From the WSJ:
The New Math of Renting vs. Buying
Buying a home has long been part of the American dream. But rising prices have made renting less expensive in many places.
People often aspire to own a home for reasons that have little to do with money, and rental options are limited in some communities. Yet owning property can limit your flexibility to move when you want and ties up a lot of your money.
…
The monthly cost of renting was lower than buying in 20 large metropolitan areas at the end of last year, the most recent period for which data are available, according to figures provided exclusively to The Wall Street Journal by Deutsche Bank. That is up from 15 large metropolitan areas a year earlier.The bank calculates the costs in 54 markets based on average local rents and median home-sale prices, which it uses to estimate monthly mortgage payments for a hypothetical buyer in the 25% federal income-tax bracket.
Renting had been less expensive than buying on average across all the areas Deutsche Bank tracks since at least the early 1990s. But that changed during the financial crisis, as home prices plummeted and interest rates on mortgages dropped. The current rally in home prices appears to be pushing the housing market back toward the historical norm.
…
Many Americans see buying a home as an essential step in a successful life, and owning one can bring significant financial benefits.The most obvious upside is that a home can significantly increase in value. The median sales price of existing single-family homes rose 81% from 1993 through 2013, according to the NAR.
The potential payoff can loom large in a buyer’s mind when home prices are going up rapidly, as they have recently. “We’ve already seen six to seven years of normal appreciation in the last 12 months” in many markets, says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla.
Many homeowners also can deduct mortgage interest from their income-tax bills along the way.
…
Given the wide array of potential benefits, homeowners are sometimes surprised to learn that buying isn’t always the smartest financial option.To begin with, the monthly cost of renting can be lower, even for a home of similar size and quality in the same community.
Renters, for example, don’t pay property taxes, homeowner’s insurance and, in most cases, maintenance costs. These expenses can cost homeowners about 3% of the price of their home annually, experts say.
While those costs can be folded into monthly rent, apartment renters often pay a smaller share as landlords spread the costs among many tenants, says Stijn Van Nieuwerburgh, director of the Center for Real Estate Finance Research at New York University. If a window breaks or the toilet plugs up, your landlord—not you—pays for the repairs.
…
To calculate whether buying or renting makes more sense financially, you need to have a sense of your monthly costs in each case, including rent, mortgage payments, taxes, insurance and other related expenses that may apply to each option—as well as whether you would be more likely to spend or invest any savings from renting.The verdict could differ considerably within a city, suburb or town, based on the location and the style and size of the homes you are exploring.
The Deutsche Bank data reflect an attempt to do that math across metropolitan areas, and essentially function as a general guide to each market.
Would-be buyers should proceed carefully. First, they should try to get a sense of how hot the local real-estate market is and whether buyers generally still have the upper hand, which is often the case far from the coasts and outside large cities.
Northern NJ comes in at 95
Below 100 – Rent
100 – Balanced
Above 100 – Buy
For comparison, Oakland/East Bay California – 49
Cleveland – 152
Some prelim stats for April – BC only since GSMLS hasn’t updated yet – sf/condo/th
Active
4/2013 – 4726 / $694,316 avg lp
4/2014 – 4218 / $744,543 avg lp
New
4/2013 – 1644/ $676,136 avg lp
4/2014 – 1638 / $667,807 avg lp
Under Contract
4/2013 – 1010 / $549,091 avg lp
4/2014 – 871 / $534,549 avg lp
Sold
4/2013 – 611 / $465,231 avg sp
4/2014 – 567 / $491,135 avg sp
http://aurorawatcherak.wordpress.com/2013/09/10/conservatism-works-in-cities-if-they-let-it/
From MarketWatch:
U.S. home prices climb 1.4% in March: CoreLogic
U.S. home prices grew 1.4% in March to take the year-over-year gain to 11.1%, CoreLogic said Tuesday. That’s the 25th straight year-on-year advance. CoreLogic is forecasting a 0.8% monthly rise in April, and it expects prices in March 2015 to be 6.7% higher than March 2014 levels. “Home prices continue to rise across the nation, but affordability, tight credit and supply concerns are becoming an increasing drag on purchase market activity,” said Anand Nallathambi, president and CEO of CoreLogic. “In many markets – especially major metro areas like Los Angeles, Atlanta and New York – home prices are being driven up at double-digit rates fueled by a lack of inventory and record levels of cash purchases.”
Merck sells consumer health to Bayer – how many layoffs in NJ?
it is only the stupid conservative poor who are against it
@CNBC: Millionaires support higher taxes on the wealthy according to the latest @cnbc Millionaires Survey: http://t.co/J8Zs5l24VN
The poor should be helped by better financial aid, training programs etc. But me paying higher taxes so they can get welfare and obama care most likely hurts them more than helps them
I suggest raising taxes on women based on the CNBC poll results:
Multimillionaires, or people worth $5 million or more, were more likely to cite “running my own business” as their top wealth factor. Women were three times more likely to cite inheritance as their top wealth factor (15 percent vs. 5 percent for men), while men were more likely to cite savings (20 percent vs. 14 percent for women).
The (soon to be poor) should be helped not by increasing taxes on the wealthy but by stopping the offshoring of jobs and bringing the hb1a visa program to a stop. Tariff All non essentials. Stop allowing foreigners from buying american land and buying citizenship for 500k.
With the sweep of a pen this could be done in a day .
President that does this would be loved by the masses.
President who does this would be hated by those really running the show.
“But CNBC’s first-ever Millionaire Survey reveals that 51 percent of American millionaires believe inequality is a “major problem” for the U.S., and nearly two-thirds support higher taxes on the wealthy and a higher minimum wage as ways to narrow the wealth gap.”
Can you imagine making 3.5 billion in one year. Jesus, how much is that per hour? I don’t even feel like doing the silly math game.
“Take Appaloosa Management’s David Tepper. His $3.5 billion in earnings put him at the top of Institutional Investormagazine’s Rich List of the top 25 hedge fund managers in 2013.”
NY Metro HPI hits double digits in the March Corelogic report
NY Metro – Up 10.2% YOY including distressed
Up 10.4% YOY excluding distressed
NJ Statewide – Up 8.3% YOY including distressed
Up 8.1% YOY excluding distressed
[9] Phoenix
Back from rainy and sunny Florida.
