Apparently they either overpaid for the improvements, overpaid for the house, made a bad investment decision, or all three.
$900,000 Purchase Price
+ $1,000,000 Improvements
$1,150,000 Sale Price
Former Bledsoe home sells for $1.15 million
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Apparently they either overpaid for the improvements, overpaid for the house, made a bad investment decision, or all three.
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a house isn't an investment though. a rental house is an investment, but a primary residence is really nothing more than a consumer purchase. As you know, some consumers have a lot of $$, and some have less $$. Much of the '08 real estate crash was due to people seeing homes as investments that will increse in value, rather than not as consumer itemss that fit a persons needs or wants.
For bulge bracket buyers with lots of $$, they arent buying the home as an financial investment. Sure, they may get some tax writeoffs and such, but mostly, for them, an expenseive house is a consumer purchase.
Ultimately, the cost of the consumer purchase was the difference in what they paid for it. and what they sold it for. sure, there may be some people making some $$ at the margins of the transaction (lawyers, realtors, clerks, etc etc) but thats just a cost od doing business...its like the cost of having your expensive new car delivered to the dealer. To a millionaire..its all just pocket $$...but their pocket $$ is someone elses windfall yes.
No one really makes $$ in WNY by owning a home. A $150,000k home with a 5k tax bill will rip you off $25k in taxes in 5 years. So, even if the home sells for $165k in 5 years, (yay i made $15k!!)..you really lost out $10k due to the excessive taxes you were paying to hold the home in the first place.
Bledsoe's $$ financial loss in the home was pocket change to him...the equivalent of overpaying for a new bmw...enjying driving it for a year or 2, then selling it at loss. The loss is irrielvant...what matters is that he enjoyed it while he owned it. A consumer purchase. just like a car...a boat...$$ spent on a nice vacaton...poof $$ gone. Enjoy it while you have it. just never look at a house as an investment...its a consumer purchase that might have a side benefit of tax benefits etc.
I made lots of money on my homes. What I didn't do was build a custom bridge built over the private lake or a stable-like Morton Building and a cabana house.
And for my tax dollars I got lots of excellent services, including an excellent public school education for all four of my children.
I lived in New Orleans where property taxes were practically non-existent, along with non-existent decent public schools, non-existent public garbage collection, non-existent road maintenance, non-existent public libraries, and many of the other collective benefits my subsequent neighbors in Amherst and I decided to vote for representatives willing to pay for the services and quality of live we were willing to pay for.
You're also not rich.
These types of homes exist in most areas of the US and bridges and cabana houses are desired. The challenge in WNY is the property taxes are simply toxic for the wealthy.
It's funny you mentioned that you get excellent services for your tax dollars. I am sure people in EA say the same for their $200k ish home.
But this property comes with a close to $30k per year tax bill. That is just stupid.
By comparison, the property taxes in San Diego for a $1.1M unit is about $10k. Over 30 years, the difference between the two is $600,000.
What has happened is the top end of the market does not exist in WNY. There is a LOT of benefit to having a top end market FWIW.
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