miami and more than $3 million in Manhattan. The purpose, one Treasury official said, is to see whether ‘corrupt foreign officials or transnational criminals may be using premium U.S. real estate to secretly invest millions in dirty money.’”
“‘I’m sure there are reasons why famous people or people of considerable net worth want to avoid being known,’ said Peter Chicouris of Equity Realty of Pinellas. ‘You never know why someone wants to stay anonymous, but real estate is also something that somebody has to be responsible for with taxes and insurance. So getting hold of a representative is important — who the heck do you talk to to make a decision?’”
“Chicouris, who specializes in bank-owned foreclosures, says his team averages 25 to 50 closings a month. About 70 percent of those are for cash and more than half of the buyers are investors purchasing through LLCs. Before the deal finalizes, ‘we go on (state corporate records) to see if it’s a valid entity, just to verify if the person buying the property is the person who owns that company,’ Chicouris said. ‘But there (often) are multiple owners of a corporation or LLC, so sometimes that makes it a little convoluted to see who is the actual signing authority.’”
The Miami Herald. “The Miami Herald, in association with the International Consortium of Investigative Journalists, has obtained a massive trove of confidential files from inside a secretive Panamanian law firm called Mossack Fonseca. The firm specializes in creating offshore shell companies for the world’s richest and most powerful people. Mossack Fonseca’s leaked records offer a glimpse into the tightly guarded world of high-end South Florida real estate and the global economic forces reshaping Miami’s skyline.”
“And MF’s activities bolster an argument analysts and law-enforcement officials have long made: Money from people linked to wrongdoing abroad is helping to power the gleaming condo towers rising on South Florida’s waterfront and pushing home prices far beyond what most locals can afford.”
“A Miami Herald analysis of the never-before-seen records found 19 foreign nationals creating offshore companies and buying Miami real estate. Of them, eight have been linked to bribery, corruption, embezzlement, tax evasion or other misdeeds in their home countries. That’s a drop in the ocean of Miami’s luxury market. But Mossack Fonseca is one of many firms that set up offshore companies. And experts say a lack of controls on cash real-estate deals has made Miami a magnet for questionable currency.”
“Jack McCabe, an analyst who studies the booming local housing market, said it’s impossible to know how many homes are purchased with dirty money. ‘But I think many people believe it could be a sizable portion of the new condominium market in Miami,’ McCabe said. ‘Even though developers and real-estate professionals suspect many of these units are bought with illegal funds, they realize their projects may not be successful without that support.’”
“A number of events and blog posts have explored loopholes in the new FinCen rules. One local seminar held in March was headlined ‘How to Avoid the Treasury Trap.’ It promised to teach real-estate professionals ‘how to avoid money-laundering charges and stay on the right side of the law’ while working with clients who want to keep their deals secret for legitimate reasons. ‘You can not only survive, you can thrive,’ an advertisement said. The Miami Association of Realtors hosted the event.”
“Teresa King Kinney, the association’s CEO, said the intention was not to dodge the regulations. ‘It was to make sure our members understand what the rules are, how they can affect a deal and what the alternatives are,’ Kinney explained.”
“Jennifer Shasky Calvery, FinCen’s director, disagreed. She compared the industry’s behavior to a drunk driver turning around before reaching a roadside DUI checkpoint. ‘It’s always amazing that the drivers think the police aren’t watching that,’ Calvery said. ‘I feel like we’re really learning about the culture of the real-estate economy in Miami.’”
The Real Deal. “Growth for Miami’s home prices slowed again during January, a newly released report shows, as the region’s housing market continues cooling. Several factors are putting downward pressure on the local housing market: a strong U.S. dollar and weak foreign economies have shrunken the pool of Latin American buyers. Rising home prices have helped flush lender-owned properties from the market, which in turn slowed the pace of home sales.”
“And a glut of new inventory, especially for condos, has created a discrepancy in asking prices and closing prices.”
The Miami Herald article is worth reading in full.
‘Several factors are putting downward pressure on the local housing market: a strong U.S. dollar and weak foreign economies have shrunken the pool of Latin American buyers.’
Even with the money laundering, it was falling apart.
‘And a glut of new inventory, especially for condos, has created a discrepancy in asking prices and closing price’
Regardless of why prices were artificially high, the prices will result in oversupply. But discrepancy is a nice way to put it.
Another fiasco created by ill-gotten gains.
Maybe the Socialist have it right. Giving/letting people take or steal that much money causes all kinds of problems. Maybe the true capitalist would tax the crap put of these people, and let the majority of the taxpaying citizens decide what it will be spent on. It would make the economy much more efficient.
It even translates to business jets. The small and midsize companies that used to buy Citations and Lears are dying. And sales in that market are falling.
What is better for the economy? A couple of hundred Gulfstreams sales to the 1%ers living in NYC, DC, and Cali, or 1000 sales nationwide?
“Socialists” are expert at stealing, too, like in Venezuela
And they hide their ill-gotten gains by using Panamanian law firms who set up shell corporations and offshore bank accounts.
“And they hide their ill-gotten gains by using Panamanian law firms who set up shell corporations and offshore bank accounts.”
