• A Worrisome Pileup of $100 Million Homes
    41 replies, posted
[quote]The listing is part of a global pileup of homes listed for $100 million or more. A record 27 properties with nine-figure prices are officially for sale, according to Christie’s International Real Estate. That is up from 19 last year and about a dozen in 2014. If you add in high-priced “whisper listings” that are offered privately, brokers say the actual number of nine-figure listings worldwide could easily top 40 or 50.[/quote] (...) [quote]The rise in nine-figure real estate listings comes just as sales of luxury real estate have cooled. Many say the sudden surge in hyperprice homes — often built and sold by speculative investors — is the ultimate bubble signal. “When you have a record number of homes for sale at a price point of $100 million or more, that tells you these homes aren’t selling,” said Jonathan Miller, president of Miller Samuel Inc., a real estate appraisal and research firm. “It’s not as deep a market as some might hope.” Last year, only two homes in the world sold for over $100 million, according to Christie’s. One was a 9,455-square-foot house in Hong Kong purchased for $193 million by Jack Ma, the chief of Alibaba. The other was a townhouse in London that sold for $132 million. This year, a ranch in Texas went on the market for $700 million and a home in Dallas listed for $100 million. Both sold, but the actual sale prices have not been disclosed.[/quote] source: [url]http://www.nytimes.com/2016/05/29/business/a-worrisome-pileup-of-100-million-homes.html[/url]
A lot of these 100 mil+ homes aren't even that interesting looking. Just big sprawling boxes, with expensive goodies and tasteless architecture/layout. Who would want to live in one of those?
If they're piling up then they are asking too much for them.
Between things like this and things like "rocket loans," it's a real damn shame that it appears we didn't learn anything from 2008
[QUOTE]The last time a sudden pop in $100 million-plus listings occurred was in 2007 and 2008, just before the housing crash. [/QUOTE] Please no, I don't want myself, my sister or my friends come out of uni into a recession.
Everyone's worried they'll get embarrassed by Notch outbidding them
[QUOTE=NeonpieDFTBA;50414006]Please no, I don't want myself, my sister or my friends come out of uni into a recession.[/QUOTE] A recession has been building for a while driven by ultra-low interest rates. Nobody learnt from the last recession; instead of fixing or breaking up failing businesses most countries threw money at them allowing them to make the same mistakes.
I kinda like the Micheal Jackson one, wouldn't live in it though.
[QUOTE=nintenman1;50413868]A lot of these 100 mil+ homes aren't even that interesting looking. Just big sprawling boxes, with expensive goodies and tasteless architecture/layout. Who would want to live in one of those?[/QUOTE] Exactly. You can spend 1/50th of the amount and get a nice secluded waterfront space somewhere nice in the southern hemisphere.
[QUOTE=download;50414066]A recession has been building for a while driven by ultra-low interest rates. Nobody learnt from the last recession; instead of fixing or breaking up failing businesses most countries threw money at them allowing them to make the same mistakes.[/QUOTE] Oh I know it's likely, just can it not come at awful timing for me lol
[QUOTE=download;50414066]A recession has been building for a while driven by ultra-low interest rates. Nobody learnt from the last recession; instead of fixing or breaking up failing businesses most countries threw money at them allowing them to make the same mistakes.[/QUOTE] ... Except the last recession was caused not by lazy of babied businesses - we even had a decent interest rate mind you - but by the US housing market crash. The real estate companies were selling homes to people with shit credit and KNEW that they could never pay for those homes. And as they say, when the US sneezes, the rest of the world catches a cold. The businesses that suffered the most were the ones that had the worst practices, as it always goes however. When these giant $100,000,000+ homes, traditionally bought and sold regularly as investments, stop selling it is more indicative that investors have lower confidence than they used to. [editline]29th May 2016[/editline] Right now it is probably because most countries outside of the US are doing shite with their economy. The US job market is the strongest it has been in, well, god knows how long, but the global economy is getting some real scares with countries like fucking CHINA (of all places) seeing their growth shrink. It is a little bit scary.
[QUOTE=nintenman1;50413868]A lot of these 100 mil+ homes aren't even that interesting looking. Just big sprawling boxes, with expensive goodies and tasteless architecture/layout. Who would want to live in one of those?[/QUOTE] I would.
