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1 dollars says that sells for much more than listing price and is probably condemned.
It may... as for being condemned my first home was a deal because IT WAS scheduled for a condemnation hearing and my buying it and moving in saved it because in 10 days I painted the outside, fixed the broken windows, hauled away a 30 yard dumpster of trash, chopped the weeds and planted flowers...
The home is listed for 240k and came up with my 250k and under single family home search...
My point is the SF Bay Area is not only million dollar homes... and Oakland would be short commute for many as compared to buying out in the valley.
In 2009 I was urging anyone who would listen to buy a house and lock in a 30 year mortgage at 4%. I told them that within 10 years everybody would think they were a financial genius. They didn't want to listen. They knew that home ownership was a terrible way to go, because the newspapers were full of stories about people losing everything in the housing crash.
The real deals are pretty much gone, but there is still room to buy a home and pay for it. If you buy a home you can't pay for, you are making a mistake, which is what I was telling people in 2006.
People are no longer able to remodel and expand their own homes. That was very common up until about 40 years ago.
Why not? I have started hiring the work out, but that's just because I am 70 years old and can't put in 10 hour days any more. Up until my late '50s I did a lot of work around home. I know plenty of younger people who are working on their own homes. You can do an addition if you want. All it takes is time, and you will save a lot of money.
A big contribution to the lack of affordable housing is the government fees imposed on construction.
My son is doing a lot split. The government fees are $30,00 per lot, plus they required all utilities to be put in at a cost of over $10,000 per lot. Then, there is a systems development fee of nearly $30,000 for each lot, building permit fees, which are cheap; under $5,000, and a thing called an affordable housing fee, which is another $5,000.
So, how is a builder going to build a nice starter home for under $100,000 on one of those lots?
The city councilors love to go on TV and cry that something has to be done about the high cost of houses and how we need affordable housing for low income people. I notice they never offer to cut the cost of the city fees to make building cheaper.
Not sure where you put the decimal place on the government fees, but $300 for recording the new boundaries and titles doesn't seem excessive to me. Utilities are required anyway, so the $10k there is just the cost of subdividing a marketable lot. The SDCs are pretty standard, because cities got tired of having to foot the bill for new roads, water systems and sewage treatment plants when a bunch of people moved in, particularly since nobody wants to pay property taxes any more. Normally, SDCs are assessed when you get planning approval to build a house, rather than when you subdivide, so I suspect your son is doing spec houses.
If you think $75,000 for a buildable lot in town is expensive, try developing a building site in a rural area. The power company will stroke you $50k just to get power, then you have to drill a well for another $15k-$25k, install a septic system for $15k and build your own driveway, which will run you $5k - $50k depending on how long it is.
There's a shortage of housing because the banks ran all of the skilled craftsmen out of the business. You have to wait months to get a contractor to do anything, and likely as not the workers won't know much about construction.
Not sure where you put the decimal place on the government fees, but $300 for recording the new boundaries and titles doesn't seem excessive to me........
Sorry, Larry, my mistake. That is a coma, not a decimal point, combined with a typo. That is supposed to read $30,000. Thirty thousand dollars. $30,000.00 with the decimal point installed in the figure.
It would be nice if the city would do it for $300. They want over $500 just to do a sewer feasibility study, for which they do nothing but take a look at the document supplied by the engineering company that they haven't paid for themselves. Cost of that document is paid for by the land owner.
In 2009 I was urging anyone who would listen to buy a house and lock in a 30 year mortgage at 4%. I told them that within 10 years everybody would think they were a financial genius. They didn't want to listen. They knew that home ownership was a terrible way to go, because the newspapers were full of stories about people losing everything in the housing crash.
The real deals are pretty much gone, but there is still room to buy a home and pay for it. If you buy a home you can't pay for, you are making a mistake, which is what I was telling people in 2006.
Mirrors my experience to the letter...
It was rather extreme here in that every block had at least one foreclosure and I personally know homes that were picked up for 20% of the previous sale's price... not uncommon in parts of Oakland CA to see 20 years of appreciation wiped out...
Being a contrarian has served me well over the years...
IMO: High cost f housing and rents a result of supply and demand due to manipulation by banks and government. Do you agree or disagree- and why?
In California, even the New York Times is admitting it's NIMBYs and enviro-nazis:
For California, this crisis is a price of this state’s economic boom. Tax revenue is up and unemployment is down. But the churning economy has run up against 30 years of resistance to the kind of development experts say is urgently needed.
California is the toughest market for first-time home buyers and the cost of housing is beyond reach for almost all of this state’s low-income population. Despite having some of the highest wages in the nation, the state also has the highest adjusted poverty rate.
IMO: High cost f housing and rents a result of supply and demand due to manipulation by banks and government. Do you agree or disagree- and why?
Both. The government made the mistake of wanting affordable housing and the banks complied. People made the mistake of buying beyond their means. This resulted in 5-6 years of absolutely little to no residential construction. People struggled for a while. Lots of those people who got jacked in the bubble pop are now re entering or trying to re enter the housing market. Their kids are now out of college and graduated and starting families. They need houses too. Add in foreign and local investors looking for cashflow and people who aren't selling but looking to up/downsize and turn last house into rental you get the "housing crisis" we have now
Quote:
Originally Posted by nightlysparrow
There is no shortage of housing in most of the US...just in the most prosperous cities.
Now you understand supply and demand.
Quote:
Originally Posted by freemkt
Not if they are all overstuffed with people. I live with 10 other people in a 3BR/1BA house. If we can get by without more bedrooms, why can't other people?
Because not everyone wants to live like canned sardines. Or they have the money and they don't need to live in or with such conditions that you're subject to. For me I could never be a renter for long. I would rent if I was moving to a different state but it would be a short term.
It was rather extreme here in that every block had at least one foreclosure and I personally know homes that were picked up for 20% of the previous sale's price... not uncommon in parts of Oakland CA to see 20 years of appreciation wiped out...
Being a contrarian has served me well over the years...
Yep. When I moved to AZ in 2011 the first thing I wanted to do was buy a house because I knew it was a great time to buy. Couldn't at the time, but was finally able in early 2012. Still a good time to get in and did very well for myself. I only wish I could have bought more than one!
Yep. When I moved to AZ in 2011 the first thing I wanted to do was buy a house because I knew it was a great time to buy. Couldn't at the time, but was finally able in early 2012. Still a good time to get in and did very well for myself. I only wish I could have bought more than one!
Housing prices should continue to decline in 2011, 2012, 2013, 2014 but Criminals at the FED to save bankrupt Wall Street Banks and to save corrupt banking system pumped trillions and trillions of taxpayer dollars to artificially inflate housing prices again. What sane and normal people would do that?
Artificially suppressing interest rates and launching QE1, QE2, QE3 the Fed managed to recreate another bubble = HOUSING BUBBLE 2.0, stock market bubble, healthcare + education cost bubble. Basically we have BUBBLES IN EVERYTHING today.
The sad fact is those who really benefit from this insane FED actions are not average Americans but those who caused the last downturn = WALL STREET BANKERS AND CROOKS.
Housing market is in the greater fool stage and it has been for some time. New buyers beware!!!!!!!!!!!
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