These are likely covert operations established by the U.S. Treasury Department and operated by CIA affiliates. Notice that nobody from the U.S. (celebrity entertainers, sports heros, CEOs, etc.) has been named so far. It’s just beginning.
^ That. Fed proxies.
‘So as 2016 begins to unfold we are continuing to see some major price adjustments, clearly needed to keep growing inventory in check during the second quarter. However, with some $1.5 million to $1.75 million quarter-over-quarter price adjustments in the large-cabin segment, it had me calculating just how much longer it would be before sellers would have to start paying buyers to take they aircraft off their hands.’
http://www.ainonline.com/aviation-news/business-aviation/2016-04-04/pre-owned-update-april-2016
Miami Herald article:
“Marcelo Carvalho Cordeiro paid $2.7 million for this home on Key Biscayne last year.”
Looks like a fixed-up 3/2 split level with one bedroom over the garage.
I used to go to Key Biscayne and stay at an inexpensive motel (Sam’s), back in the days of 8-track car stereos. I’m betting there aren’t any motels left on the island.
You can still see that kind of mom-and-pop motel operation on Ana Maria Island, and there are a few left in St. Pete Beach. But otherwise that kind of Florida is almost dead.
‘The leak could have a chilling effect on Miami’s condo market where multi-million dollar cash deals from foreign investors are common place. Federal authorities are already scrutinizing large cash deals in South Florida to find out where the funds come from. The concern is some of the money may be illicit.
“The same system that politicians and the mega wealthy and billionaires are using to move money and do transactions is also being used by criminals….drug kingpins,”said journalist Michael Hudson.’
http://miami.cbslocal.com/2016/04/04/panama-based-firm-under-fire-over-alleged-offshore-dealings/
If you took the “illicit” hot money out of our banking system, it would collapse. Why do think the TBTF money launderers like HSBC and Wachovia only got slaps on the wrist for launder billions in cartel drug money?
Laws are for the little people.
A safe space was violated, and it was as if a million snowflakes cried out in distress and were suddenly silenced.
http://www.telegraph.co.uk/news/2016/04/03/student-accused-of-violating-university-safe-space-by-raising-he/
The FAOM is a tender beast as well. So many hurt feelings in this world.
Tech startups love millennials. Tasty, tasty millennials who get underpaid, overworked, churned up and turned into nourishment for venture capitalists. Millennials are the Soylent Green of the tech world.
http://nypost.com/2016/04/03/millennials-are-being-dot-conned-by-cult-like-tech-companies/
Free food, beer, and nap spaces… and they’re only making low six figures. Those poor kids!
They may have to shut down the entire British Parliament if this Safe Space movement gains traction.
Why do the sheeple of the US, UK, and Europe continue to vote for crony capitalism?
http://www.independent.co.uk/news/uk/politics/david-cameron-father-and-senior-tory-figures-named-in-panama-papers-leak-a6967116.html
Looks like your pal Putin and his cronies are in the money-laundering biz, too.
Why do the sheeple continue to support him?
Putin is a soulless “former” KGB man propped up by oligarchs as evil as he is. He is no “pal” of mine. Nice attempt at disinformation, Oddfellow.
It helps my Vanguard 500 index fund. Next question?
Another dead oligarch, except this one died here in the U.S.
http://mobile.nytimes.com/2016/04/03/us/mikhail-lesins-strange-death-in-us-follows-a-fall-from-russias-elite.html
See also:
https://www.washingtonpost.com/investigations/associates-of-russias-putin-had-2-billion-in-offshore-accounts-report-says/2016/04/03/25437e1e-f839-11e5-8b23-538270a1ca31_story.html
If out of town buyers persist this lowers your ‘re taxes as they don’t send kids to school=good
If out of town buyers raise housing prices then the tax assessor get to raise your taxes.
And they rent to people with kids
absente owners of vacant property= good
Vacant properties (images):
https://www.google.com/search?q=vacant+property&biw=1360&bih=651&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjv0sC1jPXLAhWmvoMKHScHDPoQ_AUIBygC
With 25 million excess empty and defaulted houses out there, there’s plenty to go around.
Frank Corsello’s house for $345K:
http://www.zillow.com/homes/for_sale/West-Palm-Beach-FL/house_type/60184051_zpid/7858_rid/4-_beds/340000-350000_price/1208-1243_mp/any_days/globalrelevanceex_sort/26.851947,-79.953518,26.632114,-80.304394_rect/11_zm/0_mmm/?3col=true
Gated community with a $230/month HOA fee for the pool and clubhouse.
He bought it in 2013 for $260,000, and first tried to sell it in 2015. Yes, a 65 year-old man buying a four-bedroom house to flip.
That kind of suburban-exurban house is a dime-a-dozen.
That kind of suburban-exurban house is a dime-a-dozen.
The new Section 8s. That’s why I advised Frank to sell it “cheap” and run.
Where does one draw the line between “fixing up” and just “flipping?” I’m not being facetious; it’s something I’ve been puzzling over for a while. Is it a time frame… 6 weeks or 6 months? Absolute amount… $20K or $50K? A percentage of the house price… 10% to 30%? How “deep” the repairs go… quick paint and carpet to cheap pergraniteel kitchen to replacing ducting systems?
