By vain follow 2011 Jul 28, 11:28pm 2,130 views 7 comments
watch (0) quote
Banks are starting to flush their inventory. They will donate it/bulldoze it. They'd rather donate a "$200,000" home and get a tax deduction than to sell it for $75,000, which is what people seem to think it is worth.
Comments 1-7 of 7 Last »
Fucking silly Bastards, supply and demand, doesn't LITERALLY mean "Supply", especially when they are talking about houses.
Razz a house, and you now have a vacant lot. Most potential homeowners would rather a blank slate to begin with.
When RE bounces back, the more blank slates then it's still an over supply of lots with water and electric service already to the lot. The more houses they demolish then the cheaper existing homes will become. Because there will be an over abundance of suitable lots to build new on.
Where's my fucking abracadabra wand?
we are such a failure as a nation.
Here is a BoA story from SF "likely the most expensive bank-owned, single-family residential real estate listing in the country." but not the only one...
St. Regis Penthouse Was $70,000,000, Now $35,000,000
The original "asking" price for the 20,000 square foot St. Regis Penthouse (188 Minna), was $70,000,000, and at that price it was only slightly ambitious. Now at 50% less or $35,000,000 and still not officially "listed" on MLS, I expect all but one of the buyers in San Francisco to be able to qualify for this property.
According to the Wall Street Journal, this penthouse is "likely the most expensive bank-owned, single-family residential real estate listing in the country." If that doesn't get all of you first time buyers looking for a deal and to purchase foreclosed property to jump at this opportunity, perhaps the description will: Six bedrooms, 12 bathrooms, four fireplaces, a library and a home theater. The living room has 22-foot-high ceilings and an entrance foyer with a two-story waterfall feature. There's also a 2,500-square-foot master suite with a gym, sauna and steam room and 3,000 square feet of terraces with views of the city and the bay.
Or they can donate this and claim it was worth $100,000,000 to get some millions in tax savings.
Do you really think this is about a tax deduction? I don't. I think they are trying to keep the price of housing high enough to prevent them being affordable. Banks don't make money when people can afford to pay cash for a house.
They aren't coming out ahead on a tax deduction. Remember, it is really an income deduction. (income - value of donations) times their tax rate.
I suppose they could cheat and claim $300K on a house really worth $200K. And that is likely what they will do.
In the long run the taxpayers are paying for it.
The execs have homeless people bussed in to watch the homes being demolished and laugh themselves sick.
Am I shallow or curious for wanting to see pictures of a house "not worth $10000?" The pictures on the ouskirts of Detroit are incredible. Just devastating. I'm thinking the people who devised the CDO schemes are having heavy consciences about this stuff. From their yachts, of course.