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  1. #1
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default Demolishing brand new houses!!

    Last edited by Marc; 11-05-2009 at 12:13 PM.

  2. #2
    Join Date
    Jun 2004
    Posts
    10,479

    Default

    With a big excavator like that I am sure I could have had some fun and done it faster also. Amazing times really!

  3. #3
    Join Date
    Oct 2007
    Location
    Wellington
    Posts
    419

    Default

    What is the point of demolishing houses exactly? How does this help the bank?

  4. #4
    Join Date
    Mar 2007
    Location
    Taipei, Taiwan
    Posts
    53

    Default

    Abandoned houses lower the values of surrounding properties? Clean sections don't hurt prices as much? Maybe they have been stripped past the point of reasonable recovery?
    Last edited by atiff; 08-05-2009 at 06:02 PM. Reason: spelling
    Cheers,
    Andrew

  5. #5
    Join Date
    Jul 2008
    Posts
    329

    Default

    Quote Originally Posted by Judge View Post
    What is the point of demolishing houses exactly? How does this help the bank?
    http://online.wsj.com/article/SB124148169574985359.html

    A Texas bank is about done demolishing 16 new and partially built houses acquired in Southern California through foreclosure, figuring it was better to knock them down than to try selling them in the depressed housing market.
    Guaranty Bank of Austin is wrecking the structures to provide a "safe environment" for neighbors of the abandoned housing tract in Victorville, a high-desert city about 85 miles northeast of Los Angeles, a bank spokesman said.
    Victorville city officials said the bank told them the cost of finishing the development would exceed what they could sell the homes for.
    The bank also faced escalating city fines as vandals and squatters took over the sprawling housing project, leaving behind graffiti and drug paraphernalia, city officials said.
    ...
    This guy has been doing good economic updates on youtube for over a year. Heres a tour through an abandoned property from earlier in the year:


    From: http://www.youtube.com/watch?v=nzACsGrumEU

  6. #6

    Default

    Man thats depressing surely they can sell the houses at the value owed to the bank some of those houses would have had a lot paid off the mortgages already.

  7. #7
    Join Date
    Jun 2008
    Location
    Auckland/Tauranga/Gold Coast
    Posts
    2,960

    Default

    Obviously not ceejay which is why they demolished them.

    Perhaps they could have rented them or sold them for land value.... demolishing is pretty hardish.

    I saw an article where some homes were being bought for $1 I think so that they would be inhabited.

  8. #8
    Join Date
    Jun 2004
    Posts
    10,479

    Default

    there was an article in the paper on Friday morning, I think. It mentioned that the houses weren't finished and the value had dropped so much in the area that the bank didn't want to finish them (throw good money after bad). They were being vandlised and the owner (bank) was being fined by the city - per day. They pulled out and sold anything recoverable (sold for a song) and demolished the rest.

  9. #9
    Join Date
    Jun 2008
    Location
    Auckland/Tauranga/Gold Coast
    Posts
    2,960

    Default

    it's amazing how different our markets are isn't it.

  10. #10
    Join Date
    Jun 2004
    Posts
    10,479

    Default

    what amazes me is that someone doesn't buy the houses for the land cost (after all that is all the bank is now left with) - or maybe even alittle less given that the bank spent money removing the house. But I suppose, even after finishing the house, you end up with a house you can't sell or rent. Seems like the ideal situation for someone with deep pockets to make A LOT of money in the long term (maybe 10-15yrs).


 

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