Frankie qualifies as a flipper. He lived there two years and all you get is
FRESHLY PAINTED, CLEAN AND NEAT. WASHER AND DRYER LESS THAN 1 YEAR, NEWER LAMINATE FLOORING AND NEW CARPET AND NEW DISPOSAL.
LOL. Does Viking make garbage disposers?
Many banks plus the FHA won’t approve a mortgage if the flipper has owned the property less than 90 days so that is one guideline. FWIW I learned the hard way when I held my nose and made an offer on a flip in 2012 as the location was ideal for me. The flippers countered and attempted to force me to use their mortgage and title companies and a quick Google search revealed that both had been fined millions for illegal kickbacks etc…I dropped the deal at that point.
He must be drunk or on drugs. The asking price is 90% higher than the price to build it brand new.
Generic house in a generic city.
Houses and cities are generic. It doesn’t matter what city you select to buy a rotting depreciating house. They all depreciate rapidly.
Hamilton Key is a prime example of bubble built housing. I’ll bet he’s got a nice view of the waste water treatment plant across the Turnpike. This house isn’t in a convenient spot either. The Turnpike, while in his back yard, doesn’t have an entrance within 3 road miles of the home…and traffic will make those 3 miles take 15 minutes at least.
At least this is a nicer spot than Briar Bay across the street which is true zero lot line. He’s got a postage stamp.
Corrupt union leaders and their Wall Street accomplices continue to throw rank and file union workers under the bus, yet the dolts continue to vote for more of the same. You can’t fix stupid.
http://www.marketwatch.com/story/how-the-teamsters-pension-disappeared-more-quickly-under-wall-street-than-the-mob-2016-04-04
The people of Iceland, unlike their ‘Murican counterparts, refuse to bend over for banksters who swindle the nation. Iceland is the only country in the West to send bankers to prison for their crimes and fraud in 2008.
http://www.zerohedge.com/news/2016-04-04/iceland-pm-refuses-resign-faces-no-confidence-vote-following-panama-papers-scandal
Kim Chong-Un, like a petulant child, continues to throw tantrums and act out. How far is he prepared to go to get the world to notice him?
http://www.mirror.co.uk/news/world-news/north-korea-claims-attacks-kill-7686174
This is nothing new for NK - they saber-rattle and then quiet down once they receive a payoff from the West. Lather, rinse, repeat.
Wonder what “names above reproach” will surface as a result of this data leak of how the rich and powerful hide their money from the tax man.
http://www.aljazeera.com/news/2016/04/data-leak-reveals-world-wealthy-hide-money-160403192018665.html
I’ve been hesitating to post on non-strictly-housing-related topics since the removal of the Bucket, but I’m pretty sure the money laundering aspect of the Panama Papers is front and center material.
The linked article explores the funding and organization behind reporting on the leak, and goes a long way toward explaining (1) why we don’t see a lot of US “names beyond reproach” being reproached (2) whether we should expect another shoe to drop closer to home …
https://www.craigmurray.org.uk/archives/2016/04/corporate-media-gatekeepers-protect-western-1-from-panama-leak/
“What do you expect? The leak is being managed by the grandly but laughably named ‘International Consortium of Investigative Journalists’, which is funded and organised entirely by the USA’s Center for Public Integrity. Their funders include
“Ford Foundation
Carnegie Endowment
Rockefeller Family Fund
W K Kellogg Foundation
Open Society Foundation (Soros)
“among many others. Do not expect a genuine expose of western capitalism. The dirty secrets of western corporations will remain unpublished.
“Expect hits at Russia, Iran and Syria and some tiny ‘balancing’ western country like Iceland. A superannuated UK peer or two will be sacrificed – someone already with dementia.”
Thanks for that link. This is just getting started and I’m sure the entire leak will be sought by law enforcement.
Just finished reading the Miami Herald article in full, and you’re right, it does look like this is “just getting started.” Good stuff. And good on Jack McCabe for getting his voice into the mix.
Love the irony of “Isaias 21 Property” as the name for a shell company. Can’t decide which is more fitting:
- “the treacherous dealer dealeth treacherously” (Isaiah 21:2)
or
- “go, set a watchman, let him declare what he seeth” (Isaiah 21:6)
I asked Mr McCabe about the money laundering in a podcast in 2014, and he agreed it was going on. It’s sad we had to have entire skylines transformed into empty towers. I can’t see how it will evolve into something useful without great expense. But we managed to drive up the rents for the poorest people in the US. Safe deposit boxes in the sky indeed.
It’s not much different than the stories of Favelas being bulldozed in Rio to make room for high end construction ahead of the Olympics. Poor people move over, we need a place to store all our money.
Miami Beach, FL Housing Market Caves; Prices Plunge 13% YoY As Second and Vacation Home Market Implodes
http://www.zillow.com/miami-beach-fl/home-values/
“And MF’s activities bolster an argument analysts and law-enforcement officials have long made: Money from people linked to wrongdoing abroad is helping to power the gleaming condo towers rising on South Florida’s waterfront and pushing home prices far beyond what most locals can afford.”
