patrick.net

Does anyone know if there are any legal ramifications to an across the board price reduction by a home builder?

I doubt that. Anyone knows what happened to the Pulte lawsuit in Las Vegas? I was under the impression that it was dismissed. Anyone?

Peter P Says:

> Can you liberate equity from the house
> being a non-paying tenant?

In San Francisco there are lots “tenants” making thousands a month “renting” apartments. When I got out of grad school in the early 90’s most of my friends moved in to renovated apartments in the Marina at rock bottom rents (since the economy was slow and people were still worried about earthquakes). Years late most of my friends are married and own homes in Marin or the Peninsula but quite a few of them rent their rent control units to younger friends making sometimes up to a couple thousand a month profit (others that are doing real well keep them so friends can use them and to have a place to crash when they are in the city). I have a friend from grammar school (who owns a home in Burlingame with his wife) who always asks me how his “investment property” a block away from me is looking when he calls to say hi. He rents the rent control apartment his wife got when she started at Hastings to his wife’s cousin for $1,200 a month more than they pay the landlord in rent…

Just read through all the Patrick.net posts on Casey's latest thread --fantastic stuff from Randy H, astrid, SQT & others. I take back what I said before: PLEASE KEEP GIVING HIM ADVICE (and abuse)!

Casey is very successful in turning a crisis into an opportunity. This we should learn from him.

Does anyone know if there are any legal ramifications to an across the board price reduction by a home builder? i.e. If you are about to close and you find out that they just dropped all prices by 100k, can you demand the same price?

IANAL, but if you haven't closed (signed/completed escrow), then by definition, you're not on the hook yet, are you?

How about after closing? I have read posts that refer to future lawsuits against builders for dropping their prices, but I cannot see any legal standing for it.

Again, IANAL, but like Peter P, I doubt you'd have much legal recourse unless you can prove fraud, misrepresentation or some other legally enforceable type of malfeasance on the part of the seller to break the contract.

Btw, who is J Galt?

In San Francisco there are lots “tenants” making thousands a month “renting” apartments.

More reasons to remove rent control.

btw, how do you use italics? I am new to this…

<i>text</i>

I echo SQT's sentiments. It's like watching a carwreck or a trainwreck in slow motion. I already know how it's gonna end but I just can't keep my eyes away. Casey's self absorption and denial should be written up as a psychology case study of "too much greed/too little brain" syndrome.

I sense that a lot of people aren't even trying to help anymore, they're just egging Casey on because Casey doesn't listen to constructive criticism and lacks a sarcasm detector.

Joe Schmoe,

I think the strategy you described (but has absolutely no legal liability over) would be huge in places like AZ, FL, NV and UT with their acres of speculative property owned by out of staters. (hey, if any of you clowns want to do that, do your own research and figure out your local laws. I'm speculating intellectually and assume no responsibility if you run with the idea).

No wonder the illegal immigrants are staying! They're waiting for amnesty and hoping for a free 4,500 sqft McMansion.

Btw, who is J Galt?

Sounds like a line from a bad Ayn Rand text.

FAB: How does rent control affect sales; i.e., could the owners of Marina properties form a group, pair up properties by equivalent value, and sell them to each other to break the rent restrictions?

tenant's rights are different from squatter's rights - squatters are trespassers per se, but if they stay put for a statutorily determined time period without being eviction by the rightful owner, they can assume the rightful owner's rights under adverse possession

Tenant rights and squatter rights are actually mutually exclusive. If you are a tenant and live in a place with the rightful owner's permission, you cannot gain the property via adverse possession.

J. Galt, isn't he Hank Reardon's buddy? I believe Mr. Galt trolls around with that skank Dagny Taggert.

requiem Says:

> FAB: How does rent control affect sales; i.e.,
> could the owners of Marina properties form
> a group, pair up properties by equivalent
> value, and sell them to each other to break
> the rent restrictions?

When you buy a building in SF you take over the current leases and can only increase them by 1/2 of CPI (that as many have pointed out is much less than actual inflation).

