January 03, 2007

HousingPanic Stupid Question of the Night


Bubblesitters and Bitter Renters: Can't you just feel the hatred of desperate homedebtors and the ever-so-f&cked REIC these days?

Should we be scared?

Pressure building... pressure building... pressure building...

Damn, I think HP'ers should be feeling like Sunnis in a Shiite neighborhood right about now.. and this sucker is gonna blow...

33 comments:

The Thinker said...

Did anyone read that article on www.cnn.com under business/real estate about some couple who bought a mobile home on property that they must pay monthly rent for and cant seem to get back what they paid for it 6 years later?

My question is why the hell would someone expect a mobile home to appreciate if it is not sold with the land that it is on? Wouldnt you expect it to depreciate?

Can anybody shed some light on this?

The Thinker said...

The article is called "Help home for sale, the Otts"
http://money.cnn.com/2006/12/28/real_estate/help_home_for_sale_Otts/index.htm?postversion=2006122814

David in JAX said...

Scared?

As a bubble sitter who sold at the peak and lives in a falling RE market, I'm not scared, I just laugh. I enjoy telling people that I was right about selling in early 2006. I enjoy going to open houses and talking down the price to a desperate agent. I laugh at the unemployed members of the REIC who have nothing better to do than troll on housing blogs. And I'm going to LOVE paying cash for my next home after this whole mess shakes out.

BuyerWillEPB said...

Yeah, the Loan owners and realtors were getting so crazy, Keith had to kill the annonymous posting.

stuckinthecity said...

ya, they are fired up. Hopefully once the forclosure goes thru and they have to liquidate everything, they will no longer have a pc...

stuckinthecity said...

I think we can entertain ourselves.

Blogger said...

Anons: We've been on the blog for a year, we deserve to be citizens here.

Keith: No you don't, you're not here legally. You just waltzed in and took over the comments of legitimate posters.

Anons: Your blog can't function without us.

Keith: Actually it can, because the bloggers are no longer paying for your medical care when you get hurt by the regulars.

Anons: We're not hurting anything or bothering anyone, we just show up and blog hard everyday. Besides, there's so many of us you can't possibly deport us all.

Keith: I just deported you...

Good Job Keith

Bill said...

Finally, I was having to much fun...anyway..we have been here before folks, 1980's bubble, and we are back again. Is it really different this time?

Not really, the only thing different, is the ammount that is involved, and the Over Building involved.

A house is no longer a home, it is a five & Ten. Bought, Sold, & Taken.

Bill said...

Oh and one more thing on my mind to add, The Unemployment figures have to be bogas, if your not selling a home, what are you living on?

Paul E. Math said...

The anons had really turned up the heat with their gibberish recently. It's one thing to want to discuss both sides of the issue but why would people want to hijack an exchange of ideas? Especially when noone is selling anything here and noone is making any money by convincing someone of their point of view (unlike the shameless Greg Swann and other realtors who profit from spreading unrealistic expectations about real estate 'investments').

Perhaps that's what is dangerous about a blog like HP. We discuss and encourage the ultimate act of treason in a material-mad society: abstention from mindless consumerism.

Paul E. Math said...

And one more thing, to answer Thinker's question as to why someone would think that a mobile home would appreciate after 6 years use: they are crazy.

But the mistake the Otts have made is no different from that made by millions of home buyers. Our concept of what is permanent and what is temporary has become so misguided that we can no longer distinguish the difference.

FlyingMonkeyWarrior said...

Bye Bye anons, thanks Keith.

Blogger said...

Anyone think the mobile home fantasy is just like the rest of our prior values that no longer exist. Think about some of the old rules? A mobile home was worthless unless it was put on a permanent foundation. If you built a mansion in the middle of a bunch of small houses, the mansion wasn't worth much more. If you live in a crime infested neighborhood it affected your home value. If the schools were bad, so was your home price.

Hasn't every single one of those values bit the dust?

Smug Bastard said...

