Post Tagged with: "property"
On depreciation, malinvestment and GDP as a gross number
If I could relate the concept of malinvestment to business administration I would do it using the concept of depreciation. Depreciation is a term used in accounting and business to represent a writedown of a real asset on a company’s balance sheet to reflect its actual depreciation in value. If you build a building, it
Construction in China’s Ghost Towns
A reader who invests in emerging markets sent me an interesting article from the South China Morning Post. Excerpts are below. China’s economic stimulus programme has accelerated the already aggressive pace of urban development in the country. But while investment in construction is creating much-needed infrastructure in some cities, it is also adding to the
Case Shiller: Only five housing markets in twenty show price increase
When I wrote about house prices six months ago, I said: house prices are bottoming because we have seen a trend in year-on-year changes from January through May that looks likely to continue into the present day. If this trend (of less negative data) holds for a few more months, say through September or October’s
Chanos: “We’re not calling for an impending crash of China”
Jim Chanos was on CNBC talking about, amongst other things, China. And while he is bearish on China, the quote that jumped out at me was the one in the title. He is bearish on China because of an unprecedented credit-induced bubble in Chinese real estate. He quotes 30 billion sq. ft. of construction underway
Stuyvesant Town: Owners walk away as top of the market deal collapses
Exactly three months ago, I told you to expect bankruptcy in the record Stuyvesant Town real estate deal. Today, this is exactly what we got: A group led by Tishman Speyer Properties has decided to give up the sprawling Peter Cooper Village and Stuyvesant Town apartment complex in Manhattan to its creditors in the collapse
Short sale fraud
CNBC’s Diana Olick has the breaking story on alleged fraud in the mortgage industry. She has been writing about this for a few days now. See Big Banks Accused of Short Sale Fraud – Realty Check with Diana Olick at CNBC’s website. Basically, second liens on properties like home equity loans have a blocking interest
Case-Shiller ekes out gain despite decline in 12 of 20 markets
The S&P/Case-Shiller October 2009 house price index came out yesterday. The data showed plenty of reason to worry about the sustainability of the recent stabilization of house prices. While both the Composite-10 and Composite-20 indices showed miniscule gains, the broader picture is one of weakness. Here are the key highlights. The Composite-10 index was up
More evidence of extend and pretend
Internet maven and San Diego North County real estate guru “Jim the Realtor” has another post showing us that extend and pretend is alive and well in the wonderful world of housing. This guy received his first NOD in April, 2006, and has been working the system ever since. Yesterday he listed the house on
The Age of Deleveraging
John Mauldin’s latest is about deleveraging and how this secular trend will drive the macro picture in 2010. The question is why? Read and find out. Also see A conversation with Bridgewater Associates’ Ray Dalio for another good commentary on this topic. John Mauldin, Best-Selling author and recognized financial expert, is also editor of the
House flipping back in vogue in North County San Diego
Good times are here again in residential property. House flippers are back and have now moved to foreclosure auctions. Below is a house that was bought in foreclosure at $945,000 in November and is now on the market for $1.4 to 1.5 million. 4100 square feet and swimming pool. Fairbanks Ranch. Cheapest house in the
Is the Canadian housing market a bubble?
If you asked me this question last year, I would have said yes but not it’s not as bad as Ireland or the U.S. However, the Canadian economy and Canadian banks have weathered the storm brilliantly. So most people think the answer is now no. Nevertheless, house prices are high and rising and this has
Fairfield Residential is bankrupt, files Chapter 11
This comes via the Wall Street Journal: Fairfield Residential LLC, one of the nation’s largest apartment owners and developers, filed for bankruptcy on Sunday, the latest casualty of the turmoil engulfing the U.S. real-estate market. Fairfield, which has built some 64,000 apartments, condominiums and off-campus student-housing units throughout the country, failed amid an inability to