April 02, 2007

Real Homes of Genius: Today we Salute you Buena Park. $511,000 for 864 Square Feet. Even Knott’s Berry Farm is Cheaper!


What a wonderful and beautiful Southern California weekend we just had. Time for friends, picnics, and outrageous loony housing. Today we salute an 864 square foot home in Buena Park. When you think of half-a-million big ones, we usually think of majestic homes with at least enough room for two cars. But not in Southern California! After taking the kids to Knott’s Berry Farm and dropping $300 bucks on processed sugars and modified carnival rides, why not go over and purchase the above home for $511,000? This place has a marvelous 2 bedrooms and 1 full bathroom. This place has a large backyard for picnics if you can still afford a grill after your $4,000 monthly payment. But you’ll be living in style and hey, you can even catch a glimpse of the log ride from your pad. Talk about living large.

With such a deal as is our custom here at Real Homes of Genius, let us see the previous sales data:

Sale History :
04/15/2005: $435,000
03/31/2003: $252,500

Someone made out like a bandit in 2005 and I’m not talking about the Knott’s saloon either. This person is approaching the two-year anniversary meaning they can avoid capital gains tax on this place and have a nice tax break! Money in the bank. After a 6% commission this seller is looking to score $45,340, the median salary of someone in the area. For two years this is a great investment; let us give our sub-prime lender a call. Well it seems New Century has filed bankruptcy today so we’ll need to go the conventional route should we want to purchase this home. Whoops! You mean I can rent a home in the area like this for $1,300 a month and spend the rest on unlimited rides on Supreme Scream? Not sure if the lifestyles of the rich and famous included 864 square foot pads.

Today we salute you Buena Park with our Real Homes of Genius Award.

10 Comments:

sed said...

For half a mil you'd think they could keep the lawn green. Then again, maybe the water's been turned off due to lack of payment.

sed said...

For half a mil you'd think they could keep the lawn green. Then again, maybe the water's been turned off due to lack of payment.

Anonymous said...

Notice the VW Bug in the driveway?

No doubt the FB pulled equity out of the ATM/home to enjoy the lifestyle of the Rich and Famous in the O.C. Now they're going upside down, and probably can't even afford to go to Knott's. I'm guessing rich in mortgage debt alone....

Anonymous said...

Cheap by most measures! Only $590 per square foot.....

Dr Housing Bubble said...

sed,

For green grass you need to look at $600,000 homes. I think your expectation of SoCal are too high.

anon,

In debt big time. Flip time here. I mean think about the person who sold in 2005, almost $100,000 per year in appreciation. Unfortunately that boat has long sailed.

oc bear said...

Maybe this is one that Casey forgot he owned.

Anonymous said...

These Real Homes of Genius posts really show how ridiculous SoCal sellers still are. What I don't understand - it is like the sellers and the RE agents are living in caves. Who is left that can afford homes at these prices?

But the other part that is perplexing is the 7.9% YOY increase in LA. How the he!! are prices still increasing. I have been watching a couple of areas in the San Fernando Valley that I'm interested in for months now. For the most part, the only houses that are dropping their prices started at over $750k. And somehow, the Valley as a whole is either flat or up. Houses need to drop to at least $400k for a decent 3bd,2bth before the market can be even be close to 'reasonable.' Does anyone really see that happening - even in the next couple of years?

Dr Housing Bubble said...

anon,

I know this seems illogical but what is happening is sales numbers are down 20+% in many areas and the homes that sell are to peak buyers. Sales numbers show the future trend while current prices are trending downward.

Even the futures market shows most Southern California counties down yoy by Q3 and Q4.

Steve the Dog said...

Wow.

When does the bidding begin?

Steve the Dog.

woof

Ariel said...

Holy crap! This is the part of Buena Park where I spent most of my teen years. Heh, I wonder how much my grandparents' house would cost now...er...never mind.

Definitely one of those 1950's-1960's houses that still probably make up the bulk of houses in The BP.

Maybe Fountain Valley is a good idea...if it were affordable. Feh.