Most Think Their Home Always Appreciates
A report from the Seattle Times in Washington. “Just how hot is the Seattle real-estate market? People are now reserving condos under construction and then flipping them for a six-figure profit before they even open. Matt Goyer, a local real-estate broker, combed through some recent sales at the new Insignia high-rises in the Denny Triangle. He found several brand-new condos that their owners reserved during construction over the last couple of years and just sold again before ever living in them. The condos fetched an average of $637,000, up from their original purchase price of about $526,000 — a profit of 21 percent.”
“‘I think it is remarkable that in just a few years, they’ve appreciated enough in value to cover the costs of selling and make a decent profit,’ Goyer said. ‘It’s also remarkable that the buyers of the flips aren’t fazed by the price increases.’”
“But there are glimmers of hope for homebuyers. July was the second straight month that saw mildly positive news on the number of homes available for sale. At the same time, the number of home sales in the county dropped slightly from a year ago, indicating the balance of power between sellers and buyers might be starting to shift a little. And real-estate researchers at Metrostudy released a report this week showing that job growth and new residents moving into the Seattle region have both slowed.”
“Lastly, two of the most expensive regions actually saw prices drop in the last year: Redmond-Carnation, and Queen Anne-Magnolia. Up north, the far east part of Snohomish County saw prices drop a little, too.”
The Real Deal on New York. “In a market where developers are falling over themselves to offer sweeteners to buyers, one builder is targeting brokers instead. Toll Brothers City Living is encouraging brokers to keep bringing buyers to its Manhattan and Brooklyn projects by offering a new portfolio-wide commission incentive, David Von Spreckelsen, president of the firm, told The Real Deal.”
“While such an incentive has been seen in individual buildings, it’s unusual for a developer to offer it on a portfolio-wide basis, sources said. That, they said, is further evidence that developers are finding it difficult to garner attention for their projects amid a high-end condo supply glut in Manhattan. The developer previously cut prices at several of its buildings, including 400 PAS. ‘We’re thinking that, if we open it up to more buildings, it will give them a better shot,’ Von Spreckelsen said.”
“Toll isn’t the only developer trying to sell brokers on doing business at their buildings. At Claremont Group’s 101 Wall Street, the developer is doling out $5,000 American Express gift cards to brokers whose clients sign contracts, according to previous reports.”
News OK on Oklahoma. “Metro-area housing entered fall firmly in a seller’s market statistically, with the devil lurking, as usual, in the details, particularly price range and location. With more new homes on the market — and not reflected in the Realtors’ numbers if marketed directly by a builder and not listed with a Realtor — some sellers are ‘feeling the effects of a down market,’ said Curtis Kupfersmith, Keller Williams Central Oklahoma, 10 E Campbell in Edmond.”
“‘Most think their home always appreciates and goes up in value which isn’t always the case,’ he said. ‘There’s … a huge oversupply of new construction all over the metro, especially Yukon and Edmond.’”
From MarketWatch on California. “When Lucia Chavez saw her mortgage bill, she thought there had to be a mistake. For years, the 70-year-old Vista, California homeowner had paid about $990 every month. But in early 2015, after solar panels were installed on her roof, Chavez, a retiree, discovered a total of $1,500, a sum she couldn’t afford, had been paid from her bank account.”
“Chavez said the company that pitched her on the panels, Fidelity Home Energy, did not explain how expensive they would be, nor suggest that she consider a different means of financing other than the loan they offered, which has a 10.32% interest rate and gets paid as part of her mortgage bill. They did tell her she’d get a $10,000 tax break – but not that such an incentive is useless to people at her income level.”
“PACE loans date back to 2009, and 32 states and the District of Columbia have passed laws enabling programs to be set up. And as of this summer, the programs have the overt backing of the White House — including from President Obama himself. Not only is PACE financing for upgrades sold with high interest rates, and often at higher prices than might be found elsewhere, but many customers say their claims of energy savings don’t often come true. And the financing can be used for everything from solar panels to AstroTurf and pool covers.”
“But perhaps most important is the fact that PACE loans take priority over the mortgage in situations like foreclosures, a feature that subverts the entire structure of the home lending process. For Chavez, that means that when she fell behind on her mortgage payments, she suddenly owed an entire year’s worth of PACE payments — $4,115.54.”
“The loans are attached to the property, not to the homeowner. That means that if a homeowner has an outstanding PACE loan, he or she passes the obligation on to the next homeowner in case of a sale — or must pay off the entire outstanding balance on the spot. ‘This is not sound lending practice,’ said Pete Mills, who heads residential policy for the Mortgage Bankers Association.”
“Many critics of the PACE program believe it has been developed as raw material for bonds and other investments for Wall Street rather than for its environmental goals. One of the most damning aspects of how PACE loans touch consumers, according to several sources, is that there is no assessment of the borrower’s ability to pay. Instead, lenders assess borrowers based on their home equity — a practice that uncomfortably mirrors the steps that led to the housing crisis.”