I see you are subscribing to the notion I proposed before about sealing the borders?
Anon [6];
Gee, billionaires support higher taxes on millionaires, which prevent the millionaires from becoming billionaires, but that hurt the billionaires comparatively less. Same reason that big bank like government regulation — it prevents small banks from becoming competing big banks.
How horrible it must be to live in a leftist fear-land where only big brother can protect you.
Michael [11];
You betray your narrow thinking by attempting to consider his compensation “per hour”. J6P earns by the hour, and it limits him because there are only so many hours he can work.
I wonder what Tepper could be doing that is worth $3.5 B, and how do I create something half that valuable. And, unlike the government, Tepper didn’t collect his money at gunpoint.
A ‘gold-digger” tax makes sense.
But honestly in real life there is no “money shots” so I guess the gold diggers, trophy wifes, hos and mistresses who get their big inheritances from their sugar dadies derserve.
Around the world with a face spray has to be worth something
8.grim says:
May 6, 2014 at 8:33 am
I suggest raising taxes on women based on the CNBC poll results:
Multimillionaires, or people worth $5 million or more, were more likely to cite “running my own business” as their top wealth factor. Women were three times more likely to cite inheritance as their top wealth factor (15 percent vs. 5 percent for men), while men were more likely to cite savings (20 percent vs. 14 percent for women).
CND,
For the most part, which country has the most amount of natural resources to survive on alone. Great video called HOME on youtube shows what most countries need to barter with just to get through the day.
We have clean water until the frackers screw it up.
We have fertile soil until companies screw it up.
We have stockpiles of oil and gas- if we push conservation/solar, etc we can make that last for a long time.
We have plenty of home grown talent, we don’t need engineers from foreign countries.
What we need to do is be “real Americans”, take care of home first.
Only time we wave a flag here is when bombs are dropping.
Then we go back inside to watch the superbowl.
EVERYTHING is for sale here, even JJ suggested someone sell their daughters.
You are doomed with that type of thinking. America should never be “for sale”. That is not patriotic, that is treason.
JJ I hope you were kidding……
If you seal the borders, working age population would continually slide to the point where they could no longer support entitlements promised to the older demographic. It would guarantee a Japanese economic situation in the US.
We need the “right kind” of immigrant…educated, hard working, entrepreneurial, optimistic, etc.
http://nypost.com/2014/04/27/chinese-immigrants-debunk-de-blasios-tale-of-two-cities/
Comrade Nom Deplume, a.k.a. Captain Justice says:
May 6, 2014 at 8:43 am
[9] Phoenix
Back from rainy and sunny Florida.
I see you are subscribing to the notion I proposed before about sealing the borders?
[5] grim
The selling of American assets to foreign companies is going to resemble a fire sale soon, especially if inversions are outlawed. Right now, inversions are heavily restricted under Section 7874 and ever changing regs (which are doubtless being changed again).
If the administration or Congress are able to put legislation in place that would effectively shuts the practice of inversion down, it would reduce the value of US multinationals. Conversely, it could raise the value of other companies that would make good acquisition targets for foreign buyers. Both effects would result in an acceleration of purchases by foreign buyers, either of entire US companies or of their foreign or domestic’s of series.
Indeed, the very act of raising awareness of inversions, as is happening in the press right now, is likely to accelerate transactions. So we can expect a wave of inversions followed by a change in the law, and then a spike in acquisitions by foreign buyers.
Of series = subsidiaries.
I’m speaking from a biased perspective – but I’m not sure there is any way to legally ban the offshoring of jobs. While you might be able to enact something on a local, state, or federal level for public jobs, this is incredibly difficult to do in the private sector. I don’t know if anyone could even come up with effective definitions for the processes in place here, as this is much more fuzzy than you might otherwise believe.
The problem that occurs is that you eventually fall down a slope so slippery that you’ll have HR and Payroll manually writing out everyone’s paycheck and hand delivering it.
The only easy to carve out case is manufacturing, where we can place a large enough tarriff on the import such that it becomes less cost effective to outsource. The impact to this is going to be significantly higher prices, everywhere. The question is, will the tradeoff in higher prices (read: lower standard of living) be offset by a higher overall employment and wages?
[18] Phoenix
Sealing the borders isn’t to be taken literally. It’s a metaphorical device. We aren’t the Hermit Kingdom. Even Hadrians Wall had checkpoints through which trade and talent passed and was taxed.
Besides, the cultural shock of a true and complete trade and talent embargo would be catastrophic.
19 – We can kill two birds with one stone, lets just declare war on Bermuda.
They wouldn’t stand a chance. I’m sure the Queen would understand … if she doesn’t, we just pick off Ireland too.
10 anon,
The ones that support higher taxes are just trying to keep the natives from getting restless, it is like a pittance to them.
They also know their life does not change one bit giving up a couple billion or so.
The majority of the cash will flow from the middle class to the poor, to drag them down some more.
Picture a horse, cart and carriage with a man driving it, rich guy is driving, middle class guy is the horse, deadbeat is riding in the back of carriage. Wanna go faster?? Yeah, guy up top cracks the whip, sure a little effort there, most effort comes from the horse. Till it drops dead, you just replace it with another horse. They are not in short supply when you can import as many as you like.
5- No layoffs in NJ all consumer products (Claritin, Afrin, Tinactin A&D etc.)were moved to other locations (North Carolina, Tennessee, Puerto Rico) when Kenilworth shut down it’s manufacturing operations Might not be any layoffs in these locations if the properties are included in the deal.
The only layoffs I could see are the sales reps and higher up product managers working out of Whitehouse that are connected to these products
There is a big difference between saying and paying.
22,
I’m sure there would be some issues. Large ones and lots of them. Mostly from the protected classes. Scrappy people would adjust better than the pampered class.
The screws should be tightened immediately in a gradual yet deliberate fashion.
Address the problems as they arrive.
I think our country would fare better than the ones that are riding on our backs.
I would stop all immigration TODAY until there was enough work to bring the unemployment down to 1%.
Then gradually open up the gates when the problems are solved.
