Free Rent for Thousands of Bats in a Georgia Home

Who would have ever thought the words bat and foreclosure would be used in the same sentence? Unbelievably, an estimated 20,000 bats have infested a foreclosed home in Tifton, Georgia. This story has received a lot of attention over the last few days— both foreclosure.com and “the real estate bloggers” have posted stories about it. This is without a doubt one of the weirdest real estate- related stories I have heard yet. I’ve read about cat infestations, but never a bat invasion, especially to this magnitude.

Several questions still need answers, the most obvious of all being what the home’s owner— Chase Bank— is going to do about this problem? After all, finding a place for 20,000 Mexican Free-tailed bats is no easy task. Cleaning up the mess left by these animals is also a huge problem since bat feces is potentially harmful to humans. I’m guessing that it will cost Chase Bank a lot of money, probably more than the home’s value, to clean this mess up. I wouldn’t be surprised if this infestation turns into a huge ordeal where animal rights activists get involved.   

The bat infested home

Las Vegas Home Sales Rising Sharply in February

According to an article on DQNews.com, Las Vegas home sales during February were at their highest levels in more than fifteen years. Not surprisingly, about 57% of these homes were paid for using cash. The number of cash only sales increased by 2,198 this month, the most drastic rise since December 2009. On the other hand, the number of homes that were purchased with a mortgage are at some of their lowest levels in years. The statistics given in this article make it clear that the current market is a “buyer’s market” where the majority of people making deals are investors. There are two major reasons for this increase in sales.

Aggressive investing in foreclosed properties is the main cause. A lot of money can be made in Sin City by investing in real estate since it was, and still is, one of the most distressed regions in the country. As a matter a fact, my father and I are currently in the process of purchasing a few properties near the Las Vegas strip. Not surprisingly, getting is mortgage is the biggest hurdle we’re facing.

Another reason for this increase in sales is the drop is property values. The median price of a home here is $90,242, down from $99,000 a year earlier.

Demand for Office Space Falling

Office space is one segment of the real estate market that I have not mentioned on this blog yet. A 2010 Los Angeles Times article informed me that the demand for office space in the United States has been decreasing drastically over the last few years. In the 1970’s, companies allocated 500 to 700 square feet of floor space per employee. This number has dropped to just over 200 square feet and is expected to decrease to roughly 50 square feet by 2015. There are several reasons for this.

Without a doubt, the main cause of this is the economic downturn. Large companies simply can’t afford large offices for their employees. This is especially true for corporations with thousands of employees. Just like other businesses, cutting costs has become a major priority.

The new emphasis on teamwork is another factor. Small cubicles and conference rooms conducive to productive teamwork have replaced large offices.

One final reason for this lack of demand that was not mentioned in the article stems from a new trend where all employees, not matter their rank, are considered equals. For example, Cisco C.E.O. John Chambers works in a cubicle just like an intro analyst. Many believe this philosophy, leads to a better work environment and higher retention rates.  

AEG Announces L.A. Football Stadium’s Designer… That is, if it’s Ever Built

Without a doubt, one of the most anticipated developments Los Angeles residents are waiting for is a football stadium promised by AEG. It was announced today that the entertainment giant has finally chosen a firm to design the stadium that many people don’t think will be built. The winner: Gensler.

This World- renowned architecture, design, and planning firm employs over 2000 people and has over thirty location across the globe. To say the least, this firm’s past projects are impressive. For example, Gensler served as the main architect for the Las Vegas City center. This massive 18 million square foot complex is the largest private development in the country. Coming from someone who has stayed it one of its many hotels, this center is simply amazing. This firm is also responsible for the fifty story 21^st Century Tower located in Shanghai. The list of projects this company is responsible for seems endless. Feel free to take a look at their other projects on their website.

   I’m not sure if AEG will come through and actually build the stadium they have been speaking about for so many years. However, it is now clear to me that they have chosen the right company to handle the structures design.

The Las Vegas City Center

Gensler's recent project in Century City  

Japan’s Housing Dilemma

One of the main issues facing Japanese officials is where to house the countless number of people who have been displaced by the recent earthquake and tsunami. A New York Times article tells the story of world famous architect Shigeru Ban’s plans to build temporary homes for people who have been affected by this terrible disaster. His building material of choice: paper!

Ban used rolls of paper to make small huts for refugees of the 1995 earthquake in Kobe, Japan. His plans this time are different, mainly because he needs to design and build many more homes in a short amount of time. Speed is the priority, not comfort. In Shigeru Ban’s words, “ a house is a house.” Considering this, he plans to build simple partitions made from paper to turn large gymnasiums, currently being used as shelters, into small separate units. These units are inexpensive to build and will provide Japanese families with just enough privacy to get by. According to this article, Ban has already raised $30,000.

