Another RE Bubble

[REWahoo]

Looks like the disaster in New Orleans has created a real estate boom in nearby Baton Rouge. Yep, it's "location, location, location"...and above sea level.

"Buyers started the bidding war," Burkett said, with prices rising between 20 and 30 percent in the last week.

http://money.cnn.com/2005/09/11/real_estate/baton_rouge_boom/index.htm?cnn=yes

 

[Eagle43]

Yep I got in-laws down there. No apartments to be found. Even the NFL, which wants the Saints to play in Baton Rouge will probably go elsewhere, (San Antonio?) because they need 260 hotel rooms for visiting teams, and this cannot be guaranteed. BTW, traffic is horrendous. Of course, whenever there's a tragedy, there's winners and there's losers. Hmmmmm. Just like real life. 8)

 

[REWahoo]

Yep I got in-laws down there. No apartments to be found. Even the NFL, which wants the Saints to play in Baton Rouge will probably go elsewhere, (San Antonio?) because they need 260 hotel rooms for visiting teams, and this cannot be guaranteed. BTW, traffic is horrendous. Of course, whenever there's a tragedy, there's winners and there's losers. Hmmmmm. Just like real life. 8)

San Antonio is wooing unclemick's Aints Saints big-time. The city has long coveted an NFL team, even built a 55,000 seat indoor football stadium 10+ years ago as an enticement. Even more frustrating to SA sports fans is the fact that Red McCombs, former owner of the Minnesota Vikings, lives in SA and they just "knew" he would move the Vikings to his home town. NFL wouldn't hear of it...doesn't think SA can/will support an NFL team...fan base is too poor economically disadvantaged.

But as fate would have it, the Saints have temporarily relocated their offices and training to SA and will probably end up playing four games in the Alamodome. SA sees it as a chance to show the NFL they can support a franchise and is planning to pull out all the stops to do so...all the while showing appropriate sympathy for the situation that brought the team to SA.
Word on the street is "Saints should play in a city named for one..."

But I digress...this thread is about a real estate boom due to Katrina...

 

[Jarhead*]

San Antonio is wooing unclemick's Aints Saints big-time.  The city has long coveted an NFL team, even built a 55,000 seat indoor football stadium 10+ years ago as an enticement.  Even more frustrating to SA sports fans is the fact that Red McCombs, former owner of the Minnesota Vikings, lives in SA and they just "knew" he would move the Vikings to his home town.  NFL wouldn't hear of it...doesn't think SA can/will support an NFL team...fan base is too poor economically disadvantaged.

But as fate would have it, the Saints have temporarily relocated their offices and training to SA and will probably end up playing four games in the Alamodome.  SA sees it as a chance to show the NFL they can support a franchise and is planning to pull out all the stops to do so...all the while showing appropriate sympathy for the situation that brought the team to SA. 
Word on the street is "Saints should play in a city named for one..."

But I digress...this thread is about a real estate boom due to Katrina...

REW: The Saints ownership has been entertaining the relocation possibilities for the last couple of years or so. A group from L.A. (By far the largest market in the country, without an NFL team) has made their interest known.

At this time, after the Katrina tragedy, the ownership of the Saints is in a real tough position. Leaving now, without the benefit of an NFL franchise in New Orleans would set-back
the cities rebuilding, and economic outlook a whole bunch.

I'm thankful that I'm not involved in that decision.

 

[Spanky]

The Saints ownership has been entertaining the relocation possibilities for the last couple of years or so. A group from L.A. (By far the largest market in the country, without an NFL team) has made their interest known.

The team's name match perfectly with the city (city of angels).

 

[REWahoo]

REW: The Saints ownership has been entertaining the relocation possibilities for the last couple of years or so. A group from L.A. (By far the largest market in the country, without an NFL team) has made their interest known.

True, and there is no doubt the pockets in LA are a heck of a lot deeper than those in SA (SA has pockets?!). About the only thing SA has going for them is Tom Benson (Saint's owner) has a long history in SA, until recently owning a number of auto dealerships there.

But that's not going to make much difference when it comes to who can offer the best deal. My guess is the 4 or so games the Saints play in SA this season are all the NFL football SA will see for years without sitting in front of a TV screen.

 

[unclemick]

The Saint's saga - will be be an interesting back drop to football season - no Superdome income in a state strapped by hurricane recovery.

Rumors are flying.

Stay tuned!

 

[REWahoo]

The Saint's saga - will be be an interesting back drop to football season - no Superdome income in a state strapped by hurricane recovery.

Rumors are flying.

Stay tuned!

unclemick, Tom Benson on the SA news tonight...3 "home" games for the San Antonio Saints:

Oct 2 - Buffalo
Oct 12 - Atlanta
Dec 24 - Detroit

Want me to see if I can get tickets for you & the Nowegian Widow?

 

[unclemick]

Boy oh boy - After seeing Baton Rouge RE bubble on CNN.

I purchased - three bedroom 1265 sq foot plus almost full basement plus two lots across the street - for an outrageous 85k in St Joe - 20% down, 5.75% - act of closing scheduled for Friday.

I know, I know - buying at the top of the bubble.

 

[unclemick]

Season tickets

Heh, heh, heh, heh,heh.

 

[REWahoo]

Boy oh boy - After seeing Baton Rouge RE bubble on CNN.

I purchased - three bedroom 1265 sq foot plus almost full basement plus two lots across the street - for an outrageous 85k in St Joe - 20% down, 5.75% - act of closing scheduled for Friday.

I know, I know - buying at the top of the bubble.

You've obviously gone off the deep end as a result of your evacuee status....

Season tickets

Heh, heh, heh, heh,heh.