An expanded version of an older article on inversions. Note how the anti-inversion law actually made foreign cos more valuable since you needed a dance partner to do deals. Once you slam the door on inversions, you open it for acquisitions.
http://www.bloomberg.com/news/2014-01-27/companies-fleeing-taxes-pay-ceos-extra-as-law-backfires.html
Great post!! You provide some of the best posts, really enjoy reading them.
Phoenix says:
May 6, 2014 at 8:34 am
The (soon to be poor) should be helped not by increasing taxes on the wealthy but by stopping the offshoring of jobs and bringing the hb1a visa program to a stop. Tariff All non essentials. Stop allowing foreigners from buying american land and buying citizenship for 500k.
With the sweep of a pen this could be done in a day .
President that does this would be loved by the masses.
President who does this would be hated by those really running the show.
I love it when you talk protectionism.
Given that everything in the US is driven by consumption.
Federal sales tax – 35% on all products and services
Eliminate all income tax.
Now it doesn’t matter where you are headquartered, we still get the 35%.
Last time I checked, warren buffet made a bet that a low cost index fund following the s&p500 would beat hedge funds. So far he is right. Why does this hedge fund manager deserve to make 3.5 billion when a simple index fund is beating him. Please explain the justification for 3.5 billion in compensation for something that can be beat by an index fund.
Anon E. Moose says:
May 6, 2014 at 8:53 am
Michael [11];
You betray your narrow thinking by attempting to consider his compensation “per hour”. J6P earns by the hour, and it limits him because there are only so many hours he can work.
I wonder what Tepper could be doing that is worth $3.5 B, and how do I create something half that valuable. And, unlike the government, Tepper didn’t collect his money at gunpoint.
What industry does he work in again?
15.Anon E. Moose says:
May 6, 2014 at 8:53 am
… And, unlike the government, Tepper didn’t collect his money at gunpoint.
To expand on my previous post, and respond to this dolt at the same time…
Moose,
Tepper’s salary would be much much less without the govt & FED.
Dolt,
No one is being forced to contribute/invest in the hedge fund that Tepper and his team manages. They know the compensation and fee structure before putting in a dime.
33.Michael says:
May 6, 2014 at 9:26 am
Please explain the justification for 3.5 billion in compensation for something that can be beat by an index fund.
Low flat tariffs, some excise taxes, no income tax (Federal level) … zero income/property tax, sales tax and user fees (State level)
Now there are countless other governmental taxes, fees, and surcharges that don’t fit into one of the above categories…. let’s just agree to eliminate them all as well.
32.grim says:
May 6, 2014 at 9:26 am
Given that everything in the US is driven by consumption.
Federal sales tax – 35% on all products and services
Eliminate all income tax.
Now it doesn’t matter where you are headquartered, we still get the 35%.
Of course, the libs would argue that a consumption tax is entirely too regressive, and that this is a giveaway to the rich, who spend less as a portion of their overall earnings.
Perhaps the game is not paying people more..perhaps the game is to force people to borrow more. More income means more straight payments but less interest/late fee income for controlling financial institutions. Nothing enacted by this administration has changed the fact that wages have been stale for over a decade. Even $10 min. wage is mostly symbolic. Obviously they have no intent to fix this through legislation. They only want to inflate another credit bubble.
38 That is what sustains the higher education model.
Take away the govt sub loans, and half the colleges would close tomorrow.
[29] redux
Here’s a very easy read on inversions and redomestications. I call it Corporate Expatriation For Dummies.
http://corit-academic.org/wp-content/uploads/2011/12/Corit-paper-no.-9.pdf
Note that it predicted the current surge years ago. The telling indicator is that in 2011 we had become less tax competitive than we were when we passed laws to limit this capital flight. It is more evidence that we are well and truly fucted.
Grim, please unmod my post.
40. CND
Things don’t get that bad overnight. Same thing with NJ’s finances.
You know, there was a morning when we woke up and NJ was only 1 million in debt, then a morning they were 1 billion in debt, then 10 billion in debt.
No one took action at any of these points to correct the situation.
Old retirees want their cut they were promised.
Give the bill to the pimple faced kid.
Can’t wait to see how that works out.
Try reposting, it was not moderated it was blacklisted and deleted.
42 – Democrats aren’t going to fix the debt problem, and Christie was the best shot that the Republicans could muster.
Now we sit back and wait for 100 billion. The problem isn’t that we can continue to grow the debt, the problem will come when nobody will lend to us anymore.
From Bloomberg by Ritholtz:
Hating Homeownership
There are several issues with the current group of housing bears. Some of the assumptions in the investment aspect of this are questionable (more on this shortly). But the main issue is that too many people are looking at housing as if it is purely mathematical, which it isn’t.
My colleague Josh Brown sums it up nicely:
I own my home and I consider it my greatest investment. It gives me confidence and satisfaction. It provides a sense of permanence for my children. It makes my wife happy to decorate it, landscape it and care for it. Plus, I like not paying rent, something I spent most of my twenties doing in Manhattan. I have no mortgage so my only ongoing cost outside of maintenance is property tax, which I look at as an investment in the town’s school district and as a barrier of entry that keeps the other homes around me filled with hardworking, productive members of society.
Whether or not my home’s price will exceed the rate of inflation in the next few decades is irrelevant to me. Especially because I invest elsewhere – retirement accounts, my own business, etc.
Keep’em coming!! Good stuff. We are basically selling out our whole country’s resources so a few billionaires could kill it.
Phoenix says:
May 6, 2014 at 8:55 am
CND,
For the most part, which country has the most amount of natural resources to survive on alone. Great video called HOME on youtube shows what most countries need to barter with just to get through the day.
We have clean water until the frackers screw it up.
We have fertile soil until companies screw it up.
We have stockpiles of oil and gas- if we push conservation/solar, etc we can make that last for a long time.
We have plenty of home grown talent, we don’t need engineers from foreign countries.
What we need to do is be “real Americans”, take care of home first.
Only time we wave a flag here is when bombs are dropping.
Then we go back inside to watch the superbowl.
EVERYTHING is for sale here, even JJ suggested someone sell their daughters.
You are doomed with that type of thinking. America should never be “for sale”. That is not patriotic, that is treason.