Tips for squatters at:

http://en.wikipedia.org/wiki/Adverse_possession

Joy. (Just went and read some material on SF rent control.)

From sfgov.org:
"This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area."

Argg! What sort of idiot ties increases to a percentage of inflation?!

btw does anyone have a 1500 kw generator handy? I would have more time to post if mine did not keep going down…

Did you say 1.5 Mega Watt (1500kW)? What are you doing down there?

J Galt Says:

> btw does anyone have a 1500 kw generator handy?

Are you having problems with your Galt Motor that runs on static electricity?

I am renting a mcmansion and I need it to power my air conditioning…

I think 25kW should be fine. How big is your AirCon? At most 10kW?

1500 kW is a small power plant.

Check out the Google Ads. It says

"House prices to rise 50%"
"National Housing Federation Video interview with Gavin Smart"

And "Invest in Mortgages in CA ... 12% interest"

We are using the Generator to power 8 Big grain dryers, (13,000,000 btu each). We did have a power substation, but it decided to melt on us.

Then you need a real backup station. And it is going to cost something.

Rent control is the manifestation of pure evil.

Almonds... Yum!

How about some Fillet of Sole Amandine? :)

I’ll see if I can get a walk in at Hayes Street Grill tonight.

Have you tried Citizen Cake?

No regulation can keep the rich from exploiting the poor. This is just the order of things. Any attempt will be unproductive, or worse. Rent control is a prime example.

Pistachios ice-cream! :)

Now THAT was a MONSTER!

4 MW? :-O

Was it a turbine?

One of our customers is a chain from New England called Friendlys.

Really? I had the best pistachio ice cream in Boston. :)

The idea is to stop human beings from exploiting other human beings.

I doubt it is possible. I would love that to happen though. Perhaps Astrid's Dyson Sphere will work. ;)

Randy H,

Point of fact, US treasury bonds and notes ARE callable. I believe it was in 2003, they called the 30 years issued in 1979. I believe these bonds had a coupon of 15%.

I'll spend some time on www.treas.gov to get the detail.

Paul

Too many cockroaches

Worst creatures in the world. Much worse than fire-breathing dragons.

Are we in any danger of lending restrictions being so tight that we might not be able to purchase new homes after the price drop?

Yes. But builder may be able to provide something (like "seller" financing or interest rate buy-down). Another reason why builders will be in a much better situation than regular homesellers.

It’s not too bad. The opera and the symphony keep the area fairly busy on performance nights. I’m off to there now- tonight it’s Wagner (must be well fed!).

Tristan and Isolde, no less - better bring your MRE's.

It's not the link I'm looking for but this is an interesting history article -
http://www.treas.gov/press/releases/js2001.htm

Are we in any danger of lending restrictions being so tight that we might not be able to purchase new homes after the price drop? What if too many lenders get culled and the rest of the industry gets gun shy?

Mr. Galt, perhaps as a newcomer your aren't privy to the following facts:

1) Land is no longer being manufactured
2) The Bay Area is just so gosh darned special that prices can never drop.
3) The rise in real estate costs are the by-product of a very robust diverse economy
4) Rich immigrants will save real estate.
5) Boomer will save real estate as they are so fat stacked that second and third homes are a no brainer.

We'll let you slide this time, but be forewarned of spreading vicious rumors of a real estate decline. Remember houses might drop in cost but not value.

-------------------------
Sarcasm off

J Galt,

Yes, that is refrencing the call. It was not however, reneging. When I read this article originally I went to the treasury web site and read the posting for the call. The reality, dispite misperception, is that treasuries ARE callable. It was not reneging!

Paul

Are we in any danger of lending restrictions being so tight that we might not be able to purchase new homes after the price drop?

Only if you're a former FB.

What if too many lenders get culled and the rest of the industry gets gun shy?

Then the house prices will have to drop some more!

This one is good - look at the top right corner of the page:

http://www.publicdebt.treas.gov/

You need to take the emotion out of it. If a bond has a callable feature, which these have, then you get exactly the deal you bargain for. Just like someone taking an ARM and saying they didn't know the rate would go up.