“As the MBA’s Mills put it, ‘Why is a financing agreement that is virtually risk-free [to the investor] because it’s attached to the tax assessment, why is the interest rate 6.5% to 7% to 8%?’”
“Chavez is working with a lawyer, Dan Mulligan, to explore legal action against Fidelity - and also to approach her bank about a modification to her mortgage. ‘I feel bad and I didn’t sleep some nights because I was so upset,’ Chavez said in an interview. ‘I feel bad that at my age they did that to me.’”
‘When Lucia Chavez saw her mortgage bill, she thought there had to be a mistake. For years, the 70-year-old Vista, California homeowner had paid about $990 every month. But in early 2015, after solar panels were installed on her roof, Chavez, a retiree, discovered a total of $1,500, a sum she couldn’t afford, had been paid from her bank account.’
There will be years of crow buffets for Jingle and Rental Watch.
And rat kabob for the truly lean times, washed down with copious quantities of Ripple or Thunderbird over a trash-can fire.
Daddy Yellon will save them cucks.
For those unfamiliar with North County San Diego, Vista is a relatively low income, high crime town near Camp Pendleton.
The PACE lending program sounds like good fodder for future bailouts.
What is she doing adding solar panels at age 70?
There is no way that she receives any ROI whatsoever, even under the best scenario. She’ll likely be dead in 20 years.
People are imbeciles.
Yeah, that’s too bad. Sounds like it was unethical sales people and an uninformed consumer.
The promise of do-gooderism combined with promises of a kickback creates an uninformed consumer in a hurry.
Getting free money AND feeling good about it. Such a deal.
ObamaCare was crammed down out throats using a very similar guise.
The promise of do-gooderism combined with promises of a kickback creates an uninformed consumer in a hurry.
The “magic” of financing has a lot to do with it, too; imagine if she had actually had to pony up cash for the system—should would have taken one look at the bottom line of the invoice, said “Oh, I can’t afford that!” and that would have been the end of it.
That usurious interest rate sure has to be attractive to those who would securitize the loan. I think we’ve found out how pension funds can achieve 8% annual returns!
Maybe she had a $600 electric bill that is now $0.
The solar door knockers have come to our cottage many times. Our So Ca Edison bill is $65/mo w/ a pool, and when I convey that, they are amazed. Our LEDs save us a bundle, and we run our pool for only 3 hours a day.
BTW, the 99C Only Store has a program for cheap LEDs sponsored by our local utility co. $1 for LEDs.
“What is she doing adding solar panels at age 70?”
She was swindled by someone who needs their hands removed.
There’s not enough information here.
Are these solar panels completely worthless if she dies tomorrow?
Will this property be abandoned and escheated to Jerry Brown when she dies?
Indeed, the scum need to pay for defrauding an old woman like this.
These properties will probably have a lien put on them for failure to pay. These solar scum might even be financed by the banks with the intent to get these properties on the cheap - all with the approval of Ovomit and his administration. Fundamentally transforming america - into a corrupt third world hell hole.
“For its part, Fidelity Home Energy’s CEO, Brad Smith, told MarketWatch that the program had been explained several times, at multiple steps throughout the process, to Chavez.
“We have installed over 5,500 solar systems and I believe this is the first time a customer has complained about an issue like this,” Smith wrote in an email. “With the due diligence that HERO performs, there is very little wiggle room for any kind of shady dealings. Everything is disclosed. We are very careful about compliance. We have many safeguards in place to identify situations like this. We met with Mrs. Chavez on several occasions and not once did she bring up this issue.””
———————
Sometimes there is fraud when people borrow money they can’t repay. Sometimes there is a lack of understanding from the borrower. Sometimes the borrower takes foolish risks.
It seems like there is a reasonable possibility that this is the middle category. I’m sensing a Charlie Brown moment, that what she heard was “wah, wah, wah wah wah, wah, wah, free energy, wah, wah, wah, wah wah.”
London is the global epicenter of financial fraud. If BREXIT forces these banksters to scatter, which financial hub will emerge as the new center of global financial fraud?
http://wolfstreet.com/2016/10/11/hard-brexit-fears-rattle-city-of-london/
I predict Washington, DC. Goldman Sachs is located there.
Odds will be 1:1 should the NeoCon-Progressive Party win in November.
Toronto is already quite the mini-hub of financial fraud. Crooks come from all over the world.
Hillary loathes ordinary Americans.
http://www.thedailysheeple.com/hillaryhatesamericans-trending-after-wikileaks-bombshell-hillarys-advisor-admitted-in-writing-she-hates-us-all_102016
And you say that 95% are morons.
Hillaryous is unelectable.
Anonymous just came out and said they have the missing 33K emails of Hiliarys, claiming she and the rest of the corrupt democrat party are done. They also have some videos of Hiliary talking trash about black people. Add that into the wikileaks dump today indicating democrats hatred of catholicism and rednecks courtesy of former rapist bill clinton plus more illegal activities with their PACs and you can count on a worldwide popcorn shortage! Already lots of the information is being blocked on social media but the more the information spreads, the less successful they can be at suppressing the truth getting out.