JJ I hope you were kidding……
At 15 pages, this is a monster list. I’m not even going to bother counting them as Andrew Mitchel does that for us, and he says that at 1,001 names, it’s the second highest quarter ever.
https://www.federalregister.gov/articles/2014/05/02/2014-10139/quarterly-publication-of-individuals-who-have-chosen-to-expatriate-as-required-by-section-6039g
I expected a slowdown after year end. I was wrong. The pace of expatriation is clearly increasing. Look for a repeat of 2010–we won’t see these reports again until November unless they are really small.
#32..is that a VAT?
yep
grim says:
May 6, 2014 at 9:39 am
Of course, the libs would argue that a consumption tax is entirely too regressive, and that this is a giveaway to the rich, who spend less as a portion of their overall earnings.
I care more about my country and my child’s future than I do about the opportunity cost of Chinese made widgets.
re # 21 – Interesting how the low skill jobs are sloshing around the world.
“Hello my name is Peggy.”
http://profit.ndtv.com/news/industries/article-india-losing-70-voice-and-call-centre-business-to-philippines-report-384804
Michael,
How often do you watch The Daily Show?
re # 50 – China’s leaders are mostly trained engineers. Our leaders are all big law and other legal eagle washouts.
What did people expect to happen when we elect a bunch kissa*s*s* lawyers to run our country?
http://singularityhub.com/2011/05/17/eight-out-of-chinas-top-nine-government-officials-are-scientists/
51 – India has been dead for years – this isn’t news. Philippines, Central America, Brazil, Eastern Europe are all the new hot spots.
Color me shocked. Perhaps anon directly/indirectly benefits from the income tax like others. Because if it was truly about equality and fairness, then eliminating the income would do wonders… but we’ve all explained the reasons in the past ad nauseum.
49.anon (the good one) says:
May 6, 2014 at 10:00 am
yep
grim says:
May 6, 2014 at 9:39 am
Of course, the libs would argue that a consumption tax is entirely too regressive, and that this is a giveaway to the rich, who spend less as a portion of their overall earnings.
@TheDailyShow: #TDSBreakingNews
US govn’t lost $11B on GM bailout. But it was worth it for all those backseat memories. #YouNeverForgetYourFirstBailout
I’m sorry to keep doing this, but I have to acknowledge that you are putting forth some great posts today
Phoenix says:
May 6, 2014 at 9:08 am
10 anon,
The ones that support higher taxes are just trying to keep the natives from getting restless, it is like a pittance to them.
They also know their life does not change one bit giving up a couple billion or so.
The majority of the cash will flow from the middle class to the poor, to drag them down some more.
Picture a horse, cart and carriage with a man driving it, rich guy is driving, middle class guy is the horse, deadbeat is riding in the back of carriage. Wanna go faster?? Yeah, guy up top cracks the whip, sure a little effort there, most effort comes from the horse. Till it drops dead, you just replace it with another horse. They are not in short supply when you can import as many as you like.
55 – Tax them, not me.
46,
Thanks Michael. One point.
The billionaires you are talking about have no love of any one country.
The world is their playground.
They have and own the best of the best in each place they visit.
Those areas will be well stocked and cared for.
Anything outside their world they could care less about.
They don’t love America any more than they do Dubai.
There is no patriotism to them.
They don’t care about your healthcare system, your Medicare, your Social Security or your child’s future.
It is what it is. And they rule the roost.
Michael,
Stop blaming the rich. They don’t write the laws nor enact taxes. Blame your government, for successfully fooling the populace into thinking that they actually represent them. There really is only one thing that they are good at and that’s providing the absolute minimum amount of crumbs and circuses. And those who go out of their way to advocate for either side are the worst of the lot. They wear their stupidity like a tattoo.
This week alone, the ‘symbolic’ and very inexpensive minimum wage increase was dropped. Then the Supreme Court ruled that sectarian prayer is OK at government meetings. And yesterday, through Obama’s influence, the completely politicized Supreme Court chose not to hear a very important NJ gun law case. The Supreme Court is one big farce and really should be dismantled if it can’t stop making decisions among party lines.
All government decisions have reached the point to where obstruction by the majority always wins and what is best for the people is not even considered.
So everyone here ought to do themselves a favor. Stop talking about the solutions to all of these individual issues and begin to focus on figuring out how to oust all members of our two-party system who continue to behave just like first-graders at recess.
I really hope I earn Michael’s admiration.
re # 54 – Grim my point is the low skill jobs continue to slosh around the world, including manufacturing. The era of low-skilled, high-wage jobs is all but over in the USA.
Stats for manufacturing sector jobs in the USA well are quite grim. Wages are continuing to fall, and the reason has not changed, we cannot out compete a bunch of engineers with a bunch of lawyers. What really needs to change is our leadership our politicians who are mostly lawyers who constantly are promising something that they can’t deliver and barely comprehend. We must as a nation re-commit ourselves to education and retraining for tomorrow’s jobs otherwise we are just another Brazil.
wrong, wrong, wrong
Libturd in Union says:
May 6, 2014 at 10:19 am
Michael,
Stop blaming the rich. They don’t write the laws nor enact taxes.
[59] Phoenix
Not for nothing but given the current rhetoric and vilification, why would any billionaire be patriotic? When WEB Dubois or other famous blacks quit this country, we understood their reasoning and perhaps even sympathized. We understood, even applauded, their conviction and refusal to live in a hostile country. Nor do we vilify Vietnamese who fled Saigon, Russians who fled the USSR, and Chinese who fled Hong Kong. Weren’t they also unpatriotic? We don’t even vilify Afrikaaners who fled South Africa.
In my humble opinion, the very few billionaires who have spoken up against the redistributionist rhetoric and have gotten vilified for it are the real patriots. They are attempting to inject some reason and plea for unity in the debate. They are trying to find commonality even if only by pointing out that the hate directed at them won’t accomplish anything. Unlike those calling for more taxation, it does not profit them to take such an unpopular viewpoint.
The less motivated, less vocal, and less patriotic (in my view) are simply voting with their feet. And as the anons of this nation gain power, it will accelerate. They don’t want rich people and they will get what they want but it don’t be what they expect.
