(IMHO, this guy, Trey Garrison, is the top real estate journalist at the moment. Holds nothing back. A few years back this kind of journalism out of a trade rag was unheard of. I’m still kind of surprised this kind of commentary is coming out of HousingWire.)
From HousingWire:
Nope, tiny houses are not the next big thing
Yes, a few hipsters and other assorted folks who make bad decisions are buying into this, but here’s the reality: Americans like their space. (OK, maybe not the island-dwelling herbivores in Manhattan and the central-planning, urban density pushing Eloi in other large cities, but pretty much all other Americans.)
That’s not just opinion.
According to the last Census report, the median house size is 2,384 square feet. That’s an increase from 1,525 square feet in 1970.
Moreover, in the last 10 years, the median house size has increased on average 25 square feet per year. The share of homes with more than four bedrooms and more three or more full baths continues to rise.
Newly built single-family homes in the United States are getting bigger, costlier to build and more expensive, according to the National Association of Home Builders.
In fact the only thing shrinking for new construction is the size of the lot they’re built upon, according to NAHB’s most recent construction cost survey of 3,019 builders. The survey was conducted in August and September of 2013.
The average size of a home in the 2013 construction cost survey was 2,607 square feet, which is about 300 square feet more than the average size of the homes reported in the 2011 construction cost survey, but still about 100 square feet less than the peak reported in the 2009 survey.
So, like skinny jeans for men and the Cronut, tiny houses are another fad already past the sell-by date, pushed by people who view humanity as a blight and private homes as subversive or something.
Unless you call that tiny house what we call it out in flyover country – a hunting or fishing cabin. Then it’s acceptable.
I’m not saying everyone wants a McMansion, nor is the data saying that. But let’s call this tiny house thing what it is — a flash-in-the-pan fad of glorified trailers with fancy trim.
My SIL is constantly posting those liberal memes about how much better the economies of Denmark and Bolivia are with their brands of soci@lism (they aren’t but she is easily influenced). Then WaPo runs a story with this lead in . . . .
“Why would you create a job in America? That’s a once-unthinkable question for the world’s premier economy, but it’s a necessary one, because there are so many reasons not to create a job here today. . . . ”
WaPo’s solution? Meds and eds.
http://www.washingtonpost.com/news/storyline/wp/2014/10/03/your-ailing-parents-could-be-americas-best-hope-for-job-growth/?wpsrc=AG0003413
My tiny house I can keep going with the change in my pockets. My tiny condo I can keep going with the lint in the pockets.
I’ll subscribe to HousingWire when they add a guns & ammo columnist.
jj,
What’s the point of making a lot of money if it all just goes into government bonds and not a better standard of living?
Stu: Can you believe TRN?….yikes!
[4] Rags – To some a better standard of living comes from less, not more square feet. My inclination is that closer, happier, and more communicative families live in slightly crowded houses. OTOH, If you really dislike your spouse or would rather not know what your kids are doing, square footage will definitely make your life sentence pass easier.
jj,
What’s the point of making a lot of money if it all just goes into government bonds and not a better standard of living?
Exactly! I will never understand people that have lots of money, yet live like they are poor. Their reasoning behind it is that they are saving money (they tap themselves on the back for being so good at). Saving money for what? You don’t spend it, so why are you saving it. Makes no sense whatsoever. Sacrifice their entire life, living in a crappy home, eating spam, and always driving a used crappy car just to die and give their money to their family and uncle sam. Where is the logic in this thought process?
Ragnar says:
October 21, 2014 at 9:24 am
jj,
What’s the point of making a lot of money if it all just goes into government bonds and not a better standard of living?
It’s beginning to look a lot like Christmas . . . .
“Speaking on the Rev. Al Sharpton’s radio show, Obama said the Democratic candidates who had been avoiding him were actually “strong allies who have supported my agenda.” Many of these candidates are in conservative-leaning states where Obama’s agenda is decisively unpopular.
“And so some of the candidates there — it is difficult for them to have me in the state because the Republicans will use that to try to fan Republican turnout,” Obama said, according to The Hill. “The bottom line is, though, these are all folks who vote with me, they have supported my agenda in Congress ….”
Whooda thunk you would see Obama speaking in GOP advertisements?
