When You Wish Upon a Star…
It’s not as if the prices aren’t insane in Culver City, where I’ve watched it go up and up since I moved here 12 years ago. But really – this house is probably under 900 square feet based on what I’ve seen in this town, and rents on a place this size would be under $2K.
That means if you consider insurance, taxes, any fixing up (most of the “bungalows” in CC are OLD), paying this kind of coinage for this little place is INSANE.
And remember, they are basing the payment assumption on 20% down, and we know that no red-blooded American these days is short-sighted enough to actually save a down payment before buying what will probably be the biggest investment of their lives. I mean, it can only go up – in five years it will be worth like 1.6 million!
Maybe they visited Zillow and saw this:
Unfortunately recent sales in the area have been between 570 and 700k. I am sure these owners feel very strongly that they deserve a nice big profit because, well they have owned the house for almost two years and they bought it for 605K. They’ve owned it about 700 days or so and with this profit they only earned like $10 an hour for owning the house.
Dang, I just blew my sarcasm gauge.
UPDATE: LAST SALE: $785,000 (06/27/2007)