_______________________________/
Uh, analysts and law enforcement officials have only just begun to make that “argument.” I’ve been stating that fact for ten years. I lived for several years in Panama and am familiar with that country’s role in the global economy. The canal is by far the second most important thing. Look at Panama City. It now looks like Dubai. Think that was built off canal tolls and maritime flags of convenience?
I see from the law firm’s website that its lawyers are not identified. Imagine that.
“Keeping up with a house is a back-breaking chore under the best of conditions. You don’t want to be nearing retirement with a depreciating asset like a house anchored to your leg like a ball and chain.”
Correct.
On April 6th, Dutch voters may finally wise up and vote to stop bending over for the banksters and globalists.
http://wolfstreet.com/2016/04/03/the-eu-has-bigger-political-trouble-than-brexit-alone/
They don’t care about the banks. Banks print the money that pays their pensions and health care. They just want walls to keep out the refugees.
Europeans and Japanese had a polite reaction to being deep-****** by their central banks who escalated their swindles against the 99% by introducing NIRP. Will ‘Muricans be as passive when Yellen the Felon does the same?
http://www.bloomberg.com/news/articles/2016-04-03/boj-negative-rates-risk-destroying-loan-market-as-freeze-deepens
In 2008, Millennials grabbed their ankles for Goldman Sachs and George Soros by voting for hope ‘n change. Will Millennials and snowflakes faced with the prospect of dead-end temp or fast food jobs in our Obama-Fed-Goldman Sachs “recovery” continue to mindlessly bend over for the oligarchs, or will they finally grow a brain and start demanding REAL hope and change?
http://www.marketwatch.com/story/these-disaffected-workers-will-decide-who-becomes-the-next-president-2016-04-04
What this article fails to mention is that people can not afford $500,000 starter homes on flyover, back office wages:
http://www.bizjournals.com/denver/news/2016/03/31/colorado-businesses-worry-about-talent-shortage.html
“This sucker could go down” — George W. Bush
Talent shortage?
There seems to be no shortage of applicants for jobs, so much so that employers run applicants through the ringer, looking for the “perfect” candidate. I know someone who was one out of 150 applicants for a $45K job (amazingly, she got it).
I remember when there really was a shortage. It was easy to get a job back then. No day long gauntlet running interviews. As long as you seemed to be moderately competent, you got the job. Now they expect you to walk on water.
Co are looking for someone in their 20s w 30 years experience
There’s no shortage of applicants, but I’ve found a shortage of employable workers.
What kind of worker are trying to hire?
Ive said this many times the perfect candidate, is someone who loves the job and aspires to nothing more….a dead end person for a dead end job.
looking for the “perfect” candidate
“Frank Corsello figured his four-bedroom West Palm Beach home would sell quickly, but that was eight months and two agents ago. He’s asking $345,000 — $20,000 less than when he first put it on the market. ‘Buyers are coming through. They all say they love it, it’s their No. 1 house — and then you never hear from them again,’
It’s their No. 1 house?
He must keep losing sales to the No. 1 Double Wide.
Drop the price by $100k Frank, eight months and two agents is a high price problem hood indicator.
West Palm Beach home
West Palm Beach. West. Isn’t Palm Beach on the east coast?
I’m thinking “West” is the problem.
Drop it by $200,000, Frank. It’s a stucco crapshack on a tiny lot on a reclaimed swamp. Sell it and run, and consider yourself lucky.
You tell’em like it is Lola!
It doesn’t much matter where the house is though. Houses don’t depreciate any more or less in FL, CA or NY.
“West Palm Beach. West. Isn’t Palm Beach on the east coast?”
Once again, stick to, oh never mind.
Separated by the Intracoastal.
Suggest you visit downtown Lake Worth sometime, you’ll like it.
“Suggest you visit downtown Lake Worth sometime, you’ll like it.”
My F 250 visited downtown Lake Worth and came home with a caved in left side, no front bumper and a sombrero in the bed.
“ISM New York Drops To September Lows As All Components Decline; Employment Plunges”
http://www.zerohedge.com/news/2016-04-04/ism-new-york-drops-september-lows-all-components-decline-employment-plunges
Reston, VA Housing Market Falls Apart; Prices Plunge 12% YoY As DC Area Housing Demand Craters
http://www.zillow.com/reston-va/home-values/
What is weird though the HA is I was just in DC / Reston this very weekend with my daughter - took detours through nabes just lookin about and I saw VERY FEW for sale signs on front lawns - so…..what sayeth to this?
Heres 1,000. I’m sure there are more.
http://realtor.com/realestateandhomes-search/Reston_VA/radius-1
“If you have to borrow 15 or 30 years, you can’t afford it nor is it affordable.”
From yesterday:
——-
Comment by Professor Bear
2016-04-03 07:38:49
This is the first Sunday in several when I don’t have a gig. Gotta become part of the’gig economy’ to stay on top of those rent increases…
——-
Years ago, when I complained about rent increases, HBB told me that I was free to find a place with cheaper rent.
