Housing Bubble Insanity
The Housing Bubble in this country has created some unusual situations --- like the $1 million dollar double-wide mobile home. Oft times referred to as being the home of 'trailer-trash,' I doubt anyone who befits that description could truly afford one at that price. After my own parents divorced in 1977, I lived in a double-wide mobile home for awhile. Not exactly what I would call QUALITY LIVING.
However . . .
As Lyndon LaRouche pointed out in his August 4, 2005 appearance on the JEFF RENSE SHOW:
"Now again, you have the housing crisis, which is about to blow in Austrailia and in New Zealand, but especially in the United Kingdom and the United States. You have houses that could go down to $200,000 which are now mortgaged at $1 million dollars . . ."
Those who do NOT understand that this is an essential consequence of this deliberately created bubble --- stand to lose nearly everything they own. Once these outrageous home prices correct themselves, the bank is not going to let the individual pay back only the $200,000 --- but will make them pay back the entire $1 million dollar mortgage. This has the effect of transferring even more wealth into the hands of the global elite, from out of the pockets of the so-called American middle-class.
Some people believe that these wildly inflated prices will be insulated from the housing crash, and I have been contacted by a few people who tell me that I am somehow mistaken about this matter. Every single one of them has a home mortgage, by the way. When the big hit comes, only those who own their homes outright will be safe.
I have included the following article from the August 2, 2005 Chicago Tribune, as it is a perfect example of how the madness of the housing bubble has effected housing prices. Anyone paying $1 million dollars for a mobile home that would sell anywhere else for $50,000 to $100,000 is completely insane --- and their bad decision will come to haunt them at the future time as such a market collapses.
Me? I'll stick with the home I have --- for it is paid for and no one is holding anything over my head --- I own it free and clear . . .
FOR SALE: TRAILER WITH OCEAN VIEW $1 MILLION
CHICAGO TRIBUNE - August 2, 2005
by Michael Martinez
MALIBU, Calif. - So wonderfully Californian, Marsha Weidman's home has it all - beside the beach, far from noisy traffic, with a Jacuzzi used to watch sunsets over the Pacific. For this, she and her husband recently paid $1.05 million.
For that, they got a trailer, built in 1971, without any land.
Plus, the family must pay "space rent," which at two Malibu parks dotted with seven-figure trailers ranges from $800 to $2,500 monthly.
The nation's frenzied housing boom has come to this: Even trailer parks, long the butt of jokes about tornado targets and redneck living, are enjoying fat greenback prices.
But, oh, what a mobile home it is, Weidman says.
"When people think of "mobile home,' they think of "trailer,' " said Weidman, a former attorney who is the mother of two teenagers. "Mobile homes aren't what they were. They're not the little 9-by-15s on wheels. These are homes."
Indeed, virtually all trailers in such developments are not mobile at all. Some are on permanent foundations; their nomad days are over.
Such units in the Florida Keys are seeing prices approaching a cool million, including one waterfront trailer on Stock Island next to Key West that's on the market for $799,000, said listing real estate agent Larry Salas, 47, of Miami. That price includes land, however.
"It's crazy because these trailers, before, they would be like a bad neighborhood. There was a stigma being in a trailer park," Salas said. "But here it's gone through such a metamorphosis."
The seven-digit prices, touching only those trailers parked permanently beside the sea, have made for giddy moments with neighbors such as George Keossaian, 46, whose wife and two children moved five years ago into the gated Point Dume Club mobile park where Weidman also lives.
The mobile home he bought for $140,000 then will be worth $950,000 once he completes an 800-foot addition, Keossaian says. A reappraisal this year assigned a $750,000 value to his home, which has no ocean view.
"When I first saw this, I said, "There's no way I'm living in a mobile home - trailer trash,' " said Keossaian, a contractor now rebuilding a nearby million-dollar mobile home overlooking famous Zuma Beach. "My wife said, "We live in a trailer!' I said, "If we build it to look like a house, will you stop calling it a trailer?' She doesn't call it a trailer any more."