Back in the late 90’s I used to talk stock investing with a co-worker frequently and he would always pull up charts on http://finance.yahoo.com which were just plain ugly. I never go why he liked looking at a simple blue line on a white background when there was so much better looking stuff available. Not having a Bloomberg terminal, I eventually started doing the same thing at work for fast looks at stocks as I saw the value in it always being available, fast, and easy. It looks like yahoo finally added color to their charts.
Lickher Luge: (from last night)
Speaking of ties with creosote. Some residents in Montklair are up in arms since NJTransit left a pile of old railroad ties on their right of way that’s near a school.
I just want to know how jj is going to hide his assets and income when its time to complete his kids’ college applications.
If i was a college admissions officer and saw paid off house(s), 7 figures in liquid bonds/equities, maxed out 529’s, and high annual comp, I’d be licking my chops. I don’t think they are going to much care about his modest standard of living.
LaForge (Jordy) – It’s a good thing I never bought in to that TRN! Ha hA. My club sold off it’s SDRL, but is still holding onto our AHGP for now. On the bright side, our winter heating bills should be pretty cheap this winter.
http://www.eia.gov/naturalgas/weekly/
yep, if you have your family under a bridge or in cardboard box it means that you love them very much and are very happy.
big, comfortable house makes it clear you hate them
The Original NJ ExPat says:
October 21, 2014 at 9:36 am
[4] Rags – To some a better standard of living comes from less, not more square feet. My inclination is that closer, happier, and more communicative families live in slightly crowded houses. OTOH, If you really dislike your spouse or would rather not know what your kids are doing, square footage will definitely make your life sentence pass easier.
jj,
What’s the point of making a lot of money if it all just goes into government bonds and not a better standard of living?
Hookers and blow ain’t cheap, but they do improve your quality of life.
some guys prefer to satisfy their shortcomings with a big bank account than to provide for their families. life is too short to make it all about money
Michael says:
October 21, 2014 at 9:38 am
Exactly! I will never understand people that have lots of money, yet live like they are poor.
Where is the logic in this thought process?
I just want to know how jj is going to hide his assets and income when its time to complete his kids’ college applications.
If i was a college admissions officer and saw paid off house(s), 7 figures in liquid bonds/equities, maxed out 529′s, and high annual comp, I’d be licking my chops. I don’t think they are going to much care about his modest standard of living.
He’ll just show them a picture of his house from 1970 just like when he appeals his property taxes.
Rags
I have a water view from my office nine hours a day. And when I go on business trip I always enjoy myself. Right now my trouble is I dont have time to do stuff and since my wife and kid dont want to leave my blue collar town I have trouble trading up big time as there are very few nice houses. I bid on the biggest house in my town a that was super nice recently and I guess most it was worth based on what I could see was 775K tops. Well anyhow, after four months I tell seller and on pressure from wife who said if you really want it make the bid and be prepared to losed money when you sell. So I bid 809,500 and sell said sounds good and then realtor and him got into a fight, seems he felt it was worth 840K meanwhile realtor was like I am a full time realtor I had this lising almost four months and the second highest offer was 770K and this is a non contingent deal. Seller pulled listing.Realtor told me tops that house is worth 790k. I said I looked at every single comp you did.
I did not want the house at 840K because I was already overpaying. The guy put too much into house 12 years ago in a massive renvoation where he created a 4,200 square foot house with a huge peak and dome all keeping it in the 1928 style of original 2800 square foot house and added a pool, outdoor kitchen, pavers you name it. But then he let it run down last 12 years as appliances, central air, vanities, everything is 12 years old and his last kid just moved out. So it does not show well and my contractor quoted me 50K just to paint, sand floors, replace vanities, add a closet or two not major stuff. But he was like this is 4,200 square feet with tons of moldings and high ceilings. In the end end he backed out.
All other houses in town are on the water, my back up house was all redone after sandy but wife and I wanted to find out how often block floods as owner said one one time only, turns out crossing guard knew someone on block and said every storm they stay with her as she has spare bedrooms I am like EVERY storm. My neighbor owns house since 1954 and this was first time my block flooded in Sandy, what is every storm.