Expect more information of Shigeru Ban’s other projects.  

   Shigeru Ban in front of one of his projects   

 

Examples of Ban's paper homes

The interior of one of Ban's larger projects

Now is the Time to Buy!

There are plenty of deals in today’s real estate market if someone if willing to look for them. Foreclosed properties, short sales, and the like all present opportunities to buy a home at a bargain. These homes can then be used as an investment or a resident. Many homes are being sold for a fraction of what they are worth simply because banks are trying to liquidate their assets. As a matter a fact, a report from the national association of realtors stated that 39% of home sales were distressed properties.

           

At 19%, investors make up the majority of these buyers. This is mainly because they have the financial resources to purchase homes at low prices. Cash is king in today’s buyers market. After all, banks are very hesitant to give out loans to anyone.     

Newest Student Housing Project for USC Students Under Construction

West 27^th Place will be located on the corner of 27^th street and Figueroa. This will be the first LEED certified housing complex for USC students and will offer over 400 units. Everything from small studio apartments to large four bedroom units will be available. Residents will benefits from many amenities including a saltwater swimming pool, fitness center, game room, computer lab, and most important of all free tanning.

One of this project’s biggest achievements is its gold LEED rating. I spoke about this rating system, which ranks how sustainable a building is, in an earlier post. West 27^th Place will offer sustainable transportation options such as easy access to USC’s tram service. Energy efficient materials, draught tolerant plant, efficient irrigation, and recycling systems are also implemented.

Units will range in price from $1550 for a small studio apartment to $1397 per person for a large four-bedroom unit.    

More information can be found at the building’s website

The Top 10 Biggest Ghost towns in The United States

Foreclosures and evictions have become very common over the last few years. Poor lending practices, unemployment, and the explosion of the housing bubble are all responsible for the record number of evictions Americans have been forced to deal with. All of this has lead to a spike in the number of vacancies around the country because demand for homes is still very low.

A Forbes article I found online tells the story of the top ten emptiest cities in the United States. Placing first is Orlando, Florida. With an apartment vacancy rate of 23.6%, I was shocked to learn how deserted this city really is. I remember a time when developers considered Orlando to be an excellent investment. More information on Florida vacancies can be found on this entry I found on the blog Bubblemeter. Ranked second, 5.5% of Las Vegas homes and 13.5% of Apartments are empty. According to the census bureau, this percentage equates to about 7000 unoccupied homes. The rest of this list is pictured below. Although these statistics surprised me, each city’s rank was pretty predictable, with one exception.

I expected Detroit to have a much higher vacancy rate because of its dependence on the automotive industry. The drop in auto sales over the last few years has also reduced the demand for workers in Detroit. However, this state was still ranked in last place on this list. Nonetheless, Detroit is still a very “vacant” city when compared to the rest of the country

The 10 Coolest Cities in the United States

As a Los Angeles native, I am used to a fast paced lifestyle in a city many people consider to be “cool”. Considering this, an entry on the blog “The Real Estate Bloggers” caught my attention since it lists the top ten coolest cities in the United States. Some of the cities that were ranked did not surprise me while others did.

New York and Las Vegas were ranked first and second. This was no surprise to me. I’ve visited both of these cities and I can confidently say that they have earned their rank as two of the coolest places in the country. After all, New York has the reputation as “the city that never sleeps”. The nightlife and attractions here are second to none. Las Vegas is just as awesome. Considered to be the gambling capital of the west coast, this oasis in the desert is home to some of the best restaurants, hotels, and nightclubs in the country.

Los Angeles and Miami were ranked eighth and ninth. These standing were hard to believe at first. As an L.A. resident who is constantly told how fun his home city is, I was expecting a higher rank closer to Las Vegas and Chicago. The social scene and nightlife here is pretty impressive. The same can be said for Miami, which has some of the most pristine beaches in the country.     

Time Square- New York City

the Las Vegas strip

Michael Jackson’s Neverland Ranch- An Investment?

Investors have been busy buying foreclosed and discounted properties hoping to make a profit since the mortgage meltdown began. I learned from a March Wall Street journal article that Tom Barrack, Colony Capital CEO, recently purchased the world famous Neverland Ranch, once owned by Michael Jackson. This property was foreclosed on right after Jackson’s death and is currently being restored to its former glory. Barrack says that he is not planning on “doing anything commercial with it and that he is just a steward of a very special place.” To be perfectly honest, I find this hard to believe.

Although Tom Barrack’s plans for Jackson’s ranch seem harmless, I would not be surprised if he turns this famous property into a moneymaker for his company. After all, he is still an investor. I can easily imagine Neverland as a major tourist destination open to the public for a fee of course.  

