Comments on: Real Homes of Genius: Rancho Park and the zero down $775,000 2 Bedroom Home – Deconstructing the Westside of Los Angeles. The 310. Foreclosures moving up to Prime Markets. Notice of Defaults Second Highest Quarter on Record. http://www.doctorhousingbubble.com/real-homes-of-genius-rancho-park-and-the-zero-down-775000-2-bedroom-home-deconstructing-the-westside-of-los-angeles-the-310-foreclosures-moving-up-to-prime-markets-notice-of-defaults-secon/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 31 Jul 2010 22:55:07 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: ek1029 http://www.doctorhousingbubble.com/real-homes-of-genius-rancho-park-and-the-zero-down-775000-2-bedroom-home-deconstructing-the-westside-of-los-angeles-the-310-foreclosures-moving-up-to-prime-markets-notice-of-defaults-secon/comment-page-1/#comment-38207 ek1029 Sat, 01 Aug 2009 22:46:03 +0000 http://www.doctorhousingbubble.com/?p=2058#comment-38207 it's still a shitty house assuming you could find a retard who could actually afford it and want the house.... I'd imagine you could live far better at 1/2 of the PITI and rent. it’s still a shitty house assuming you could find a retard who could actually afford it and want the house…. I’d imagine you could live far better at 1/2 of the PITI and rent.

]]> By: RP renter http://www.doctorhousingbubble.com/real-homes-of-genius-rancho-park-and-the-zero-down-775000-2-bedroom-home-deconstructing-the-westside-of-los-angeles-the-310-foreclosures-moving-up-to-prime-markets-notice-of-defaults-secon/comment-page-1/#comment-38098 RP renter Tue, 28 Jul 2009 18:19:00 +0000 http://www.doctorhousingbubble.com/?p=2058#comment-38098 We rent in that neighborhood, same size house, for >2K less than the PITI. I'm just sayin'. We rent in that neighborhood, same size house, for >2K less than the PITI. I’m just sayin’.

