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Real estate's high end is finally getting whacked

By golfplan18   Follow   Tue, 7 Aug 2012, 7:33am   2,297 views   34 comments
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http://ochousingnews.com/news/real-estates-high-end-is-finally-getting-whacked

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1. golfplan18 Follow Befriend (2) 517 threads 114 comments Irvine, CA

   1   7:36am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike

2. iwog Follow Befriend (48) 273 threads 12,517 comments 47 male Lafayette, CA Premium

   2   7:42am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected

3. iwog Follow Befriend (48) 273 threads 12,517 comments 47 male Lafayette, CA Premium

   3   7:43am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected

4. iwog Follow Befriend (48) 273 threads 12,517 comments 47 male Lafayette, CA Premium

   4   7:44am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected

5. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

   5   7:51am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   iwog says More than 50 offers? You cannot be serious. Sold over asking to an all cash buyer? That must be a myth. Let me guess. The buyer is a foreigner, either Chinese or Indian. :)

6. Oil Can Follow Befriend 21 threads 126 comments Oil Can's website

   6   7:54am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Wait to 6.5% to 8% mortgage rates are norm again. Then let's see where prices are.

7. iwog Follow Befriend (48) 273 threads 12,517 comments 47 male Lafayette, CA Premium

   7   8:00am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   E-man says More than 50 offers? You cannot be serious. Sold over asking to an all cash buyer? That must be a myth. Let me guess. The buyer is a foreigner, either Chinese or Indian. :) Looks pretty whacked to me.

8. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

   8   8:06am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   Oil Can says Wait to 6.5% to 8% mortgage rates are norm again. Then let's see where prices are. Gotta love the fallacy. I guess if you repeat this fallacy enough times, some Patnet readers will believe it's the truth. I believe I've seen some people on here repeating this fallacy already so carry on. Don't let the truth blind sided you. :)

9. FortWayne Follow Befriend (13) 102 threads 3,762 comments

   9   8:18am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Slow cashing out for the whales. I've been waiting for that event. I expect that money to flow into the stock market... there are some good buys there right now, and a few excellent shorts.

10. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,002 comments Pleasanton, CA Premium

    10   8:24am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   Iwog's posts just goes to prove that we are in a worse situation to me with BA real estate. I wouldn't pay half the amount for any of the houses. The BA market could fall fast and hard IMHO. Once the all-cash buyers realize that they can lose cash very quickly, there will be no floor for protection. Good luck to all, and no you can't have my cash you greedy MF. Get to work like the reset of us!

11. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

    11   8:32am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   RentingForHalfTheCost says Get to work like the reset of us! Where do you think these cash buyer get their money from? Has it ever occurred to you that maybe, just maybe, they have been working much harder than you? Is it possible that they are now using the fruits of their labor to work for them? What was the saying again? Work smarter, don't work harder? Enough hard work already. Now it's time to sit back and sip Maitai.

12. CaptainShuddup Follow Befriend (1) 247 threads 4,702 comments

    12   8:54am Tue 7 Aug 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   Philistine says Thanks for posting those, Iwog. Wow . . . scary million dollar shitshacks! Are people still panning for Gold in the back yard of these houses? Is there a champagne tap and a caviar fountain in the garden?

13. errc Follow Befriend (7) 29 threads 1,208 comments 31 male Premium

    13   9:09am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   California is like, so effin' cool! That's what people with 1M cash to plunk on a crib, consider desirable?

14. dunnross Follow Befriend 28 threads 1,489 comments San Jose, CA Premium

    14   9:16am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   E-man says Now it's time to sit back and sip Maitai. Yes, and that's probably all you can do in your 971sqft $1.35M shack which won't even rent for $2000/mo.

15. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

    15   9:25am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   dunnross says E-man says Now it's time to sit back and sip Maitai. Yes, and that's probably all you can do in your 971sqft $1.35M shack which won't even rent for $2000/mo. The buyer paid $1.35M for the land & its location, not the shack. There's no point in debating with you because you keep on missing it.

16. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

    16   9:27am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   errc says California is like, so effin' cool! That's what people with 1M cash to plunk on a crib, consider desirable? Thanks for the laugh, but some people here spend crazy money for crap that I couldn't even understand. To each their own.

17. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    17   9:27am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   dunnross says Yes, and that's probably all you can do in your 971sqft $1.35M shack which won't even rent for $2000/mo. Exactly. It's funny some people in this thread were on their pulpit about "rents determine price!", yet you see people posting $1,000,000 homes that would probably rent in the $2,500 to $3,500 range, if that. Very disingenuous.

18. dunnross Follow Befriend 28 threads 1,489 comments San Jose, CA Premium

    18   9:28am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   E-man says The buyer paid $1.35M for the land & its location, not the shack. There's no point in debating with you because you keep on missing it. Yes, location, location, location. I will write to NAR with a proposal to add one more "location" to their slogan. After all, some of their followers might not be very bright, and might not get it with just 3.

19. dunnross Follow Befriend 28 threads 1,489 comments San Jose, CA Premium

    19   9:31am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   If this house is sold for land value, why don't they list the land square footage. It seems that showing a picture of the house and only the house square footage is akin to selling a $50K sedan, and only showing the picture of an ashtray.

20. dunnross Follow Befriend 28 threads 1,489 comments San Jose, CA Premium

    20   10:21am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   Anybody want to buy a piece of land from South Palo Alto. It's cheap. Only $1000. And, I will throw in an egg for free.

21. B.A.C.A.H. Follow Befriend (6) 5 threads 2,359 comments

    21   11:12am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Goran_K says some people in this thread were on their pulpit about "rents determine price!", yet you see people posting $1,000,000 homes that would probably rent in the $2,500 to $3,500 range they are not boasting about investing in rentals in The Fortress, where the house prices are set by buyers with different motivations than in blue collar neighborhoods.

22. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    22   11:19am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   B.A.C.A.H. says they are not boasting about investing in rentals in The Fortress, where the house prices are set by buyers with different motivations than in blue collar neighborhoods. What? I'm not talking about "boasting." How did you get that from my post?

23. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,002 comments Pleasanton, CA Premium

    23   11:28am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   E-man says RentingForHalfTheCost says Get to work like the reset of us! Where do you think these cash buyer get their money from? Has it ever occurred to you that maybe, just maybe, they have been working much harder than you? Is it possible that they are now using the fruits of their labor to work for them? What was the saying again? Work smarter, don't work harder? Enough hard work already. Now it's time to sit back and sip Maitai. Learn from your victory. Prosper from your failure. Sadly many don't. If you actually worked hard and smart for your money you wouldn't be so quick to give it up on a shack. Many cash buyers have very little sense for what a dollar is worth. If they lose 20-30% it really doesn't mean anything. Just another call to the parents or uncle. Someone in the chain is sitting on the main cash pile. Seen it many times already. They will talk like they understand, but not a clue.

24. zesta Follow Befriend 1 threads 203 comments

    24   11:38am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Goran_K says dunnross says Yes, and that's probably all you can do in your 971sqft $1.35M shack which won't even rent for $2000/mo. Exactly. It's funny some people in this thread were on their pulpit about "rents determine price!", yet you see people posting $1,000,000 homes that would probably rent in the $2,500 to $3,500 range, if that. Very disingenuous. rents may set bottoms but not ceilings. Especially for luxury goods. Make no mistake, a SFH in those areas is closer to a luxury good than simply a place to live.

25. dunnross Follow Befriend 28 threads 1,489 comments San Jose, CA Premium

    25   11:49am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   zesta says Make no mistake, a SFH in those areas is closer to a luxury good than simply a place to live. I knew I should have made my egg golden. Then, I could claim that iwog laid it to boost the value of the land.