Neverland Ranch

Just a few of the many rides Michael Jackson bought for this property

The main entrance of Neverland Ranch

Tom Barrack

Philanthropy and Foreclosures

Who would have ever thought that some good could come out of the current mortgage crisis? After reading an article titled “Chase Bank foreclosures being ‘donated,’ and sold at ‘steep discounts’ to nonprofits”, I learned that several banks have joined forces to help distressed communities. Lending institutions such as JP Morgan Chase and Wells Fargo have been remodeling and re-selling foreclosed homes at huge discounts to needy families. In some cases, houses were even given away to non-profit organizations. The shear scale of this generosity is what shocked me the most. According to the article, “Chase has donated and/or sold about 1,200 homes” in the last two years.

Although I applaud these organizations for their philanthropic efforts, it’s the least they can do. After all, their poor lending practices were one of the main causes of the financial meltdown. Rather than being responsible lenders, banks around the country got greedy and gave out as many loans as possible. At times, people received a mortgage without a down payment or even a simple credit check! Many Americans who were clearly incapable of paying back loans still qualified. 

I still have very little trust in American banking. However, this article has improved my views. It impresses me to see that lenders and large organizations have more than money on their mind.  

Is a Developer Seriously Building an Amusement Park in Las Vegas?

I was completely shocked after reading an article titled “Las Vegas? Surely someone is spiking the Kool-Aid” that I found on the blog Housing Doom. This entry tells the reader about one company’s plans to build an amusement park in sin city. Keep in mind the market for real estate in this here is one of the worst in the country. Home prices have dropped more than 50% according to zillow.com, an online real estate database. The foreclosure rate is also staggeringly high.

Many income-generating properties have been losing money or closing down over the past few years. Clearly, it’s not the right time to develop a theme park in a city where real estate is in limbo. I think the overly optimistic company behind this project is making a huge mistake. Many expected the newly built City Center to revive Las Vegas, but it too is struggling to fill its rooms and make a solid profit. This multibillion- dollars hotel’s lack of success makes it clear that property development should be put on hold until the market recovers.

A sketch of the proposed amusement park

Allen Iverson has Officially Been Foreclosed on

Eleven- time NBA all-star Allen Iverson can officially join Nicholas Cage as one of the few celebrities that has been foreclosed on. I was shocked when I heard about this since Iverson currently has a contract with the Denver nuggets worth almost twenty one million dollars. Clearly, he has the money to afford this home. Why would he stop paying his mortgage payments? This is a question I wish I had a solid answer for. My best guess would probably be poor financial planning, a growing trend among athletes.    

The 6,848 square foot Denver mansion has six bedrooms and originally cost $3.875 million. It just sold for about $2.85 million dollars. This decrease is just one example of how much property values have fallen over the last few years. 

A $60 Million Modern Palace

Most of my blog’s content has been pretty academic. However, this entry is different. One of my friends emailed me a video about a newly built house that is on the market for sixty million dollars on an island off the coast of Miami. Yes, I said sixty million dollars! As if this home’s price tag isn’t surprising enough, it’s being sold during one of the worst economic downturns in our country’s history.

I don’t think this mansion will sell anytime soon. It’s almost impossible to even finance it. This home’s gutsy developers will probably lose money on their investment since property tax alone cost them $1 million per year. Regardless if this mansion sells or not, I still think a description of what sixty million dollars can buy in the current housing market is worth mentioning.

           

           This compound consists of five separate buildings, providing residents about 30,000 square feet of living space and ten bedrooms. As if multiple waterfalls, a koi pond, wine cellar, and a vertical garden aren’t extravagant enough, a private beach with sand imported from the Bahamas is another benefit of living here. The master bedroom’s closet is just as oversized as the house itself. I’ve seen smaller apartments. Without a doubt, I think two of the most pointless features of this home are its five kitchens and twelve refrigerators. Is it even possible to take full advantage of this level of luxury? Since I’m not a billionaire, I’m sure I don’t understand the value in what this home has to offer. 

Cash Only Home Sales on the Rise

It’s no secret that home prices have fallen over the last few years. This downturn in the market has harmed most Americans. However, a select few investors have taken advantage of these low prices by investing in distressed houses. These foreclosed properties are usually sold for a fraction of what they are actually worth, creating an opportunity for people with capital to make a profit. Nonetheless, investors have been forced to use unconventional methods of funding.

The number of homes in California purchased using cash has skyrocketed over the last year. 30.9% of new homes were purchased without a mortgage in 2010. Compared to just 13.9% ten years ago, this is the highest level in at least 24 years, says DataQuick Information Systems.

These figures do not surprise me. After all, qualifying for a mortgage is no easy task. With home prices expected to fall further this year, I predict that the number of cash purchases will continue to increase.