I told my wife if I am buying in a flood zone screw it I might as well buy on the water, get a speed boat and live like a pimp. Why should I get flooded and not at least see the ocean.
The dope looking for the extra 40K pulled the listing 10-20 good luck carrying that large house all winter, I will heat my little shack and shovel my little sidewalk myself for free.
Ragnar says:
October 21, 2014 at 9:24 am
jj,
What’s the point of making a lot of money if it all just goes into government bonds and not a better standard of living?
When I got my Caddie after Sandy I got some free furniture for my condo and the guy goes I will help you carry one end table to your car. So I decline but he insists and then goes that is an awful nice car. I go pre-sandy I had a BMW 5 Series and now all I have is a Caddie so I have suffered now put that stuff in my trunk.
Ben says:
October 21, 2014 at 10:17 am
I just want to know how jj is going to hide his assets and income when its time to complete his kids’ college applications.
If i was a college admissions officer and saw paid off house(s), 7 figures in liquid bonds/equities, maxed out 529′s, and high annual comp, I’d be licking my chops. I don’t think they are going to much care about his modest standard of living.
He’ll just show them a picture of his house from 1970 just like when he appeals his property taxes.
@JmarkBoston:
Since 2000 $IBM has spent nearly twice as much buying its own stock back as investing in its business. #fail
Anon showing his lack of intelligence again.
http://tinyurl.com/ibmvsindex
+1
“What’s the point of making a lot of money if it all just goes into government bonds and not a better standard of living?”
And how am I to improve my standard of living?
My problem is I went from sleeping in the living room in the Bronx for 12 years, til parents got a small home on Long Island where I shared a 8×9 bedroom to sharing a two bedroom apt,to getting a one bedroom apt to getting a house. Granted a small house. With kids not willing to leave school district and me hating high taxes anyhow I really am stuck.
Have you seen the school taxes on new construction or trade up homes.
Statler Waldorf says:
October 21, 2014 at 11:17 am
+1
“What’s the point of making a lot of money if it all just goes into government bonds and not a better standard of living?”
If you truly have money, this should not bother you. It comes with the game. Don’t get me wrong, you can save all your money instead and continue to accumulate your net worth till you are dead, but I guarantee in your dying days, you will question why you didn’t enjoy some of it while you had a chance.
It’s funny, everyone always claims they are saving for retirement, then when they finally hit retirement, they spend even less. Why not spend when you could enjoy it, when you get older, you don’t need much. There really is not much that you will even want to spend your money on if you make it to your 70s and 80s. You will be set in your ways and nothing will really appeal to you. So if you are going to downgrade, wait till retirement. While you can still walk around and enjoy life, live a little. If you can afford a nice house, buy it. If you can afford a nice car, buy it. Yes you are wasting money, but isn’t everything a waste of money in the end. If you can afford to live a better way of life, do so, before your life is gone.
Will never ever understand people that have tons of money, but cheap out on everything in life. Why do you have a ton of money? For what purpose? To say you have it? I don’t get it. Go enjoy yourself.
“Have you seen the school taxes on new construction or trade up homes.”
Have to agree with you there. Life is so much more fun when you can enjoy it and more importantly, still virile. Going mongering in Vegas, Dominican Republic, Prague, or Thailand is different in your 40/50s than it will be in your 60/70s. Should be at a minimum a 2 year deal.
Any recommendations for a Mortgage Broker to refinance a single family primary residence in Union County? Long time lurker
Key…county shouldn’t matter. Try my guy at Mortgage Masters. Carl Nielsen. Shop online, get your best offer and bring it to him. He’ll match it for sure and in most cases will beat it. No nonsense, no BS. If you want someone to kiss your butt, go to the bank. If you want a better rate or are in a tricky situation, he’s been great for us and for everyone that I recommended here accept for one person who did have an unusual situation. Mention Stu sent you and if you close he might give me a pair of Devils tickets. Ask nicely and he’ll give you a pair too.
JJ is just cheap. His kids will appreciate his wealth if he doesn’t.
Michael I currently due to sandy and multiple tax grievances are paying around $2,500 a year property tax, $1,600 homeowners and $530 flood on my house.
House I just tried to buy at 809k. Ment a 409k mortgage and pulling 400K out of bonds earning around 4% tax free and it had 17K property tax.
