BMIT put up an interesting post the other day that I think needs to be read and reconsidered. Basically, there are still people flipping properties; it is unlikely that after the biggest bubble in the history of the world, that the crisis is over and properties can once again be resold for several hundred thousand dollars more by simply trimming some bushes, putting down sod and painting the picket fence. There are still too many people chasing limited opportunities and therefore overpaying for something that makes little economic sense. In a recession, economic sense should prevail.
Therefore, I ask the most difficult question regarding the property that OCR dragged up in San Diego:
San Diego Shack
In this corner, we have the lightweight contender. Weighing in at just 570 square feet, and surrounded by squalor, you can bask in the beauty of your red front door that leaves nothing to the imagination and your K-mart clearance special patio set. Luckily for you, you can now dry your clothes directly outside your front door with the convenient ledger board that is stapled to the outside of your quaint demi-cottage. Only you and your neighbor will know when you pass gas in this beautiful little near-beach house. IT HAS PRACTIALLY EVERYTHING YOU NEED TO SURVIVE.
Similarly, I’ll compare it to this:
Laguna Niguel Shack
This quaint beach cottage has a measly 10,000 square feet, but who can be sure? It features subterranean parking, wine cellars, an opulent entry, is centrally located in Laguna Niguel near Monarch Beach and boasts a true 180 degree view of the ocean. Luckily, you won’t need to hang your clothes out to dry, you actually have a laundry room and servants quarters to ensure your underwear is neatly pressed day or night.
However, there’s something this house lacks that the San Diego house has. It’s a critical component in today’s current economy.
No, it’s not irrational exuberance… but you’re getting close.
Figured it out yet?
OK
Here
it
is.
The shack in San Diego boasts a higher price tag per square foot, exceeding $1000/ square foot while the opulent mansion with views to the ends of the earth weighs in at a measly $975/ sqft.
Now that’s amore.
Kitchens and bathrooms are the most expensive spaces to build because of plumbing costs. So I think the explanation is that the shack is 100% bathroom, and the mansion is only 97.5% bathroom.
Yeah, but did you see the underground garage on the LN shack? I think it’s bigger than the entire house I live in now.
That was an hilarious comparison. LOL. Thanks.
Beautiful post, dude. Thanks!