Oh yeah, listened to a radio show on real estate today. Guy calls in and says it seems like another bubble - 600K for a junky termite infested shack. Said he was lucky he didnt get sucked into the last bubble. RE guest said you’ll be fine if you get a fixed rate loan and plan to live in it at least 10 years, but otherwise . . . no. Thats the closest I’ve ever heard an RE chode come to the truth.
Wow, just wow. These latest leaks, while some are seeming nothing burgers, turns out the servers/ip addresses listed are being attacked to hack more info - including info off podesta’s ipad and then wiping it! Folks, we are in a cyber civil war - you couldnt imagine a more compelling story. Oh, Bill clinton molested his third cousin. And Hillary had at least 1 other secret server that was never reported to Trey Gowdy, FBI, etc.
https://twitter.com/0HOUR1__
And what did I just hear on the radio - two women come out accusing Trump of inappropriate touching 30 years ago. Unreal!
That third cousin story is probably around 30 years old.
It appears that there’s a story that only three years old.
Miss Washington 2013 says Donald Trump groped her
http://www.king5.com/news/local/miss-washington-2013-says-donald-trump-groped-her/334981243
It seems like the Republican Party leadership just now noticed that Emperor Trump’s new clothes are transparent.
http://www.snopes.com/hillary-calls-voters-bucket-of-losers/
Snopes is a a leftist organization masquerading as an arbiter or truth. All it ever does is confirm the leftist narrative. Its a sham, and fools fall easily for it.
snopes for dopes
‘I think it is remarkable that in just a few years, they’ve appreciated enough in value to cover the costs of selling and make a decent profit…It’s also remarkable that the buyers of the flips aren’t fazed by the price increases.’
Remarkable indeed. Flipping pre-construction condos for huge amounts of money, just like Florida in 2005. No worries here Janet.
“It’s also remarkable that the buyers of the flips aren’t fazed by the price increases.”
Perhaps they realize they will either be able to walk or qualify for a bailout in case prices head south.
I was going to say, it sounds just like Miami did back then. You’d see condos listed for sale, and there wouldn’t be an actual building, just an artist’s rendering, because ground hadn’t even been broken yet. This is going to turn out so well.
And what’s even more fascinating is that virtually nobody here in the Seattle area thinks that this will ever stop.
“It’s different this time . . . “
What I find remarkable is that people are able to pay the mortgage on these units. In 2005, people *weren’t* really paying the mortgage — they were paying interest only or less than interest only. Those mortgages are no longer available to the typical consumer. HBB can scream “no money down” and “very definition of subprime.” But the fact is, someone has to prove that he can pony up $3000 every month for that mortgage, or else he wouldn’t be able get the loan in the first place. The only buyers that can do that are 1) a single person with a $150K+ job, 2) a power couple with $100K jobs 3) Chinese who stopped doing laundry in Vancouver BC.
They can’t and don’t pay because they don’t have to.
http://www.commerce.wa.gov/building-infrastructure/housing/foreclosure-fairness/
“pony up $3000 every month”
If you put a deposit on an unbuilt condo, I suspect that you do not have a mortgage until later when the unit is delivered any you “buy” it.
I’m referring the end buyer, not the flipper. If the end buyer made a deposit but couldn’t ability to pay the mortgage during the approval process, then the deal would have fallen through. The article states that the condo was “sold,” so obviously something was approved. I still think it’s the foreign money.
End buyer is also a flipper.
OMG I discovered this blog before the US melt down and read about it as it all played out ten years ago (like it was yesterday). Reading this entry is like time travel, I had to give my head a shake. It is a repeat of the same exact thing. Previously I read articles of how the incentives were given to hide the decline, then later because desperation was starting to creep in and the developer wanted to be the first one out…. Then by the time the proud recent home owner clued in, the appetite for speculative real estate was gone, and all that was left were people who just wanted a place to exist, who would pay what they could afford, a little bit more then renting.
That it is happening again was entirely predictable.
Nothing was done to protect anyone who wasn’t part of the game the first time around. Some have paid the price with a decreased standard of living; others with their livelihoods.
Conversely, a slap on the wrist in exchange for millions in funny money is a mighty attractive proposition to those on the take. They have raked in the dough by deliberately screwing over those not in the game.
The question now is will it happen a third time?
Will the NeoCon-Progressive Party win in November to ensure it happens a third time? Or, will an outsider perhaps put an end to it?
The question now is will it happen a third time?
It’s almost certain. Central Banks will lower interest rates even more, gov’t incentives (in many countries) will be offered to buyers, credit will be loosened, etc. And once, after the crash, prices start to climb again, all will be forgotten, again.
Almost certain it might be, but the pool of useful idiots grows smaller with every bounce. One by one, people realize that paying 10x annual gross earnings for a shack is stupid.
I think that long term demographics back up what you say. As we increasingly become a society of low paid never marrieds there will be fewer sheep for the shearing
Bonuses to brokers, rather than price cuts to buyers?
