Real Estate Crash thread

[Foggy_Goggles]

Acuity has underwriten by business liability policy for about 20yrs. They have been great to work this including defending me against 2 BS claims.

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[Dantheman]

I had a call this morning about a senior living apartment building project in SLC. 110 units, $50-60 million. The size of the units wasn't mentioned, but I can't imagine they're more than 1-2 bedrooms and 1k ft2. Seems nuts.

[Foggy_Goggles]

$545ish per sq. ft.? As usually, it depends on what's in the number. If that included land, infrastructure and all preconstruction costs it sounds about right.

Its so in vogue to point the finger at the developers and assume they are responsible for the cost of housing but the imbedded cost are unbelievable. Its pretty easy to bring product to market at +/-$300 sq. ft. but it's almost as if the regulatory powers don't want it.

#how much should it cost and why?

#I go to the meetings.

[mud]

DR Horton has it under $150 sqft in FL at cost.
https://www.zillow.com/homedetails/4...54523098_zpid/

[liv2ski]

But Florida?

[skaredshtles]

But Florida?

Location
Location
Location

Amirite??

[californiagrown]

I had a call this morning about a senior living apartment building project in SLC. 110 units, $50-60 million. The size of the units wasn't mentioned, but I can't imagine they're more than 1-2 bedrooms and 1k ft2. Seems nuts.

FWIW, just broke ground on a similar sized affordable senior building in the greater seattle area and that was the construction budget last i saw. That didnt include the upfront land/design/permitting costs. State grants pay a big chunk of the budget from what i understand. And these are studios... they dont even have W/D in the units, thats down in the basement.

[lowsparkco]

$545ish per sq. ft.? As usually, it depends on what's in the number. If that included land, infrastructure and all preconstruction costs it sounds about right.

Its so in vogue to point the finger at the developers and assume they are responsible for the cost of housing but the imbedded cost are unbelievable. Its pretty easy to bring product to market at +/-$300 sq. ft. but it's almost as if the regulatory powers don't want it.

#how much should it cost and why?

#I go to the meetings.

This is a great point. SDC’s have grown at nearly an exponential rate in two of the markets I’ve been involved in lately. It’s disturbing to me that many consumers act as if that’s fiction. It’s pretty easy to verify and it’s a significant expense.

[4matic]

Toll Brothers offers insurance coverage at half the market rate in the new home community near me. Hippo underwrites.

[4matic]

Houses being taken off market around here after months unsold.

[XXX-er]

were people wanting to sell them or just see how much they were worth ?

[Mazderati]

Southern Maine is still on fire. Knockdowns going for over 1MM.

[schuss]

Southern Maine is still on fire. Knockdowns going for over 1MM.

Yep, same in seacoast NH pace-wise. Really sad people figured out it was a nice place to live. Monsters.

[Ted Striker]

PNW never even blinked.

[Name Redacted]

I think the current trend of insurance rates for HOAs jumping 400% could have some pretty major consequences, especially in the condo markets. HOA fees are going to push people out of their homes, and who's going to buy into a place that has massive fees just to insure it?

[skaredshtles]

I think the current trend of insurance rates for HOAs jumping 400% could have some pretty major consequences, especially in the condo markets. HOA fees are going to push people out of their homes, and who's going to buy into a place that has massive fees just to insure it?

So you're saying condo prices will be coming down?

[4matic]

were people wanting to sell them or just see how much they were worth ?

Maybe both.

[singlesline]

So you're saying condo prices will be coming down?

Yeah, usually the prices come down to make it work out about even on a monthly payment level (although you get shit for equity if all your money is going to the HOA so its not a great long term deal).

Common to see "cheap" condos in super nice old buildings in big cities....until you see the HOA dues. Turns out maintaining those glamourous marble entryways and keeping the building from falling down is expensive.

Here's a random one in Chicago, but I've seen far more egregious examples:
https://www.zillow.com/homedetails/3.../3718277_zpid/
In a lower interest rate environment, that HOA fee is equal to a mortgage payment...

[liv2ski]

Ooof...the HOA fees and property taxes would be a bitter pill to swallow.

[yeahman]

How wonderful these days that you can pay off your mortgage, meantime your taxes, insurance and HOAs have crept up to the point where your monthly payout without mortgage is equal to what it was when you first bought the place and were paying it all.

[Name Redacted]

How wonderful these days that you can pay off your mortgage, meantime your taxes, insurance and HOAs have crept up to the point where your monthly payout without mortgage is equal to what it was when you first bought the place and were paying it all.

Yup, a buddy of mine finally accomplished his dream of buying a condo. Single dude, works hard, makes decent money for a ski town, better than a lifty anyway. Now his HOA just got assessed thousands of dollars and fees will be goin up a lot. Now he might have to get a side hustle like selling drugs or something just to cover it. Pisses me off, these are the kind of people we need around here.

[Foggy_Goggles]

Due dillegence on the reserves

Go to the meetings

Understand that an HOA is a rotating cast of business partners you do not control

Sent from my Turbo 850 Flatbrimed Highhorse

[Name Redacted]

Due dillegence on the reserves

Go to the meetings

Understand that an HOA is a rotating cast of business partners you do not control

Sent from my Turbo 850 Flatbrimed Highhorse

Nobody saw a 400% increase in insurance premiums coming. Normally i would agree but this is a new trend, at least around here.

[Kevo]

Thought this website was interesting. It tracks prices and YoY inventory growth across pretty much every zip code. Here is Denver Metro

[Foggy_Goggles]

When I think assement I think special assessment not dues. But yes 4x increase in insurance does suck.

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