[61] libturd,
“I really hope I earn Michael’s admiration.”
That and $2 gets you a tall coffee at Starbuck’s.
Well, vacation is over. Back to the salt mines.
45-Exactly what I have been saying. In the 2020’s get ready for growth in real estate. If you understand this, you understand why I’m saying real estate is cheap right now.
“Eventually, the memory of the recent crisis will fade. The economy will one day improve, and the millenials will move out of their parents’ basements. When that happens, expect to see homeownership rates move back higher.”
LOL – keep it classy Ocean City.
http://www.nj.com/south/index.ssf/2014/05/trending_ocean_city_real_estate_agent_sends_angry_letter_to_older_homeowners.html#incart_river_default
Wow, someone actually gets it.
“The other factor is that you have to live somewhere. Paying down a mortgage is forced savings versus paying rent, which is money gone forever.
There are many conclusions we can reach about homeownership: It represents control, accomplishment, a homestead. Maybe it even means Americans really love leverage. But the focus on the mathematics of homeownership misses the bigger picture.”
I’m going to blame billionaires, they control our legislatures. I’m not blaming rich, i’m blaming billionaires. Two different things.
“Stop blaming the rich. They don’t write the laws nor enact taxes. Blame your government, for successfully fooling the populace into thinking that they actually represent them. There really is only one thing that they are good at and that’s providing the absolute minimum amount of crumbs and circuses. And those who go out of their way to advocate for either side are the worst of the lot. They wear their stupidity like a tattoo.”
Michael do you keep your pom poms here?
http://tinyurl.com/nz8zv2u
Nom, why do you continue to turn a blind eye to the billionaires and their ruthless policies. If this was the late 1800s, you would be applauding Carnegie, and I would be the muckracker trying to put out articles highlighting the wrongs of this barron class. Based on your theories, the more billionaires, the better for our country. Well, our billionaire class has increased dramatically in the past 20 years. Based on your thinking, why has the quality of living gone down for America, if we have so many innovative billionaires among us. Please explain. Right now, I would rather tell them to get the fuc! out of my country, you anti-american bastard. Also, when you leave, you can’t conduct business here anymore or use our resources. Resources = Wealth. If america is country in the world with the most resources, why do we have the highest % of citizens in an advanced economy living in poverty. All these resources should make our nation wealthy. I guess it does, we have by far the most billionaires in the world. Lucky us.
Comrade Nom Deplume, a.k.a. Captain Justice says:
May 6, 2014 at 10:32 am
[59] Phoenix
Not for nothing but given the current rhetoric and vilification, why would any billionaire be patriotic? When WEB Dubois or other famous blacks quit this country, we understood their reasoning and perhaps even sympathized. We understood, even applauded, their conviction and refusal to live in a hostile country. Nor do we vilify Vietnamese who fled Saigon, Russians who fled the USSR, and Chinese who fled Hong Kong. Weren’t they also unpatriotic? We don’t even vilify Afrikaaners who fled South Africa.
In my humble opinion, the very few billionaires who have spoken up against the redistributionist rhetoric and have gotten vilified for it are the real patriots. They are attempting to inject some reason and plea for unity in the debate. They are trying to find commonality even if only by pointing out that the hate directed at them won’t accomplish anything. Unlike those calling for more taxation, it does not profit them to take such an unpopular viewpoint.
The less motivated, less vocal, and less patriotic (in my view) are simply voting with their feet. And as the anons of this nation gain power, it will accelerate. They don’t want rich people and they will get what they want but it don’t be what they expect.
It’s like that article was written for JJ.
grim says:
May 6, 2014 at 9:53 am
From Bloomberg by Ritholtz:
Hating Homeownership
Can we please send Michael Bloomberg away?
Michael says:
May 6, 2014 at 11:06 am
Nom, why do you continue to turn a blind eye to the billionaires and their ruthless policies. If this was the late 1800s, you would be applauding Carnegie, and I would be the muckracker trying to put out articles highlighting the wrongs of this barron class. Based on your theories, the more billionaires, the better for our country
Anon,
It’s sad you can’t see the forest for the trees. Guantanamo Baby!
Michael,
I was in this one about two months ago. Name any aspect of this house and it needs to redone. You need a life line to hold on to in the yard so you don’t roll down the hill. Wadda think? Woodcliff Lake warrants the price, right?
http://www.trulia.com/property/3138371169-19-Anton-Ct-Woodcliff-Lake-NJ-07677#photo-1
[71] Michael,
You are assuming facts not in evidence.
I found this amusing. Apparently my stomach is more like anon than Moose.
http://blogs.wsj.com/washwire/2014/05/02/liberals-eat-here-conservatives-eat-there/
Personally, I think my large intestine is more like anon.
Back to work.
The roof on the backside of this house is a nice shade of green from the moss. The siding has a nice cracked and peeling affect to it, as well. When I walked in this one a few months ago, it was a snapshot from 1960 and it wasn’t cleaned since then as well. They removed the hoard, whoever the flipper was that purchased, put in a Home Depot kitchen and slapped a $150,000 increase in price on it. The sills under the doors and around the windows are completely rotted away among a myriad of other horrors. But, it’s warranted because we all know that an address means everything.
http://www.trulia.com/property/3150010023-28-Arcadia-Rd-Woodcliff-Lake-NJ-07677#photo-1
Didn’t realize salvation army was doing interior decoration these days.
You know I hear that kitschy bars that have the whole 1970s rumpus room/basement theme going on are the hottest thing right now.
That house is so chic it’s like an ironic hipster rumpus house. And here I am, I don’t even know wtf a rumpus is. Someone needs to figure out how to market that crap to the idiots in Brooklyn.
I still haven’t had the (check your) privilege of finding a body in a hoarder house yet. Clot told me that it was a right of passage. I thought I found one in a house in Clifton once, I nearly shit myself, but it was one of those fake heads that they used to use at beautician school in a pile of trash. I admit, I was a little bit let down.
Shocking: Ex Cop who has his wife attempt to shoot him in the leg so he can collect a disability pension. (actually what’s shocking, is that he had a shot at getting a pension at all after the incident)
http://www.nj.com/camden/index.ssf/2014/05/former_nj_police_officer_who_staged_his_own_shooting_wont_get_disability_pension.html#incart_m-rpt-1
Michael? Oh, Michael? Knock! Knock!