There is an indictment of the business ethics of those brokers right there.
“As the MBA’s Mills put it, ‘Why is a financing agreement that is virtually risk-free [to the investor] because it’s attached to the tax assessment, why is the interest rate 6.5% to 7% to 8%?’”
A similar question can be asked about student loans, which tend to be high interest and attach to the borrower’s future income stream, dischargeable only in death. I suppose it is still costly to collect in the event of default.
“One scheme to rule them all. One scheme to find them.
One scheme to bring them in, and via indebtedness bind them.”
I’m not sure how the new bourgeoisie will meet their end, but guillotines and heads on pikes aren’t strictly out of the question.
“reported Sunday, based on a leaked police document.”
Leaked?
Report: 1,200 women assaulted on New Year’s Eve in German cities
Jessica Durando , USA TODAY 2:33 p.m. EDT July 11, 2016
More than 1,200 women were sexually assaulted in German cities on New Year’s Eve, including more than 600 in Cologne and about 400 in Hamburg — far more than initially reported, according to German news media.
Authorities believe 2,000 men were involved in the assaults, and 120 suspects — many of them foreigners — have been identified, The Sueddeutsche Zeitung newspaper reported Sunday, based on a leaked police document.
In January, at least 90 women filed police reports alleging they were sexually assaulted, including one report of rape, and police initially identified up to 1,000 men as suspects.
Holger Münch, president of the German Federal Crime Police Office, said the suspects of the New Year’s Eve assaults “have been in Germany less than one year.”
“There is a connection between the emergence of this phenomenon and the rapid migration in 2015,” Münch told Sueddeutsche Zeitung. Many suspects came to Germany from North African countries, according to the Federal Criminal Police Agency document.
“We have to presume that many of those crimes will never be fully investigated,” he said.
http://www.usatoday.com/story/news/world/2016/07/11/cologne-germany-sexual-assaults/86939142/ - 139k -
They weren’t assaulted, they were Culturally Enriched. Get your terminology right.
“Chavez is working with a lawyer, Dan Mulligan
she suddenly only speaks Spanish
everything is someone else’s fault
She thought she was being offered the opportunity to get a kickback AND help save the planet. That’s one mighty attractive proposition.
That she got played is as much her fault as the company hawking the solar panels.
I blame her exclusively- there are many things to buy-you must profile to live
The fact that she was deeply in debt on a house had already proved her stupidity.
so Seattle is still perky ? Portland too
these are the only 2 markets in the US I can find.
mort aps off 6% do to higher rates?” headline on yahoo etc.
so Seattle is still perky ? Portland too ??
Yes…I have also noticed that in some of Ben’s posts over the last few months…
Define perky
people paying over ask w inventory of less than 3 months=perky
what you got?
Scanty enthusiasm for housing.
You might want to add Denver and parts of Dallas to that, and of course Silly Valley.
dallas dowN
Is there any political level too low for this globalist to meddle in?
http://www.denverpost.com/2016/10/11/george-soros-jefferson-county-district-attorney-race/
Regarding the “occupation” of financier, do these parasites provide any net benefit to those outside of the 0.01 percent? Jesus threw the moneychangers out of the temple, because they are servants of Satan.
He’s turned into the Democratic version of the Koch brothers. I had to chuckle on Sunday when Clinton said that she wanted Citizens United to be repealed; I question whether she has any such desire. From your link:
“Records show that a PAC named Colorado Safety & Justice was established in September. Soros donated $100,000 to the PAC later that month, according to state records. Another $39,000 in other types of donations also was listed in the organizing papers.
The registered agent for the super PAC is listed as Whitney Tymas, who has been the registered agent for similar PACs in other states linked to Soros. The billionaire has used those PACS to flood money into district attorney races in Houston, Chicago, Orlando, Fla., Louisiana, Mississippi, New Mexico and Texas, according to news reports. Each is named on a variation of ‘Safety & Justice.’”
wanted Citizens United to be repealed ??
I think after this election cycle the republicans in the house and senate see the fund raising differential between the Dem’s and the republicans they may rethink this Supreme court decision and support legislation that reins in the super Pac’s…It needs to be dealt with along with the other terrible decision on Eminent Domain…
No one talks about it (including Trump) which means everyone likes it.
https://en.wikipedia.org/wiki/Kelo_v._City_of_New_London
Talk about corruption…
The Affordable Care Act is covering people, holding down costs and not killing jobs
By Jared Bernstein
October 11 at 6:00 AM
Fact 1: The ACA has had the truly remarkable — almost unprecedented — impact of lowering the share of Americans without health coverage. The first figure shows that there are two times over the past 60 years or so that the uninsured rate fell sharply: the implementation of Medicaid/Medicare and that of the ACA. Any student of public policy knows that this is much harder than it looks. It’s all too rare for the enactment of a major public policy to quickly have its intended effect the way you see here.