26. PockyClipsNow Follow Befriend 19 threads 1,534 comments Los Angeles, CA

    26   11:51am Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   If these people can pay 1m for the land, build a mcmansion, then sell it for 1.6m thats how you make money. This would only work in high demand area like cupertino,etc. Obviously there are very few safe places for 1m cash. 'land' looks pretty good.

27. iwog Follow Befriend (48) 273 threads 12,517 comments 47 male Lafayette, CA Premium

    27   12:08pm Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   Goran_K says Exactly. It's funny some people in this thread were on their pulpit about "rents determine price!", yet you see people posting $1,000,000 homes that would probably rent in the $2,500 to $3,500 range, if that. Very disingenuous. Who said rents determine price? No one said rents determine price. I DID say that for a specific property the rental income justified the cost, so did you accidentally interpret that statement to mean all properties were valued according to their rental income?? Whoops.

28. Goran_K Follow Befriend (4) 25 threads 1,517 comments Laguna Beach, CA Premium

    28   12:38pm Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   iwog says Who said rents determine price? No one said rents determine price. I DID say that for a specific property the rental income justified the cost Does the potential rental income justify the cost for the houses you posted in this thread?

29. iwog Follow Befriend (48) 273 threads 12,517 comments 47 male Lafayette, CA Premium

    29   1:06pm Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   Goran_K says Does the potential rental income justify the cost for the houses you posted in this thread? Of course not.

30. REpro Follow Befriend (1) 22 threads 469 comments San Jose, CA

    30   3:38pm Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   E-man says The buyer paid $1.35M for the land & its location, not the shack I understand land value and location, e.g. zoning will allow to build a 20 story condo in this place, or location have unobstructed irreplaceable amazing view. E-man says Where do you think these cash buyer get their money from? Has it ever occurred to you that maybe, just maybe, they have been working much harder than you? Is it possible that they are now using the fruits of their labor to work for them? What was the saying again? Work smarter, don't work harder? Enough hard work already. Presume you work hard on all rentals you have. Would you sell them to buy this?

31. E-man Follow Befriend (31) 34 threads 2,545 comments San Jose, CA Premium

    31   9:07pm Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   REpro says Presume you work hard on all rentals you have. Would you sell them to buy this? Not a chance. However, people have different value and preference when it comes to where to live. I just don't care much about it. You might disagree with their purchase decision, but that doesn't mean it's a wrong decision.

32. mamunsultanpur Follow Befriend 1 comments

    32   9:41pm Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   With all the turnkey rental bad news about real estate there is in fact some compelling reasons for rental properties getting serious about buying a home right now.

33. REpro Follow Befriend (1) 22 threads 469 comments San Jose, CA

    33   11:31pm Tue 7 Aug 2012   Share   Quote   Permalink   Like   Dislike   E-man says However, people have different value and preference when it comes to where to live. I just don't care much about it. I know a software engineer from India but not enough to know his financial side. He owns couple of houses like these in Cupertino and rent them out for whatever market can take, but he never lived in any of them. He lives in $2.5M brand new house, also in Cupertino. The point is, that I don’t think people who have money buy these houses because they falls in love in architecture, lifestyle, local elementary school or charming location.

34. lostand confused Follow Befriend (9) 161 threads 1,543 comments Premium

    34   4:44am Wed 8 Aug 2012   Share   Quote   Permalink   Like   Dislike   Protected   REpro says E-man says However, people have different value and preference when it comes to where to live. I just don't care much about it. I know a software engineer from India but not enough to know his financial side. He owns couple of houses like these in Cupertino and rent them out for whatever market can take, but he never lived in any of them. He lives in $2.5M brand new house, also in Cupertino. The point is, that I don’t think people who have money buy these houses because they falls in love in architecture, lifestyle, local elementary school or charming location. India is in a massive, massive property bubble. Makes sense if he had land holdings there and is selling and buying here. Or perhaps he got good stock options early on. It is difficult to judge -but Cupertino prices are now approaching luxury areas of so cal.