I recently had the delight of pointing out the nearly nationwide decline of real estate asking prices in chart form to my ex-wife who bought and built at the price pinnacle (2004/2005)in the middle of a vinyl ocean of bedroom community housing developments. So satisfying.

Smug Bastard said...

"And one more thing, to answer Thinker's question as to why someone would think that a mobile home would appreciate after 6 years use: they are crazy"

Haven't you heard? They aren't making wobbly boxes anymore. If you don't buy now, you will never be able to afford your own wobbly box (no dis intended - I've lived in one before and I will say this, the taxes on same are really cheap) and if you do purchase a wobbly box today, you will enjoy of a lifetime of locked in profits! Can I interest you in a wobbly box? Special financing is available if you act now!

Ex-Californian said...

Thanks, Keith!

All those annon Realtwhores will have to go annoy someone else with their lies and bulllsh*t.

sane person said...

So you want to know how someone could think owning a mobile home on rented land could increase in value? It's the same people who buy time shares.

For about 2 years I did consulting work at for a time share resort company. I set up their systems. Great gig, pay was great since the place was a money printing machine. It was a subsidiary of a Fortune 100 company and just a cash cow. I was utterly shocked at the amount of money they made selling time shares to stupid people.

The typical sales would be for $12,000 for a week a year. $12K for a week's worth of vacation over 30 years...not that bad of a deal at first look.

But the target audience was not someoe who had $12K burning a hole in their pocket and could buy it on the spot. The target audience was a couple with a household income of $35K-$45K a year, ie the lower middle class.

That $12K was then financed at 15%-25% over 10, 15 even 20 years. It was "only" $200 a month but that $12K actually cost $35K in some cases. And it got even better. There was a $15 a month housekeeping fee. A $99 booking fee. A $150 yeary maintenance fee. And property taxes too.

How did anyone fall for this scam you may ask. Well it was sold as owning real estate that's how. The buyers were told that they were getting a "deed" to the time share, which was true, they did get a deed. With this deed they could always sell it for a profit in the future. What they didn't say was that the secondary market for time shares is like a pawn shop. Your $12K time share may be worth $2K when selling if you get lucky.

So Mr. And Mrs. Jones would spend $3000 a year for a 7 night vacation at the equivalent of a $129 a night hotel. And once they realized what an awful deal it was and tried to sell, they quickly realized how doubly fucked they were. And since no bank will re-fi a time share purchase they were stuck with that 20% interest payment forever.

At first I felt bad about helping these bloodsuckers screw people out of their money. Kind of felt like working for a tobacco company or something. But then when the paychecks started coming in I quickly stopped giving a damn.

__________________________________________
Steps in persuading people you are smart:

Step 1: Use the word sheeple.
Step 2: Use the term falling knife.

FlyingMonkeyWarrior said...

$35K-$45K to qualify.

++
Dear Sane Person,

When did you work in Timeshare, IN THE 1980s?

And since when does a 2 bed Room 2 bath Condo cost $129.00 a night, retail? Maybe a net rate to a jobber/rental company like Expedia.

You say you consulted for one of the “Flags”? Hilton, Cendant, Disney or Marriott? Their Target Market income is $75,000.oo combined and up.

PLEEEEEEEEEEEASE STOP.

Signed,

A Former Timeshare Marketing Executive

FlyingMonkeyWarrior said...

The typical sales would be for $12,000 for a week a year.
+++++++++
No, you must have worked in Timeshare in the late 70's. With inflation, they now cost around $23,000.00 for a week, but most people buy 2 or 3. Some consumers buy three months. They now have a million dollar second home in Palm Beach or Hilton Head Island for a
few hundred thousand.
You are full of it, Sane Person or you do not understand the modern developers numbers, G and E, VPG and ROI of the Resorts budgets.

Nothing Personal. Just an observation based on your posts.
IW

sane person said...

This was 2002-2003.

I did not say I cosulted for one of the "flags" Mr. Executive.

$12K was it for a week. Some were more, most weren't.

Target was $35K-$45K a year.

I've stayed at Hilton time shares for $99 a night and thought to myself my god these morons are paying how much a year? Same with Marriotts.

