It's another wishing price weekend. I hope you are enjoying your holiday.

Irvine Home Address … 11 MONTIA Irvine, CA 92620

Resale Home Price …… $1,888,888

IHB News

The flipping fund closes to new investment in two weeks. If you are thinking of investing, time grows short.

In related news, I am in negotiation with an established operator in Las Vegas to provide deal flow for cashflow properties. Once I know I can deliver these properties, I will be able to offer them to fund subscribers and IHB readers.

The IHB had tremendous traffic again this week. Several posts were picked up by Patrick.net, and Barry Ritholtz at the Big Picture linked to the IHB too. Our RSS feed climbed to over 4,000 this week as well.

My favorite cartoons of the week were the one above, and the one below from the Life of Brian series. My Photoshop skills are improving. I think the realtor logo blended into the hat well enough that it looks like it was part of the photo.

Housing Bubble News from Patrick.net

Fri Sep 3 2010

Does The MLS Lie about Existing House Prices? (zerohedge.com)

Housing Numbers – Are They Being Cooked? (market-ticker.org)

Why can't I make a fortune on these? (patrick.net)

Real estate investor files for bankruptcy (sanluisobispo.com)

Burglarized House? Oakland Police Want You to Know 'We're Not Coming' (legalblogwatch.typepad.com)

Serial Killer's Former California House Sells (blogs.wsj.com)

California economy destined for years of slow growth, declining house values (doctorhousingbubble.com)

What happens when your HOA becomes hostile? (sfgate.com)

Foreclosures soar in Mass. in July (boston.com)

Employed, but still stressed by joblessness (vcstar.com)

Housing Can Find a Home Without Fannie, Freddie (bloomberg.com)

The Upcoming Collapse of the Banking Cartel (irvinehousingblog.com)

Mortgage modification ends in foreclosure filing (signonsandiego.com)

How Obama Got Rolled by Wall Street (newsweek.com)

Bernanke Rejects Criticism Of Fed As Cause Of Financial Crisis (rttnews.com)

Rumors that China's central bank chief defected; $430 billion loss on U.S. Treasuries (au.ibtimes.com)

Ron Paul questions whether there's gold at Fort Knox, NY Fed (thehill.com)

Are We a Kleptocracy and What Does That Mean Anyway? (alternet.org)

3 Congressmen Under Investigation For Bribery In Financial Reform Vote (dailybail.com)

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Thu Sep 2 2010

For Case-Shiller Housing Prices, October Is The "Witching Hour" (businessinsider.com)

43.4% of Sacramento-area mortgages "underwater" (blogs.sacbee.com)

Houseowners feel stress of life 'underwater' (msnbc.msn.com)

US Housing Still In Uncertain Waters (indexuniverse.com)

A nation of renters: Houseownership not worth the cost? (articles.moneycentral.msn.com)

Renting could ease foreclosures, help housing market (thehill.com)

House Sales Drop 27 Percent In July And Things Are Only Going To Get Worse (english.pravda.ru)

Last Remaining Hopes Crushed, Homedebtors Defend House Ownership (irvinehousingblog.com)

Owners of Rumson mansion reduce price from $29.9M to $19.5M (app.com)

Housing bubble threatens to burst in six Canadian cities (sudburystar.com)

Vancouverites could lose $200,000 on average if housing bubble bursts (bivinteractive.com)

Does pricey Vancouver have a U.S.-like housing bubble? (blogs.marketwatch.com)

Housing bubble threat resurfaces in Canada (fftimes.com)

No talk of new homebuyer tax credit: Obama's housing adviser (reuters.com)

Why Obama's mortgage-relief program failed (sfweekly.com)

Drowning in debt: top 15 states for underwater mortgages (sfgate.com)

America's Biggest Jobs Program — the U.S. Military (robertreich.org)

How Much Is Enough? America's Runaway Military Spending (hnn.us)

Market Data Firm Spots the Tracks of Bizarre Robot Traders (theatlantic.com)

Final Resting Place, In Foreclosure (voices.washingtonpost.com)

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Wed Sep 1 2010

Use Caution Reading Tuesday's Case-Shiller Report (blogs.wsj.com)

Housing markets: Return of the boom? Not so fast. (economist.com)

Housing quagmire: Is it time to remove "relief"? (money.cnn.com)

Fewer interested in houseownership (signonsandiego.com)

Where's Housing Headed? (newsweek.com)

Fed sees 'quite soft' housing market (ocregister.com)

Economists See More House Price Declines Ahead (money.usnews.com)

San Diego condo gives back buyer deposits (signonsandiego.com)

The ocean view did not get $1 million better from 2001 to 2010 (doctorhousingbubble.com)

Optimistic Housing group gives four-year negative equity warning (bbc.co.uk)

Mortgage lending down amid warnings of second house price crash (telegraph.co.uk)

Bubble case-studies: Ireland and Canada (theautomaticearth.blogspot.com)

Why the "Hindenburg Omen" is Wrong (dailyfinance.com)

Wall Street Insiders Want Out, Selling $100 Million in Stock (cnbc.com)

Wall Street Early Early Bonuses Dodge Repeal Of Tax Cuts For The Richest (huffingtonpost.com)

Schaumburg man living in his driveway after eviction (dailyherald.com)

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Tue Aug 31 2010

The answer to a housing recovery: LOWER PRICES (pragcap.com)

Fix the Housing Market: Let House Prices Fall (irvinehousingblog.com)

SF Bay Area Prices Keep Drifting Downward (patrick.net)

Desperate Consumers Stop Paying Mortgage to Pay Credit Cards (dailyfinance.com)

