Stuff Our Stockings (Please)Posted on Friday, December 14th, 2007 at 7:23am.
On one, the markup is 26% over the price paid 18 months ago; on the other, 36% on the price paid 13 months ago. (Let's call it a year.) Of course, they're both multi-million-dollar homes.
We all know the Sand Section has been hot, but these markups are pretty astonishing.
The more modest markup is at 468 33rd (click for details via Redfin) for a newer (2005) home up on the plateau above Sand Dune Park. It's big and luscious at 5br/5ba, 4200 sq. ft.
The gubmint (LA County Assessor) says the owners paid $2.775m, closing May 25, 2006.
And yet, now, if you'd like this home, you'll be asked for $3.495m. That's a markup of $720k (+26%), enough to net the sellers $500k+ before taxes (assuming 6% cost of sale).
We're trying to imagine other investments that might earn 26% over 18 months in which you can live, but we're coming up short.
If those sellers seem optimistic, you'll be dazzled by the folks offering 317 17th (click for details).
You'll love the location – the 300s near downtown, a walkstreet, sincerely big ocean views... It's a home we frankly can't wait to see (the pics are plentiful and nice) given its heritage (1929 initial construx) and plentiful updates.
Extra bonus (we think) – there's a unit over the garage you can rent out.
What's not to like? Initially, we'd say the highway-robbery price. Y'see, the same old gubmint source (the assessor) says the current owners paid $2.050m on 11/07/06.
Golly, that wasn't long ago at all. So how did they decide that a new owner should pay $2.799m? That's a whole $749k (36%) more – $581k profit, pre-tax, assuming a 6% cost of sale.
Maybe the owners got a deal last year. Maybe they just appreciate how much funny money is flying around MB these days in RE purchases. Perhaps they're selling now because they face imminent court-ordered institutionalization.
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