Donk, Your solution was to go ahead and doubled your monthly costs by buying a house instead. Thats your funeral.
She bought in 2011 so can flip for profit
Where’s the profit when there is no buyer at that price?
Remember….. I can ask $50k for my 10 year old used up Chevy pickup but where is the buyer at that price?
So it is with all depreciating assets like houses.
You could have rented something smaller than a three bedroom (to live alone in) but instead decided to go all in on a depreciating, rotting, worthless shack.
Which apparently really hurt your feelings.
They’re not my losses to cry over. This blog warned her and she didn’t listen.
The rent on those “something smallers” are fast approaching the PITI on my house, including taxes. Anything larger, newer, or near a metro station have already exceeded the PITI on my house.
All dwellings rot, even apartments.
Now include all your expenses Donk.
Poor donk. poor poor donk.
“I complained about rent increases…”
As I recall Oxy, you banked on them increasing perpetually as justification for buying. What was it, 200 or 300 x rent? That with borrowed money.
We warned against it, thinking housing was in a bubble. Cash in the trash indeed.
We have two more years to live with high rent in order to keep our remaining kids at home in a good school district. At that point, options are open, and we won’t have to worry about equity loss in the next housing bust, either.
I realize that you’re in an area where PITI is probably much higher than rent, so buying wouldn’t pencil out for you anyway.
Especially given the prospective capital losses in the next recession…
‘The Miami Association of Realtors hosted the event.’
‘Teresa King Kinney, the association’s CEO, said the intention was not to dodge the regulations. Jennifer Shasky Calvery, FinCen’s director, disagreed. She compared the industry’s behavior to a drunk driver turning around before reaching a roadside DUI checkpoint. ‘It’s always amazing that the drivers think the police aren’t watching that,’ Calvery said. ‘I feel like we’re really learning about the culture of the real-estate economy in Miami.’
Recall that the UHS got real estate, and themselves, exempted from the Patriot Act money laundering provisions.
‘Governments across the world began investigating possible financial wrongdoing by the rich and powerful on Monday following a leak of documents from a Panamanian law firm which allegedly showed how clients avoided tax or laundered money.’
Aspen/Davos above the law, pigmen gonna pig.
‘Governments across the world began investigating possible financial wrongdoing by the rich and powerful
“Captain Renault: I’m shocked, shocked to find that gambling is going on in here! [a croupier hands Renault a pile of money]. Croupier: Your winnings, sir.”
Ben:
This….?
Seems the US has become a favorite tax haven for hiding illegit monetary gains. Who coulda knowd?
http://www.theburningplatform.com/2016/04/04/mossack-fonseca-the-nazi-cia-and-nevada-connections-and-why-its-now-rothschilds-turn/
‘Why is Nevada important? Because recall that according to a recent investigation by Bloomberg, “The World’s Favorite New Tax Haven Is the United States”
‘… and specifically several US states such as Nevada, Wyoming and South Dakota.’
‘For financial advisers, the current state of play is simply a good business opportunity. In a draft of his San Francisco presentation, Rothschild’s Penney wrote that the U.S. “is effectively the biggest tax haven in the world.” The U.S., he added in language later excised from his prepared remarks, lacks “the resources to enforce foreign tax laws and has little appetite to do so.”
‘Yes, Mossack Fonseca may now be history, and its countless uberwealthy clients exposed, but none other than Rothschild is now delighted to be able to fill its rather large shoes. In fact, someone with a conspiratorial bent may decide that today’s dramatic takedown of the Panama “offshoring” industry was nothing more than a hit designed to crush the competition of domestic “tax haven” providers… such as Rothschild.’
lacks “the resources to enforce foreign tax laws and has little appetite to do so.”
Time to suck all that money we printed back home.
There are two types of investigation. One seeks to unearth facts, but the other seeks to obscure facts or cover them up. Guess which one is forthcoming?
‘I feel like we’re really learning about the culture of the real-estate economy in Miami’
This is really something. These people have made boatloads of money from not one, but the two biggest booms in south Florida history. And they aren’t content. They get right back in the mix coming up with schemes to get around the law!
I’m sure the Eric Holder/Lorretta Lynch Justice Department will be all over this.
I slay me…
Willful ignorance. If they truly investigated, they might discover who is responsible.
“Recall that the UHS got real estate, and themselves, exempted from the Patriot Act money laundering provisions.”
And the funniest part about it? We have a couple bozo’s around here that claim there is no fraud going on in housing. Fraud has never been more egregious and widespread than it is right now. Partially as a result of this exemption.
From yesterday, Prof Bear/Muggsy/Oddfellow
The uConnect has an SD card slot inside the console. Finished loading my CDs last night. Took about 5mg of a 32mg card. Transferred all the files at 192bps.
Radio has Sirius, got a year free with the new car, Transferred my remaining Sirius balance off my old car account, so I’m good into 2018. Sirius sent an e-mail saying “congrats on the new car, and noticed the info the dealer sent in matched an existing account, and gave an 800 number to update account info and transfer balances to the new car. Painless.
