Smart Guy Sells House
This professor out in California decided to sell his house and make a few bucks.
Excerpt
"A professor of public policy at the UCLA School of Public Affairs, Kleiman, 54, announced on his weblog three weeks ago that he was, in a manner of speaking, shorting the Los Angeles housing market.
He had just accepted an offer for his 2,700-square foot, four-bedroom Mulholland Drive home that would net him roughly a 62% gain over the price he paid in 1997 and the cost of a sizable remodeling in 2001. The deal closed last week, with the buyer acquiring a hilltop property with a picture-window view across the San Fernando Valley and a recently installed outdoor spa"
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Excerpt
"A professor of public policy at the UCLA School of Public Affairs, Kleiman, 54, announced on his weblog three weeks ago that he was, in a manner of speaking, shorting the Los Angeles housing market.
He had just accepted an offer for his 2,700-square foot, four-bedroom Mulholland Drive home that would net him roughly a 62% gain over the price he paid in 1997 and the cost of a sizable remodeling in 2001. The deal closed last week, with the buyer acquiring a hilltop property with a picture-window view across the San Fernando Valley and a recently installed outdoor spa"
Continue...
posted by Little_Silvered at 11:05 PM
10 Comments:
We cashed out in Allenhurst last year (made 7x investment in 8 years) and downsized to a home 1 mile inland. As this crazy bubble continues we're contemplating selling this house and renting a beach front condo in Long Branch until the dust settles. I've noticed the same 5 homes in Allenhurst have been for sale for about 6 months or so.
One thing to remember about the high end homes in this area- alot of sales are done without realtors or with a certain realtor that does not list with MLS. We sold our house in one day with no realtor- much to their dismay.
How would you describe the buyers
in the area you sold ?
Speculators ? wealthy boomers ?
wall street type of people who refuse to put money in stock market ?
I think we are talking more than 1M
or even 2M price tag there isn't it ?
Polar bear-
If you are from Monmouth County you might be familiar with a particular sect of people that are from Brooklyn who have been purchasing homes in the Deal area since the '70's. They tend to be in the importing business and buy these shore homes without conventional mortgages. These homes are 3-4m- and they only use them 2 months of the year!!!! . I don't know where their money comes from. They need to walk to their houses of worship so they tend to buy in clusters very close to each other.
Polar bear-
I should clarify- when I said they do not use conventional mortgages, I didn't mean they're using I/O or ARMS,I'm saying they are not getting bank mortgages period. We all scratch our heads trying to figure out where they get that kind of capital. I've lived in the area since 1968 and I have noticed a very small turnover in these summer homes so I would not say they are speculators.
OK I didn't realize Allenhurst is close to Deal.
This might be somewhat isolated case.
I meant all shore towns in general which experienced huge run up in prices during the last few years from Atlantic Highlands to Cape May.
Are these all second homes bought by NYC and Phila people or there is actual increase in population/demographics shift ?
I believe alot of people from NYC and north Jersey are relocating here. I don't think they realise the expense and wear and tear to the body the commute to the city is. Except for a small group, I can't believe these sky high prices are not being financed by I/O's and ARMS. Monmouth County made the top 100 list of I/O loans with 14.3% of all loans being I/O's. That number was not nearly as high as CA with 47%.
I can't comment about southern Jersey but I don't see much flipping around here. What I do hear about is many long time residents tapping the new found equity in their homes. These loans were taken in the form of HELOCS and I think they're starting to squirm as the rates on these are starting to adjust up.
Anon,
what is your take on rent/mortgage payment ratio in shore towns ?
Is there any year-long tenants or general public is going with summer rentals only ?
I understand the summer rates might be higher, but do they cover mortgages yearly if there is no occupancy in the winter ?
There is one fella in the company I work for. He used to be IT consultant and now full time employee (meaning 30 to 50% pay cut, but he had to take it , there was no other option for him). I heard him complaining about 2 extra mortgage payments he has to make now (in addition to the house he lives in Bergen county he bought 2 houses down the shore). I know he uses one as weekend gateway place, not sure about the other one though.
Complaining, but not selling yet though.
Planning to sell at the top ? Go figure.
You write a good blog. I enjoyed looking around here. I'll be back for sure. Enjoy your front row seat for the bursting!
Polar bear-
The community I live in had no rentals in the past- although I have noticed 2 rental signs this week. The summer rentals are confined to Belmar, Bradley Beach, and a smattering in some other towns. Belmar historically would rent to 20 somethings that would get a crowd of people to all go in on the rent- resulting in loud raucous tenants. I have never had my pulse on the rental market in the area but I believe Belmar is still considered the "Bennies beach" where non year round residents go. But there has also been alot of beachfront housing that has been built in the last 5 years that are not rentals and carry heavy price tags.
The Jersey shore is a very peculiar place- each town has it's own reputation and cast of characters. The "beachers" in Union Beach are much different than the gentrified "Spring Lakers". Housing prices swing wildly between each municipality.
Hey "Little Silvered" thanks for the blog- I always check this out after the housingbubbleblog2.
The current mayor of Belmar is trying to make the town less like Sea Side and more like Avon. He seems to be cracking down on the bars, unlike mayors past. I guess if I lived there full time I would be happy, but if I was a landlord, I would not be so happy.
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