patrick.net

So if they sell “at a loss”, should they get a writeoff because their “loss” was due solely to MEW? That would be dead wrong.
Personally, I am not advocating for, nor do I think writeoffs for home losses will ever come to pass. However, I can go on margin in my E*Trade account (similar to MEW) and deduct losses on my stocks when squeezed. I will concede the point, though, that plasma TVs and Hummers (bought with) MEW, probably don't count as "similar investments". But then again, I bet a fair amount of margin money has been used to buy cars, TVs, and the like (*note: illegal to then writeoff the margin interest) ...

Surreal Estate writer Carol Llyod tackes rising rents in Ess Eff in her latest column.
I will argue that the City has reached price-to-rent parity in the TIC marketplace (aided by the fact that buyers have high marginal tax rates). The case has been made, somewhat convincingly, also, by recent buyers on Socketsite. Therefore, any type of unit better than a TIC (like a SFH), will command a premium. There is simply a huge demand in SF that I don't see abating immediately, although there are two reasons to be hopeful. One is the condo towers being built that may suck up that excess demand. The other is the wave of foreclosures building up in Stockton, Tracy, Antioch and the like. Surfs up, and this wave will eventually hit close to home. At a certain point, some buyers (maybe?) will go for Oaktown and the like if their costs are 50% less (and BART makes the City center closer than living in SFs outer districts.) This is a big if, and it looks like I've laid out an argument for why Ess Eff is special. What do ya think? (Hey, we need some controversy while waiting for the paint to dry.)

EBGuy,

If jumbo mortgages are hard to get only people with cash in hand will be able to easily buy in SF, that will surely hit the market. I don't know many people with $2 million cash for their house who are going to plop it down on a Bernal Heights or Glen Park house, trendy though those neighborhoods might be at the moment.

So yesterday I heard someone say Mountain View needed to get themselves organized (I guess they mean the City of Mountain View) coz it's the only place that you have million dollar homes with "RENTERS" living next door to you - I'm not quite sure what they are thinking - maybe limiting the number of apartments or something - I was not involved in the conversation. Maybe I misheard, but the way they said the word "RENTERS" you would think that we are lepers - I didn't say anything (as this was while I was waiting for my daughter to finish one of her activities) but I really felt like saying - "Yes how truly awful it is that they avoid huge property tax bills and only pay a third of what a "homeowner" has to for a mortgage." In truth I think they are upset at the "state" of rental properties - but that is down to the landlord!

I will be seeing this lady again at the next class - should I say anything or bite my tongue?

I will argue that the City has reached price-to-rent parity in the TIC marketplace (aided by the fact that buyers have high marginal tax rates). The case has been made, somewhat convincingly, also, by recent buyers on Socketsite. Therefore, any type of unit better than a TIC (like a SFH), will command a premium.

So what you and the socketsiters are arguing is that the "new paradigm" in SF at least should be that TICs are considered the "baseline" or "standard" of homeownership? Buying into a communal mortgage should be the yardstick for comparison? Sounds lame to me. Since when was acquiring your very own load of mortgage debt without having to go communal considered in an of itself worthy of a "premium"?? Screw that!

BTW, good effort at drumming up some "controversy".

In London, they have multi-million-POUND homes next to renters, those who pay £3000 per WEEK for a flat.

Peter P

Yes, I was seriously tempted to provoke, but restrained myself on my daughter's behalf but I did think it could have been an amusing way to spend the hour - I do get quite bored.

The sad thing is she seemed a really nice lady, but I guess I can appear that way too at times :-)

The sad thing is she seemed a really nice lady, but I guess I can appear that way too at times

I am also a perfectly nice guy. But I can also be a total jerk. :)

If you want to be a jerk (which is a really fun way to pass the hour sometimes), start complaining that Mountain View should really do something about renters who have to live next door to No-doc liars who live beyond their means, ARM-resetting idiots who cannot do simple math, and those HELOC'd-to-the-hilt suns a biches who are ruining the credit market, taking the economy down bit by bit, and crying for a bail out.

Not advice, just fun to imagine. ;)

A classic run on the bank - Northern Rock the lender on 1 in 5 UK loans

http://www.youtube.com/watch?v=j33p6SQh_PE

http://news.bbc.co.uk/1/hi/business/6994099.stm?ref=patrick.net

http://www.youtube.com/watch?v=Cu2uekVFk20

too many links I guess - please take me out of moderation

Perhaps I should go in and preach how we should allow Free Market to work its way, which may involve putting moms and kids on the street if necessary. :)

Perhaps I should go in and preach how we should allow Free Market to work its way, which may involve putting moms and kids on the street if necessary.

You mean putting moms and kids into rentals...poor things :cry:

Guys, what do you think of this piece? http://www.henkelharris.com/productDetails.asp?roomID=2&categoryID=42&pageno=1

Guys, what do you think of this piece?

Pretty nice.

But if you ask me, I prefer something contemporary.

I don't like the contemporary stuff. My style is either traditional (with a sumptuous and decadent flair) or transitional that borders on traditional and modern.

Point me to something nicer. I can still cancel this order. Thanks.

I don’t like the contemporary stuff. My style is either traditional (with a sumptuous and decadent flair) or transitional that borders on traditional and modern.

Sounds like Liberace.