]]> By: compass rose http://www.doctorhousingbubble.com/real-homes-of-genius-rancho-park-and-the-zero-down-775000-2-bedroom-home-deconstructing-the-westside-of-los-angeles-the-310-foreclosures-moving-up-to-prime-markets-notice-of-defaults-secon/comment-page-1/#comment-38067 compass rose Mon, 27 Jul 2009 06:56:24 +0000 http://www.doctorhousingbubble.com/?p=2058#comment-38067 Re: 7/23. Mind boggling. DHB is as always spot-on, and Indy observes that the county's assessment on this palace is over $800K! Hell's balls! What does that translate into for taxes? ~ William's comment cuts right to the marrow: whereas housing prices were inflated many times in the funnymoney era, "recovery" and "market stabilization" are supposed to happen now on the backs of people paying REAL money, via REAL income or savings. This simply can't work, and wouldn't if somebody suddenly threw 30 million high paying jobs at the economy. ~ The ratcheting up of funnymoney valuation and principal amounts--which few ever expected to have to pay--is now not only in place, but so is interest on that inflated principal! Welcome to Fantasy Island! ~ In my view the housing bubble is one of the ugliest passive inflation manipulations in American history. It has turned people's houses into their debt prisons. This accounts for the NAR and MSM pumping the notion that falling prices are somehow a bargain and they'd best hurry hurry hurry to buy. Convincing people of that, and manipulating them into urgency around that, despite all common sense (20% off three times too much is still 3x - .2 too much), is lethal and irresponsible and should be criminal. Yet on it goes. ~ It is also the case that these new buyers paying REAL money and REAL savings for these overpriced shacks will be paying three times the three times too much principal, what with the interest loaded on the front end of these huge amounts, some of them stretched out to 40 years. So it's not just that the prices are MORE, they'll cost the buyers exponentially more. ~ What a scam! The powers that be systematically used deregulation to get political power, pretending not to increase taxation, while actually inflating prices, though calling that "equity enhancement" or whatever despite the fact that most people will never get their original equity out of their houses (unless they had the good fortune to buy very early and have very-un-late-20th-century income/wage/job stability). ~ And finally, if anyone wants to bust union workers' salaries, benefits, and pensions, I suppose I'll go along with you provisionally...inasmuch as you also produce a plan for nailing the richest 10 percent, who hold some 80+ percent of all wealth. I don't think state workers in the Profligate Spending Capital of the known world--CA--pulling down $100,000 fall anywhere near that richest 10 percent. ~ But yet again, people will fall out with each other over dimes and dollars, while the big-ticket fraudsters literally walk off with the bank. Anybody see the Sarasota (FL) Herald-Tribune's outstanding series on the white-collar crime ring of house flippers in Florida? http://www.Heraldtribune.com/flipping ~ I'd like to see a little more bile reserved for these thieves, who scammed their way to money they never earned. Anyone who leads the charge for "reform" with slashing workers' pay is, in my view, showing their true colors: bashing workers. You could strip every public sector worker in CA of their jobs, their salaries, their pensions. And you'd STILL have the big boys mopping up the gravy. THAT is the problem. Not a few thousand WORKERS making $X per year. And California would STILL be posting vast deficits. ~ rose Re: 7/23. Mind boggling. DHB is as always spot-on, and Indy observes that the county’s assessment on this palace is over $800K! Hell’s balls! What does that translate into for taxes?
~
William’s comment cuts right to the marrow: whereas housing prices were inflated many times in the funnymoney era, “recovery” and “market stabilization” are supposed to happen now on the backs of people paying REAL money, via REAL income or savings. This simply can’t work, and wouldn’t if somebody suddenly threw 30 million high paying jobs at the economy.
~
The ratcheting up of funnymoney valuation and principal amounts–which few ever expected to have to pay–is now not only in place, but so is interest on that inflated principal! Welcome to Fantasy Island!
~
In my view the housing bubble is one of the ugliest passive inflation manipulations in American history. It has turned people’s houses into their debt prisons. This accounts for the NAR and MSM pumping the notion that falling prices are somehow a bargain and they’d best hurry hurry hurry to buy. Convincing people of that, and manipulating them into urgency around that, despite all common sense (20% off three times too much is still 3x – .2 too much), is lethal and irresponsible and should be criminal. Yet on it goes.
~
It is also the case that these new buyers paying REAL money and REAL savings for these overpriced shacks will be paying three times the three times too much principal, what with the interest loaded on the front end of these huge amounts, some of them stretched out to 40 years. So it’s not just that the prices are MORE, they’ll cost the buyers exponentially more.
~
What a scam! The powers that be systematically used deregulation to get political power, pretending not to increase taxation, while actually inflating prices, though calling that “equity enhancement” or whatever despite the fact that most people will never get their original equity out of their houses (unless they had the good fortune to buy very early and have very-un-late-20th-century income/wage/job stability).
~
And finally, if anyone wants to bust union workers’ salaries, benefits, and pensions, I suppose I’ll go along with you provisionally…inasmuch as you also produce a plan for nailing the richest 10 percent, who hold some 80+ percent of all wealth. I don’t think state workers in the Profligate Spending Capital of the known world–CA–pulling down $100,000 fall anywhere near that richest 10 percent.
~
But yet again, people will fall out with each other over dimes and dollars, while the big-ticket fraudsters literally walk off with the bank. Anybody see the Sarasota (FL) Herald-Tribune’s outstanding series on the white-collar crime ring of house flippers in Florida?
http://www.Heraldtribune.com/flipping
~
I’d like to see a little more bile reserved for these thieves, who scammed their way to money they never earned. Anyone who leads the charge for “reform” with slashing workers’ pay is, in my view, showing their true colors: bashing workers. You could strip every public sector worker in CA of their jobs, their salaries, their pensions. And you’d STILL have the big boys mopping up the gravy. THAT is the problem. Not a few thousand WORKERS making $X per year. And California would STILL be posting vast deficits.
~
rose