I know there are high end time shares in Myrtle Beach. This was not one of them.

Sheesh.

sane person said...

I'm starting to understand a lot about you people if you are such experts in the time share business.

FlyingMonkeyWarrior said...

For about 2 years I did consulting work at for a time share resort company.
It was a subsidiary of a Fortune 100 company

FlyingMonkeyWarrior said...

Your words. There are not that many fortune 100 resorts left with out a FLAG (brand) unless you are talking about Shell Vacation Club or CFI Resorts, but $20,000.00 and up is the going rate for a week because of inflation.
I am sorry you think that if I work in TS I am stupid but is is okay if you do.

sane person said...

Stupid. Quite the contrary. Sleazy is more the adjective I was thinking of.

sane person said...

and yes it was a subsidiary of a Fortune 100 company. It was low end stuff. The whole company was low end stuff. As an ex executive you should figure out which one it was, not that many to choose from.

And yes it was $12K to start.

FlyingMonkeyWarrior said...

I left the Industry in 1992 after many years with Marriott. I do not travel in those "one off" low end circles.
The only place you can get a week for that price today is a one off developer "burn week" or a resale.
nuff said.

sane person said...

I realize nobody is ever to be questioned here FMW, but if you would allow me to

Purchase prices vary; according to an Ernst & Young study, the average price of a timeshare week purchased in 2005 was $17,797.

$17,700 in 2002 dollars is $16,500. Meaning some are more than $165,500 and some some are less like oh I dunno, $12,000 maybe.

http://www.washingtonpost.com/
wp-dyn/content/article/2006/12/15/
AR2006121500573.html

Timeshare prices can vary tremendously based on share size, location and time of year... A new (or retail) timeshare usually sells in the neighborhood of $10,000, although that can vary by thousands of dollars in either direction

http://travel.howstuffworks.com/
timeshare2.htm

sane person said...

more than $16,500 not $165,000

Mammoth said...

“Sleazy”
-------------
Has anyone else here noticed that those who are vehemently anti-Democrat, seem to also be the most mean-spirited people? Name-calling is one of their most favorite ways of dealing with those who disagree with them.

Just an observation.

sane person said...

I can see defending hyperinflation and falling commodity prices simultaneously.

I can see defending the rantings of a nazi like Hal Turner.

But timeshare salesmen? You are defending timeshare salesmen? YIKES!!

Oh excuse me, timeshare executives, my bad.

FlyingMonkeyWarrior said...
This comment has been removed by a blog administrator.
FlyingMonkeyWarrior said...

sane Person also said, Sane person said...

The typical sales would be for $12,000 for a week a year. $12K for a week's worth of vacation over 30 years...not that bad of a deal at first look.

Sane Person also said, the average price of a timeshare week purchased in 2005 was $17,797.
++++++++++++++++++++++
HA, Got YA!

S17,797.00 rounds up to around $20,000.00 which is my correction of your mistake.

sane person said..
I can see defending the rantings of a nazi like Hal Turner.
++++++++++++++++++
Sane person said...
The typical sales would be for $12,000 for a week a year. $12K for a week's worth of vacation over 30 years...not that bad of a deal at first look.
++++++++++++++++++++++

S17,797.00 in '05 rounds up to around $20,000.00 in '07 which is my correction of your mistake.

next you said,

sane person said..
I can see defending the rantings of a nazi like Hal Turner.

++++++++++++++++++
I HAVE NEVER HEARD of Hal Turner until you started posting his web page and and HP had ONE article someone wrote. So why defend him.

Your the anon that tried to make me look like a racist by twisting words around and making up things!

FlyingMonkeyWarrior said...

sane person said,
You are defending timeshare salesmen? YIKES!!
******************

No, I am exposing you as the liar/ egzagerater you are.

Urban Dictionary: Egzagilie

Egzagilie
To egzagerate and lie to people you think are below you or will believe your outrages and rediclious boasts/brags/conquests! See also Egzagilier. ..

I am done here.
Nuff Said.
A Job well done.
iw