Should I pay top dollar for that one in post 78? The Arcadia Road house? I mean, it’s warranted, right? Oh, by the way, the yard is so soaking wet, it feels like you’re walking on marshmallows!!
The landscaping alone warrants the $700,000 price tag:
http://www.trulia.com/property/3147478464-58-Woodcrest-Dr-Woodcliff-Lake-NJ-07677#photo-1
84 – That listing agent is doing something right, I suspect she made more than $500,000 in 2013 … maybe closer to $600,000. She is one of the top selling agents in the entire state.
She does more than $50 million in sales a year, closes almost 2 houses a week. That’s insane.
We may all be dead before this one sells. It’s on the side of a mountain. I guess it’s a good year and a half since I saw this one. My, the hidden gems one finds when one actually goes and visits these places! When I saw this house, the guy next door was out in his yard in polyester slacks and shoes with no shirt grilling something he killed in Staten Island. Prestige has a price, you know:
http://www.trulia.com/property/1049523583-18-Edward-Pl-Woodcliff-Lake-NJ-07677
I know… gotta get Ghada. She’s all over the place.
Grim, as I’m looking at houses in Bergen County I see her face plastered all over the place. You “Gotta get Ghada”
Eddie, I suspect we may bump in to each other at an open house one day.
By the way, 19 Anton is in attorney review.
Gotta give it to her, she hustles.
That kitchen is horrible on 18 Edwards. Why would someone put granite over those cabinets without at least refacing them. Those cabinets have to be 60 years old. The last time I saw those hinges were at my grandmother’s house in Lynbrook. Fortunately, she never painted them white.
Grim can you post the rental stats/prices for Morris county? same query you ran for Bergen county yesterday or recently
thanks
“Gotta get Ghada”
Is she the Sue Adler of Bergen County?
You are right, I was assuming you were a fan of Atlas Shrugged. Maybe, that is ragner. That book tries to paint the picture that we need billionaires. That they are the innovators that make life better for everyone else. She must have never learned about serfs, slavery, or wage slavery when she was in history class.
Were citizens of India benefiting from the control of India by British corporations from 1700s to after wwII? You know the British East India Company? Corporations were invented on the premise of taking advantage of countries without it being related back to the monarchy as a takeover of that nation. British East India Company was a corporation set up to push the imperialistic agenda of England.
Thing is, since the beginning of human history, every society has had one thing in common, being controlled and taken advantage of by a small class at the top of society. Why do you think it is any different today? Because it’s modern times?
Comrade Nom Deplume, a.k.a. Captain Justice says:
May 6, 2014 at 11:29 am
[71] Michael,
You are assuming facts not in evidence.
Michael says:
May 6, 2014 at 11:06 am
Nom, why do you continue to turn a blind eye to the billionaires and their ruthless policies. If this was the late 1800s, you would be applauding Carnegie, and I would be the muckracker trying to put out articles highlighting the wrongs of this barron class. Based on your theories, the more billionaires, the better for our country. Well, our billionaire class has increased dramatically in the past 20 years. Based on your thinking, why has the quality of living gone down for America, if we have so many innovative billionaires among us. Please explain. Right now, I would rather tell them to get the fuc! out of my country, you anti-american bastard. Also, when you leave, you can’t conduct business here anymore or use our resources. Resources = Wealth. If america is country in the world with the most resources, why do we have the highest % of citizens in an advanced economy living in poverty. All these resources should make our nation wealthy. I guess it does, we have by far the most billionaires in the world. Lucky us.
Lib, do you really think the 1% of the 1% do not influence laws of our nation?
Also, for any of you who are landlords, if a condo was built with the original purpose to sell but tenant moves in before occupancy deed was filed, can the landlord/developer put the occupied unit on the market and run potential buyers through the property or is this a violation of the “Quiet Enjoyment” clause of the rental agreement even if the rental agreement contains the “This property is or may be converted to a condo…” clause?
I don’t doubt that the ultra rich influence taxation. I’m just bothered that the masses seriously believe that their complaints and 99% bumper stickers will actually affect change.
Assuming the landlord provides reasonable notice of showings, it is not violating any quiet enjoyment.
Pete [90],
I wonder if it’s a flip?
Lib, campaign finance reform would be a start but not sure it’s even realistic to ever get done in a manner that would have impact.
Thanks Grim. So much for my idea of a 3 yr notice to quit and stay put. Murphy’s golden rule…
@BarackObama: President Obama to teachers: “Thank you for what you’re giving our children and what you’re giving our nation.” #HappyTeacherAppreciationDay
101,
HBIs in the rear?
It’s def a terrible house, but you are right, the address says woodcliff lake, and that’s why that house is a piece of crap for 700,000. It’s as simple as that. This house will eventually be knocked down and something that better fits the area will be built. Go take 700,00 and buy in a town a little down the hierarchy, you will get the house you are looking for.
Fast Eddie says:
May 6, 2014 at 11:33 am
The roof on the backside of this house is a nice shade of green from the moss. The siding has a nice cracked and peeling affect to it, as well. When I walked in this one a few months ago, it was a snapshot from 1960 and it wasn’t cleaned since then as well. They removed the hoard, whoever the flipper was that purchased, put in a Home Depot kitchen and slapped a $150,000 increase in price on it. The sills under the doors and around the windows are completely rotted away among a myriad of other horrors. But, it’s warranted because we all know that an address means everything.
http://www.trulia.com/property/3150010023-28-Arcadia-Rd-Woodcliff-Lake-NJ-07677#photo-1
Go take 700,00 and buy in a town a little down the hierarchy, you will get the house you are looking for.
First of all, what is “700,00?” Second of all, what town is a little down the hierarchy?
Dude, I don’t exactly have the time to proof read my posts for grammatical mistakes and errors. You have been in north jersey long enough, you know the hierarchy in place. Go to a town with houses that top out at 800,000-900,000 and spend 700,000. You will be happy. If you think you are going to get a nice house in a town at the top of the food chain for 700,000, you are crazy. 700,000 is a lot of money for most people, but for the exclusive groups at the top of the food chain, 700,000 is a joke. In woodcliff lake, a 700,000 dollar house puts you at the bottom of the food chain for that town. You get to live among the exclusive, but just know you are one of the poorer people in town.
