This Is Brutal

[timd354]

West Coast vs East Coast

That's not it...the DC area where this property is located is doing fine, however, as Flacco pointed out, this property was an over-improvement for that location. There are plenty of places in N. Virginia where that house would not have been an over-improvement, but Clifton is not one of them.

By the way, we track a lot of markets and as I am sure that you, the state of CT is one of the weakest markets...the taxation and business policies of that state are successfully driving away wealth, jobs and capital

 

[Digger88]

so who lost the $2 million? the owner or some bank (and its taxpayers)

from the transaction history the owner took the hit. OTM 1,358 days.

 

[timd354]

Obviously somebody in 2005 thought it was a good idea to pay $4 million for a property in Clifton. Anybody that is spending that kind of money today is only looking in McLean or Great Falls. Those buyers would not consider Clifton. Anyways, that property is good data for somebody that ends up appraising a house like that not located in McLean or Great Falls.

The graphic below tells you all you need to know. These are homes currently for sale for >$3.5 million in the DC area....Clifton is at the lower left of the map, miles from the very wealthy areas of NW DC, Great Falls and McLean, VA and Bethesda, MD and Potomac, MD

 

[The Warrior Monk]

I've seen a few situations out in the county I work. Not out in the Hamptons, but in the rest of the county, and usually one of the more expensive homes in a particular area. A recent one was still 30% off peak. In many of these projects, and notable commonality is that there is a notable difference in the land value of these properties post-peak.

 

[Mr Rex]

Anybody else wonder what values are going to look like after the inevitable "Great Correction" when the Feds and the government let capitalist market concepts take over setting interest rates?

 

[jay trotta]

That's not it...the DC area where this property is located is doing fine, however, as Flacco pointed out, this property was an over-improvement for that location. There are plenty of places in N. Virginia where that house would not have been an over-improvement, but Clifton is not one of them.

By the way, we track a lot of markets and as I am sure that you, the state of CT is one of the weakest markets...the taxation and business policies of that state are successfully driving away wealth, jobs and capital

Interesting Governing we have here, and appears to get better each year..............

 

[BNICK]

Taxes are creating an inverse relationship to value here in Illinois. As taxes go up exponentially to the overall economy , properties fall in value, or should I say what the market will support.This is especially the case with higher end properties here in Illinois.However this is now spilling over to the mid market and entry level priced homes here in Illinois ,and unfortunately is accelerating over the last two years.Homeowners want to know why their homes have not appreciated since 2013, I tell them to look at the tax bills.

 

[Riick]

Homeowners want to know why their homes have not appreciated since 2013, I tell them to look at the tax bills.

People are denser than you might think.
Was at a pretty nice 1250 sq.ft condo the other day, where sale price was well under $80k.
R.E. Tax runs about $300/mo, Condo fee is over $750/mo.
There's also a city wage/income tax.
....and residents in the building cry & wonder *why* their property values are so low.

 

[TRESinc]

People are denser than you might think.
Was at a pretty nice 1250 sq.ft condo the other day, where sale price was well under $80k.
R.E. Tax runs about $300/mo, Condo fee is over $750/mo.
There's also a city wage/income tax.
....and residents in the building cry & wonder *why* their property values are so low.

there are a couple high-rise (25+ floors) condo buildings that are similar to that. units sell for $15k-$150k but the monthly fees are in excess of $1000. the upside is that the fee includes all utilities and cable, but it's still a giant ripoff. one building had a restaurant on the ground floor that folded and their share of the monthly fees (think of it as a commercial condo in the building) were then split equally among all the residents. needless to say people were not happy.

 

[Riick]

the fee includes all utilities and cable

That's where the problem is. Those buildings were built as apartments when fuel oil was 12-15 cents a gallon.
From experience I can tell you that when tenants (and condo owners) believe it's all included, and they've already paid for it, they want to get their money's worth. They'll forget to turn off lights, run the electric dryer for an hour instead of 20 minutes. If the apartment is too hot in January, they'll open the windows, and in July, why should they draw the shades on the sunny side of the apartment when it's sweltering outside?

As inefficient as it is to have 100+ small heat + a/c units, will bet their total monthly costs will be lower when they control things.
Breaking out the utilities and installing individual heat-pumps might cost $20-$30k a unit (??)
but my guess is that their individual property values would increase 1.5x-2x the cost.