I received the following interesting email:
Has anyone looked into how much of the buying has been done by only a few people, such as the Casey Serins of the world? I think it would be an interesting study, similar to how much of our taxes are paid by the top 1%, etc.
I have heard from information I believe to be reliable (though no actual knowledge) that the following houses on the same block were bought by one person in zip code 90025.I have heard that the buyer is a R.E. agent, who had been unable to flip those homes (that was her intention, from what I gather). She bought the 1945 Stoner house a couple years or so earlier than the Granville houses, but it seems like she drove the market up singlehandedly or maybe she was the market.
- 1945 Stoner Ave (corner house on Stoner and La Grange). [3 bed / 1 bath; isn't on the County Assessor's website, which only shows the last two years. Zestimate is $917K]
- 1940 Granville (second to the corner of Granville and La Grange - this house is on the other side of the block as the Stoner house, and one house from the corner). [photo above; 2/1, sold for $885K on 9/9/05. Zestimate is $973K.]
- 1938 Granville (next to 1940). [3/1; sold for $922K on 10/19/05. Zestimate is $1,064K.]
I don't know how many other houses she may have bought.
She is supposedly renting those 3 houses for about 3000 a month.
I'm curious as to why those 3 houses are showing up on Zillow at much higher Zestimates than the neighboring houses. The La Grange end of that block is undesirable due to the noise from the adjacent city maintenance depot. [city trash truck facility a block south, below] The better houses there are in the middle of the block. Is the Zestimate a number that is manipulable by an RE agent?
I also believe that 1925 Stoner and 1929 Stoner on the same block may be owned by one individual as well.
A few buyers (and a lot of easy credit) can push prices up a lot. This RE bubble did not require participation by the masses.
I agree, Zillow's estimates here don't make sense. Maybe they're skewed by recent sales? Others' comments on a few buyers pushing prices up? Monthly rent of $3K on a $900K house doesn't sound like a very sustainable cap rate.
7 comments:
Where can I get financing info? I've started to comment on stuff on the market in my neighborhood at http://la-stories.blogspot.com There's a duplex which is on the market again after just 8 months. The poor saps who bought it paid 1.75 million for a property which can net--maybe--6000/month. It'd take a 60% downpayment and ridiculously low interest rate just to break even on taxes and mortgage.
Don, a couple of commenters here have access to loan info (I don't), and may be able to help if you post the address here.
OK, I'm interested in 1100 S Corning, LA 90035
those three addresses on Granville and Stoner are in fact owned by the same married couple, in addition to a few other properties around L.A.
"It'd take a 60% downpayment and ridiculously low interest rate just to break even on taxes and mortgage."
That's about what the buyer of 1100 S Corning did. A 40 year loan at 1.4%, wish I could get one of dem!
Mortgage Type: PURCHASE MONEY
Lender: AMERICAN BROKERS CONDUIT
Lender Type: MORTGAGE COMPANY
Loan Amount: $ 903,750
Type of Financing: ADJUSTABLE RATE
Interest Rate: 1.40 %
Due Date: 1/1/2047
Rate Change: MONTHLY
Change Index: 3.85 %
So what's going on with that mortgage... it adjusts monthly, any way to tell what their current rate is? As I mentioned at L.A. Stories, the comps in the neighborhood are about 70% of what these buyers paid (and I have to say that this is probably one of the less nice properties in terms of condition and location).
Back on the market after just 8 months? Sounds like a foreclosure is brewing.
I doubt very much this is a "poor sap" situation -- this buyer seems to have known perfectly well what he/she was doing. And exactly how to get the mortgage to make it all possible.
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