It just so happens that I have a tent for sale on 1/2 acre on the beach in Malibu. It's yours for $1,200,000.
Believe I'd buy me a lot and a trailer in Bakersfield for about $50,000. Pocket the $1,350,000 and vacation in Malibu!!
On average, since last 30 years nationwide, if we reduce 3% for inflation, then real estate home investments have returned only .5% i.e. half percent annually. While last 5-10 years have been truly hot in LA and NY area, but that is a part of sector rotation challenge. Each asset class heats up at some point and then goes into dormancy. If folks have made 100% in last 5 years in their real estate investments, then it might be the time to lighten up, no asset class can sustain those rates year after year.
That's it...I'm gonna take my Dad's 20 year old Winnebago, park it on a rented lot for $2700/mth and list it with that coldwell banker realtor for $500,000. Exclusive offer for ET members only, mention you seen the ad at ET and I'll throw in a free hibachi barbeque
This is utter insanity. I can at least somewhat understand the factors behind skyrocketing prices for condominiums, houses and land, but it just blows me away that a reasonable person would drop $1.3 mill on a friggin' trailer that isn't a permanent structure (not to mention that it's on land that you have to bloody well rent for $2700 per month???). Is the hot chick that you pick up at a bar going to like you any better when you assure her that your trailer is worth a cool mill or two? Don't get me wrong, I don't look down on those that aren't as well off as others, but a trailer for me is the definition of low cost housing, something that you deliberately buy because you have a low income household. A $1.3 mill trailer in Malibu seems like an oxy moron to me...
I think if you pay $1.4 million for a mobile home you should get a life time supply of wife beater t-shirts too.
I'd like to see an episode of COPS in malibu. I can picture it now, the police arresting the shirtless Cletus for beating up his wife in the yard of his $1mm trailer.