Fact 2: The efficiencies in health-care delivery that the ACA has helped to usher along are one reason both spending and prices in the sector are growing more slowly. Also remarkable is the fact that current projections for future health spending are below those from January 2010, before the ACA was legislated, meaning these earlier forecasts did not include either the Medicaid expansion or the premium subsidies in the exchanges. As budget expert Richard Kogan recently noted, “As a result, overall health spending is not only projected to be lower but also to cover 20 million more people.”
Fact 3: There’s no evidence for the claim that the ACA a “job killer.” We are in the midst of the longest period of continuous job growth on record and the job market is closing in on full employment enough that the Federal Reserve is talking about raising interest rates to prevent overheating (based on the absence of inflationary pressures, I wouldn’t go there, but that’s a different discussion). But is there any evidence that’s a bit more ACA-specific?
The first two figures below are scatterplots where each dot is a state. As noted, ACA’s Medicaid expansion and premium subsidies have boosted insurance coverage, so one way to test the job-killer hypothesis is to plot changes in employment growth by state against changes in insurance coverage (this figure shows 2013-2015 changes, but the results are the same for one-year changes). If the ACA killed jobs, states with the biggest gains in insured rates should have seen slower job growth.
https://www.washingtonpost.com/posteverything/wp/2016/10/11/the-affordable-care-act-is-covering-people-holding-down-costs-and-not-killing-jobs/?hpid=hp_hp-cards_hp-card-posteverything%3Ahomepage%2Fcard&ref=patrick.net&utm_term=.0d209d9ea28b
LMAO.
You’ve outdone yourself this time, MightyMike.
I do believe you should change your moniker to “Easy Prey”.
aca has removed more politicians in one shot than any other event
Hilary will build on it=socialized meds
pick a country and compare
UK is really hideous and dangerous
UK is really hideous and dangerous
What exactly do you mean by that? I ask because the murder rate in the US is five times the UK’s.
crime rate in uk is far higher than us
Burglary is a big problem over there. But not violent crime. I know Brits who are afraid to come to the States.
UK has a yob culture where assault of decent people is quite common. Yes, the US has more violent crime, but most of it is perpetrated by Hillary supporters against other Hillary supporters, in urban dystopias given over to corrupt Democrat maladministration, if you catch my drift.
Elite college education will do that some people.
ACA is awful. My Blue Cross insurance was $150 in 2008. Now $500 in 2016. $1000 deductible. They need to make it more competitive, pass tort reform to lower costs. But congress is too busy doing nothing.
My Blue Cross insurance was $150 in 2008. Now $500 in 2016.
Do you mean your share was $150 then $500? I don’t recall the total cost being anywhere near only $150 in 2008 for any of my choices.
straight cost $150, no ACA back then that I knew of. Blue Shield. Not over 50 yrs old.
You’ve got a lot to learn youngster.
Do you mean your share was $150 then $500? I don’t recall the total cost being anywhere near only $150 in 2008 for any of my choices.
Agreed. Back in 2008 my employer provided insurance (for the family) was about $13,000 a year.
I’m guessing that the Blue Shield mentioned above had a ton of exclusions and a huge deductible.
I do remember Blue Cross advertising no frills health plans for about $100 a month for a single, young person.
It was in 1985.
Just got the new Blue Shield renewal form today. 2016 was $452.39 Now 2017 is 568.61
Big insurance wins again, GOP congress does nothing.
Italy looks better every year.
dropping like a rock
Oh yeah, ACA is a mess, expensive, and a win for Big Ins.
I won my ACA hearing for the tax yr 2015.
Good luck getting into a doctor’s office, or finding an in-network providers. Bl Shd was being sued for their online provider list not being accurate, and for some other shenanigans. I’m not sure of the status at this time. Do some due diligence online.
I do believe you should change your moniker to “Easy Prey”.
You must have decided that the article is nonsense based on the thoughts floating around in your head. Once again, The Facts Don’t Matter.
I have seen your devotion to your facts, you run from them when you are proven wrong.
I doubt that you cite one example of that. Of course, if The Facts Don’t Matter, you don’t care.
“The Affordable Care Act is covering people, holding down costs and not killing jobs”
https://www.youtube.com/watch?v=aSSNQVdY5UM - 191k -
That’s as blatant a domestic policy propaganda piece as I’ve read in some time. Perhaps the author hastily was enlisted to write this after Bill Clinton’s recent remarks. Plus, notices of premium increase for 2017 are about to go out.
Really, I don’t know where to begin. Forcing people to buy a product without cost controls is not a policy triumph. A slowing of hypothetical projected cost increases is not “affordability” and only excites people in think tank sinecures. Many of the new jobs are less than 30 hours per week, the threshold for employer-provided coverage. And the law produced efficiencies in health care delivery? Was that an attempt at humor? I’m guessing the author hasn’t been to the doctor lately.
The comments to that piece are absolutely lacerating, even when you cut out the ones venting on the President and his political party.
It’s the Washington Post, what do you expect?