Like other savvy owners seeking millionaire buyers, Keossaian's abode has been remodeled to resemble a Craftsmans bungalow, with stucco walls covering the trailer's steel chassis, hitch, brake lights and license plate holder.
When Weidman bought her double-wide, it already had been remodeled to evoke a cottage, with airy interior rooms illuminated by skylights, comfy outdoor wooden decks and a front-yard rose garden.
It's in the Point Dume Club, a 297-unit mobile park built in 1970 that resembles a subdivision with winding streets, a clubhouse with a pool and tennis and basketball courts, and a guard in an entrance booth.
More recently, several trailers have been razed and rebuilt with stylish architecture and custom finishes, including Viking stoves, Sub-Zero refrigerators, Swarovski crystal lighting and travertine floors.
For example, developer Janet Levine of Maliblue Holdings paid $790,000 for an old trailer and built a new structure, selling it for $1.75 million this year in Point Dume Club.
She's doing two more reconstructions just down the drive, including one three-decade-old trailer with surfboards stacked outside that she bought recently for $840,000 and will redevelop into a structure worth about $1.8 million. Another she bought for $800,000 will be listed for $1.6 million once it's redeveloped, she said. She is planning to install or has already built replacements with the architecture of traditional Japanese, 1960s Palm Springs and modern minimalist styles.
"We call them mobile villas," Levine said.
Still, they're all officially trailers, with occupants of the older units like Keossaian even cutting a $59 check yearly for state vehicle registration.
"If you were to ask longtime residents, they don't like it, they don't like the change," said Kirsten Ribnick, a mobile-home owner in Malibu and interior designer who has seen her business prosper thanks to new, well-to-do neighbors. "What do I think? I think it's great."
Despite extravagant makeovers, a giveaway is often a floor and front door always 3 feet above ground. Another telltale is a less-wealthy neighbor with horizontal metal or vinyl siding.
Despite the outrageous price tags, the domiciles are a bargain for their location, according to owners. A house similarly positioned in celebrity-chocked Malibu - close to the surf with views of coastal mountains - would cost tens of millions of dollars, they say.
"If you look at the view in my yard, you'd understand," Weidman said.
Caressed by cool breezes on a small bluff, her home suffers no obstructed views - just water, sand and hillside flora including jade, pine and rosemary. "That was the key reason for why what I spent," she said.
David Carter, a real estate agent specializing in Malibu's mobile-home market the past 20 years, said the first million-dollar sale of a motor home in the city came two years ago.
"There used to be only one or two," said Carter, 55. "We'll probably sell five or six in the million-dollar range this year. We've already sold three this year.
"We're just finding a lot of buyers who don't want to spend $10 million for a similar view and location for a house, so they will buy these beach homes for a second home."
The million-plus prices also are posted in Malibu's Paradise Cove, a trailer park beside a surfers' beach where the 1970s TV show "The Rockford Files" situated a ragtag trailer for James Garner's private eye character.
Cove resident Maggie Bright, 53, has put her family's double-wide up for sale for $875,000, and they plan to move to New Orleans, she said. Their coach sits six or seven trailers away from a bluff's rim with a commanding view of the coast.
She and her husband bought the 1,300-square-foot trailer for $159,000 five years ago and spent $45,000 remodeling the three-decade-old coach with high-end appliances, skylights and tile, Bright said. "Malibu has really gone nuts, as has most of California," she said.
Securing a mortgage for such high-end mobile homes can be difficult, but Clay Dickens, 45, vice president of Community West Bank in Goleta, Calif., has made a niche out of lending to mobile-home buyers, extending $100 million in such loans the past seven years, he said.
"It's an unusual thing. There's no title to it. You're kind of lending somewhat - most banks don't like the verbiage - on blue sky," said Dickens, a native of Chicago.
SOURCE:
The following source was used in the preparation of this Kentroversy Paper . . .