Mortgage around 1,600 taxes, 1,500 and insurance around 300 a month on that large a house. So we are talking $3,500 a month plus around $1,400 a month in lost interest income. For a grand total of $4,900 a month vs. current $385 a month. I was going to rent my old home as my supercheap property tax will get lost on sale of home so maybe I could net 2k a month profit. My trouble is I get all the work and all the bills but I am at work 12 months a year and usually travel 3-4 weeks a year. My wife is not overly enthalled as she thinks what if I leverage myself up get laid off and then she has to go back to work.
Michael says:
October 21, 2014 at 12:09 pm
If you truly have money, this should not bother you. It comes with the game. Don’t get me wrong, you can save all your money instead and continue to accumulate your net worth till you are dead, but I guarantee in your dying days, you will question why you didn’t enjoy some of it while you had a chance.
Libturd,
In the past, did you ever bring to Carl a true “no-cost refi” and did he match that? To be honest, I’ve never read the fine print of those offers so maybe the question is moot (since they weren’t actually no-cost).
Joyce,
Yes…I did a no cost with him when Chase offered it to me. To be honest with you, a no cost loan is the same thing as a standard loan. They just wrap the cost of doing the loan into the APR. My last two refis on my primary and investment properties (taking them from 20s down to 15 year loans were both no cost loans. It’s really a shame that I did it that way because I probably could have locked my 15 year on my primary at a rate even lower than the already insanely low rate of 2.75%. Probably could have locked at 2.625 for bragging rights.
Thanks
Anyone else with really good credit (like Gator and me) find that one bank wants all of your loans. Now both of my mortgages and my new car loan are with Chase. I had nothing to do with choosing the bank in all three of these recent cases.
23 Michael
Don’t forget, the older folks you see around you are getting a much better deal than you ever will.
Pensions, Social Security, Medicaid, Medicare, etc. You want to bet the farm that you will get the same things?
Your healthcare, what’s it gonna cost you. Did gramps pay a premium for smoking his Lucky Strikes?
Did gramps need 2 college educated people just to pay the taxes on his house?
Did grandma’s children need 2 years of pre-school and 4 years of college to be “middle class”?
How many of gramps jobs were outsourced, replaced by a migrant worker, or given to a computer at the table of a restaurant?
JJ sees the writing on the wall. The pressure on most people is increasing at an alarming rate even though they do not see the train coming at them.
JJ is ahead of the curve, and looking out for his kids over himself. For that I applaud him.
Don’t get me wrong, I’m in favor of saving and investing for future needs. But assuming one’s job and income are favorable, and one has several years of expenses in the bank, retirement savings on track, then one’s house may well be what one chooses to spend on. Some people may instead prioritize spending on their kids’ activities & school, vacations, art, donations.
I don’t really see the attraction of living in cramped, diy-updated houses set on small lots in Long Island in close proximity to people gross enough to hold down your property taxes.
Back when I lived in a modest house in Scotch Plains, waiting out the property bubble while also focusing on my career and building up savings, there were times that I really felt out of place after talking to the parents of the kids going to my daughters’ school. Some fairly dumb people with limited means, experiences, and aspirations. I knew I had to get away from there, didn’t want to be surrounded by people topping out at Jr Accounting Manager, or head library clerk and whose idea of exotic travel was going to the shore.
So I moved out and up when the money and market was right. Now I could move up again in terms of towns, but my wife is really happy with the house and location we have.
34.
Most Americans are one illness away from bankruptcy.
If any of you choose to work with Carl, just be prepared for his office to disappear until the day before the closing. They work on quantity, not quality. If you want a free pen, a person who calls you to remind you everyday to submit missing bills to the underwriters, or who will hold your hand each step of the way, then don’t go. If you want the best rate, which really adds up over thirty years, then he be the man. He’s one of the largest originators on the east coast. Though you would never be able to tell from his office, his persona or his mannerisms. He’s really no nonsense and when you get to know him, a real ball buster. I just looked it up and Carl did over $100 million in loans in 2013. Not bad.
