Slums in Oakland selling at 50% premiums

Discussion in 'Wall St. News' started by Maverick74, Apr 20, 2017.

  1. Ridiculous

    Wow, only $6400 in taxes on a 2.3MM property? Why so low? Is that normal?
    I pay $31,000/year on a similar priced home :vomit:
     
    #11     Apr 20, 2017
  2. Taxes are relative to the city/state/province. What city? Florida is even worst for non-resident aka snowbird pay 2% of annual appraised value. I read somewhere Vancouver will implement similar property tax system to curb wealthy foreign investors.
     
    #12     Apr 20, 2017
  3. Zzzz1

    Zzzz1

    Exactly my point and a big reason I decided to stick around HK for a few more years to earn capital gains tax free while waiting for the next real estate crash in Canada and/or US before buying and migrating.

    The the house in the OP, again, I would really like to see the type of people who lined up to buy. Maybe it's just a very convenient location to re-package large drug shipments from Mexico and cartel reps all lined up to snap up that "great deal" ;-)
     
    #13     Apr 20, 2017
  4. Zzzz1

    Zzzz1

    You are comparing a 1 br shit shack in Oakland with a property that lies in a pretty desirable area of Vancouver, one of the most desirable cities on earth to live in. How more apples and oranges can it get?

     
    Last edited: Apr 20, 2017
    #14     Apr 20, 2017
  5. Zzzz1

    Zzzz1

    31k per year in property taxes on a 2mln home? Holy goodness, thats more than what you pay in rent for similarly priced homes in most cities. Whats the point of ownership then?


     
    #15     Apr 20, 2017
  6. Well that was once a decrepit area in vancouver. If everyone thought like that, all renovated areas wouldn't exist. That's what separates you from real estate investors. Imagine buying up south beach real estate back in the early 80s. If that's before your lifetime, you wouldn't understand, just listen...
     
    #16     Apr 20, 2017
  7. zdreg

    zdreg

    greater fool theory is alive and well. it probably is a sign of a top in the real estate market.
     
    #17     Apr 20, 2017
  8. Zzzz1

    Zzzz1

    well, partly fair, partly not: Charging more for fixing homes and for a revived neighborhood is ok. Charging out of the world prices for properties that have a much lower fair value is for the dumb or impatient. I think one of the worst misnomers is the statement that "it is worth what the market pays". Same in trading. Yes it is absolutely correct at the very point the transaction occurs. But not true at all a day or month or year after. In the long-term market prices revert to fair value. Equating fair value with transacted prices could not be more wrong.

    Paying 755k for a shitty dog shack in Oakland, one of the worst places on earth to live, is highway robbery no matter how you turn it. Its far removed from fair value. And it is a clear indication of an overpriced market. Only dumb people pay inflated prices regardless of whether they think prices go up further or not.

     
    #18     Apr 20, 2017
  9. Do you know the buyer personally? You are assuming the buyer has the same amount of capital as yourself and plans on living in it. lol
     
    #19     Apr 20, 2017
  10. Zzzz1

    Zzzz1

    that point is kind of nonsense. Buffet has all the money in the world and does not pay inflated prices. He looks for bargain values. So should intelligent human beings. Only those who know they are sitting on a secret gold mine would ordinarily pay a huge premium over fair value. Or of course the greedy and dumb who usually go bust every cycle.

     
    #20     Apr 20, 2017