McMansions going Section 8

**ladycat** · #1 08/01/10, 11:57 PM

Housing Bust Opens New Doors for Subsidized Tenants

http://online.wsj.com/article/SB1000...ml?mod=iGoogle

**Shrek** · #2 08/02/10, 05:07 AM

This is Section 8 going way too far. If she is making $10.70 an hour, even if sec 8 picks up half her rent, there is still utilities on 2000 sq feet plus $800 a month in rent out of about $1600 a month in net income. Guess there is always EBT or dealing meth to make up the difference to make sure they have food and clothing unless they turn it into a boarding house.

bowdonkey · #3 08/02/10, 06:12 AM

Looks to me it's the owners scamming the gov [taxpayer] also. My nephew is a building inspector and is working on two 14 story and a 25 story highrise's in the twin cities. They are using stimulus $$$ to upgrade and remodel privately owned property which will later be rented as low income housing. I presume that's also section8. Those owners are scamming the system and double dipping big time. It upsetting to say the least. I think it's time for another round of Wild Turkey.

MrCalicoty · #4 08/02/10, 07:55 AM

It seems so ironic... Previous occupants with a lot of class and too much ambition being replaced by those with no class and no ambition. Hmmmm....

Sawmill Jim · #5 08/02/10, 08:07 AM

Sounds like the grasshopper got the boot even though he couldn't afford it either .

Nevada · #6 08/02/10, 10:10 AM

Quote:

Originally Posted by MrCalicoty

It seems so ironic... Previous occupants with a lot of class and too much ambition being replaced by those with no class and no ambition. Hmmmm....

I like your term "too much ambition". That has to be a polite way of saying something, but I'm not sure what.

**ladycat** · #7 08/02/10, 10:31 AM

Quote:

Originally Posted by Nevada

I like your term "too much ambition". That has to be a polite way of saying something, but I'm not sure what.

Just a different way of saying they had a champagne lifestyle on a beer budget.

Nevada · #8 08/02/10, 10:33 AM

Quote:

Originally Posted by ladycat

Just a different way of saying they had a champagne lifestyle on a beer budget.

Probably, but MrCalicoty said it as if it were a good thing. At the very least he implied that those with too much ambition were more deserving.

MrCalicoty · #9 08/02/10, 11:05 AM

Quote:

Originally Posted by Nevada

Probably, but MrCalicoty said it as if it were a good thing. At the very least he implied that those with too much ambition were more deserving.

I didn't imply anything at all. It was just a funny juxtaposition. Too much ambition (excess, covetousness) deserving to LOSE their home IS what I had in mind but I left that unstated.

beccachow · #10 08/02/10, 11:11 AM

Oh, Nevada, give me back my tin foil hat. It is too small for you.

Narshalla · #11 08/02/10, 03:53 PM

$1400 for rent? In Las Vegas? Um, the housing market has crashed there. A large house (4+bed/2 1/2 bath) house on a postage stamp in a good school district is going for under 150K -- she could buy cheaper than she could rent!

Assuming $150K, 7% interest, no money down (okay, that part isn't going to happen any more, but anyways,) PITI and upkeep should be about 1500 a month.

Of course, the money line was what the landlord had to say about it in the last two paragraphs:

Quote:

Last year, Mr. Davtyan, who rents to Section 8 tenants, paid $60,000 in cash for a four-bedroom house in North Las Vegas. He charges rent of $1,436 each month, giving him a profit of about $15,000 per year after insurance and property taxes, he says. He also paid $60,000 for a six-bedroom house in central Las Vegas 18 months ago that once commanded nearly $300,000. It rents for nearly $1,700 a month.

"It's the most lucrative way to go right now," he says. "Nowhere else does your money make that kind of return."

plowjockey · #12 08/02/10, 09:06 PM

Quote:

Originally Posted by bowdonkey

Looks to me it's the owners scamming the gov [taxpayer] also. My nephew is a building inspector and is working on two 14 story and a 25 story highrise's in the twin cities. They are using stimulus $$$ to upgrade and remodel privately owned property which will later be rented as low income housing. I presume that's also section8. Those owners are scamming the system and double dipping big time. It upsetting to say the least. I think it's time for another round of Wild Turkey.

Bingo!

If you can't sell your too-large, too-expensive home, rent it to Uncle Sam!

willow_girl · #13 08/02/10, 10:10 PM

Quote:

$1400 for rent? In Las Vegas? Um, the housing market has crashed there. A large house (4+bed/2 1/2 bath) house on a postage stamp in a good school district is going for under 150K -- she could buy cheaper than she could rent!

She could buy if she had a down payment and sufficient credit. Banks have tightened up on loans. And the folks who lost their homes to foreclosure gotta live somewhere!

I'd say it's a pretty good time to be a landlord.

Nevada · #14 08/02/10, 10:24 PM

Quote:

Originally Posted by willow_girl

She could buy if she had a down payment and sufficient credit. Banks have tightened up on loans. And the folks who lost their homes to foreclosure gotta live somewhere!

I'd say it's a pretty good time to be a landlord.

You are correct. Cash buyers are stealing houses right now in Las Vegas, but you can't get a loan to save your life.

willow_girl · #15 08/03/10, 10:42 AM

Without government meddling, creating an opportunity for profit and thus propping up the housing market, the prices of homes probably would dwindle to the point where working-class people could afford to buy them.

The neighbors complaining about the Section 8 tenants should keep in mind that those tenants are helping to prop of the value of neighboring homes, even as they lower them via boisterous behavior and trashing their rentals. Talk about a Catch-22!

Sawmill Jim · #16 08/03/10, 10:52 AM

Prop them up how long

What planet you on or from

willow_girl · #17 08/03/10, 11:21 AM

I'm from Earth; where are you from?

Prop them up for how long? I dunno; how long has Section 8 been around? Are there plans to discontinue it?

BTW, if you read carefully you'll notice I never said this was a good thing.

Sawmill Jim · #18 08/03/10, 11:42 AM

The neighbors complaining about the Section 8 tenants should keep in mind that those tenants are helping to prop of the value of neighboring homes, even as they lower them via boisterous behavior and trashing their rentals. Talk about a Catch-22!
__________________

Now that statement above sounded like you thought it was a good thing

I effect here once two or three houses go section 8 the property value goes over night

Like a lead balloon

willow_girl · #19 08/03/10, 11:48 AM

I said it's a Catch-22. The original residents on the one hand are having their property values propped up by government $$$, but on the other, those Section 8 tenants likely are trashing their rentals and making the neighborhood less desirable. Whether this will be a net gain or loss is anyone's guess!

My personal opinion is that the government should stay out of it and let the market set the prices.