Kept my Sirius account because in wide stretches of rural Kansas, Oklahoma, Missouri, the local radio programming is almost all Fox News/Limbaugh/Religious programming.
Havent paid too much attention to gas mileage yet. My 2013 took a big jump in mpg when it hit about 8k miles. It had the 3.6 liter V-6, probably the same as in Muggy’s van. This thing has an 8 speed auto behind the Hemi. Get it up to 75 on the highway, it shifts down to about 1600 rpm, and runs on 4 cylinders with cylinder deactivation. Was getting 23.5 on a 150 mile trip the other day.
If I’m too enthusiastic, forgive me. I’ve wanted a Challenger R/T for about 40 years. Finally got exactly what I wanted, and this 2015 corrects almost all of the issues my 2013 had. And now I dont have to continue answering the “It doesnt have a Hemi? Why not?” questions.
As far as the peanut gallery comments about the car being a “waste”. All I can say is “Nanny-nanny boo-boo”.
If it’s more than basic transportation, it’s a waste of money.
A man who knows the cost of everything, but the value of nothing.
What value is there in paying 2x, 3x or more for a depreciating asset like a car? You’re not going to get there any quicker or more safely.
Tell that to my 1973 Dart Sport 340.
Or my 1973 Charger project.
Or my basket case Plymouth Road Runner.
Or my stripper Dakota with the 4.7L V-8
All worth much more than what I paid.
As far as my 2013 Challenger trade, I drove it 53K miles for about $3000/year.
And if you don’t think a Challenger R/T won’t get you there “quicker” than a base priced s##t-box, you are sadly mistaken.
Especially if the place you are “going to” is some chick’s pants.
Kinda hard to put a price on that. LOL
And not a buyer in sight at the inflated “value” you assign them.
Again…. those death traps aren’t going to get to the destination any quicker or more effectively than a Honda Civic.
You really know how to suck all of the fun out of the room, Housing Analyst, I’ll give you that.
Try finding a hobby other than tearing down other people’s decisions on the internet - your life outlook may improve.
Or get out the pop-o-matic and play a game of Trouble with HA Senior, Jake, and the Central Scrutinizer.
We’re not all downers! I can be downright zany! I’M THE ZANY ONE! I’m bringin’ the FUN!
Cars are junk depreciating assets, no different than houses. Including yours. And our personal opinions about that won’t change anything so get over it.
And get your usernames straight.
Jake - your Prozac is calling
Prozac makes me love my fellow man!
Oxytocin Nasal Spray 60ml 6500 IU (For Autism, Social Anxiety and Empathy)
I hear you. If I had money to burn, I’d pony up for a vintage guitar, even though I already own several guitars.
I have several, i dont play though. I like the old Yamahas from japan.
As I’ve said before, enjoy it. Life is too short to be obsessed with saving money.
And life is too harsh and insecure when you’re neck deep in debt with no way out but down.
Remember….. a negative net worth is the definition of poverty.
Unless things change rapidly in this country, I’ve decided to implement my own personal “Die as early as possible” plan.
Have seen too many people get the remaining pennies of their net worth sucked up by the vampire squids of the health care industry.
Too may people losing their retirement pensions because of Wall Street and private equity looting, which remains unchecked.
-Too many retirees who don’t have enough money to do anything except watch TV and eat the homo sapiens equivalent of Alpo.
-Too many people being “retired” involuntarily……if you lose your job at 55 plus, you are going to be hard pressed to find a job that pays 60% as much.
-Too many guys who retired thinking they had enough money set aside, who are now running out of money (thanks to 0% interest rates), and are now trying to get back into the labor market, without the benefits of their old “networks”.
Was it you that bought the muscle car? Drive as it was meant to be driven, and you’ll be at the pearly gates in no time.
Ben et a..
Any thoughts on what history a few hundred years down the road will write on the era in which we live?
I ask because I was visiting my daughter in DC this last weekend - had a great time - and yet always in the back of my mind I kept thinking - why is it such a small little place (District of Columbia) affects so adversely so many people - so many miles away? The seething corruption is palpable there in the District.
not sure about what Ben says but from “et a…” I think you care to think what some of us say.
I think in a few hundred years people will call us extremely violent by designating rights we do not have to others. Right to murder, kidnap, and steal.
Voluntaryism is the future.
I noticed that I did not put the “l’ on the a - so I stand corrected and the salutation is Ben et al.
I just wonder how this era ends.
I meant delegating in place of designating…
Government is the center of corruption.
Presuming that humans survive, historians will write that we were a foolish people who got what we deserved.
And it’s April. Be sure to account for every peso you earned and give the tax man his due. But these super rich people? Nahh.
why is it such a small little place (District of Columbia) affects so adversely so many people - so many miles away
The capital should be moved to Chicago. Then it would be a big city, not a small one, that would be running the world.
Maybe Kansas City or Omaha. Smack dab in the middle of the country. Think of all those new jobs building a new capitol!
“The Boomer Retirement Meme: One Big Lie”
http://www.zerohedge.com/news/2016-04-04/boomer-retirement-meme-one-big-lie
This is what happens when you dedicate the bulk of your earnings to a rapidly depreciating asset, in this case, a house….. and then double those losses by financing it.
crushing.housing.losses.