That’s as blatant a domestic policy propaganda piece
Wasn’t Bernstein an Obama economic adviser or something? The thing is as long as they have MSM the way it is and people like MightyMouse and Panda Bear to spread the lies, I expect no change.
Look Trump, he just farted while giving a speech. He’s the problem…he’s hurting our environment by releasing harmful methane in air.
“The Affordable Care Act is covering people…”
The health insurance companies really need to use something like the Body Mass Index to set higher rates for those who eat too much and don’t exercise… nudge them in the right direction.
Life insurance firms are already there.
Hi.
I am looking to purchase a house in Waltham, MA for $400k. It is a 1950s ranch about 900 sqft footprint and a basement, so total of 1800. It is all original. I’m thinking it needs a gut reno. I am single with no kids at the moment. I plan on living there. I’ve got dilemmas.
Do I add a 2nd floor?
Do I just renovate the 1st and basement?
Do I renovate and prep for 2nd floor for future?
Will the 2nd floor PREP increase value if I sell?
The cost to add 2nd floor is about $250k The value of this completely finished 2-story house will be about $625-$650k. The value of a complete finished 1 story house will be about $525k - $530k. Based on comps.
I am almost positive this area will not be affected much by a bubble pop. This is why I was referred to this site. Any advice, tips on what I should do? Thanks
First thing you do is add a pool. Easy money!
Buy a van and park it down by the river and put your money in Vanguard Funds and bitcoin.
Hey Waltham,
“I am almost positive…”
Well, it is the things you are sure of that just aren’t so that can really bite you.
Median household income in your town is $72,000. Historically the median house sells for about 3x median income. You are calculating investing at 9x income, and for a tiny little shack at that. Consider that you would be paying out 30+ years of median takehome pay just for a tiny place to live. That would be insane.
Other than that, we are in the biggest real estate bubble in history and it will not continue forever. Waltham is not special.
Would you say the same about Waltham’s neighboring towns? Newton, Wellesley, Lexington. Those towns have great school systems but are VERY expensive and desirable. During the last bubble pop, value stayed flat or even went up slightly. Waltham has an OKAY school system and currently, the town is “hot” because it is affordable compared to its neighboring towns.
That’s pretty funny Waltham, the part about school systems. So these school systems put out graduates who will gladly hand over their (and their partner’s) entire paycheck for the next 30+ years in exchange for a mailing address with a prestigious zip code.
And also post on a blog about how this makes sense for a 900 ft2 decrepit shack. Good schools you say? They must be new.
I dont know. That’s why I’m here asking.
“I dont know. That’s why I’m here asking.”
You’ve come to the right place. However you must first swallow the “red pill” to appreciate the message. You may never enjoy blissful happiness again, but you’ll become a free-thinker.
“During the last bubble pop, value stayed flat or even went up slightly.”
The fed has been supporting asset prices. Eventually the support will cease, and home values everywhere will once again be tied to household income. Millions will be destitute when market forces return; they always do.
Here’s a snipped quote from Stephen Roach of Morgan Stanley: “Asset prices are being manipulated across the board – stocks and bonds, long- and short-duration assets, as well as currencies. As a result, savers are being punished, the cost of capital is repressed, and reckless risk taking is being encouraged in an income-constrained climate.”
If the house is original, then you’ll probably spend at least $80K on the gut reno of the existing house. $480K to sell for $525K? That’s pretty dicey. No place is immune to a bubble pop.
As for the second floor: $400K + $250K and then sell for $650K? That’s even worse. And if you live in an neighborhood with other single-story ranchers, your house will stick out and you won’t recoup the costs anyway. That’s a cardinal rule of renovation: never be the palace on the block.
PREP for a second floor will add *nothing* to the value of the house. You should either renovate the whole way or don’t bother. End consumers don’t care about prep. They want a completely turn-key immaculate house — they don’t even want to paint.
If you really want to live this hosue, then do the gut reno of the main floor and basement and *enjoy it* yourself. But don’t expect to get rich off it.
Thank you. This neighborhood is getting younger. The older generation is dying off and alot of renovation is going on now. 3 renovations are going on on this street alone. All homeowners, not flippers.
Today’s homeowners are tomorrow’s flippers.
Good point. Unless it’s my forever-home. But I dont know.
-If the house is original, then you’ll probably spend at least $80K on the gut reno of the existing house.-
Please more information. Are you a builder?
Not even close. Just a homeowner myself, who watches HGTV. The $80K is a guesstimate. But a 1950’s house will probably need all new systems: electrical update, HVAC, probably some new plumbing, water heater, gas lines … Downstairs, it probably has asbestos floor tiles, needs insulation/wallboard/flooring. Also might need another bathroom trenched. Outside, it probably needs a new roof, it might have asbestos siding, windows and doors are shot. And that’s before niceties like a new kitchen, re-tiling the bath, and paint/trim. You can add up to $80K very quickly.
Instead of a second floor, is the back yard big enough to add on a new bed/bath suite? A first floor master will probably net more value than a second floor. If you’re really looking ahead, make a bedroom suite wheelchair accessible. It’s much easier to plan the space for accessibility during the design phase.
