What does it mean when the top mortgage salesman in the US can’t convince his own daughter to buy a house?
“We would drive around neighborhoods and he would point out houses,” chattering about curb appeal and prices, Sara said. “I’ve heard about this my whole life. In my head, I always figured at the age of 27 or 28 I’d buy.” She can, but hasn’t. She’s a legislative aide to Senator Michael Bennet, a Colorado Democrat. Her fiancé, Dan Nee, is a software developer. Their jobs are steady and their combined income is $107,500. The car is paid for and dad is ready to help with a down payment. … [but] “A house is a five- to 10-year commitment,” Sara said. “I’m hesitant about diving in and feeling like I’m not financially ready.”
She and other millennials — the generation born beginning in the early 1980s — started coming of age just as housing collapsed. Sara was just out of college in 2009 when President Barack Obama put her dad in charge of the Federal Housing Administration. Part of his job was to lobby Congress not to dismantle the financial architecture that had made it possible for generations of Americans — including himself — to buy homes. He also was juggling pleas from family and friends who couldn’t pay their adjustable-rate mortgages or sell their devalued houses.
It means she’s a bloody genius, that’s what it means.
Oh boy! It’s time for another installment of GOOD ENOUGH Homes & Destinations, a Billfold corrective to the New York Times’ weekly feature, “Great Homes & Destinations: What You Get For … [obscene amount of money].” This time around, the NYT is excited to tell and show us what you — except not you, that would be hilarious, more like a Russian oligarch — could get for $2,500,000. Choice quote:
The kitchen was designed by Nate Berkus, a regular guest on “The Oprah Winfrey Show.” The room has stainless-steel appliances and paneling and cabinets of cherry. The backsplash is Balinese tile. A granite-topped island separates the kitchen from the family room, which has a wall of cherry cabinets and a broad marble fireplace. Sliding glass doors open to a Brazilian wood deck with partial shade.
Amazing. Herewith, what you, actual you, could get for the more reasonable price of $250,000:
One of the fun things about living in New York City is peering into the faces of the people you pass and asking yourself, “Are you a millionaire? Are you, sir, with the mustache and tattoos and mustache tattoos? Are you, angry biking lady?” It’s sort of like the grown-up version of Are You My Mother? but whereas the little bird in that famous children’s book has only one mother, NYC overflows with rich people. They’re everywhere, hiding among us. They have to be. After all, who else could afford to buy those massive luxury condos growing up everywhere like weeds?
Well, turns out that the secret ingredient is salt foreign capital.
According to data compiled by the firm PropertyShark, since 2008, roughly 30 percent of condo sales in large-scale Manhattan developments have been to purchasers who either listed an overseas address or bought through an entity like a limited-liability corporation, a tactic rarely employed by local homebuyers but favored by foreign investors. Similarly, the firm Corcoran Sunshine, which markets luxury buildings, estimates that 35 percent of its sales since 2013 have been to international buyers, half from Asia, with the remainder roughly evenly split among Latin America, Europe, and the rest of the world. “The global elite,” says developer Michael Stern, “is basically looking for a safe-deposit box.” … But much of the foreign money is coming in at lower price points, closer to the median for a Manhattan condo ($1.3 million and rising). In fact, if you’ve recently been outdone by an outrageous all-cash bid for an apartment, there’s a decent chance that, behind a generic corporate name, there’s a foreign buyer and an offshore bank account.
Don’t sweat it, normal Americans! We still have options. We can be HUMAN PROPS.
The days that you begin to relax are the days when you get caught, but not in the way you had feared, because nobody has the imagination to assume you’re a squatter.
Every week, the NYT’s “Great Homes and Destinations” subsection puts up a list and slideshow of three estates under the heading, “What You Get For … [obscene amount of money].” Since real estate porn is my favorite kind of porn, I always click through, even though the “homes” start at like $1,000,000. Actual sample quote: “The billiards room is adjacent to the family room.” For Manhattan, maybe, that makes sense, billiards rooms being mandatory in Manhattan, but outside of the city’s costliest borough, who needs to spend that much on a place to live?
As a corrective, I’d like to offer a Billfold take, “Good Enough Homes & Destinations.” Today, What you get for $200,000:
I was living in New England and my landlord had an apartment above me. He would text me and say things like, “There’s a tin of muffins on the bannister.” Pretty halcyon, right? But it made sense for my small New England town where properties were rented on a handshake and a one-page month-to-month sublease. I’d never accept muffins from this landlord for fear of poison.