The Conservative Cave
Current Events => The DUmpster => Topic started by: dutch508 on December 30, 2008, 04:20:29 PM
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lonestarnot (1000+ posts) Tue Dec-30-08 05:03 PM
Original message http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4739163
I knew I flipped bushitler off too many times. http://www.bloomberg.com/apps/news?pid=20601087&sid=aek...
Phoenix Leads U.S. Home Price Decline as Lenders Unload Houses
By Kathleen M. Howley
Dec. 30 (Bloomberg) -- Phoenix, the desert city that three years ago led the U.S. in home price growth, had the nation’s worst housing market during October as sales of foreclosed properties depressed prices.
The cost of a single-family home plunged 33 percent from a year earlier, according to an S&P/Case Shiller index. The decline was worse than Las Vegas, where prices fell 32 percent, and San Francisco, where they dropped 31 percent. U.S. house prices fell 18 percent in October, a record in eight years of data.
Arizona had 11,000 notices in October of so-called trustee sales, or foreclosure auctions, according to RealtyTrac Inc., a real estate data firm in Irvine, California. Foreclosure sales reduce the value of similar properties in the same area as sellers who aren’t in distress are forced to drop their prices to compete.
B o d i (30 posts) Tue Dec-30-08 05:14 PM
Response to Original message
2. What does your headline have to do with the article you linked to?
Anything at all?
Oooooooo...bitchslapped by a Newbe!
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Only the DUmmies could turn good news for home buyers into lousy news for everyone.
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Sounds like the perfect time to swoop into the AZ market and buy some cheap housing to turn into rentals for DUmmies!
Bwuahahahahahahahaha.
KC
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Don't laugh. If there was a way I could unload my house in a hurry, I'd be in Phoenix tomorrow. 4BR, 3BA, 2200 sq ft. houses in Goodyear and Avondale for under $175K, and they're less than 5 years old.
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Phoenix, the desert city that three years ago led the U.S. in home price growth, had the nation’s worst housing market during October as sales of foreclosed properties depressed prices.
The cost of a single-family home plunged 33 percent from a year earlier, according to an S&P/Case Shiller index. The decline was worse than Las Vegas, where prices fell 32 percent, and San Francisco, where they dropped 31 percent.
Gee... That couldn't be partially due to unchecked illegal immigration ruining the area now could it?
Naw... I'm sure that has nothing to do with it.
:mental:
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There's an 8,000+ sq. ft. five-bedroom Colonial for sale in Detroit for less than $9,000. Hardwood floors, brick facade, full basement and garage. Of course, there are 200 homes in Detroit selling for $1,000. And you still have to live in Michigan.
http://jalopnik.com/5120877/carpocalypse-deals-five+bedroom-home-going-for-8995-in-detroit
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There's an 8,000+ sq. ft. five-bedroom Colonial for sale in Detroit for less than $9,000. Hardwood floors, brick facade, full basement and garage. Of course, there are 200 homes in Detroit selling for $1,000. And you still have to live in Michigan.
http://jalopnik.com/5120877/carpocalypse-deals-five+bedroom-home-going-for-8995-in-detroit
That is quite a handsome property, I'd love to live in something like that. Sadly for me it wouldn't be that price anywhere else but Detroit.
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Don't laugh. If there was a way I could unload my house in a hurry, I'd be in Phoenix tomorrow. 4BR, 3BA, 2200 sq ft. houses in Goodyear and Avondale for under $175K, and they're less than 5 years old.
I'm not laughing. If there were some way for me to get my hands on more capital I would definitely snatch some of those up for rental properties. After I checked their rental market of course. If their rent market has dropped like their housing market (which it shouldn't have) then there is no use for them other than buying to live.
KC
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There's an 8,000+ sq. ft. five-bedroom Colonial for sale in Detroit for less than $9,000. Hardwood floors, brick facade, full basement and garage. Of course, there are 200 homes in Detroit selling for $1,000. And you still have to live in Michigan.
http://jalopnik.com/5120877/carpocalypse-deals-five+bedroom-home-going-for-8995-in-detroit
Actually, it's 3500 Sq feet. The 9,000 is the square footage of the lot. ...which is weird because normally you don't see people put the square footage of a lot in an ad. Just the acreage.
EDIT: Pull it up on Google Earth and it's about 2 miles to down down. ....and right around the corner from something labeled with a Wikipedia tag called "12th Street Riot".
No thanks. :lmao:
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Actually, it's 3500 Sq feet. The 9,000 is the square footage of the lot. ...which is weird because normally you don't see people put the square footage of a lot in an ad. Just the acreage.
We have to put both square footage and acreage in our MLS system. Don't ask me why.
9,000 sq. feet = .2066 of an acre
I guess for some folks 9,000 sq. feet sounds more appealing than 'Less than a 1/4 acre'.
KC
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All the houses I own are in Goodyear and Avondale, and I never have any trouble renting them.
They are, however, building a huge apartment complex in Goodyear, and that will probably hurt rentals, but single family homes for rent have always been a bit scarce.
What kind of monthly rents do these types of homes bring in?
KC
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$1000-$1500 depending on the neighborhood.
I would have to be buying in the $90k - $110k range to be able to make that workable. Depending of course on taxes and insurance in the AZ areas.
$1,250/month
$95,000 borrowed at 6.5% for 15 years = $827.55/month P&I
$830 P&I
100 Insurance
85 Taxes/month
50 Maintenance/month
70 One month vacancy per year
$1,135/month needed
Yeah, I'm a little conservative on my picks for rental properties.
KC
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I would have to be buying in the $90k - $110k range to be able to make that workable. Depending of course on taxes and insurance in the AZ areas.