Versus letting Wall Street “manage” your retirement money.
A house as an “investment” still works for some people. It’s all about what you paid for it.
It used to be that you were rewarded for the risks of home ownership, by gaining some immunity from rental price fluctuations, and (typically) having the monthly note costing less than the rent for an equivalent house.
It was also an advantage back in the hazy past when you could find a new/better job locally without too much trouble.
Nowadays, home ownership doesn’t make nearly as much sense when it costs multiples more than renting, and finding a new job that pays the same or better almost always involves a move to a new Metroplex.
This assumes you can afford to move, since almost nobody pays for relocation anymore, except the Federal government and their contractors.
“A house as an “investment” still works for some people. ”
A SFR doesn’t work for anyone. You have to lie to yourself and everyone around you to make that statement true. A house is a depreciating asset today yesterday and tomorrow.
People keep hitting themselves on the head with bricks as they listen to RE hucksters who tell them they will get wealthy in real estate.
Before the year 2000, I never heard anyone saying that by owning a house you will become wealthy. I never heard anyone before 2000 say that a house is your way to retirement.
It’s a drain. It was a drain before the year 2000 and it’s been a drain since the year 2000 though artificially supported by the various levels of government.
There is only so long that government can continue to prop the false price of housing.
Plus the boomers are dying and downsizing.
Unless scientists develop a cure for all cancers, dimentia and heart disease, the big change is within ten years.
When most boomers deplete social security my gold will be very handy to have around because the 401ks and IRAs will be turned into treasury bills paying 0.20% yields annually.
https://maine.craigslist.org/reo/5522219186.html
Cedar house for $50 a square. But you gotta poop in a bucket.
Just think Lola…. You can get 2000 sq ft of it with plumbing, heat, lighting on a modest sized lot for $50 a square. All brandy new.
Or would you rather pay $200/square for a rotting 40 year old run down shack and double down on that loss by financing it for 30 years?
You can get 2000 sq ft of it with plumbing, heat, lighting on a modest sized lot for $50 a square. All brandy new.
Show us a link for that.
Irrelevant.
To be fair, there are exceptions. Housing that is set up for multi-family, in areas where there is a dearth of multi-family housing. In poor areas, it is a challenge for people to come up with even a three per cent down payment.
I looked at a 1900-era house in Central Virginia recently. It was converted to a “3-fam” looong ago. Previous owner bought the farm before he could complete the main floor into “his” living space. Central VA is no man’s land. It is NOT commutable to DC Metro.
I invite you to envision Metro DC as the epicenter of civilization along the lines of Hunger Games. Androgynous men. Cookie-cutter women. Totally synthetic society. The only way I can explain the culture clash. People in Central VA still know how to DO things. But society no longer values that.
This house would be a “Project”. However, with a view to structural upgrades and cosmetic fixes, it would yield $1K/mo after debt service etc. for two of the floors. More than that with the third floor finished.
That is over a 15% cash on cash return, over a fifteen year (mortgage) time horizon. It does involve dealing with tenant drama, and foregoing debt coverage income until the main floor is completed.
And, it does have the downside that you have to maintain a presence in order to set the tone.
Thankfully, being systematic and rational sets the tone. People don’t eff with The Man once you tell them point blank that The Children are not your responsibility.
These are the working poor, formerly middle class that have been eviscerated since the Great Restructuring and Offshoring.
I’m seriously thinking of biting. Everybody needs a hobby. I have a building inspector who used to be a structural engineer (that I actually worked with), and a cash cushion for the inevitable crises. Plus which, I have developed a reputation for supersonic speed in payment down there in that area. So workmen tend to do good work.
You’d have to put a 9MM Sig Sauer to my forehead before I’d sink a dime into Northern Virginia, the UR-cesspool of hot money looking for a home. But in real towns, where people are closer to the ground truth of life’s kicks in the teeth, the entire culture is different.
I’m thinking that unless I can poke a knife through the walls from the outside, I’m seriously thinking about buying it and finishing the three floors into separate apartments. It is to be hoped that I do not follow suit in buying the farm once the ink is dry.
An interesting way to spend $9700. Maybe Facebook worthy.
If you want a tiny house, why not just buy a used travel trailer?
I’ve camped in cabins the equivalent of tiny houses. An OK place to crash and get out of the rain, snow, wind. Too small to devote days of pensive abandon. I like the idea, though, they could be a millenial starter house /s.
“Real Estate Agent Arrested In Arkansas Pot Bust”
http://www.krcrtv.com/redding-real-estate-agent-arrested-in-arkansas-pot-bust/37846260
And the public is supposed to trust these people?
When you need to score some pot in your backward, authoritarian state, only trust a Realtor!
Ventura, CA Housing Market Craters; Prices Plunge 16% YoY
http://www.movoto.com/ventura-ca/market-trends/
There was a man named Jake
He loved to be on the take
He loved to cash hoard
and post on the bubble board
all the time he was just a giant fake!
I’m living in your MT skull….. rent free.
Hello James. Tell us what you think the truth is.