Reluctant landlords in metro Detroit rent to pay mortgages (freep.com)

Housing Market: What's Ahead? (curiouscapitalist.blogs.time.com)

Housing: The Un-American Dream (forbes.com)

Paying Off the House in 15 Years (online.wsj.com)

The Unbearable Lightness of the Bank Accounting Cover Up (dailybail.com)

Banks Recruit Investors to Oppose Honest Valuation of Assets (Mish)

To Overhaul GSEs, Divide Them into Three Parts (aei.org)

Corruption Reform: Reduce Government Housing Subsidies (nbnnews.com)

Asset Bubble Addicts Just Can't Shake the Habit (bloomberg.com)

Japanese vs American stock bubble crashes graph (dshort.com)

Rebuttal Of The "Bond Bubble" Talk (businessinsider.com)

REITs Attract Yield-Hungry Investors (businessweek.com)

Another Housing Tax Credit? (calculatedriskblog.com)

Ignore Talk of a Housing Tax Credit Revival (blogs.wsj.com)

Renters' Rights: The Basics (free book – nolo.com)

Ore. man pleads bankruptcy fraud, hiding gold (seattlepi.com)

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Mon Aug 30 2010

Widespread Fear Freezes Housing Market (nytimes.com)

Procrastination on Foreclosures, Now Blatant, May Backfire (americanbanker.com)

One in 10 houseowners with a mortgage face foreclosure (contracostatimes.com)

Mauis foreclosure picture not pretty (mauinews.com)

Iowa: Foreclosure rate hits record level (thonline.com)

Foreclosure "Relief": Good for Banks, Lousy for Borrowers (dailyfinance.com)

Banks' Self-Dealing Super-Charged Financial Crisis (propublica.org)

Housing's new nightmare (money.cnn.com)

Why Housing Is Even Worse Than You Think (money.usnews.com)

Architectural gems languish on Calif. house market (news.yahoo.com)

CA Central Valley awash in worthless houses (centralvalleybusinesstimes.com)

More SF Area Housing Bubble Value Wiped Away (pacificariptide.com)

Two Charts: All You Need To Know About Canada's Housing Bubble (vreaa.wordpress.com)

Email From "Morally Conflicted" One Year After Walking Away (Mish)

Fed Assets Decline to $2.3 Trillion as Housing Securities Fall (bloomberg.com)

Commercial real estate failures are easier to spot than residential woes (dallasnews.com)

Housing, job market fates tied (gainesvilletimes.com)

Devalued Houses Anchor Prospective Job Seekers (npr.org)

Flipper Cash Propping Up Housing Market (npr.org)

China's Hu Jintao Asks Obama about US debt (very rude – dailybail.com)

10% a year appreciation

When asked about the rate of appreciation they expect, new home buyers consistently say they believe they will get 10% annual appreciation. Since wages don't go up 10% per year, I don't know how that is supposed to occur, but that's what people believe.

Perhaps that particular form of innumeracy also applies to long-term home owners who live in Irvine….

Irvine Home Address … 11 MONTIA Irvine, CA 92620

Resale Home Price … $1,888,888

Home Purchase Price … $665,000

Home Purchase Date …. 9/28/1999

Net Gain (Loss) ………. $1,110,555

Percent Change ………. 167.0%

Annual Appreciation … 10.0%

Cost of Ownership

————————————————-

$1,888,888 ………. Asking Price

$377,778 ………. 20% Down Conventional

4.34% …………… Mortgage Interest Rate

$1,511,110 ………. 30-Year Mortgage

$362,262 ………. Income Requirement

$7,514 ………. Monthly Mortgage Payment

$1637 ………. Property Tax

$267 ………. Special Taxes and Levies (Mello Roos)

$157 ………. Homeowners Insurance

$400 ………. Homeowners Association Fees

============================================

$9,975 ………. Monthly Cash Outlays

-$1471 ………. Tax Savings (% of Interest and Property Tax)

-$2048 ………. Equity Hidden in Payment

$596 ………. Lost Income to Down Payment (net of taxes)

$236 ………. Maintenance and Replacement Reserves

============================================

$7,287 ………. Monthly Cost of Ownership

Cash Acquisition Demands

——————————————————————————

$18,889 ………. Furnishing and Move In @1%

$18,889 ………. Closing Costs @1%

$15,111 ………… Interest Points @1% of Loan

$377,778 ………. Down Payment

============================================

$430,666 ………. Total Cash Costs

$111,700 ………… Emergency Cash Reserves

============================================

$542,366 ………. Total Savings Needed

Property Details for 11 MONTIA Irvine, CA 92620

——————————————————————————

Beds: 5

Baths: 4 full 1 part baths

Home size: 4,200 sq ft

($450 / sq ft)

Lot Size: 11,000 sq ft

Year Built: 2000

Days on Market: 4

Listing Updated: 40422

MLS Number: S630687

Property Type: Single Family, Residential

Community: Northwood

Tract: Arbc

——————————————————————————

***MAGNIFICENT MINI-ESTATE IN AWARD WINNING ARBOR CREST***Gated and located near end of cul-de-sac, this recession proof and feng shui positive semi custom home has more upgrades than this software will allow. Features cathedral ceilings in living, dining and foyer, incredibly light and bright with maximum east facing sun exposure, upgraded marble flooring, granite counters, custom paint and backyard features custom built-in BBQ, spa and a gazebo with a huge grassy area. This home also features private access to the world famous Hicks Canyon Trail, site of the 2008 OC Marathon. Community amentites include Meadowood swimming facilties, Citrus Glen Tennis Center and NW Montessori Pre-School.

Recession Proof? Sometimes, Mike is really funny. How about those great amentites?