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| JULY 2005 |
A Publication of ELLIOTT®
& Company Appraisers |
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TRAILERS
IN MALIBU EXCEED MILLION DOLLAR PRICE TAG |
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 Mobile homes in Malibu, Calif., are now being priced in the millions
of dollars. One is reportedly listed at $2.7 million, while others in
this exclusive Los Angeles suburb are said to be listed for $1.8
million and $1.4 million. One has reportedly been sold for $1.3
million and another for $1.1 million.
Don’t get the idea that the buyer is buying the land rather than the
actual mobile home. Like the majority of mobile homes in Malibu, the
proprietors of these exclusive trailer parks own the land the homes
sit on. As a result, the buyers of these million-dollar-plus trailers
will pay rent after the purchase. Rent for the $1.4 million dollar
mobile home will be $2,700 per month. Not buying the land also means
that the buyers of these mobile homes, no matter how expensive, cannot
get a mortgage. Therefore, they must buy the home with cash.
So why would someone invest $1 million-plus dollars in a mobile home?
According to a local Realtor, it gets someone into Malibu, where the
average price of a listed home is $4.4 million. Furthermore, the
locations of these high-end trailers are very aesthetic as well as
prestigious. The $1.4 million dollar trailer is located with a
panoramic view of the Pacific Ocean. It is also in a gated community
with a community tennis court.
Malibu apparently has the highest mobile home prices in the United
States. Some such homes in Key West, Fla., have reportedly exceeded
$500,000.
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IMPROVEMENTS TO
EXPENSIVE HOMES
ESCALATES PROPERTY VALUES |
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 A study by Coldwell Banker Real Estate Corp.
indicated that remodeling of luxury homes could very well continue to
increase home values.
"The continuing home improvement craze is a boon for the real estate
market and a major reason for rapid appreciation," said Coldwell Banker
president and CEO Jim Gillespie. "With more and more dollars allocated
towards renovations, upgrades and additions, it is no surprise that
property values continue to appreciate. The home improvement frenzy is
likely a key reason why we are seeing a significant rise in sales of
pricier homes through our luxury division."
Coldwell Banker commissioned a Pennsylvania company called International
Communications Research to survey 300 homeowners in the United States
who had a household income of at least $100,000 and had purchased a home
for at least $1 million during the past two years. This study resulted
in the Coldwell Banker Luxury Index. Among its findings were:
- Three times as many respondents said they had purchased a home for $3
million or more than had in a similar survey conducted last year.
- Thirty-one percent of high-end homeowners plan to get a tax refund. Of
those expecting a refund, 51% say they will invest it in their homes.
- In the past year, 36% of luxury homeowners say they have refinanced or
taken out a home equity loan. Of these borrowers, 42% will be using
their loans, at least in part, for real estate purposes.
- Twenty-seven percent of the respondents said they currently own a second
home and another 17% said they plan to purchase one this year. Most of
the respondents with second homes, or plans to buy one, did so for
recreational purposes. Over half (54%) of the two-home respondents had
their second home within 300 miles of their primary residence.
- Homes of 16% of the respondents were equipped with bedroom kitchens.
- The most popular amenities, according to the respondents, were (1)
security systems, (2) gourmet kitchens, (3) topiary/landscaping, (4)
home theaters, (4) hot tubs and (5) in-ground swimming pools.
"The affluent American’s most valuable asset is his or her home,"
Gillespie said. "Luxury homeowners take great pride in their homes as
symbols of their lifestyles and personalities. While these homes are
high-end, they are being transformed into more lavish and
ultra-comfortable living spaces."
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QUOTES OF WIT &
WISDOM |
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"To err is human. To blame
it on a computer is even more so."
– Robert Orben
"I would rather have a mind opened by wonder than one closed
by belief."
– Gerry Spence
"A bore is a man who deprives you of solitude without
providing you with company." – Gian Vincenzo
Gravina
"God loved the birds and invented trees. Man loved the birds
and invented cages." – Jacques Deval
"Artists who seek perfection in everything are those who
cannot attain it in anything." – Eugene Delacroix
"The policy of being too cautious is the greatest risk of
all." – Jawaharlal Nehru
"Get all the fools on your side, and you can be elected
anything." – Frank Dane
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