What got me was how the commentator toward the end tallied up the total value f the property and said mistakenly the profit. What she should have said was the equity. BUt that is the mindset of the people who regard RE as an investment.
As a rough estimate, I figure that for every $1 one takes out in a mortage, one pays back $4 — assuming one keeps the house and pays it off.
Thus, she is so excited about finding herself able to pay some $500k or so to have this nicer stuff. From the way she behaved, one would think she had won the lottery and that money was hers free and clear.
People are weird about housing debt. It’s like some national insanity. Just mho
I was just astounded that a retired woman, by her own admission out of money, was ecstatic at the thought of substantially increasing her mortgage.
It looks like she’s going to really enjoy the new kitchen, and pool, and of course the bigger boat, but will she think it was all worth it when the bank finally pulls the plug?
I think she’s planning on selling it for 1.6 million and retiring to the key islands in her boat to live off the profit. Either that or start a doggy farm somewhere.
I know it’s cliche’, but while I watched that video I threw up in my mouth just a little.
Based on the way she reacted twice to her “profit” (ie: house lottery winnings to her) I kept waiting for Ed McMahon to show up with an oversized Publisher’s Clearing House check.
Someday in a generation or two, people are going to study that video in a business and finance class.
The assignments will be to write long term papers about what went wrong with the America that was so hard won and built by the people we celebrated and remembered just a few short days ago on Memorial Day.
I would be humiliated (in my efforts as a dad) if I saw my grown daughter acting like that because she “won” the prize of being able to bury herself another few hundred thousand dollars in debt on a dropping pile of bricks and sticks.
(nice views from the house, though!!)
If we, as a culture, keep celebrating this kind of stuff, I’m going to run out and buy the domain: http://www.societydoom.com and ask twist to start a blog there about what went wrong.
The thing that struck me immediately was that if the owner needed the estimate to come in a full $170K above her purchase price, she had the home 100% financed and had no savings to use for the renovations.
The second thing that struck me was that there was no mention of the date of appraisal.
I just spent 8 weeks in S Florida for work in March and April and even the intercoastal properties have been hit hard by the housing downturn.
I honestly don’t believe that a house bought in 2004 (when she retired, according to the story) for $725K, with an additional $55K in renovations is really worth $1.3M in 2007.
This TV show may be the S. Florida version of Sam Leccima and Flip This House, which was recently exposed as fraudulent.
I can’t vouch for the authenticity of the show, but here’s what I was able to find out about it.
I’m not certain what the date of the "appraisal" would have been. [According to Dan Kelley's website, he is a RE agent with Keller Williams, no mention of his appraisal credentials.] HGTV’s website lists air times in May and July of 2007, but they do not mention if this episode has aired previously.
According to this website, there are 29 homes currently listed in her neighborhood of Keystone Point. They are all listed around $1M. Whether this lady can afford to stay in this area given her resources remains to be seen.
When you get to that point, and start creating your intergalactic best seller…
I have a possible suggestion for your table of Contents and perhaps an overall outline for the book:
Throughout history civilizations have progressed:
From bondage to spiritual faith;
from spiritual faith to great courage;
from courage to liberty;
from liberty to abundance;
from abundance to selfishness;
from selfishness to complacency;
from complaceny to apathy;
from apathy to dependence;
from dependency back again into bondage.
Sir Alex Fraser Tyler: (1742-1813)
(source disputed)
And a trite quote for inside cover flap:
“When values are sufficient, Laws are unnecessary.
When values are insufficient, Laws are unenforceable.” - Barry Asmus
I wonder if the lady in the video whistled right on by “abundance.”
(at least until the payments come due)
She appears to be one of many who have confused abundance with lots of stuff.
I thought Eric Hoffer summed it up nicely:
You can never get enough of what you don’t need to make you happy.
The funny thing is, I suspect that once someone takes away our ccards and HELOCs, we are more likely to find abundance, since we’ll have to quit trying to buy it.