Fast Eddie says:
May 6, 2014 at 2:28 pm
Go take 700,00 and buy in a town a little down the hierarchy, you will get the house you are looking for.
First of all, what is “700,00?” Second of all, what town is a little down the hierarchy?
taste for wine on a beer budget
taste for wine on a beer budget
Oblama supporters?
You get to live among the exclusive…
You mean the “big hat, no cattle” crowd?
wine is cheap. try a good cognac.
You’ve got the idiom wrong, it’s Champagne taste, not wine.
Clearly you are not of the 1%, making a mistake like that. No worries though, just watch more Lifestyles of the Rich and Famous, and you’ll understand it.
That is a 1.5 million dollar home in Plandome Long Island, 1.2 Million in Garden City and a 1.1 million dollar home in Rockville Center. It is all relative. If that house was in Manhattan it would be worth 10 million.
103.Michael says:
May 6, 2014 at 2:24 pm
It’s def a terrible house, but you are right, the address says woodcliff lake, and that’s why that house is a piece of crap for 700,000. It’s as simple as that. This house will eventually be knocked down and something that better fits the area will be built. Go take 700,00 and buy in a town a little down the hierarchy, you will get the house you are looking for.
Fast Eddie says:
May 6, 2014 at 11:33 am
The roof on the backside of this house is a nice shade of green from the moss. The siding has a nice cracked and peeling affect to it, as well. When I walked in this one a few months ago, it was a snapshot from 1960 and it wasn’t cleaned since then as well. They removed the hoard, whoever the flipper was that purchased, put in a Home Depot kitchen and slapped a $150,000 increase in price on it. The sills under the doors and around the windows are completely rotted away among a myriad of other horrors. But, it’s warranted because we all know that an address means everything.
http://www.trulia.com/property/3150010023-28-Arcadia-Rd-Woodcliff-Lake-NJ-07677#photo-1
Fast Eddie –
Reminds me of my friend who used to live in Slummit. She was always sad and depressed and went into therapy. Her therapist told her “It’s hard to live here and not have the whole cookie. You only have half the cookie.”
Or as they like to say in Short Hills “I thought people like you moved to Maplewood.”
Growing up we all drove Lincoln Continentals and Sunroof Cadillacs
Dat how rich we were!!
indeed
grim says:
May 6, 2014 at 2:58 pm
Clearly you are not of the 1%,
Just up the budget, I couldn’t stomach paying 700k for that pos but with the property tax savings and super low rates you could buy in franklin lakes for a million which imo is a far better value. It seems at a higher price point you can get better value in the 500-800k range is where every one wants to buy in NJ and there just isn’t inventory. I would guess many are working with 250k incomes
Right Michael,
Living in Russia under Lenin, Ayn Rand would have never learned about serfs, slavery, and the virtues of enlightened government in the same way a political science genius like you has. There, she got a good taste of the post-rich world that you crave and truly deserve to live in.
Gator [112],
So, what constitutes the whole cookie according to the therapist? Or, your friend, for that matter? :) Living in Short Hills?
jcer [115],
I don’t necessarily disagree. Or, I could find a pocket listing/exclusive listing and put my 840 fico and 20% DP minimum under their nose without having to deal with some d1ck from NY who just discovered NJ.
Buying a house is a huge financial commitment. How you perceive the housing market is very much influenced by on what side of this transaction you are. Recent buyers are optimistic and think it’s all good. Current buyers only see overpriced homes and look back to other times and metrics. Sellers only look back to 2007 hoping for a second bite of the cherry. My sense as a buyer in 1993 and 2007 after having sold at 2003 and 2007 at huge/considerable gains is that we ain’t going up anytime soon. Salaries, energy costs, cost of living, property taxes, demographics will put a damper on any serious price appreciation. A serious fall in housing prices is possible with any sort of economic set back. Stock appreciation is noise for the majority and a serious cynicisms has set in about the “system”.
Post-rich world? What are u talking about?
Listen, the only difference between Russia and the u.s, is that the billionaires in Russia take even more than the Americans. They leave almost nothing for the rest. American billionaires are a little smarter, they give just enough so that people don’t start a revolution. The terrible conditions in Russia has nothing to do with the type of economic system or govt they have, and more to do with the gangster crooks at the top of their society that dictate govt policy.
When will people learn that prosperity for the majority has nothing to do with economic systems and diff types of govt, and more to do with who is in control. Any govt or economic system can be successful. It matters what type of person is running the show. A tyrant can run a good govt for the people. Unfortunately, most tyrants are power hungry people, who only care about themselves. Governments themselves are not the problem, problems happen when you have a greedy ruthless bunch running a govt.
Those billionaires in India and china helping out their countries? They both had enormous jumps in the amount of billionaires in their ranks, how is that working out for them? Oh nice, it’s creating beautiful gated communities and private skyscrapers. Nice job, what an innovative bunch of billionaires!
Ragnar says:
May 6, 2014 at 3:44 pm
Right Michael,
Living in Russia under Lenin, Ayn Rand would have never learned about serfs, slavery, and the virtues of enlightened government in the same way a political science genius like you has. There, she got a good taste of the post-rich world that you crave and truly deserve to live in.
1.5% for property taxes. Hmmm. Let’s work backwards from that figure for NJ. Anybody here heard of maybe a $12,000 property tax bill in NJ? According to the “New Math for Buying vs. Renting” that means a house with a $12K property tax bill would be owned by someone of substantial means because that would indicate a purchase price of $800,00. The same math would indicate that grim’s taxes are about $6500, which is half grim’s actual tax bill. The New Math doesn’t work.
