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  • November 13, 2009 at 5:26 PM #483482
    jficquette
    Participant

    [quote=oxfordrick]Good historic boomtime rule.

    Land prices fall faster than construction costs and house prices in a crash. If things get bad enough land may not even be worth the unpaid property tax and Mello Roos debt thta has attached.

    Which would be a problem for the bondholders, not to mention the other residents of the subdivision.[/quote]

    Thats why builder’s can always make money even in the worst of markets if they can get the land cheap enough.

    November 13, 2009 at 7:07 PM #482698
    sd_owner
    Participant

    Lot Price = Home Price – Home Construction Price – Builder Profit.

    In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

    In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

    November 13, 2009 at 7:07 PM #482866
    sd_owner
    Participant

    Lot Price = Home Price – Home Construction Price – Builder Profit.

    In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

    In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

    November 13, 2009 at 7:07 PM #483235
    sd_owner
    Participant

    Lot Price = Home Price – Home Construction Price – Builder Profit.

    In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

    In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

    November 13, 2009 at 7:07 PM #483315
    sd_owner
    Participant

    Lot Price = Home Price – Home Construction Price – Builder Profit.

    In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

    In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

    November 13, 2009 at 7:07 PM #483541
    sd_owner
    Participant

    Lot Price = Home Price – Home Construction Price – Builder Profit.

    In Detroit, lot price is already negative. In San Diego, some homes have negative lot price but most still have good values.

    In nearby 4S Ranch, a 5700-6000 sqft lot cost the builders ~$180K-$200K back in 2001 and ~$300K today.

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