Home Values

[KnappShack]

I haven't actually - so serious question.
I realize everything is expensive though - so question is i guess if its mainly the lot/space that is appreciating or the actual home... because given the costs of raw materials/transportation costs - should be some healthy margins in new home building.

The margins are in high end building for SFR and multi-unit properties.

Orange county is sticking large apartment complexes on just about every piece of land they can. Many times luxury apartment complexes too.

There is a squeeze there for sure.....which helps drive up prices. You can't just knock over some corn to plop down a couple of homes

 

[cycfan1]

The margins are in high end building for SFR and multi-unit properties.

Orange county is sticking large apartment complexes on just about every piece of land they can. Many times luxury apartment complexes too.

There is a squeeze there for sure.....which helps drive up prices. You can't just knock over some corn to plop down a couple of homes

Thanks. Makes you wonder the potential game changing effects to real estate if a hyperloop is ever feasible in CA

 

[Clone83]

Economist Thomas Sowell also attributes restrictive zoning regulations in the Bay area:
https://www.google.com/search?ei=IH...0....0...1..64.psy-ab..0.0.0....0.u6ybumYTvps

. . . which tends to leave the higher income areas to the higher income and the poor.

 

[capitalcityguy]

Sadly we are creating the next housing bubble.

It almost like we never learned anything from history.

Just protect yourself and don’t fall into the old traps that your trusted uncle ( and every special interest group tied into construction/real estate) is probably still advocating.

• Buy as much house as you can afford
• Buying always makes more sense than renting
• Your house will be your biggest INVESTMENT (cap for emphasis)

If someone is still spewing these lines to you still in this day and age, smile and walk away. Find another source for financial/housing advice.

https://www.strongtowns.org/journal/2016/4/18/this-time-is-different?rq=housing bubble

 

[sunset]

I haven't actually - so serious question.
I realize everything is expensive though - so question is i guess if its mainly the lot/space that is appreciating or the actual home... because given the costs of raw materials/transportation costs - should be some healthy margins in new home building.

It's both. The 8,000sf lot across the street from us, in a neighborhood developed in the 1950's this lot somehow remained vacant, sold last year for $600k. If you want to add on or remodel by the books, it is going to cost you a lot more than it would in Iowa. California loves regulations and every stage of government has a personal vendetta against your bank account. Contractors that play by the rules have a lot of overhead.

 

[Cyclone.TV]

My much bigger home in Chicago was much much cheaper than the condo I sold in California.

Location. Supply. Demand. Access to financing.

Watch loan default rates. Right now loans are still performing. I've seen some choppiness in performance, but it doesn't seem to be a red flag yet.

If that canary in the coal mine dies.....

If you want to go where homes don't appreciate then move to Chicago. The real estate market here is still pretty flat

Uhhh that is condo vs home. Totally different.

 

[Cyclone.TV]

When you make outlandish statements, you should provide a link.

LOOK IT UP YOURSELF YOU LAZY ASS

 

[NWICY]

Best way to do this is to work for the California tech company and get placed in the Midwest for them, know some people who have done that it works out very well. Darn close to California wages and Midwest expenses, plus a work trip to Cali every so often.

 

[ArgentCy]

An 800K burned down, fixer-upper for anyone interested:





Read more here: http://www.sacbee.com/news/state/california/article208596279.html#storylink=cpy

Obviously it's the land value that you are buying.

 

[Stewo]

LOOK IT UP YOURSELF YOU LAZY ASS

Fine. But I'll remember this.

 

[isufbcurt]

My garage is 720sq ft and is where I am most of the time while I'm home.

You need a upgrade. 1,680 reporting in here.

 

[Cyclone.TV]

You need a upgrade. 1,680 reporting in here.

Lots of storage for those cargo pants.

 

[3TrueFans]

You need a upgrade. 1,680 reporting in here.

 

[CtownCyclone]

Lots of storage for those cargo pants.

Shorts. Cargo SHORTS.

 

[Cyclone.TV]

Shorts. Cargo SHORTS.

You trying to tell me he doesn’t own a pair of cargo pants?

 

[KnappShack]

Uhhh that is condo vs home. Totally different.

Care to clarify or do you just want to leave that confusing statement to twist in the wind?

My SFR in Chicago was cheaper than my condo because it is a single family residence?

 

[BillBrasky4Cy]

You trying to tell me he doesn’t own a pair of cargo sweats?

FIFY

 

[cycloneG]

You trying to tell me he doesn’t own a pair of cargo pants?

Curt supports the entire cargo pocket industry. Where else is he supposed to store his tots?

 

[Cyclone.TV]

Care to clarify or do you just want to leave that confusing statement to twist in the wind?

My SFR in Chicago was cheaper than my condo because it is a single family residence?

Oh boy.

 

[ArgentCy]

Economist Thomas Sowell also attributes restrictive zoning regulations in the Bay area:
https://www.google.com/search?ei=IH...0....0...1..64.psy-ab..0.0.0....0.u6ybumYTvps

. . . which tends to leave the higher income areas to the higher income and the poor.

These very restrictive zoning requirements create build able and density of the building problem This has distorted the markets and created land scarcity.

In addition, I think the California property taxes have also contributed to the problems. They only reassess properties when they SELL. Otherwise its limited to 2% MAX increase each year. Therefore, those who have owned homes since the law was enacted (70's or 80's I believe) they are vastly underpaying property taxes. The assessed values are going to be far less than market values. So you've created a large incentive for these people to not SELL their homes and therefore exacerbates the scarcity of supply.