The estimated mortgage payments are based on median sale prices in the same period, according to the National Association of Realtors. The bank adjusts the estimates to reflect the tax deduction for mortgage interest. It also figures the typical homeowner pays 0.4% of the home’s cost on insurance each year, and 1.5% of the cost on property tax.
look a Singapore. state capitalism with the govt controlling businesses that add to more than 60% GDP
Most of us know some amortization math, like it takes 22 years of payments on a 30 year mortgage before you’ve paid off half the principal. Wouldn’t it be cool to see some historical data vis-a-vis how many years it takes before you’ve paid your original purchase price equivalent in cumulative property taxes? I’m guessing it would be somewhere south of 20 years. 22 years to pay off half your borrowing to purchase but maybe less than 20 to pay the full price of purchase once again in property taxes?
Been saying it for a while now on this board. Houses are not going down. They are not sky rocketing up either. There will be minimal or flat gains till about 2019-20. After that, get ready for the next up cycle in real estate. 10 years from now in 2024, any house you buy this year will be able to be sold for a profit.
Things will get better everyone. You just have to understand that we are in an economic drag based on demographics. The baby boomers were just in their peak earnings point of their life, which drove up spending in every sector of the economy, esp housing!! Then they all went into retirement mode and started spending less in preparation of retirement. This is what kicked the crap out of the u.s. economy. Everything else is just noise. Proof of this, look at the savings %. When the boomers were spending like drunken sailors, the % being saved was at an all time low, economy was growing. After the crash, which triggered all the boomers to stop spending like drunken sailors, and do the complete opposite, save instead of spend, increased the amount being saved by Americans, but at a major cost to our economy, since the economy had no consumer to drive the economy. Corporations started saving too, since they understood demographics, and understood that there was no demand in the economy, so instead of hiring and developing new products, they decided to lay people off, and bank all savings.
There you have it. Too bad the newspapers won’t mention any of this stuff.
john says:
May 6, 2014 at 4:34 pm
Buying a house is a huge financial commitment. How you perceive the housing market is very much influenced by on what side of this transaction you are. Recent buyers are optimistic and think it’s all good. Current buyers only see overpriced homes and look back to other times and metrics. Sellers only look back to 2007 hoping for a second bite of the cherry. My sense as a buyer in 1993 and 2007 after having sold at 2003 and 2007 at huge/considerable gains is that we ain’t going up anytime soon. Salaries, energy costs, cost of living, property taxes, demographics will put a damper on any serious price appreciation. A serious fall in housing prices is possible with any sort of economic set back. Stock appreciation is noise for the majority and a serious cynicisms has set in about the “system”.
Who invented this mess of an idea? You are so lost it is stunning……”specious argument”…..go look it up…..
Michael says:
May 6, 2014 at 5:12 pm
Things will get better everyone. You just have to understand that we are in an economic drag based on demographics. The baby boomers were just in their peak earnings point of their life, which drove up spending in every sector of the economy, esp housing!! Then they all went into retirement mode and started spending less in preparation of retirement. This is what kicked the crap out of the u.s. economy. Everything else is just noise. Proof of this, look at the savings %. When the boomers were spending like drunken sailors, the % being saved was at an all time low, economy was growing. After the crash, which triggered all the boomers to stop spending like drunken sailors, and do the complete opposite, save instead of spend, increased the amount being saved by Americans, but at a major cost to our economy, since the economy had no consumer to drive the economy. Corporations started saving too, since they understood demographics, and understood that there was no demand in the economy, so instead of hiring and developing new products, they decided to lay people off, and bank all savings.
There you have it. Too bad the newspapers won’t mention any of this stuff.
Chi- you know that the baby boomers are the biggest segment of our population right? So why would they not effect the economy with their spending habits? And believe me, there are spending patterns based on what age you are. 40’s and 50’s are the highest spending years of your life based on the stats.
Taking on a mortgage or paying premium for a house these days seems risky as I no longer have confidence there’s a sucker down the road to take it off my hands at a profit. The outstanding debt/obligations out there by governments, households and students looking forward to household formation is staggering. There may well be some who can trade appreciating real estate amongst themselves for a while but it seems to me that unless this issue is addressed there is no sustainable recovery.
Grim-can you unmod my post on baby boomers as the cause for the initial start to the bubble.
john (127)-
There’s been so much lipstick-the-pig and pulling future buyers forward that there will be no greater fools down the line on whom you can offload your albatross RE.
In fact, not only will the greater fools be gone, but there won’t be any buyers at all.
The New Normal is the shortage of qualified sellers. And we ain’t anywhere near rock bottom on that little problem…
The other part of the New Normal will be when the banksters finally bust into the RE business. Then, RE will be such a shit asset class that you’ll be buying houses through bank tellers.
You hate RE agents? Wait until the banksters get into the game.
Trust me, they will.
Goldman, Sachs, Schweppe and Burgdorff?
Will Coldwell Banker really be bankers?
[127] john – We’re not suffering from a lack of suckers. The problem is that all the suckers live in their parents’ basement and their prospects for earning and consuming don’t look too bright.
Taking on a mortgage or paying premium for a house these days seems risky as I no longer have confidence there’s a sucker down the road to take it off my hands at a profit.
[129] Clot – Exactly right. We are in the great transition where previous home occupiers are now house sitters. They’ve stopped paying their mortgages and the banks are letting them stay put to keep the copper pipes from being stolen. Ultimately they will steal them themselves to put gas in the Taurus when they finally abandon.
The New Normal is the shortage of qualified sellers.
Maybe Century 22. Gold jackets replaced by flak jackets.
Goldman, Sachs, Schweppe and Burgdorff?
Will Coldwell Banker really be bankers?
[134] I actually used to have a C21 blazer, C21 Jaeger on Hamburg Turnpike in Wayne. I opted for the expensive wool blazer, not the nylon one, but still pretty cheesy. Size 39 Long IIRC. The women in my office used to get pissed when we went out on caravan because the listing agents would run up to me like I was the big cheese, even though I was just a 28 year old newbie. I could break into a JJ story or two…
http://www.marketwatch.com/story/spouses-of-some-h-1b-visa-holders-to-be-allowed-work-2014-05-06
You gotta be kiddin me
To respond to you directly……effect is a noun, affect is a verb
Michael says:
May 6, 2014 at 5:23 pm
Chi- you know that the baby boomers are the biggest segment of our population right? So why would they not effect the economy with their spending habits? And believe me, there are spending patterns based on what age you are. 40′s and 50′s are the highest spending years of your life based on the stats.