[QUOTE=nintenman1;50413868]A lot of these 100 mil+ homes aren't even that interesting looking. Just big sprawling boxes, with expensive goodies and tasteless architecture/layout. Who would want to live in one of those?[/QUOTE] I know I'm a hermit outliner that doesn't give a shit about socializing, but if I really had enough money to blow 100+ million dollars on a home, I'd want something fantastical and [I]away[/I] from everyone else. Anyone remember the [URL="https://www.google.com/search?tbm=isch&q=the+haunting+1999+house&spell=1&sa=X&ved=0ahUKEwjs2KKmy4DNAhUQzGMKHfnOByMQBQgvKAA&dpr=1&biw=1112&bih=938"]house from The Haunting (99)[/URL]? I'd [I]love[/I] to live in something like that. [img]https://pearsonhomemovingreview.files.wordpress.com/2012/04/harlaxton-manor-front-view.jpg[/img]
[QUOTE=icarusfoundyou;50414128]Exactly. You can spend 1/50th of the amount and get a nice secluded waterfront space somewhere nice in the southern hemisphere.[/QUOTE] Hahahaha Of all the guys to say this...someone living in ME. Damn it. Just dont do it in Chile. you can have our side of the patagonia, but dont overcrowd the chilean side.4 EDIT: I would rather have all that money spent into a small cabin or house, in front of a lake in the Chilean patagonia. All that money would go to the best materials, double glass windows so as to save energy, solar panels. You know, have the house fully techie. A 21st century house. [IMG]https://imagesus-ssl.homeaway.com/mda01/97919416-d49a-46c1-be8a-5aab05988ee7.1.10[/IMG] I hope I can get this in 7 years. Austria, Switzerland or Germany.
[QUOTE=Cutthecrap;50418437] EDIT: I would rather have all that money spent into a small cabin or house, in front of a lake in the Chilean patagonia. All that money would go to the best materials, double glass windows so as to save energy, solar panels. You know, have the house fully techie. A 21st century house. I hope I can get this in 7 years. Austria, Switzerland or Germany.[/QUOTE] Housing prices are insane in those three countries, you're going to need A LOT of cash just for the ground let alone building a house. Its why most people rent. Theres funds where people invest for x years to buy off a piece of land. It's not like the America's where we have more land than we know what to do with. To put it in perspective you have to rent out graves in Germany.
[QUOTE=NeonpieDFTBA;50414006]Please no, I don't want myself, my sister or my friends come out of uni into a recession.[/QUOTE] Well the good news is these aren't being financed, theyre being bought outright so that's a huge difference The bad news is that these massive property bubbles are being mostly caused by foreign investors who are dumping their money into property as a hedge, even as the markets they're in bottom out If these houses loose value then billionaires around the world loose value, which I'm not exactly sure how that affects the US economy but China having its nouveau wealth go bankrupt would be bad
i'm just hoping that by the time i'm maybe looking to buy a house i can get some cheap property with lots of land out in the sticks, probably going to have to live in montana to get that, though
[QUOTE=Axznma;50418427]I know I'm a hermit outliner that doesn't give a shit about socializing, but if I really had enough money to blow 100+ million dollars on a home, I'd want something fantastical and [I]away[/I] from everyone else. Anyone remember the [URL="https://www.google.com/search?tbm=isch&q=the+haunting+1999+house&spell=1&sa=X&ved=0ahUKEwjs2KKmy4DNAhUQzGMKHfnOByMQBQgvKAA&dpr=1&biw=1112&bih=938"]house from The Haunting (99)[/URL]? I'd [I]love[/I] to live in something like that. [img]https://pearsonhomemovingreview.files.wordpress.com/2012/04/harlaxton-manor-front-view.jpg[/img][/QUOTE] That's a university though.
[QUOTE=icarusfoundyou;50414128]Exactly. You can spend 1/50th of the amount and get a nice secluded waterfront space somewhere nice in the southern hemisphere.[/QUOTE] southern hemisphere is a great place if you want to survive a nuclear war [t]http://i.imgur.com/iziChIa.png[/t]
Maps with no keys mean nothing.
[QUOTE=ForgottenKane;50414208]... Except the last recession was caused not by lazy of babied businesses - we even had a decent interest rate mind you - but by the US housing market crash. The real estate companies were selling homes to people with shit credit and KNEW that they could never pay for those homes. And as they say, when the US sneezes, the rest of the world catches a cold. The businesses that suffered the most were the ones that had the worst practices, as it always goes however. [/QUOTE] Interest rates are supposed to represent the risk of a loan, both from the perspective of the person getting the loan and the current market conditions. Those people should never have gotten a loan at those (then) low 5 to 10% interest rates. Also the real estate companies have absolutely nothing to do with giving out homes loans; that's the job of banks - too is it their job to make sure the person they're loaning to is financially responsible enough for the loan. Governments world-wide have artificially reduced interest rates by injecting cash into the market. This enables floundering businesses to stay afloat by taking out low cost loans. The government then pass this problem over to the next government who want to pass it on to the next before it explodes in their faces.