FOR SALE: TRAILER WITH OCEAN VIEW $1 MILLION
housing bubble
home mortgage
financial crash
bankruptcy
suburbia
However . . .
As Lyndon LaRouche pointed out in his August 4, 2005 appearance on the JEFF RENSE SHOW:
"Now again, you have the housing crisis, which is about to blow in Austrailia and in New Zealand, but especially in the United Kingdom and the United States. You have houses that could go down to $200,000 which are now mortgaged at $1 million dollars . . ."
Those who do NOT understand that this is an essential consequence of this deliberately created bubble --- stand to lose nearly everything they own. Once these outrageous home prices correct themselves, the bank is not going to let the individual pay back only the $200,000 --- but will make them pay back the entire $1 million dollar mortgage. This has the effect of transferring even more wealth into the hands of the global elite, from out of the pockets of the so-called American middle-class.
Some people believe that these wildly inflated prices will be insulated from the housing crash, and I have been contacted by a few people who tell me that I am somehow mistaken about this matter. Every single one of them has a home mortgage, by the way. When the big hit comes, only those who own their homes outright will be safe.
I have included the following article from the August 2, 2005 Chicago Tribune, as it is a perfect example of how the madness of the housing bubble has effected housing prices. Anyone paying $1 million dollars for a mobile home that would sell anywhere else for $50,000 to $100,000 is completely insane --- and their bad decision will come to haunt them at the future time as such a market collapses.
Me? I'll stick with the home I have --- for it is paid for and no one is holding anything over my head --- I own it free and clear . . .
FOR SALE: TRAILER WITH OCEAN VIEW $1 MILLION
CHICAGO TRIBUNE - August 2, 2005
by Michael Martinez
MALIBU, Calif. - So wonderfully Californian, Marsha Weidman's home has it all - beside the beach, far from noisy traffic, with a Jacuzzi used to watch sunsets over the Pacific. For this, she and her husband recently paid $1.05 million.
For that, they got a trailer, built in 1971, without any land.
Plus, the family must pay "space rent," which at two Malibu parks dotted with seven-figure trailers ranges from $800 to $2,500 monthly.
The nation's frenzied housing boom has come to this: Even trailer parks, long the butt of jokes about tornado targets and redneck living, are enjoying fat greenback prices.
But, oh, what a mobile home it is, Weidman says.
"When people think of "mobile home,' they think of "trailer,' " said Weidman, a former attorney who is the mother of two teenagers. "Mobile homes aren't what they were. They're not the little 9-by-15s on wheels. These are homes."
Indeed, virtually all trailers in such developments are not mobile at all. Some are on permanent foundations; their nomad days are over.
Such units in the Florida Keys are seeing prices approaching a cool million, including one waterfront trailer on Stock Island next to Key West that's on the market for $799,000, said listing real estate agent Larry Salas, 47, of Miami. That price includes land, however.
"It's crazy because these trailers, before, they would be like a bad neighborhood. There was a stigma being in a trailer park," Salas said. "But here it's gone through such a metamorphosis."
The seven-digit prices, touching only those trailers parked permanently beside the sea, have made for giddy moments with neighbors such as George Keossaian, 46, whose wife and two children moved five years ago into the gated Point Dume Club mobile park where Weidman also lives.
The mobile home he bought for $140,000 then will be worth $950,000 once he completes an 800-foot addition, Keossaian says. A reappraisal this year assigned a $750,000 value to his home, which has no ocean view.
"When I first saw this, I said, "There's no way I'm living in a mobile home - trailer trash,' " said Keossaian, a contractor now rebuilding a nearby million-dollar mobile home overlooking famous Zuma Beach. "My wife said, "We live in a trailer!' I said, "If we build it to look like a house, will you stop calling it a trailer?' She doesn't call it a trailer any more."
Like other savvy owners seeking millionaire buyers, Keossaian's abode has been remodeled to resemble a Craftsmans bungalow, with stucco walls covering the trailer's steel chassis, hitch, brake lights and license plate holder.
