[olecapt]

Originally Posted by bumpercar

Do you think builders would have paid those rates for BLM land if they couldn't pass the cost to buyers? The BLM can try charging whatever they want, nobody's buying. The market sets the price and that price is down significantly. Do you think the 40% haircut on home prices is from discounted 2x4's, stucco, and cheaper labor? Nope. If you want cheap land look under the vacant houses.

In Dallas you have 50,000 acres of farm land owned by 500 Farmers who paid next to nothing for it 30 years ago. And behind those farmers is another 100,000 acres further out. And that continues for a long way. So developers get to buy land at a relatively small increment over what it would be worth for farm land.

BLM however is charted to sell at market. And even after the "hair cut" market is way more than agricultural land. Put a deed restriction on 10 acres that it can only be used for agriculture and you will swiftly find out the difference.

We are in much the same situation as CA. No more cheap land.

Efficient builders on volume projects do 35 or 40 per square foot for actually building the home. Everything above that is land and profit. So where do you think the hit is taken?

On resales the hit is taken on all aspects. Yup the 2x4 loses value just like the land does...and probably more.

Certainly land has lost value. But no more than the dwellings thereon.

Remeber the issue. Does the lack of cheap land drive the ratio of price to income up. And the answer has to be yes.

[gulfer]

Since the BLM is a government run entity and the government seems to want affordable housing, why doesn't the goverment step in and make land affordable? I read something of the same on housingdoom.com the other day, but have thought about it in the past.
I don't necessarily agree that houses determine land value, I would think vice versa. If KB can get a 6000 sq. foot lot for pennies, they wouldn't have to charge 150 per square foot for the home.
Why not basically give away the land to developers then increase the taxes on your home slightly? It would seem that would be better business and allow buyers back into the market. Just a thought

[olecapt]

Originally Posted by gulfer

Since the BLM is a government run entity and the government seems to want affordable housing, why doesn't the goverment step in and make land affordable? I read something of the same on housingdoom.com the other day, but have thought about it in the past.
I don't necessarily agree that houses determine land value, I would think vice versa. If KB can get a 6000 sq. foot lot for pennies, they wouldn't have to charge 150 per square foot for the home.
Why not basically give away the land to developers then increase the taxes on your home slightly? It would seem that would be better business and allow buyers back into the market. Just a thought

That is pretty much the way it used to be. The other argument is that the builders then get to buy the land cheap and sell it dear so you end up with wealthy developers and buyers paying much the same. The truth I am sure is somewhere between.

The present system provides the "people" with the profit and the ability to invest it in subsidizing home prices if the "people" want. Turns out that is not a very popular idea and the money gets spent on parks and shooting ranges and acquiring enviormentally sensitive land. Part of the population has no interest at all in subsidizing the cost of housing for the low end of the economy. Particularly true in Nevada with its Libertarian bent...

[Nodaclu]

Update from the old thread.

(I have a 1952sf house in Henderson. Last payment made 7 months ago. Have been trying to sell short since that time...)

I just thought I would update you, that on Friday, Countrywide refused our ELEVENTH short sale offer. Nine of these offers were made by different buyers. CW has refused to accept a single one. They have refused to even *counter* a single offer.

The last offer was the most legitimate - $250,000 with 20% down ($50K). Turned down without a counter.

In fact, CW said to stop bringing them any offers under $265K as they will no longer even acknowledge them.

So CW wants $138 a sq/ft for my house. It's in 89002 in the Horizon Ridge/Mission/Paradise area. It honestly doesn't seem that unreasonable.

But I can't get it, and haven't been able to get what was needed for the past 19 months since the house first went on the market. $265K was its approximate value in April 2004, so we're now trying to sell at a 2004 price. Still......nothing.

7 months in, they've also failed to file a notice of default on the property as well. However, they have been exceptionally quick to destroy my credit by reporting to all three major credit reporting agencies.

So they don't want to sell the property, and they don't want to re-claim it either. Their actions tell me that they would much prefer to let the house ROT and leave me to twist in the wind indefinitely.

I know it isn't the case, but all of the above combined feels incredibly personal, as if I'm being used as some sort of "example".

I'm not the type to do it....EVER - but I can finally see what drives people to trash houses on their way out the door sometimes. I'm going crazy here.

Come on CW!! Either accept an offer, or foreclose on the damn thing!!

In all my internet research, I haven't seen anything remotely like this.

Do you have any thoughts on what approach should be taken from here?

[LVN]

I am thinking of buying a 2nd home and renting the one I am in.

I have found some incredible deals on big homes on land for way way under value.

But my question is will this recession kill the housing market all together. I would really only like to hold the house for a year or two.

What's your thoughts buy a 2nd house or not?

[jpk]

Originally Posted by LVN

I am thinking of buying a 2nd home and renting the one I am in.

I have found some incredible deals on big homes on land for way way under value.

But my question is will this recession kill the housing market all together. I would really only like to hold the house for a year or two.

What's your thoughts buy a 2nd house or not?

Is this post a joke? Hard to tell if you are serious.

[LVN]

Originally Posted by jpk

Is this post a joke? Hard to tell if you are serious.

Why would I post if I was joking?

I am just trying to see what other people think, as I make my mind up on buying a second house.

Why post such a question? your question sounds like joke just not a funny one.

[airics]

i dont think you will make money in one year, if you hold on to it for 4-5, you can... depends also on the cost.. i believe the houses that are 150-250 are close to bottom, there is still a long way to go for the big buck houses.. is it a bank owned?

[Daddys///M3]

Originally Posted by LVN

I am thinking of buying a 2nd home and renting the one I am in.

I have found some incredible deals on big homes on land for way way under value.

But my question is will this recession kill the housing market all together. I would really only like to hold the house for a year or two.

What's your thoughts buy a 2nd house or not?

Excuse me if I am out of line here, but do you truly plan on renting your current home out and renting it? The reason I ask is that I get people all the time that want to get pre-approved to buy another home with plans of "renting" the current home out. 9 times out of 10 it comes to the surface that they are actually planning on walking away from the current home. As that puts entirely too much liability on my shoulders, as well as the fact that banks are getting wise to this, I send these people packing. Not to mention the fact that I could not live with myself knowing that I enabled these people to rent their current homes out knowing that the renters will soon be evicted due to the foreclosure process.

That being said, if you can afford to rent the home out and hold on to it for 5 years or more, and if these are actually your intentions, by all means make it happen. Now is a pretty good time to buy as there are some great deals out there and rates are still very low. Your upside over the next 5-10 years is potentially pretty substantial. Keep in mind that you will only be allowed to use 75% of the rent to offset your mortgage payment when trying to qualify for the new home.

[LVN]

I am lucky in the fact that I could buy both houses out right. But I have all my money in Gold as the Dollar is dropping like a rock. I could cash it out but I would rather leave it as it is making a great deal of returns. I am also in the 800 for credit score with no payments other than my house payment.

One of the houses I have found sits on a 1/2 acre, and is 4700 sq ft for $400,000. I really can not see it going any lower than that, or we are all in bigger trouble than we thought.

I am just wondering if the recession will kill the housing market even more where there are no buyers out there. I could hold it for longer but I would rather just hold for a year or two.