They paid 20 times more than me....... (sale, apartment, rent)

[khuntrevor]

I went to my Neighborhood Association meeting the other night. Met someone, who bought in 2006. I looked up the Assessor data. It turns out they paid 20 times what I did, and their lot is not as nice, nor their location.
I've seen this before in Nova and the Bay Area, where the old timers from the 50s, 60s, 70s were in for a tenth or a twentieth of the new owners...but I bought 4 years AFTER they did. BTW, there house is much newer and larger, but still.......Might be a warning about buying at the top of the neighborhood, and I think it shows how bad the bloodshed has been.

[khuntrevor]

Moderator cut: reference to deleted post walking across the street is a gamble. I think if it had been their own money, they would have been a bit more careful--but in the vast majority of cases it was a very small down-payment. My mom just told me that she thinks the industry is up to their old tricks in the DC area. The ads all stress low down payment; none stress workmanship or affordability. If we can get just a little turnaround in this economy; I will be set for life. I don't need 50K a year to make ends meet. I would like to get about 15 hours of work per week at a decent rate. I already have my 100 Dollar per month apartment and my 200 Dollar per year golf course selected....just need one last charge up the hill to get there.

[MotleyCrew]

Originally Posted by khuntrevor

Moderator cut: reference to deleted post walking across the street is a gamble. I think if it had been their own money, they would have been a bit more careful--but in the vast majority of cases it was a very small down-payment. My mom just told me that she thinks the industry is up to their old tricks in the DC area. The ads all stress low down payment; none stress workmanship or affordability. If we can get just a little turnaround in this economy; I will be set for life. I don't need 50K a year to make ends meet. I would like to get about 15 hours of work per week at a decent rate. I already have my 100 Dollar per month apartment and my 200 Dollar per year golf course selected....just need one last charge up the hill to get there.

I had heard that the 0 down, low interest monster was back and I knew we would repeat the insanity that caused the crash because some powerful people made too much money off of this mess. Nice to know you found a spot to survive in and I think we have as well. 400 a year in property taxes sounds so much better than 2,500 and with a few good projects now and then, I know I will sleep better.

[gritz]

20 times? Lets say for benefit of the doubt that you paid 50K. There are NO neighborhoods in the metro area that had 1 million and 50K homes in the same subdivision even with the decimation of the market.

[khuntrevor]

I paid 18,500, they paid 381,000. 20.59459459

[gritz]

That is indeed interesting. I was unaware of any location in the valley with a 95% loss in value.

Congrats on your fortunate acquisition! Was this a distressed property purchase?

With the 95% reduction in value it almost sounds like what the builder may have paid for the lots initally before the homes went up and the county is reporting the wrong numbers. That or there is a toxic waste dump was recently uncovered.

[khuntrevor]

As previously stated, there house is much larger, and newer--my lot is better, larger, and in a better part of the neighborhood, though. There are also homes within this same zip-code selling for 2 million+.
The area in question is between Osborn and Indian School, 7th and 12th Streets. The 2mm homes are on the Golf Course across Osborn--same Zip, though, 85014.

[rjrcm]

Originally Posted by khuntrevor

As previously stated, there house is much larger, and newer...

Perhaps a better comparison of value change is what would your house have sold for in 2006 rather than comparing to a home that is not really similar to yours? Or what would your neighbor's home sell for now? Probably a bit more than $18.5K.

[khuntrevor]

Zillow says mine is now 65,000 and theirs is 171,500--or 2.6384 times more than mine.
Tax assessor for 2011 says mine is 33,200 and theirs is 104,700--or 3.1516 times mine.
Mine would have sold for 165K, when they bought real close to the peak for 381K, which would have been 2.309 times more. Today, I think rent would be 600 v. 1800, sale price would be 37000 vs. 100,000. Don't forget the demographics improved on this street after my purchase--makes a big difference in price.

[rjrcm]

Thanks. So the 20x statistic in the topic really has no meaning. You can find many homes that sold for many times another if you don't care about comparing similar homes.