Well the NAR is very very organized. Constantly spamming thier 100 million reeltors to harass congress to pass the latest bailout bills. Somehow the bubbleheads should be organized. Here is todays spam from NAR to membership:
-------------email below
You may have already received my earlier message asking you to
contact your Member of Congress. If you have sent a message to
Congress, thank you for your support. If you didn't receive my
first message please take a moment to add your voice to the
growing number of REALTORS from across the nation who have asked
for Congressional action to stabilize the mortgage market.

Stabilizing the current mortgage market turmoil requires an
immediate and significant response from Congress. I strongly
recommend contacting your Member of Congress to ask for his or
her YES vote on H.R. 1852, the Expanding American Homeownership
Act of 2007 and a YES vote on the Frank-Miller-Cardoza
amendment.

Click on the link below to Take Action:
http://takeaction.realtoractioncenter.com/campaign/Support_HR_1852_FHA_Reform/88wgnun2zkjdwnt?

H.R. 1852 reforms the FHA program by building on the strength
and security of successfully insuring mortgages for more than 70
years. It is the immediate and significant response necessary to
return stability to the mortgage market.

The amendment offered by Congressmen Frank (D-MA), Gary Miller
(R-CA) and Cardoza (D-CA) raises the single-family FHA loan
limits to 125% of area median home prices and permits the
Secretary of Housing and Urban Development to grant additional
increases if required by market conditions.
----------------------------------end

I can imagine congress will think 'the people want 1 million dollar loan guarantees' and they will pass all kinds of nonsense. were screwed if that bill passes -its a blank check.

I like modern stuff with neutral color and materials like glass, stones, hardwood, and metal.

How about some modern impression of Art Deco lines?

Peter P,

That won't be necessary. You well know stand on social welfare programs and your interest in endangered species (as food) should be enough.

The amendment offered by Congressmen Frank (D-MA), Gary Miller
(R-CA) and Cardoza (D-CA) raises the single-family FHA loan
limits to 125% of area median home prices and permits the
Secretary of Housing and Urban Development to grant additional
increases if required by market conditions.

Urgh. Taxachusetts and Kalifornistan.

Peter,

I think the modern stuff with neutral colors is very soothing. But personality dictates that I go for vibrant, dominant colors and clean lines.

You well know stand on social welfare programs and your interest in endangered species (as food) should be enough.

Huh?

Hello Kitty,

Now how can anyone justify FHA limits at 125% area median home price? Since when is an "above average" home something that should qualify for FHA? The logic is flawed.

Well, this organized campaign is what you get in return as a realtor (TM) for only getting the 1.5% or so of the 6% commission (3% each split between buyer and seller agents, of which half goes to the local office and NAR in combo). I hope they appreciate it in that Amway kind of way.

That was in your response to your quest to putting mom and kids on the street.

I quite frankly think you'd piss off more Americans if you claimed that you like cat stew with smoked dog sandwich, with horse sashimi to start.

I much prefer modern building with a neutral palette. Anything with a wall of floor to ceiling windows is likely to catch my attention.

That was in your response to your quest to putting mom and kids on the street.

That is not my quest. It is merely a potential consequence of my quest.

I quite frankly think you’d piss off more Americans if you claimed that you like cat stew with smoked dog sandwich, with horse sashimi to start.

My cats won't let me.

Don't they eat dogs in the Firefly universe?

Anything with a wall of floor to ceiling windows is likely to catch my attention.

I like that too. It must be energy-efficient glass though. I do not want to live in a greenhouse.

Also, the view better be good. It would be pointless to see the neglected backyard of your neighbors.

But personality dictates that I go for vibrant, dominant colors and clean lines.

Describe your dream yacht.

People who neglect their yards should be forcibly moved to apartments. If they can't be bothered to cut their grass or pave over the yard, I don't understand why they bought something with a yard.

re: cat stew - do you mean your cats won't consent to your talk of cat stew or as ingredients of cat stew?

do you mean your cats won’t consent to your talk of cat stew or as ingredients of cat stew?

If I have any negative thought about cats, my older cat knows and she will respond with a devilish look. I dare not have such thoughts.

People who neglect their yards should be forcibly moved to apartments.

If I have a yard I will make it a Zen garden.

Describe your dream yacht.

Don't start,...this is how this whole mortgage mess started! ;)

I prefer a luxury RV, then I wouldn't get sea sick.

I prefer a luxury RV, then I wouldn’t get sea sick.

Luxury RVs are nice. But there is a limit on how big it can get though.

@Skibum,
Its horrifying to me that they want to extend the GSE and fha limits to the sky. Obviously if they cared about affordability they would lower them/leave them alone so prices would go down...

Median in bay area is what 700k?+ so 125% of this is 875k!

875k FHA loan!!! holy cow batman!

Randy H will be competing against FHA borrowers in Marin if this passes.

Suddenly what might happen overnight is every POS in the area would be 'worth' 875k overnight. But the foreclosure rate would be terribly high. People say 'yes but with FHA you have to actually document income...' I think there will be many many ways around that one such as 2 family household and others... brokers have shown they are great at faking anything and everthing to get a loan approved. Look at the ways they fix credit scores temporarily to push loans thru.

FHA limit should be 0.

Maybe a luxury train...

Maybe a luxury train…

I think a VIP 767 jet is more practical. ;)

New technologies, inventions, breakthroughs are so hard to come by. The economic cycle is too long. NAR fills up the gaps in cycle. They are a good social service organization who’s bona-fide intentions are American dream of House Ownership and to make all poor people millionaires. If we don't get any other growth engine, don't worry NAR will make everyone billionaire. Keep up the good work.