Richmond: Real Estate ” City’s control? blame? or responsibility……. during boom times “
This time of the year, as the days get shorter and with Daylight Savings soon kicking in, one can actually get an even better view of the Real Estate Market.
Simply look at the dark condos aka no lights on…or the SFH areas….any lights on ?
One of my oft travelled routes takes me past several McMansion, New million dollar mega homes in West Richmond…where few original homes remain.
Of these new homes. the vast majority are either pitch dark or have one token light on….or more bluntly , no one is living there.
Now, while I do see a retraction on the construction of these Mega Homes, and even low rose condos, ……..the Hi Rise construction seems to go on unabated
I am becoming increasingly convinced, with no evidence to the contrary, that these Hi Rise units are being used for ” money laundering “…both illegal and legal…not much different than similar accusations are levelled at casinos . They tend to be more affordable than detached units, hence purchased for less $$$ down and more flip-able.
When one thinks of it logically, how can these condos keep being snapped up by demand from legitimate buyers…given the market has peak end prices are collapsing ?
People that launder money are simply trying to make their money look legitimate….even if they take a loss. If you are a drug dealer, say making 1000% profit, and say your latest deal made you $1 Million….you don’t really care if you invest in say a $1 Million property, which has dropped to $ 750,000. As far as you are concerned….you are still waaaay ahead of the game “profit wise” you have washed the money to make it look legit.
That said, should the City regulate the volume of permits?
Tough call, one hates to see Gov’t stick its nose into Private Sector, but these are very different times, unlike any I can ever recall.
I am not interested in Politically Correct Bullshit, it is abundantly clear that the fuel for this boom is from outside sources looking ofr safe haven for THEIR interests as well as speculation.
As I have stated before…when you have more supply than demand….and much of that demand was based on speculation…with such a commodity as Real Estate, things become out of whack. Everyone with Real Estate will suffer, because they become part of the overall inventory of Real Estate.
Gov’t intervention aside, I would suggest that the City of Richmond, and all Gov’ts , should not have ever cosnidered this boom as the Golden Goose, but in fact had the vision and the foresight to save much of the revenue accrued from these new developments, for a major rainy day fund….and buffer the citizen from downturns which are inevitable.
Many people still recall the very ugly times in the late 1970’s early 1980’s, whereby people were going bankrupt and handing the keys to their homes to the banks due to the bubble’s collapse. I recall peak prices collapsing 50% and more within a few months
This is where I tend to achieve a balance on Gov’t intervention versus Gov’t acting responsibly, as I foresee very tough times ahead for the average taxpayer….and truly resent the Gov’t predictable demands for more $$$ , which I unfortunatelyy foresee for the near future unless we have a revolt.