October 02, 2007
Welcome to the Third Avenue Lofts Lock Box Rail of Desperation in Failed Flipper Central Scottsdale Arizona
I KNEW I had to start HousingPANIC after seeing tiny little apartments advertised at $500,000 to $3 million. When I mean tiny, I mean as in 600 square foot studio apartments for a half mil. Seriously.
Check out this 834 square foot 1-bedroom for $719,000. $862 a square foot. Or if you financed today (jumbo 30 at 7%) it'd be $4800 a month, plus $1000 a month condo fee (gag gag) and taxes of $1000 a month, we're at $6800 a month for a FRICKING ONE BEDROOM APARTMENT THAT'LL BE LUCKY TO RENT OUT FOR $1500 A MONTH!
6800 - 1500 = 5,300 loss per month. Or a 78% fall to get back to reality.
Today 25 of the 88 units are for sale, you just know it's a building full of f*cked flippers and failed mortgage brokers, and the development now reeks of desperation and despair. Watch them race each other to the bottom now - last one out is a rotten egg! Anyone want to bet most of these units go to foreclosure?
Seriously, these hilariously overpriced bubblerific units will see drops of 50% to 70% when all is said and done. Just do the math. It's the P/E stupid. It'll always be the P/E stupid.
Man, did people lose their minds during this housing madness. Some days it's mindblowing.