36 – 9 out of 10 mortgage shops I’ve dealt with for my clients have ended up in situations involving last minute scrambles for docs, approvals, paperwork, etc. I wish I could say that all my closings were buttoned up the day before, but it seems more common that day-of funding issues will probably arise. Never had one not close, but sure as hell felt that way with many of them.
How much help do the kids need? Better off giving them the gift of being able to take care of themselves than leaving them lots of money. If they were never taught how to survive and create/maintain wealth, giving them lots of money when you die will just result in them pissing it away, not ever understanding how much sacrifice was used to create that. You are not taking care of your kids when you just give them a ton of money without the tools necessary to handle that responsibility. Help them out with a down payment on a home or sell them a property at a discount, but don’t just give everything to them. I promise you that it will most likely go to waste. Only when someone earns it, will they appreciate it. Otherwise, it’s literally impossible for them to appreciate it if they have never ever had to earn it. Their mind can’t grasp it based on their experience in life.
“JJ sees the writing on the wall. The pressure on most people is increasing at an alarming rate even though they do not see the train coming at them.
JJ is ahead of the curve, and looking out for his kids over himself. For that I applaud him.”
35,
JJ is supposed to be a big shot on Wall St., with accounts stuffed full of highly appreciated stocks and bonds.
But yes, too many Americans leave their fates to the kindness of others:
http://www.bankrate.com/finance/consumer-index/saving-for-a-rainy-day.aspx
Bankrate’s Financial Security Index for June found that about a quarter of consumers don’t have an emergency cash reserve. Nearly a quarter don’t have enough savings to cover three months’ of expenses. These percentages have not budged much since 2011 when Bankrate began asking consumers about their emergency savings.
…
even among consumers who make $75,000 a year or more, fewer than half (46 percent) have enough to cover six months’ expenses or more.
Portland, Oregon-based Wells Fargo branch employee Tyrel Oates emailed the bank’s CEO asking for a $10,000 raise for himself and his colleagues, the Charlotte Observer reported.
He also CC’d 200,000 other Wells Fargo employees on the email to CEO John Stumpf. Talk about some chutzpah!
Read more: http://www.businessinsider.com/tyrel-oates-letter-to-wells-fargo-ceo-2014-10#ixzz3GnqLNolq
With all the stock predicting skills, no skills to foresee that kids should be moved into the ‘good’ neighborhood before they start school? That taxes are “high” is relative, someone making $400K annually should really not be concerned with property taxes on a 4 or 5 bedroom house.
“With kids not willing to leave school district and me hating high taxes anyhow I really am stuck.”
Money triples if properly invested by the time one retires. Take your property taxes and triple them and that is real effect on retirement/inheritance.
I got more joy last week bottom fishing into a few stocks that are up 6% in last week than buying a home.
BTW I bought my house when my income 69K a year and my wife was eight months pregant and not going back to work. I took out a 160K mortgage and taxes were 6,000 a year and it was a huge anchor around my neck for first three years.
Then by time I could trade up it was 2005/2006 bubble years and I was not doing that plus we were still in baby making phase.
Finally by time youngest started kindergarten and wife and me had time to look and RE collasped I got wacked with Sandy.
The two top 100 districts near me the girls in HS are sluts and do coke and all types of drugs in their parents seven figure homes while their dual income parents work. The second best HS in Long Island two or three years ago the girls took a pact to not give away BJs they started charging and some were making big cash till parents started wonding how there kids are all the money.
The two rich school districts top 100 near me all the rich folk send their daughters to Catholic School to get away from the drugs and parties the kids have.
Long Island we have the STAR program to give property taxes to middle class folks and the cut off is 500K after tax breaks. So near me 400K is a blue collar salary folks are now making 750k in decent towns. 400k is the new 100K.
Statler Waldorf says:
October 21, 2014 at 2:02 pm
With all the stock predicting skills, no skills to foresee that kids should be moved into the ‘good’ neighborhood before they start school? That taxes are “high” is relative, someone making $400K annually should really not be concerned with property taxes on a 4 or 5 bedroom house.
“With kids not willing to leave school district and me hating high taxes anyhow I really am stuck.”