It’s a blog, not a board. That would make us boarders.
Keller, TX Housing Market Implodes; Prices Collapse 24% YoY As Inventory Skyrockets 56%
http://www.movoto.com/keller-tx/market-trends/
So much for that “everyone is moving to Texas” meme.
What is a “Independent Oil Man”?
A liar, standing in front of a hole in the ground.
Also known as - All hat, no cattle!!
https://www.reddit.com/r/PanamaPapers/
These big babies that have to offshore money need some Panama Diapers.
Wuss’
Big men pay their bills.
who needs regulations? people wont cheat
Florida is the center of the universe.
Last year, poor people in Kansas got their taxes increased to give the “producers” their giant tax breaks.
That turnip has been squeezed dry.
Next up……..local home moaners turnips.
http://tinyurl.com/yet6jf
That’s the trouble with owning a house……you are just a big, hard to move out of the line of fire bullseye for the tax guys.
OTOH, homeowners get the most benefit from good school district, when they resell the house. Compare current and historic prices between Johnson and Wyandotte County Kansas.
My 1%er employer don’t give a fig. Most of his residential property is outside the state of Kansas. Ditto for his personal vehicles and airplane.
This……
http://www.chicagotribune.com/business/ct-chicago-losing-millionaires-0405-biz-20160404-story.html
‘The criteria may explain why Florida comes in at No. 38. It scored poorly on housing as well as on employment and education. Incredibly, the sunshine state also scored poorly on community and quality of life, which looks beyond weather to the impact of traffic patterns and crime rates. Florida is home to 11 of the nation’s 100 most dangerous cities.’
‘At least among pre-retirees, who may still have kids in school and 20 more years of career, the weather in retirement seems almost irrelevant. These people may change their tune when they finally get to age 66 and tire of snowstorms. But at this point their life, the research shows, South Carolina, Nevada, Arizona and New Mexico clock in at Nos. 43-46, respectively, joining California as among the least attractive places to call it quits.’
http://time.com/money/4278424/best-states-retire-not-florida/
It’s a very difficult place to survive unless you choose very, very carefully. Transplants, especially from the Midwest, are frequently shocked by how difficult it can be.
And this…..
http://www.zerohedge.com/news/2016-04-04/shocking-footage-chicago-resident-gunned-down-while-live-streaming
Because Obama is special….
http://www.thelocal.de/20160404/locals-told-stay-away-from-windows-for-obama-germany-visit
or said differently… i have been contacted by a bunch of drug dealers who wanted to buy into my condo project. without those fine people i would have been bankrupt.
————
‘Even though developers and real-estate professionals suspect many of these units are bought with illegal funds, they realize their projects may not be successful without that support.’”
How would you like your house to pay you an extra $96,000 a year in disposable income?
A tale of two housing markets is playing out in home equity
Published: Apr 4, 2016 2:53 p.m. ET
Many homeowners are tapping their equity for cash, while those who own the lowest-priced homes are often still underwater
By Andrea Riquier
The housing market is starting to look a bit like Dr. Jekyll and Mr. Hyde, at least when it comes to homeowners’ equity, according to data out Monday from research firm Black Knight Financial Services.
For some homeowners, properties are again becoming ATMs — and in many cases, well-paying ones.
Even as the amount of equity owners hold in their homes hovers near a 10-year high, owners pulled the most cash out of their homes since 2009 last year, Black Knight said.
“Cash-out refinance transactions” netted homeowners a total of $68 billion in 2015. That’s more than $60,000 per borrower on average. California accounted for 42% of that total, with an average of $96,000 per borrower.
…
Meanwhile, ‘Muricans are gunning up like never before. Not a vote of confidence in the future, I would say.
http://freebeacon.com/issues/march-sees-record-gun-sales/
I wonder what percentage of the purchases are made with welfare and disability money…
I know a guy up here that has run up 20k in credit card debt buying guns. He has 24. I asked him how many he can shoot at the same time and he just looked at me. He hasn’t worked since August.
Is there a gun bubble, and will stupid keep it inflated like the housing bubble?
the Kinks — Sunny Afternoon:
https://www.youtube.com/watch?v=VLs09J_x6-c
Enter Shikari - MELTDOWN
https://www.youtube.com/watch?v=cYh4MdGW7qI
And when you need to space out a bit…
https://www.youtube.com/watch?v=2kLUdcwd_2E
Morphine, Lilah II
(RIP Sandman)
Soundtrack for a coma….
$200 on NC.
WOW !!! worth it!! great game!
The Fed’s “No Billionaire Left Behind” monetary policies and gifting of trillions in free printing press funny money on its oligarch pals have pushed asset bubbles in NYC to insane new heights. When the bubble bursts, will ‘Muricans once again meekly bend over for Wall Street by voting for the Oligopoly’s hand-picked Republicrat water carriers?
Surely Yellen the Felon would never conspire with her fellow racketeers, er, central bankers, to manipulate the currency. Inconceivable!
http://www.businessinsider.com/baml-says-feb-conspiracy-theory-is-baloney-2016-4
Of course she would, and stop calling me Shirley.