That great bastion of American philosophy, Mad Magazine said:
The only reason a great many American families don’t own an elephant is that they have never been offered an elephant for a dollar down and easy weekly payments.
I suspect most of us are better off without an elephant in the backyard!
If you combine the thoughts, you end up with everyone paying rent on money to acquire something they don’t need and don’t really want…
and then spending more to upgrade and enhance them.
How far behind can the TV shows be?
“Pimp my Pachyderm”
“Screwed Up Childhood TV Stars Dancing, Fit Clubbing, Having Emotional Breakdowns and Throwing Temper Tantrums with their Elephant”
“SURVIVOR: Home Zoo”
“Surreal Life: The Junk in Her Trunk”
And of course, “World’s Dirtiest Jobs: Elephant Edition”
(you’ll have to use your imagination on that one!)
At least we wouldn’t be subjected to Paris Hilton carrying one around with bells & designer clothing.
A quick read through the Book of Ecclesiastes taught me how the richest and wisest man in the world dealt with the disease of “MORE” and finally figured it out.
I wish THAT was a required study in schools, but then we wouldn’t produce labor and consumers as effectively.
This was covered on the Bubbletracking blog about 6 weeks ago. I think these links will answer a lot of your questions about what a sham this TV show is.
The show is a sham, but unlike Atlanta’s flipper reality show, as bubbletracking indicated, the woman is real, and so is her penchant for refinancing and remodeling. [I also looked her up.]
Mish's Global Economic Analysis
Northern Virginia Housing Bubble Fallout
Bubble Meter
UK House Bubble
Ohio Fraudclosure
Breaking News
oh boy…
what a farce!
this story tell the full dilemma….
funny how the money/value spend on windows went magically from 40k to 120 k…
and the 50k for the kitchen ould increase the value another 43 k (83 percent)
this women will end in forclosure very soon….
excellent clip!
What got me was how the commentator toward the end tallied up the total value f the property and said mistakenly the profit. What she should have said was the equity. BUt that is the mindset of the people who regard RE as an investment.
As a rough estimate, I figure that for every $1 one takes out in a mortage, one pays back $4 — assuming one keeps the house and pays it off.
Thus, she is so excited about finding herself able to pay some $500k or so to have this nicer stuff. From the way she behaved, one would think she had won the lottery and that money was hers free and clear.
People are weird about housing debt. It’s like some national insanity. Just mho
I was just astounded that a retired woman, by her own admission out of money, was ecstatic at the thought of substantially increasing her mortgage.
It looks like she’s going to really enjoy the new kitchen, and pool, and of course the bigger boat, but will she think it was all worth it when the bank finally pulls the plug?
I think she’s planning on selling it for 1.6 million and retiring to the key islands in her boat to live off the profit. Either that or start a doggy farm somewhere.
I know it’s cliche’, but while I watched that video I threw up in my mouth just a little.
Based on the way she reacted twice to her “profit” (ie: house lottery winnings to her) I kept waiting for Ed McMahon to show up with an oversized Publisher’s Clearing House check.
Someday in a generation or two, people are going to study that video in a business and finance class.
The assignments will be to write long term papers about what went wrong with the America that was so hard won and built by the people we celebrated and remembered just a few short days ago on Memorial Day.
I would be humiliated (in my efforts as a dad) if I saw my grown daughter acting like that because she “won” the prize of being able to bury herself another few hundred thousand dollars in debt on a dropping pile of bricks and sticks.
(nice views from the house, though!!)
If we, as a culture, keep celebrating this kind of stuff, I’m going to run out and buy the domain: http://www.societydoom.com and ask twist to start a blog there about what went wrong.
The thing that struck me immediately was that if the owner needed the estimate to come in a full $170K above her purchase price, she had the home 100% financed and had no savings to use for the renovations.
The second thing that struck me was that there was no mention of the date of appraisal.
