Friday, January 11, 2008

If Only For The Damn Neighbors


For those of you who want to rent here for your consideration. Careful readers will recognize this as the house in the picture from a previous post as being across the street from the $5m home.

Particulars for this bargain:
5 total bedroom(s)
5.5 total bath(s)
Approximately 5003 sq. ft.
Type: Detached
Spa/hot tub(s)
Exterior features: 1st Floor Entry, Abuts Golf Course
Exterior construction: Block, Stucco, Concrete Slab Foundation
Golf course lot/frontage
Lot is 38889 sq. ft.

Price: $7500/month. Ouch. Just remember that includes taxes. Taxes on this puppy run $1900 per month.

Analysis:
That rental price puts the theoretical purchase price at ~1.2 million. Last asking $2.42m. Ooops. S'course they ain't gonna get $7500 so it is a moot point.

And on to the $5m house. Just yesterday the "For Rent" sign went up on another home nearby. Their backyards abutt. And this sweetie? See for yourself.

4 total bedroom(s)
3 total bath(s)
Approximately 3020 sq. ft.
Type: Detached
Spa/hot tub(s)
Exterior features: 1st Floor Entry
Exterior construction: Stucco, Wood, Concrete Slab Foundation
Lot is 19994 sq. ft.

Price: $3500
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Nice places, lousy neighbors.

19 comments:

Property Flopper said...

First!!!

No comment to make, just claiming first. Yeah, sad but I'm waiting for a client and rather bored.

Rob Dawg said...

An hour with no comments. On a Friday no less. I guess i've just lost whatever it was that attracted people to the blog.

chickenlittle said...

This post is pretty "micro" when people are wondering and worrying "macro"

Rob Dawg said...

The point is that three houses in close proximity each clueless in their own way. It is a symptom of a systemic breakdown of the entire market. None of these would ever have happened in the past.

Nobody is going to rent for $90,000 per year. Nobody is going to pay $5m for a modest 1964 California ranch.

Peripheral Visionary said...

$3500 a month? Hey, that's about what a one-bedroom in Georgetown goes for! (I jest, but in all seriousness, there are small 3-bedrooms in high rises without so much as a view that go for that amount . . . )

Peripheral Visionary said...

But Rob, you haven't done the numbers right. Let's take a closer look:

2 BR, 2 Bath: $2000/mo
1 BR, 1.5 Bath: $1500/mo
1 BR, 1 Bath: $1400/mo
1 BR, 1 Bath: $1400/mo

Add it all up, you can certainly get $6300/mo; OK, so it's not the $7000/mo, but it's close. And you can advertise a community hot tub and golf course views and fill that apartment building up in no time!

And I'll bet the people on the street will be excited to meet the new neighbors . . . well, there may be a language barrier, but that's what the kids are for, to help with translations.

Akubi said...

Unrelated but funny: Earlier this afternoon, CNBC’s Charlie Gasparino reported that some guy in Merrill Lynch’s fixed income research group had “inappropriately relieved” himself in protest of the downsizing of his bonus. Merrill has officially explained that this was simply an unfortunate accident, and then the bank turned red and scurried to the other side of the room....

Rob Dawg said...

Add to the apartment totals the commercial koi farm in the backyard see-ment pond. Then Eli Mae can graze her critters on the lawn. Opportunity abounds. Maybe even raise trained monkeys who can throw feces with deadly accuracy at code enforcement.

Lou Minatti said...

An hour with no comments. On a Friday no less. I guess i've just lost whatever it was that attracted people to the blog.

Sorry, Rob. For me, these prices are surreal and I can't relate.

chickenlittle said...

Agree with Lou- the numbers are an almost order of magnitude greater than my neck of the woods(Oceanside).

Say it looks like sovereign wealth funds are showing quite a taste for US equity these days.

Rob Dawg said...
This comment has been removed by the author.
Rob Dawg said...

Until rents come back in line with mortgages California is going to be littered with these examples. 18 months ago Realtors® didn't bother putting up for sale signs. They'd just xerox a dozen bidder instruction forms and pencil in the closing date for any bids above asking price. Now they put up entire websites like 976 Camino Concordia. Nice quiet fixer at luxury estate prices. The whole neighborhood is full of similar homes. Most of them with 30 year residents in their 70s and 80s. It will be interesting to see the elderly version of swimming naked. These people are looking to score at least a half million profit now but that doesn't go far in an assisted care facility. I think a lot of people are drastically rearranging their plans for their twilight years.

Check out this historical offering. Center School.

w said...

I drive by the Center School home all the time and wonder who the hell would live right on a freeway. Eventually with the law of averages you or a loved one will get killed pulling out of the poor visibility driveway onto 118.

I saw the price reduction hand written on a flyer at the car wash this week and chuckled. 200k drop and it is not sold! Shocking. There is a house in Oak View on 5 acres that started at around 1.6 mil and is down to 1 million over 2 years or more. Still no action.

Another ranch I did like but with issues to actually being usable for agriculture (profitably) and with a crappy tear down went for 1.9 million after languishing on the market for 2 years or more at 2.6 mil. At least it had over 40 acres in a great area.

Lou Minatti said...

Rob,

Fred Evans should quit with the stupid soundtrack. It doesn't make me want to buy overpriced real estate.

Interesting place, though. I like the way Realtor Fred Evans stuck a red wagon in the front to make it look homey.

H Simpson said...

Rob

All these pics of your neighborhood look familiar.

They look like the joints for those b grade porn flicks Cinimax runs late at night. Busty Cops etc.

How much your neighbors pimping their homes for, and is it making their payment for them?

Ever match up their sheet designs on the clothes line with come shot in one of those flicks?


Just ask'n

h.

Akubi said...

h simpson said:
They look like the joints for those b grade porn flicks Cinimax runs late at night. Busty Cops etc.
I was wondering if there was a view or something to explain the ridiculously overpriced expectations.
Now it all makes sense. Other than porn, what's in Ventura anyway?

Rob Dawg said...

The Valley has lots of similar neighborhoods. That's where the porn is filmed.

This is a good place to be rich. If it wasn't so expensive it wouldn't be such a nice place.

BJ said...

@Rob Dawg

This is a good place to be rich. If it wasn't so expensive it wouldn't be such a nice place.

I guess you have not been told about the special tax form to file to the IRS that makes the entire cost of the mortgage interest on one of these places deductible directly against taxes due. If the result is a negative number, the IRS will refund to you the difference..

on a slightly different subject, and more along the category of a nit. The 'http' reference on the top section of this page has one to many 'h's.. (hhttp). It is on the link on the word 'consideration'. It makes the link non-navigable.

chickenlittle said...

Since all those old folks won't be cashing out and heading for "Seizure World" anytime soon, and since many, depending on when they bought, are living in a tax shelter, how about a boomlet in at-home assisted care living? By that I mean roving teams of caregivers, able to check in on their clients via webcams. Hell, many of these places have so-much spare room, we could see an increase in live-in old folk nannies (and another reality-based porn-niche too). The "caregivers" could even work for relatively low wages, essentially working for an equity stake in the estate.