Thursday, September 25, 2008

What Your Bailout Dollars Will Buy

Before we commit our tax dollars to a huge bailout of the mortgage industry, wouldn't it be nice to try before we buy? Consider this lovely development that is still under construction by Lennar on the outskirts of Sacramento. What are the odds that the taxpayers will own a piece of this, especially since Lennar is trying to get builders included in the nearly passed bailout package?

Introducing the Andravida Subdivision. It lies on the bleeding southeastern edge of Rancho Cordova, a suburb of Sacramento. The nearest grocery store is 11 miles away. The main regional garbage dump is 2 miles away. The development is not even 10% complete. However, this doesn't stop Lennar from pricing their unbuilt 2400 sqft houses at $345,000.

This is what we're being asked to bail out, folks. Bad investments by banks and builders that knew better. Here's something to feast your eyes on while you consider the bailout proposals:






8 comments :

Bryan said...

Oops.

Wadin In said...

Wooo Hoo. WAMU.

Max, Woo Hoo. Who called the WAMU meltdown? Please give us a link to your post back in late 2007, predicting this POS bank would fail!

Deflationary Jane said...

I called WAMU and Wachovia by Labor Day then pushed it back to Thanksgiving. I also called Wachovia first. I get a partial credit.

Max said...

2008 Predictions

I think I was being optimistic, actually. :)

Deflationary Jane said...

Good job Max - I'm not worthy **eg**

What I meant was I thought Wachovia would go before WAMU.

My guesses were not nearly as comprehensive as yours. I'm not surprised at Downey's continuted losses either. They are one of those institutions where I'm constantly surprised that they are still in business.

Now if only the city of Davis would file bankruptcy, then we get into my dream scenarios >; )

Mike said...

I had quite of bit of Short Positions in Washington Mutual and Country Wide
stocks two years ago when WM was at around $45 !!!

Unfotunately, as I tend to do, I predicted their demise way too early in the game. I actually sold the short holdings with slight losses. Sigh...only if I had little more patience..

mndean said...

Wow, what a location! Just a short 11 miles to a grocery store. It'll be downwind of the garbage dump on certain days, too! Actually that may come in handy when they bulldoze the whole mess - it'll be a short trip to remove it to its rightful place.

Reminds me of the 34th St. development. Straight across the street from the off ramp, underneath the freeway, next to the Caltrans corporation yard. What an attractive location. At least it's near downtown. Also near Oak Park, too. I'm usually for infill, but that one's ridiculous.

Anonymous said...

Concerning Lennar, I dont know what other prices are like in the outskirts of Sacramento.But keep in mind that Lennar's homes are really nice, typically come completed with ALL the upgrades, which vary per location but the Lennar home I am building comes with almost 200K in upgrades included compared to the price put on these upgrades by other home builders. Yet the price is only 20K or so higher than other homebuilders with comparable squarefootage. Additionally, they often cover all the closing costs!

My 4000 sq. foot home includes the following upgrades:
3 car attached garage, finished basement, 2 fireplaces with granite surround, 10 foot ceilings, two rooms with trey ceilings, upgraded light fixtures and carpet, hardwood in the foyer, ceramic tile in the kitchen, runner down the steps, two sets of steps, upgraded dark 42" cabinetsin the kitchen, all the bathrooms and in the laundry room, granite countertops in the kitchen and in all 4 bathrooms and in the bar in the Master bedroom! Backsplash in the kitchen and in the Master bathroom, upgraded tile in the MA bathroom, huge balcony off the back bedroom, french doors to the office, built in shelves on both sides of the fireplace in the family room, walkout stairs fromt he basement, upgraded molding, and in this case on a great lot that backs up to an acre or two of common ground and then endless trees beyond. This is for the high 500s 40 minutes from DC with great schools, etc., the same area you could get a base 4000 SF home with none of the upgrades in the mid 500s.