I just spent 8 weeks in S Florida for work in March and April and even the intercoastal properties have been hit hard by the housing downturn.
I honestly don’t believe that a house bought in 2004 (when she retired, according to the story) for $725K, with an additional $55K in renovations is really worth $1.3M in 2007.
This TV show may be the S. Florida version of Sam Leccima and Flip This House, which was recently exposed as fraudulent.
NVMike-
I can’t vouch for the authenticity of the show, but here’s what I was able to find out about it.
I’m not certain what the date of the "appraisal" would have been. [According to Dan Kelley's website, he is a RE agent with Keller Williams, no mention of his appraisal credentials.] HGTV’s website lists air times in May and July of 2007, but they do not mention if this episode has aired previously.
According to this website, there are 29 homes currently listed in her neighborhood of Keystone Point. They are all listed around $1M. Whether this lady can afford to stay in this area given her resources remains to be seen.
Asset Hunter-
I’m still working on what went wrong with housing. When I figure out what’s happening to our society- look for me on the NYT bestseller list!
Twist ~
When you get to that point, and start creating your intergalactic best seller…
I have a possible suggestion for your table of Contents and perhaps an overall outline for the book:
Throughout history civilizations have progressed:
From bondage to spiritual faith;
from spiritual faith to great courage;
from courage to liberty;
from liberty to abundance;
from abundance to selfishness;
from selfishness to complacency;
from complaceny to apathy;
from apathy to dependence;
from dependency back again into bondage.
Sir Alex Fraser Tyler: (1742-1813)
(source disputed)
And a trite quote for inside cover flap:
“When values are sufficient, Laws are unnecessary.
When values are insufficient, Laws are unenforceable.” - Barry Asmus
I wonder if the lady in the video whistled right on by “abundance.”
(at least until the payments come due)
Asset Hunter-
She appears to be one of many who have confused abundance with lots of stuff.
I thought Eric Hoffer summed it up nicely:
The funny thing is, I suspect that once someone takes away our ccards and HELOCs, we are more likely to find abundance, since we’ll have to quit trying to buy it.
That great bastion of American philosophy, Mad Magazine said:
I suspect most of us are better off without an elephant in the backyard!
Those are some great quotes, Twist!
If you combine the thoughts, you end up with everyone paying rent on money to acquire something they don’t need and don’t really want…
and then spending more to upgrade and enhance them.
How far behind can the TV shows be?
“Pimp my Pachyderm”
“Screwed Up Childhood TV Stars Dancing, Fit Clubbing, Having Emotional Breakdowns and Throwing Temper Tantrums with their Elephant”
“SURVIVOR: Home Zoo”
“Surreal Life: The Junk in Her Trunk”
And of course, “World’s Dirtiest Jobs: Elephant Edition”
(you’ll have to use your imagination on that one!)
At least we wouldn’t be subjected to Paris Hilton carrying one around with bells & designer clothing.
A quick read through the Book of Ecclesiastes taught me how the richest and wisest man in the world dealt with the disease of “MORE” and finally figured it out.
I wish THAT was a required study in schools, but then we wouldn’t produce labor and consumers as effectively.
This was covered on the Bubbletracking blog about 6 weeks ago. I think these links will answer a lot of your questions about what a sham this TV show is.
http://bubbletracking.blogspot.com/2007/04/part-i-my-house-is-worth-what.html
http://bubbletracking.blogspot.com/2007/04/part-ii-past-that-kool-aid-kendra-todd.html
Columbiarnd-
The show is a sham, but unlike Atlanta’s flipper reality show, as bubbletracking indicated, the woman is real, and so is her penchant for refinancing and remodeling. [I also looked her up.]
Asset Hunter-
It’s too bad we don’t have a DoomCam, you could watch Mr. Twist rolling with laughter over Pimp my Pachyderm!
Glad he liked it!
I think the rights to the show were bought and paid for with stock options in 2000 or 2001 by Pets.com
Should be on the air any day now.