Thank you. You pretty much almost hit the nail on the head describing the house. I just got a quote for renovating the 1st floor and basement @ $135k-140k. Of course I am going to get multiple offers.
It’s a bargain. Donk’s the contractor.
In Mass. you should probably look into lead removal as that is a major problem for renting and to some extent resale also.
Hi
Donald Trump inspires me.
Who would feel comfortable with Trump as Principal of their local elementary school?
What about as camp counselor? Bus driver?
That’s really not relevant. I am uncomfortable with the corrupt and parasitic establishment, who take lives for money.
HRC apparently can’t use a personal computer, has problems walking up stairs by herself, has different views on various important matters depending on her audience, and passes out in 79 degree heat.
I ask you the same questions of HRC.
My answer is “NO” to both candidates.
Unfortunately, you do not have a say in this.
Meaning that not choosing between the two will leave it to others. However, if you are to do a protest vote that is a lot better than staying passively silent.
A child molester and rapist shows his contempt for half the country.
http://www.zerohedge.com/news/2016-10-12/forget-deplorables-bill-clinton-mocks-trump-fans-standard-rednecks
It’s significantly less than half and declining every week.
That’s really not relevant. I am uncomfortable with the corrupt and parasitic establishment, who take lives for money.
Actually, the fact that not enough people agree with you is very relevant.
no facts. You’re irrelevant
More than half of the country sees HRC unfavorably. It’s just that they see Trump more unfavorably.
My little part in this election is to reduce HRCs share of the popular vote without increasing Trump’s. I do not want her to have a “mandate” from the people, as claimed frequently by presidential election winners.
Your math doesn’t begin to even begin to add up.
I actually showed this as a math problem to an eight year old.
You’re underwater, out $250,000 and have to a pay realgoof $36,000 to dump it IF you’re the luckiest fool in the world.
I’m not even sure this isn’t a stroke by one of the members here who have been entirely dismissed.
Those of you spouting poll numbers:
Pedophiles do not say to survey types that they are pedophiles.
They do there deed behind a curtain.
Guess what trump people will do.
No need to face attempted ridicule from leftist gimmees.
Just quietly pull the handle and deny your deed.
I’m not saying anything near that supporters are pedophiles. I’m making a cartoon reference to let you know people do not admit to much when asked. It’s easier to give an acceptable answer than be beaten about something you’re sure of.
Spout polls all you like. Then realize the missing adamant posters that have dropped off here when proven wrong. You know the people lying about their vote. You know them well. You as a group have made a habit of exposing them. What makes you think they are suddenly honest to a pollster?
If I were a Trumpista, I would keep it to myself.
Spout polls all you like.
Polls serve a purpose and can be good gauze as to when things are if done right. Right now, the polls are being used to build a narrative. Another thing they will most likely get it right is the turnout model. 08 and 12 turnout model will not work this time.
when = where
get it right = not get it right
Your mistyped of the word guage as guage is worthwhile.
Pollsistold by pollsters are indeed a good gauze. It hides a wound that is deeper than you’re telling the patient of.
Pollster
Trump is winning
Pollsters boss
Tell the masses differently.
Voter in public
Why no pastor, I would never for for someone unkind!
Voter behind the curtain
I sssssooo hate this immigration of tattered and torn. Import their finest let the rest stay home.
If you think differently of people you’re not thinking.
Apparently Elizabeth Warren has accomplished something. It’s not prosecution, but it is the end of a career.
Ironically, the new chief at Wells Forge was one of the lieutenants. It’s not really what was done that was wrong, just the news of it.
http://www.zerohedge.com/news/2016-10-12/wells-fargo-ceo-john-stumpf-retire-effective-immediately
And Warren Buffet announced that he’s going give all of that ill gotten wealth from WF to …….
Happy Columbus Day to all you deplorables!
rednecks and deplorables, what else could u ask for?
I have never seen such a disgraceful election. this sh@t is beyond circus.
Don’t forget Pepe the Frog. Just when I thought things couldn’t get any more surreal.
More surreal? Sure, just add a few lurking, creepy clowns . . .
Let’s leave Bill Clinton and Al Gore out of this, shall we?
Hey Californians, you voted for Comrades of Proven Worth (D). So enjoy your dystopia.
http://losangeles.cbslocal.com/2016/10/11/some-south-la-residents-fed-up-with-piles-of-trash-strewn-all-over-their-neighborhood/
But…but…Nobel Peace Prize!
http://www.independent.co.uk/news/people/edward-snowden-oliver-stone-asks-how-many-muslim-countries-has-obama-bombed-a7358066.html
I don’t need the New York Times, Washington Post, CNN, NPR, Huffington Post to reinterpret the words of The Donald, let the man speak for himself:
https://www.c-span.org/video/?416827-1/donald-trump-campaigns-lakeland-florida
Globalists gonna globe. These people want the white working class in gas chambers and ovens. LMFAO if Hillary wins and Texas secedes, and the military refuses to enforce Soros’ orders to round up and exterminate U.S. citizens on American soil. Because that’s what globalists want. You, and your family, in a gas chamber, and your corpses into an oven.