When Weidman bought her double-wide, it already had been remodeled to evoke a cottage, with airy interior rooms illuminated by skylights, comfy outdoor wooden decks and a front-yard rose garden.
It's in the Point Dume Club, a 297-unit mobile park built in 1970 that resembles a subdivision with winding streets, a clubhouse with a pool and tennis and basketball courts, and a guard in an entrance booth.
More recently, several trailers have been razed and rebuilt with stylish architecture and custom finishes, including Viking stoves, Sub-Zero refrigerators, Swarovski crystal lighting and travertine floors.
For example, developer Janet Levine of Maliblue Holdings paid $790,000 for an old trailer and built a new structure, selling it for $1.75 million this year in Point Dume Club.
She's doing two more reconstructions just down the drive, including one three-decade-old trailer with surfboards stacked outside that she bought recently for $840,000 and will redevelop into a structure worth about $1.8 million. Another she bought for $800,000 will be listed for $1.6 million once it's redeveloped, she said. She is planning to install or has already built replacements with the architecture of traditional Japanese, 1960s Palm Springs and modern minimalist styles.
"We call them mobile villas," Levine said.
Still, they're all officially trailers, with occupants of the older units like Keossaian even cutting a $59 check yearly for state vehicle registration.
"If you were to ask longtime residents, they don't like it, they don't like the change," said Kirsten Ribnick, a mobile-home owner in Malibu and interior designer who has seen her business prosper thanks to new, well-to-do neighbors. "What do I think? I think it's great."
Despite extravagant makeovers, a giveaway is often a floor and front door always 3 feet above ground. Another telltale is a less-wealthy neighbor with horizontal metal or vinyl siding.
Despite the outrageous price tags, the domiciles are a bargain for their location, according to owners. A house similarly positioned in celebrity-chocked Malibu - close to the surf with views of coastal mountains - would cost tens of millions of dollars, they say.
"If you look at the view in my yard, you'd understand," Weidman said.
Caressed by cool breezes on a small bluff, her home suffers no obstructed views - just water, sand and hillside flora including jade, pine and rosemary. "That was the key reason for why what I spent," she said.
David Carter, a real estate agent specializing in Malibu's mobile-home market the past 20 years, said the first million-dollar sale of a motor home in the city came two years ago.
"There used to be only one or two," said Carter, 55. "We'll probably sell five or six in the million-dollar range this year. We've already sold three this year.
"We're just finding a lot of buyers who don't want to spend $10 million for a similar view and location for a house, so they will buy these beach homes for a second home."
The million-plus prices also are posted in Malibu's Paradise Cove, a trailer park beside a surfers' beach where the 1970s TV show "The Rockford Files" situated a ragtag trailer for James Garner's private eye character.
Cove resident Maggie Bright, 53, has put her family's double-wide up for sale for $875,000, and they plan to move to New Orleans, she said. Their coach sits six or seven trailers away from a bluff's rim with a commanding view of the coast.
She and her husband bought the 1,300-square-foot trailer for $159,000 five years ago and spent $45,000 remodeling the three-decade-old coach with high-end appliances, skylights and tile, Bright said. "Malibu has really gone nuts, as has most of California," she said.
Securing a mortgage for such high-end mobile homes can be difficult, but Clay Dickens, 45, vice president of Community West Bank in Goleta, Calif., has made a niche out of lending to mobile-home buyers, extending $100 million in such loans the past seven years, he said.
"It's an unusual thing. There's no title to it. You're kind of lending somewhat - most banks don't like the verbiage - on blue sky," said Dickens, a native of Chicago.
SOURCE:
The following source was used in the preparation of this Kentroversy Paper . . .
FOR SALE: TRAILER WITH OCEAN VIEW $1 MILLION
housing bubble
home mortgage
financial crash
bankruptcy
suburbia
posted by Kentroversy at 7:41 PM
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