[QUOTE=ScottyWired;50419169]southern hemisphere is a great place if you want to survive a nuclear war [t]http://i.imgur.com/iziChIa.png[/t][/QUOTE] No thanks, I saw On The Beach, I don't want to have to deal with that...
[QUOTE=Ridge;50419656]No thanks, I saw On The Beach, I don't want to have to deal with that...[/QUOTE] Well shit. I'd never heard of it before but the wikipedia plot summary is chilling enough
[QUOTE=Lone Wolf807;50419454]Maps with no keys mean nothing.[/QUOTE] Looks to be countries who have access to nuclear weapons.
[QUOTE=Lone Wolf807;50418516]Housing prices are insane in those three countries, you're going to need A LOT of cash just for the ground let alone building a house. Its why most people rent. Theres funds where people invest for x years to buy off a piece of land. It's not like the America's where we have more land than we know what to do with. To put it in perspective you have to rent out graves in Germany.[/QUOTE] Actually it's rather cheap in Germany, especially for a western European country
[QUOTE=Firewarrior;50421473]Actually it's rather cheap in Germany, especially for a western European country[/QUOTE] It depends, but afaik I really wouldn't call it 'cheap' by any stretch :v: It might be affordable depending on the location though, relatively speaking.
[QUOTE=Lone Wolf807;50418516]Housing prices are insane in those three countries, you're going to need A LOT of cash just for the ground let alone building a house. Its why most people rent. Theres funds where people invest for x years to buy off a piece of land. It's not like the America's where we have more land than we know what to do with. To put it in perspective you have to rent out graves in Germany.[/QUOTE] Plan B: I will move to brandenburg. I have checked the prices in dollars and its quite similar to some areas of the conurbano. Houses already built I mean. If I land a decent job or save some money before going to Germany, I could ask for a credit and buy one of those ex gdr abandoned houses (theres this map with prices in colors, and almost all the gdr is blue -cheap-) and repair it. That would take consiserably longer. Idgaf about anything else. I really really do want to live in germany. As a last resort, Ive got those german towns in Argentina and Southern Brasil. But they re not the real deal
[QUOTE=nintenman1;50413868]A lot of these 100 mil+ homes aren't even that interesting looking. Just big sprawling boxes, with expensive goodies and tasteless architecture/layout. Who would want to live in one of those?[/QUOTE] The housing market around here is also fucked. There was talk years ago about us losing the local air force base, but once it was decided that it would stay, AND be re-fitted/upgraded for Spec Ops, housing prices shot through the roof because the local real-estate barons could smell that delicious government housing allowance, and as a result dozens (if not hundreds) of cookie-cutter housing developments popped up. And they all look like nice houses... From the outside. Once you start investigating how they're built (rather thrown together, improperly-sized AC/Heating, etc.), you start wondering if that house is worth anything near the $300,000+ price-tag they put on it. And rentals? We're a broke-ass town, and people are still renting out houses in the bad parts of town (which are also typically rather old and run-down, out-dated wiring, etc.) for $1200+ a month for 2 bedroom homes with fuckin' bullet holes in the walls. Makes no sense.
[QUOTE=Tamschi;50422244]It depends, but afaik I really wouldn't call it 'cheap' by any stretch :v: It might be affordable depending on the location though, relatively speaking.[/QUOTE] Germany is incredibly cheap in terms of rent tbh. Even moreso with the average wages considered.
[QUOTE=Cutthecrap;50418437]Hahahaha Of all the guys to say this...someone living in ME. Damn it. Just dont do it in Chile. you can have our side of the patagonia, but dont overcrowd the chilean side.4 EDIT: I would rather have all that money spent into a small cabin or house, in front of a lake in the Chilean patagonia. All that money would go to the best materials, double glass windows so as to save energy, solar panels. You know, have the house fully techie. A 21st century house. [IMG]https://imagesus-ssl.homeaway.com/mda01/97919416-d49a-46c1-be8a-5aab05988ee7.1.10[/IMG] I hope I can get this in 7 years. Austria, Switzerland or Germany.[/QUOTE] I have a special fondness for A-frame houses.
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