Re: #40 – Obviously Tyrel has another job lined up. If not….back to his parent’s basement (or the Ghetto?) and a career change. Dude, it ain’t the late 90’s (even then though his actions would have been a wee bit over the top. A true ‘star’ couldn’t have pulled off that scheme and kept a paycheck let alone a career unless….).
Used to threaten to quit at least twice a year back then. Employers ALWAYS caved. Try it now.
[42] NJT
So true. Counter-offers were common back in the late 90s. Now its ok, it was nice working with you.
NJT [42];
Can you imagine the snitstorm of bad press that would come to Wells (bailout recipient) fired the guy merely for asking for a raise?
Personally, I think his upward mobility there is shot, but as long as he shows up on time and doesn’t get caught surfing pron on company computers, he’s safe for several years. Maybe that was the plan all along, forestall an impending layoff?
He better be black as anthracite and have a snow white record…. (I hope as I DESPISE Wells. No, it’s more than that…).
Ebola scare dying out, oil prices settling, Obama fumbling, I just changed what little bit of my 401K elections that were risk off to risk on.
The article said the guy was 60 years old.
the guy IS sixty years old
Stumpf is 60 not Oates (Tyrel).
Trolling?
Yup, I misread.
It’s a 401(k)…..WTF are you doing?
Libturd in Union says:
October 21, 2014 at 3:55 pm
Ebola scare dying out, oil prices settling, Obama fumbling, I just changed what little bit of my 401K elections that were risk off to risk on.
$10,000 raise? What is this 1990?
#24 FKA
Its better to get that out of your system in your 20s and 30s ;*)
Scott Garret has fired up the Robo Callers going after Cho’s voting record. I haven’t really been following the race, but if I were him I would be scared.
The redistricting has hurt him. This is no longer the GOP He11hole it one was. There is a lot of infighting in the north Jersey GOP. The battle lines have been drawn in Saulino vs. Donovan and there is a lot of local fall out.
The anecdotal lawn sign count shows a lot of Cho support. If he can fire an apathetic Dem base and tie in with the new parts of the district, he has a true shot at this.
[42] fka
Tyrel wants out. Banks are universally nonunion shops. And it is a violation of fed labor laws to fire someone for labor organizing. So tyrel does something guaranteed to get most people fired but if that happens, he screams race and labor law violations and his atty makes pleas to EEOC to weigh in.
At the end of the day, tyrel wants to get out of the rat race and get some bank to cushion the drop.
[54] Fabian,
It is my earnest hope that your employer sends you on a sixth month assignment to Cheyenne, WY or Maitland, FL
Ebola infected person rumored to have landed in Newark. Currently at UMDNJ.
UMDNJ should be able to spread that ebola over half of Newark by Friday.
Giving a stranger a wet Willy could get you an annoying look, a profanity riddled verbal response or even a punch in the nose. When that stranger is a police officer, it turns out it’s a crime.
(at least the author identified the problem (double standard) in the first two sentences)
http://www.mankatofreepress.com/news/local_news/article_ad537f6a-3dbc-5534-aaee-3cb9144874eb.html
Risk on in my 401K equates to dropping my 25% portion of Grossless Pimco and putting it into a dividend growth fund for the two month recovery. Will switch back to risk on December.
risk off. Ughh. Must go to sleep.
Flights from west African Ebola hot zones now restricted to 5 airports in the US for screening. Of course, one is JFK and the other is EWR.
Sleep well!
In November 2001, they stole my identity information and spread it over half of Newark within 48 hours.
Liquor Luge says:
October 21, 2014 at 9:22 pm
UMDNJ should be able to spread that ebola over half of Newark by Friday.
Two family close by that looks great outside. Price would enable a high margin. Problem: Can’t get inside to check it all out. Owner (no mortgage) lives out of state. Wants to ‘dump’ it but tenants are being ‘uncooperative’, to say the least.
NO realtors can gain entry (watched one try a few days ago) but it’s listed.
So, what (I think) we have here is:
1. An owner down in FA that wants to be rid of the place.
2. Tenants that don’t want to leave (maybe not paying for as long as they can).
3. The owner is too old, lazy, rich or ignorant.
How to proceed? (the price is GREAT unless the joint is structurally unsound which I don’t think).
Suggestions?
Just knock.
[59] When all is said and done the wet Willier may have to register as a sex offender.
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