Hooverville or Obamaville?

[lektrode]

Re: Hooverville or Obamaville?

The developers are way ahead of you, Don. 160sqft and built for SF. I heard this guy has some open south of market now for $1,600/mo....

hell, thats cheap - meanwhile, down southland way - malibu et al, they selling MILLION DOLLAR MOBILE HOMES ?

Multimillion-dollar properties are no rarity at Paradise Cove, the Malibu, Calif., mobile-home community where the couple, both retired from the film industry, this spring purchased a two-bedroom, 1,800-square-foot trailer for $1.25 million. Earlier this year, a trailer in the park—which in the past has included residents like actor Matthew McConaughey —sold for $2.55 million. And in July, a four-bedroom, 2,200-square-foot trailer with a hot tub and two-car garage went on the market for $3.75 million

hey - thats only $1700/sqft - and they dont even OWN ANY DIRT ??

tho the article doesnt even get into lot rent - can just imagine what that might be....

In Malibu, Paradise Cove resident Sandy Bell has with her husband renovated and flipped five properties in the community since they moved there in 1994. They purchased their first home for around $180,000 and sold it in 1999 for $390,000, Mrs. Bell said. Today, pitched roofs and ipe-wood decks are popular, she said, adding that some Cove residents have spent upward of $1 million renovating their trailers.

HUH?

and some thot HOUSE flipping had gone off the deep end....

[vinoveri]

Re: Hooverville or Obamaville?

hell, thats cheap - meanwhile, down southland way - malibu et al, they selling MILLION DOLLAR MOBILE HOMES ?

/

Jim Rockford left the PI business and is now a RE mogul

[lektrode]

Re: Hooverville or Obamaville?

heheheh.... wonder how much rent this baby would fetch today, eh vino?
even without granite countertops and gold-plated bathroom fixtures...

Jim Rockford left the PI business and is now a RE mogul

[vinoveri]

Re: Hooverville or Obamaville?

heheheh.... wonder how much rent this baby would fetch today, eh vino?
even without granite countertops and gold-plated bathroom fixtures...

yep, lek. you can see it on their faces

rockford.png

[thriftyandboringinohio]

Re: Hooverville or Obamaville?

I watched the video.
Strikes me as a dabbling dilettante re-inventing the wheel. The mockups and models are high quality, but the thinking behind them looks pretty weak.
A huge body of work already exists on small living quarters, with smart practitioners working in boats, military shelters, and RVs.

One thing the RV industry knows that Smartspace seems to have missed is that a permanent living space needs to have the ability to wash laundry.
Customers called "full timers" who live in their RV for months will not buy an RV unless it has a washer and drier for clothes.

[aaron]

Re: Hooverville or Obamaville?

A friend of mine, an 8 figure portfolio member, spins Renter Nation as a swelling desire of people for ownership-free living, so they can enjoy life more. Travel, leisure, whatever. He never mentions financial necessity.

(surprised there hasn't been an Apple micro-loft in SF yet. All plastic, all white, loaded with Apple wear.)

Financial necessity or not, his spin has validity. Many who can afford houses do not need them because they choose not to have children. And, now that houses are bubblicious expensive again, it seems like a no-brainer to rent . These folks have more travel and leisure and freedom and money. They also can switch jobs/cities easily.

On a related note...
There will be a lot of new buyers coming on the market over the next 4 years --> The 7 years of debt purgatory for those whose houses went to foreclosure/short sale will be over. This is potentially millions of Americans who will have good credit again. As my wife reminds me daily, there is pent up demand.

[don]

Re: Hooverville or Obamaville?

his spin has validity

Certainly among those with the acumen to make those decisions. Others, I supposed, are being re-educated on the Ownership Society's capstone, the mortgage racket. Of course many still pine for buying (renting with a 30-year lease) a home. What's your guesstimate on the breakdown? 50/50? 90/10?

[don]

Re: Hooverville or Obamaville?

The conveyor belt to rental nation is moving efficiently
One of the points made during the early days of the first housing bubble was that the Bureau of Labor and Statistics did a poor job measuring housing inflation. The CPI uses the owners’ equivalent of rent (OER) as a substitute to actual housing payments or underlying home value (i.e., PITI). This does an okay job in stable housing markets but fails in meth addicted housing cycles like the one we now live in. The OER assumes you will rent your house out which of course, is not the case unless you are Wall Street. Many of the $700,000 crap shacks in SoCal would rent from $2,500 to $3,000 and probably went up about 5 percent over the last year. Yet some of these homes went up in price by 20 to 30 percent. If your goal is to measure price increases, shouldn’t you actually measure the price of the actual thing versus some derivative of it?Since this is the measurement tool, you can see the big divergence in prices and rents here:




The CPI once again has missed the housing jump of 2013. For example, in 2005 when the Case Shiller was showing 16 percent annual price increases, the CPI was showing rents and the OER going up by 2.5 to 3 percent. Seems like a big difference but of course, this gives the Fed more fodder to say inflation is muted even though housing is the biggest line item for most American families.You’ll notice that the Case Shiller Index which is one of our better gauges of price went up nationwide by 14 percent last year. The CPI went up by 2.6 percent for the OER. Big difference.So how are people paying for all of this? Well people are simply paying more of their income to rent:

Source: Mother Jones

With rents, you have to pay with actual household income. This is why in California, you have 2.3 million adults living at home because they simply cannot afford a rental. Pent up demand? I doubt it. This is why sales are dropping and prices have gone stagnant. It isn’t for want of buying. No. In fact people are lusting for housing just like they were in 2005. If given the chance, people would “ice challenge” their way into a ludicrous mortgage with the aspiration of property laddering their way up into the feudal class. You might be a renting pleb today, but tomorrow you will be the next oligarch of housing. By the way, cash sales hit a four year low in SoCal since investors either want massive annual gains or good cap rates.We now find that since the recession ended a massive number of households are paying more than 50 percent of their income in rent:



In places like San Francisco, I’m sure this is a good portion of households. This has big implications for our spending addicted economy given that a larger portion of households now rent:



Going back to the point of balancing out your plans for retirement, so many people assume their residence is somehow going to throw off income for them in old age. Many baby boomers are seeing this is not the case. You have taxes, insurance, maintenance, and other costs that actually suck money out of your income even when the principal and interest are taken care of. The funny thing about this is the big push for Prop 13 highlighted this at the core. That grandma that was being “kicked out” on the street because of higher taxes was an example of someone without a balanced portfolio. She had burned her mortgage but like death, taxes will never go away.

Current baby boomers drinking Martinis in their hardwood floor and gold plated sarcophagus in SoCal many times are scraping by even though they have solid equity in their home. I love seeing a home in this category being put to market because you can see how outdated the place has become. Living in million dollar homes yet unable to make a few modifications.Also, I tend to believe the renter numbers are understated. How many “kids” living at home are even paying rents to their parents? All we know is that 2.3 million adults in California live with their parents. This is one state of many.

In California, close to half the state rents (and a growing number are living at home – rent or no rent). In L.A. County, the majority rent. Keep in mind all of this is happening as the stock market caps a near 200 percent run from 2009 and housing is coming off a banner 2013 year.

It should be clear that what is simply happening is more disposable income is being taken into housing either by rents or mortgage payments.

[LazyBoy]

Re: Hooverville or Obamaville?

Financial necessity or not, his spin has validity. Many who can afford houses do not need them because they choose not to have children. And, now that houses are bubblicious expensive again, it seems like a no-brainer to rent . These folks have more travel and leisure and freedom and money.

On a related note...
There will be a lot of new buyers coming on the market over the next 4 years --> The 7 years of debt purgatory for those whose houses went to foreclosure/short sale will be over. This is potentially millions of Americans who will have good credit again. As my wife reminds me daily, there is pent up demand.

They may have "good" credit, but will they qualify for enough?

How does their change in income compare to the change in housing prices over the last seven years? If they couldn't afford a house then, can they now?

The reasons for not buying from your first paragraph will apply to the people coming out of bankruptcy too.

Maybe some will use their "good" credit to get a rental and get out of their parents house.

[dcarrigg]

Re: Hooverville or Obamaville?

heheheh.... wonder how much rent this baby would fetch today, eh vino?
even without granite countertops and gold-plated bathroom fixtures...

What for the folks living off the drink to discover what the land near the drink were worth our blood'd run blue and the fish'd swim free.


Oh, a hundred years is a very long time
Oh, yes, oh!
A hundred years on the Eastern Shore
A hundred years ago!

Ol' Bully John from Baltimore
I knew him well, that son-of-a-whore

Ol' Bully John was the boy for me
A bully on shore and a bucko at sea

Ol' Bully John I knew him well
But now he'd dead and gone to hell.

Oh were you ever in Liverpool?
In Liverpool, that Yankee school

Oh a hundred years is a very long time
Oh a hundred years is a very long time

[lektrode]

Re: Hooverville or Obamaville?

What for the folks living off the drink to discover what the land near the drink were worth our blood'd run blue and the fish'd swim free..... that Yankee school

...

[vt]

Re: Hooverville or Obamaville?

http://features.aol.com/video/mom-do...6pLid%3D610451