$1,250/month
$95,000 borrowed at 6.5% for 15 years = $827.55/month P&I
$830 P&I
100 Insurance
85 Taxes/month
50 Maintenance/month
70 One month vacancy per year
$1,135/month needed
Yeah, I'm a little conservative on my picks for rental properties.
KC
These numbers don't take into account any management fees I would have to pay. I don't mind a break even proposition for most of the loan but I don't want to be into negative numbers.
The homes that rent for $1,000 - $1,500/month ... can you buy them in the $100k range BC?
KC
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Gee... That couldn't be partially due to unchecked illegal immigration ruining the area now could it?
Naw... I'm sure that has nothing to do with it.
:mental:
Yeah and now Governor Janet is going to do the same quality job of protecting the national borders that she did in securing the border between Arizona and Mexico.
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We have to put both square footage and acreage in our MLS system. Don't ask me why.
9,000 sq. feet = .2066 of an acre
I guess for some folks 9,000 sq. feet sounds more appealing than 'Less than a 1/4 acre'.
KC
Even a 9000 sq. ft. lot is a pretty good size in most suburban areas.
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Texacon--$1500 a month rent might get you something in the 150-180K range in the West Valley. Anything you could buy under that in Phoenix is in a neighborhood you don't want to live in.
My dad just bought my grandfather's home for just over $300K, but that's in Scottsdale, near Paradise Valley. I'm not sure what the rents are in the West Valley, but by the looks of it you can get a good liveable place (but be warned, foreclosures) for far less than that in a decent neighborhood. Like I said, APS and Salt River Project are hiring, and given the market there, if I could somehow either recoup my money on this house or hold onto it long enough to get something out there, I might seriously consider it.
Bad thing is, here is my basic breakdown for utilities in NH:
Electric--$70/mo
Oil--$250/mo (but only 6 months per year, if spreading out use $125/mo) You could cut this down significantly if you used a pellet stove or wood for heat.
Water/sewer--$0--I have well and septic but set aside a bit in case the septic needs pumped out every 2-3 years (if that)
So for utilities, I'm under $200 a month.
And this is about what my dad pays now:
Electric--$250/mo
Water/sewer--$175/mo
Not sure what he pays for trash pickup or if it's part of taxes he pays.
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When the housing market was inflated some 25-50% (peaked in 2007) - it isn't crashing, it is re-adjusting as it always does. I lived on LI out in the Hamptons. I watch Neil Cavuto pretty regularly. His roundtables have been warning about the inflated prices of key real estate markets for years. My husband and I watched friends sell their homes for a large profit only to purchase homes they could not previously afford in Westhampton and Sag Harbor. Now those homes they purchased worth is no where near they need it to be, so the equity they spent years building in their previous homes is gone. Sure they got a nicer house in a tony area, but they have no financial security and they better pray they don't need to sell it.
The people who made out are the retirees who dumped their paid off houses for serious profit and moved to warmer and cheaper climates -- AZ used to be one of them, apparently not anymore.
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Texacon--$1500 a month rent might get you something in the 150-180K range in the West Valley. Anything you could buy under that in Phoenix is in a neighborhood you don't want to live in.
My dad just bought my grandfather's home for just over $300K, but that's in Scottsdale, near Paradise Valley. I'm not sure what the rents are in the West Valley, but by the looks of it you can get a good liveable place (but be warned, foreclosures) for far less than that in a decent neighborhood. Like I said, APS and Salt River Project are hiring, and given the market there, if I could somehow either recoup my money on this house or hold onto it long enough to get something out there, I might seriously consider it.
Bad thing is, here is my basic breakdown for utilities in NH:
Electric--$70/mo
Oil--$250/mo (but only 6 months per year, if spreading out use $125/mo) You could cut this down significantly if you used a pellet stove or wood for heat.
Water/sewer--$0--I have well and septic but set aside a bit in case the septic needs pumped out every 2-3 years (if that)
So for utilities, I'm under $200 a month.
And this is about what my dad pays now:
Electric--$250/mo
Water/sewer--$175/mo
Not sure what he pays for trash pickup or if it's part of taxes he pays.
My electricity and oil is more than yours, but I have three kids and am a stay-at-home mom, so we are home more. You are a workaholic whose house probably looks as new as the day you closed on it.
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My electricity and oil is more than yours, but I have three kids and am a stay-at-home mom, so we are home more. You are a workaholic whose house probably looks as new as the day you closed on it.
For the record, I am NOT a workaholic. I only did 500 hours of OT last year (translation, average 50 hour week, and 1/3 that OT came from the outage in April). Now at the plant, we have mechanics who did 1600 hours of OT. God help them if they need that to make ends meet.
Meh--there are still a couple of things I'd like to do to the house, namely add a covered front porch and possibly put some plywood down in the attic so I could actually STORE something up there--it's too small to be used as a day room, not to mention it is uninsulated on the roof itself, so it's not much use for anything else, and the basement is too small to be converted as well.
It still amazes me that in AZ, CA, FL, people have lost 40-50 percent of their home values, but here, I'd dare say I could put this place up for 5-10 percent less than what I bought it for, but when you consider what I've put in so far (driveway, blinds, extra carpeting, etc,) and the realtor fees, etc., I'd be losing probably $25K. Not a loss I really want to take, considering that would be a nice down on a house pretty much anywhere else.
I shudder to think what those poor dumb bastards in Dover and Portsmouth are losing right about now.
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There's an 8,000+ sq. ft. five-bedroom Colonial for sale in Detroit for less than $9,000. Hardwood floors, brick facade, full basement and garage. Of course, there are 200 homes in Detroit selling for $1,000. And you still have to live in Michigan.
http://jalopnik.com/5120877/carpocalypse-deals-five+bedroom-home-going-for-8995-in-detroit
Holy crap! It's actually in a really bad part of Detroit though!