Elliott & Company Appraisers


JULY 2005	A Publication of ELLIOTT® & Company Appraisers



TRAILERS IN MALIBU EXCEED MILLION DOLLAR PRICE TAG

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.

IMPROVEMENTS TO EXPENSIVE HOMES ESCALATES PROPERTY VALUES

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."

QUOTES OF WIT & WISDOM

"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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