]]> By: St Alphonso http://www.doctorhousingbubble.com/real-homes-of-genius-rancho-park-and-the-zero-down-775000-2-bedroom-home-deconstructing-the-westside-of-los-angeles-the-310-foreclosures-moving-up-to-prime-markets-notice-of-defaults-secon/comment-page-1/#comment-38065 St Alphonso Mon, 27 Jul 2009 03:29:34 +0000 http://www.doctorhousingbubble.com/?p=2058#comment-38065 With the Dow >9000 how could anything be wrong? Still wondering if it might be a great time to be a squatter? Drop 120k down and start making massive payments on a diminishing asset? Plus where property taxes will go in a nightmare CA budget? I'm going to guess 'not down' Folks, I don't think this is some garden-variety housing bubble. As the Carpenters (who are either in the unemployment line or have gone back to Mexico) might have sung, We've Only Just Begun. People didn't by this home--creatures like Frankensteinburg and Mozilla did. The zombie banks will come looking for flesh the next few years. Everything has changed. And everything is the same--ever since Satan at Edenwide got Eve to put in stainless appliances and granite countertops in the first RHG with the first HELOC. Too bad for them they got foreclothesed on right away. With the Dow >9000 how could anything be wrong? Still wondering if it might be a great time to be a squatter? Drop 120k down and start making massive payments on a diminishing asset? Plus where property taxes will go in a nightmare CA budget? I’m going to guess ‘not down’

Folks, I don’t think this is some garden-variety housing bubble. As the Carpenters (who are either in the unemployment line or have gone back to Mexico) might have sung, We’ve Only Just Begun. People didn’t by this home–creatures like Frankensteinburg and Mozilla did. The zombie banks will come looking for flesh the next few years. Everything has changed. And everything is the same–ever since Satan at Edenwide got Eve to put in stainless appliances and granite countertops in the first RHG with the first HELOC. Too bad for them they got foreclothesed on right away.

]]> By: Whitehall http://www.doctorhousingbubble.com/real-homes-of-genius-rancho-park-and-the-zero-down-775000-2-bedroom-home-deconstructing-the-westside-of-los-angeles-the-310-foreclosures-moving-up-to-prime-markets-notice-of-defaults-secon/comment-page-1/#comment-38064 Whitehall Mon, 27 Jul 2009 02:23:18 +0000 http://www.doctorhousingbubble.com/?p=2058#comment-38064 There are lots of financial reasons to buy a house. What we see here is the dream of capital appreciation. That didn't work out very well for the bag holder. Some people will buy for cash flow. In California, cash flow hasn't been positive on mortgaged property for many years in most places. But that could change. And besides, if one has cash one has to choose between options. If you anticipate big time inflation, then parking your cash in a CD or a mattress is just having it waste away. What I'm seeing is people with cash deciding that owning California rental property offers considerable hedge against further erosion of the dollar from inflation. The real asset remains and the cash flow will track employment and income to some degree. So what if the market value of the underlying asset falls? Some cash flow will remain barring massive depopulation in areas like Silicon Valley. Just like bonds, people buy with a 2% coupon when they could wait for the lower price but yet, they need to buy now. I'm just saying that we shouldn't think that EVERYONE has to buy an appreciating asset. Of course, some of us just want a house to call our own. There are lots of financial reasons to buy a house. What we see here is the dream of capital appreciation. That didn’t work out very well for the bag holder.

Some people will buy for cash flow. In California, cash flow hasn’t been positive on mortgaged property for many years in most places. But that could change. And besides, if one has cash one has to choose between options. If you anticipate big time inflation, then parking your cash in a CD or a mattress is just having it waste away.

What I’m seeing is people with cash deciding that owning California rental property offers considerable hedge against further erosion of the dollar from inflation. The real asset remains and the cash flow will track employment and income to some degree.

So what if the market value of the underlying asset falls? Some cash flow will remain barring massive depopulation in areas like Silicon Valley.

Just like bonds, people buy with a 2% coupon when they could wait for the lower price but yet, they need to buy now.

I’m just saying that we shouldn’t think that EVERYONE has to buy an appreciating asset.

Of course, some of us just want a house to call our own.

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