And do you prefer seats on the 50 or a skybox?

 

[dougdo]

I did hear that a lot of the price pressure in Baton Rouge and other nearby places was driven by out of state real estate speculators. Sounds rather sleazy to be pushing up prices on the backs of people in crisis.

 

[Martha]

Boy oh boy - After seeing Baton Rouge RE bubble on CNN.

I purchased - three bedroom 1265 sq foot plus almost full basement plus two lots across the street - for an outrageous 85k in St Joe - 20% down, 5.75% - act of closing scheduled for Friday.

I know, I know - buying at the top of the bubble.

Man, we might have to look at Missouri.

 

[justin]

Man, we might have to look at Missouri.

You're not going to be one of those out-of-town sleazy speculators are you

 

[shiny]

UncleMick, I hope I'm not bringing up a really sad topic, but were you able to bring your dogs with you? I was just thinking that maybe that's what prompted you to buy a house quickly (rather than rent)

 

[REWahoo]

unclemick, just wanted you to know the folks in San Antonio are taking good care of your Saints:

S.A. Saints tickets are a big, easy sell

"Never did the Saints, nor city officials, imagine they'd be pleading with local football fans for patience in their pursuit of pro football tickets. Yet, that was the situation on Wednesday after a feverish rush gobbled up 50,000 tickets for three Saints games in the Alamodome within eight hours after going on sale."

http://www.mysanantonio.com/sports/...SA091505.01A.FBN_saints_tickets.1822ae4c.html

 

[dex]

Boy oh boy - After seeing Baton Rouge RE bubble on CNN.
I purchased - three bedroom 1265 sq foot plus almost full basement plus two lots across the street - for an outrageous 85k in St Joe - 20% down, 5.75% - act of closing scheduled for Friday.
I know, I know - buying at the top of the bubble.

Unclemick2,
You got a mortgage - from the seller or a bank? I thought you were retired so I'm courious how someone in retirement got a mortage at such a good rate.
Txs

 

[Mr._johngalt]

Hi dex. Don't want to steal unclemick's thunder, but.............
it's easy to get a mortgage while you are retired, especially today.
We have lots of "other assets" and obviously we still have income.
I am in the lowest 10% here in terms of net worth and I could get a mortgage with no problem.

JG

 

[justin]

I'm curious about the mortgage in retirement too. When I've tried to get a mortgage on non-job income (ie - self employment or rental income), they've asked for copies of last 2-3 years of tax returns to verify income. Is this all you do instead of showing them paystubs or W-2's?

 

[Mr._johngalt]

I'm curious about the mortgage in retirement too.  When I've tried to get a mortgage on non-job income (ie - self employment or rental income), they've asked for copies of last 2-3 years of tax returns to verify income.  Is this all you do instead of showing them paystubs or W-2's? 

Well, if I was a lender, I would ask for the whole 9 yards. In my case,
although my net worth is small, my credit is golden. Plus, I have hard assets to sweeten the deal if necessary. Actually,
I think I could probably borrow a huge sum of $ if I wanted to.
All the lender cares about is how they will get it back and what they
can do if they don't.

JG

 

[Nords]

I'm curious about the mortgage in retirement too.  When I've tried to get a mortgage on non-job income (ie - self employment or rental income), they've asked for copies of last 2-3 years of tax returns to verify income.  Is this all you do instead of showing them paystubs or W-2's? 

It's even less than that. We apply online at Navy Federal Credit Union. My pension and my spouse's Reserve income wouldn't qualify for more than a tiny starter condo but our retirement portfolio is bigger than the mortgage and that's apparently all they care about. Last two refinances they didn't even bother verifying our mutual fund/brokerage balances. They did run a FICO score on us and were sloppy enough to include it in our copy of the data package.

I don't think that banks care much about the documentation any more. They do just the bare minimum to be able to resell the mortgage to FNMA or some other institution who'll repackage loans into collateralized debt obligations. As long as the bank gets their closing fees and resells the loan then they have zero risk.

 

[Mr._johngalt]

It's even less than that.  We apply online at Navy Federal Credit Union.  My pension and my spouse's Reserve income wouldn't qualify for more than a tiny starter condo but our retirement portfolio is bigger than the mortgage and that's apparently all they care about.  Last two refinances they didn't even bother verifying our mutual fund/brokerage balances.  They did run a FICO score on us and were sloppy enough to include it in our copy of the data package. 

I don't think that banks care much about the documentation any more.  They do just the bare minimum to be able to resell the mortgage to FNMA or some other institution who'll repackage loans into collateralized debt obligations.  As long as the bank gets their closing fees and resells the loan then they have zero risk.

I have never seen money so loose in my lifetime. Lenders will shower
cash on anyone with a pulse.

JG

 

[tryan]

I don't think that banks care much about the documentation any more. They do just the bare minimum to be able to resell the mortgage to FNMA or some other institution who'll repackage loans into collateralized debt obligations. As long as the bank gets their closing fees and resells the loan then they have zero risk.

Couldn't agree more ... and IMHO it'll be the banks downfall. As they are left holding the bag on many loans when things come unraveled.

This spring I am testing just how loose banks are. A tenant has been asking me sell her the house they've rented for ~9 years. They've had trouble paying 1k/mo rent ... as the 3 adults float from job to job. Now they want to carry a 200k mortgage. With poor credit it'll be interesting to see what - if anything - the subprime lenders will do for these people.

Stay tuned ....

 

[REWahoo]

unclemick, in the continuing saga of San Antonio's struggle to get an NFL team and the current attempt to steal the Saints from NO, this appeared on the editorial page of todays SA paper. Damn that Lucy...