Ever redistributionist regime in history ends like this. History does not lie.
You, sir, are mistaken. Hillary is fighting for us. She said so.
I wish you could have a 5 minute converation with my dad, he makes my posts here sound so neutered and polite (it’s Ben’s blog so hat tip to that).
My dad passed away a few years ago, but he was a patriot all his life. The torch has been passed. Resist!
Psst…check out the DJT subreddit. 4-chan messed up Podesta’s junk big time, I’m dyin’ laughing over here. They hacked his twitter acct and posted that he’d changed teams and was going Trump 2016. It’s since been deleted, but is archived. And they hacked just about every electronic device he has, and cancelled his election day bus. My sides.
Best. election. ever.
It’s heartwarming to see the 20-something imps who recognize how screwed over they are by the Establishment status quo fighting back.
Do you think Hillary will get groped if she goes to prison? Of course they’ll probably deny the brain stem fluid injections and she’ll croak pretty soon anyway.
Hillary will never go to prison unless Trump miraculously wins despite millions of dead people and illegal aliens voting. RIP, rule of law.
Got a link?
Oh my….
http://www.thegatewaypundit.com/2016/10/anonymous-video-bill-clinton-raping-13-yr-old-girl-will-plunge-race-chaos/
More of this. MOAR
Where’s MikeyMite and Correct The Record and David Brock and their paid employees?
Whatever happened to the juvenile Syrian rapists who raped a 5yo American girl in Twin Falls, Idaho?
Yeah, raped a 5yo girl. This is what Hillary wants. This is what Soros wants.
If you have a 5yo daughter and want her to get raped, vote for Hillary.
Democrat Party = the party of RAPE>
Anonymous claims there is video of Bill Clinton raping a 13 year-old on the island.
There’s nothing there to be corrected. You must have the thing that I posted the other day about Trump’s acquaintance or friendship with Jeffrey Epstein.
Bill Clinton is going to make history. He’ll be the first First Gentleman.
The first rapist. Get it right.
He’ll be the first First Gentleman.
He’s no gentleman…
My God what a monster he is.
Whoa. Futures are going down faster than an intern on Hillary’s most chaste husband.
http://www.bloomberg.com/markets/stocks/futures
WikiLeaks exposes media bias, Clinton team cheering ABC’s use of talking points
By Douglas Ernst - The Washington Times - Monday, October 10, 2016
The latest round of WikiLeaks documents released by founder Julian Assange shows members of Hillary Clinton’s team touting ABC News’ “perfect” use of its talking points.
http://www.washingtontimes.com/news/2016/oct/10/wikileaks-exposes-media-bias-clinton-team-cheering/ - 114k -
Nearly 100,000 Pennsylvania Voters Switch From Democrat To Republican
CBS ^ | 10.12.16 |
Posted on 10/12/2016, 6:48:33 PM by pissant
HARRISBURG (KDKA) – Nearly 100,000 Pennsylvania Democrats have switched to Republican since the beginning of the year.
What’s more: The Pennsylvania Republican party says more than 240-thousand new voters have joined the party since last November.
The party says that the surge in Republican registrations is nearly twice the number of newly registered Republicans compared to both the 2008 and 2012 numbers combined.
The party says the new numbers come from the Pennsylvania Department of State which shows that 97,607 Democrats have actually switched to Republican.
(Excerpt) Read more at pittsburgh.cbslocal.com …
http://www.freerepublic.com/focus/news/3479836/posts - 15k -
Top Clinton aide in leaked email: ‘Can we survive not answering questions’ from press?
By Joe Concha - 10/12/16 11:59 AM EDT
Senior Hillary Clinton aide Huma Abedin argued to top staffers that Clinton should consider not taking questions from the press for fear of overshadowing her presidential campaign’s message, according to emails released by WikiLeaks.
“Can we survive not answering questions from press at message events[?]” Abedin, who serves as Clinton’s campaign vice chairwoman, asked in a May 2015 email, according to Politico. “Her [David Dinkins Forum] speech and immigration message broke through because we didn’t take questions.”
In contrast, Abedin wrote, the Democratic presidential nominee’s desired narrative got lost when she took questions after other speeches.
“Her community banks message got lost because she answered questions about the foundation and emails,” she wrote.
“In the fall, starting to do avails at message events, interviews, and q and a with press but having had a series of policy proposals already announced and reported on that she could point to.”
Clinton campaign chairman John Podesta disagreed.
“If she thinks we can get to Labor Day without taking press questions, I think that’s suicidal,” he wrote back.
“We have to find some mechanism to let the stream out of the pressure cooker.”
At one point, Clinton went 275 days without holding a formal press conference until breaking the drought in September.
More than 6,500 emails from Podesta’s private email account have been released by WikiLeaks in recent days. WikiLeaks founder Julian Assange has claimed to be in possessions of at least 50,000.