What A Million Bucks Will Get You In Hollywood
A reader posted this link and I couldn't resist posting it. It is really a reminder of the lunacy going on in some markets; composite roof! You can't blame the owner for trying.
If possible, it would be great to track the property and see if they get the million. If they'll just throw in that basketball hoop.
Here is a fixer-upper in San Diego. But where to start. It hasn't been lived in for 30 years so some of the utilities may not work.
11 Comments:
I had to respond. First of all the San Diego post is actually in Los Angeles in the West Valley. Second, that property in West Hollywood is in a prime area that has always been expensive - South of Sunset and West of La Cienega. That price may be slightly inflated but could also be a bargain if the place was rehabbed just a bit. There are plenty of other properties in SoCal that are way over price but I don't think either of these are and I have lived here for 40+ years.
That's no rehabber. That's a teardown. So you are really buying the lot for $1M plus whatever it costs to remove the house. Then you have to build a house to replace it. From what I know of the rental market down there, the current house would probably fetch 2,300-2,500 a month.
Ben
I am a Realtor and I just checked the mls, this property is a duplex, built in 1924, with 1448 sq ft and sits on a 6111 sq ft lot and is likely surrounded by condos and apartments. And guess what, it's in escrow (under contract). Actually it was priced right. I believe the median price in that area is close to $1,200,000.
By the way, I am one Realtor who believes that we are in store for a major price correction in the very near future.
good to hear from an honest realtor. I am currently renting an apartment in santa barbara and plan to move to either washington state or Texas soon, as the median price of $1.2+ million here is just plain ridiculous. Some colleague bought a house a year ago and probably has made over 25% profit, but $6,000 monthly payment means there is hardly any money left for anything else.
I live in the same general vicinity of this listing. I just sold my house for 1.5 million dollars. I bought i t six years ago for 650 and thought I was getting ripped off. This house is priced right, but somebody is going to feel foolish this time next year.
"I just sold my house for 1.5 million dollars. I bought i t six years ago for 650"
You are a very smart man. Please tell us you didn't turn around and buy another one for 1.8... Are you renting ? Are others doing the same ?
I lived down the street on Hancock Avenue - bought in a building that an S&L took over in the mid-80s - got in as they dumped the remaining units - under $200K for a great corner 2 BD - sold out for nearly double a few years later, but heard that prices dropped again in the mid-90s. Just checked the records - prices in the building have doubled in the last 3 years, and the highest price in the records on Hancock Ave is another single family at $733K three years ago - so maybe the buyer of this one got a bargain - :) - or at least that's what the trade will say.
fatbear
Funny everyone is mentioning cashing out on this bubble trip. I was at a party this weekend and spoke with someone who said the guy renting her husband's former 1 bed cottage just sold his home for $4 million (not sure where in LA) and is waiting to buy again until this market heads south. Now some of my relatives are talking about selling even though a couple of months ago they were positive their house would appreciate another 20% this year. Go figure.
I'm thrilled to hear that people are cashing out. Take your money and run. There IS hope that not everyone believes the hype that is surrounding bubble mania.
This house is in a very good location, right around the corner from Koo Koo Roo I believe. Still this seems wildly overpriced. Imagine, you're educated and you and your significant other earn good six figure incomes. Now you get to live in this wreck on top of your tenants in the duplex and be house poor. Is this the American dream we were all aspiring too, I think not. This is either a bubble or our standard of living has vastly deteriorated.
Oh well. The chicken at Koo Koo Roo is awfully good.
The funny thing is -- the state of CA must be making out like a bandit on the RE bubble in the form of increased assessments keyed off of inflated property values, even with Prop 13. The Hollywood prop only had an assessed value of $376K as of 2004. I know the mechanics of assessments vs. TMV, but still.
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