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For $1 Million You Have A Choice: 15 Square Meters In Monaco Or A Trailer In The Hamptons

Tyler Durden's picture




 

A few days ago, when we looked at what is one of the last tax havens in the world, the principality of Monaco, we uncovered not only the world's most expensive Penthouse costing a whopping $400 million, but got some perspective on how far one's dollar really goes, or doesn't. Because when it comes to asset inflation there is a world for the "rest of us", where according to Janet Yellen "inflation is noisy" and any spikes should be ignored, and one for the 1%, where inflation is essentially off the charts. In fact, a world where as the following anecdote fiat prices hardly matter.

Case in point: if a billionaire has a measly $1 million burning a hole in their pocket, they have a choice: they can spend it in Monaco where, "for $1 million, you could buy about 15 square meters (160 square feet) of space" or they can spend it in Wall Street's favorite summer retreat, the Hamptons, where the seven figure number would buy them... a trailer.

As the NYT reports, via Gothamist, a family just sold their trailer in Montauk for a million dollars. 

The transformation of the whole of the east end of Long Island into a 1% paradise is something remarkable. The Times traces how just a few years ago Montauk was still something of a well-off worker's paradise, replete with drunken firemen and cheap crash pads. But now even Jimmy Buffett has been unsuccessful in purchasing a trailer in Montauk Shores, which sits at the very edge of Long Island.

“It was the Wild West back then,” Cherie Doughan, one of the former trailer owners, told the Times. “Or I guess you’d call it the Wild East. People sure knew how to party.”

Doughan recalls her father sitting in a bathtub in their front yard, beer in hand, inviting passersby to join him for a dip.

“I hate to sell it. I don’t want to sell it, I just don’t, but there it is,” Doughan said, explaining that they need the money to help pay for her mother's assisted living home.

Of course it is not the motor home itself that is being acquired, it is the land beneath it:

With dark wood paneling, two stuffy bedrooms and an intact 1970s kitchen, the Doughans’ mobile home will almost certainly be replaced. The new owners will be basically buying the land, paying more than 100 times what Mr. Doughan did, for one of the primest parcels in Montauk Shores.

 

It may not be one of the plots directly on the bluff over Ditch Plains, but it is on a larger, 2,000-square-foot lot, with room for a double-wide mobile home and a new deck, a luxury the narrower waterfront parcels, each 1,200 square feet, do not enjoy. The added space can mean a lot to someone willing to pay seven figures for a beach retreat. And the Doughans’ plot still has unobstructed ocean views, out over a plaza in the center of the park.

So $1.1 million for a 2,000 square foot lot? "Insanity", most people will interject here: this is such a clear signal there is an epic bubble that the only question is when does it burst.  Well, sure. But others are trying to spin even this:

While residents insist the general vibe of the mobile home park hasn't changed, the idea of someone who could afford a $1.1 million dollar parcel of land on which to build a new trailer seems to negate the vibe of a blue collar paradise. Not so, according to the Corcoran real estate agent quoted in the piece: “If you think about it, it’s still one of the best deals on the East End,”

And now, for all those who wish to be able to afford such "best deals" in the future, back to BTFATH.

 

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Tue, 08/26/2014 - 14:25 | 5145917 dracos_ghost
dracos_ghost's picture

Hmm, didn't this happen in Las Vegas right before the 2008 housing crash?

Tue, 08/26/2014 - 14:30 | 5145934 exi1ed0ne
exi1ed0ne's picture

There is no inflation for the 1%, since they can substitute their 15m2 in Monnaco for a one room apartment over a bar in flyover country next to the railroad crossing.

Tue, 08/26/2014 - 14:36 | 5145966 Hippocratic Oaf
Hippocratic Oaf's picture

I go to MTK all the time.

In the last few years it has tuned into Southbeach North.

Young trustfund babies and floaters from the hamptons have near ruined the place. But MTk isn't holding them back, they love the money.

And The Sloppy Tuna? what in the wide wide world of sports is going on here?

Tue, 08/26/2014 - 14:49 | 5146012 hedgeless_horseman
hedgeless_horseman's picture

 

 

What to put on your trailer lot in the Hamptons?

If space is a luxury, the Airstream Land Yacht makes the very most of
every square foot. Every sumptuous detail has a dual practical
application, and beneath the Land Yacht’s contemporary, airy, sleek
surface is a high-performance travel trailer that incorporates best
practice from the world’s finest ocean-going craft.

Starting at $145,634.

http://www.airstream.com/travel-trailers/land-yacht/

Tue, 08/26/2014 - 14:53 | 5146033 General Decline
General Decline's picture

Just did a quick google stret view tour. I just placed the Hamptons on my looting bucket list. Lots of gold jewelry and most everybody is unarmed. Sounds like a paradise to me.

Tue, 08/26/2014 - 15:04 | 5146092 hedgeless_horseman
hedgeless_horseman's picture

 

 

Starting at $145,634.

Top-of-the-line Airstream in 1954 retailed for $5,145.

Noise.

Tue, 08/26/2014 - 15:14 | 5146144 NotApplicable
NotApplicable's picture

Using fedgov's CPI calc, that puts it at $45,568.63 in "today's dollars." Which makes the land-yacht, by the time you remove today's bells and whistles, about the same, if not cheaper.

Why does anyone measure things in dollars, again?

Tue, 08/26/2014 - 15:39 | 5146243 max2205
max2205's picture

Hey, can I borrow a can of PBR.

Tue, 08/26/2014 - 16:40 | 5146473 The Big Ching-aso
The Big Ching-aso's picture

Hmmmm. The Hamptons or Monaco. What a choice. Either pay top-dollar to be around a bunch of nouveau rich arrogant assholes or pay top-dollar to be around a mega-bunch of nouveau rich arrogant assholes. I'd hate to be the one having to make such a difficult life decision.

Tue, 08/26/2014 - 15:35 | 5146236 JRobby
JRobby's picture

Where is your RV lot located?

Tue, 08/26/2014 - 14:41 | 5145993 Stuck on Zero
Stuck on Zero's picture

$1.1M for a 2000 square foot lot?  Happens all the time along the coast of California.  Just RedFin 92109 or 92107 to see.

Tue, 08/26/2014 - 15:11 | 5146129 Atomizer
Atomizer's picture

1.1 million @ 2.000 sq/ft? I call that a overpriced birdcage. Someone must be using the zip code to feel comfortable as a pathetic debt muppet. 

Just my opinion. 

Tue, 08/26/2014 - 17:01 | 5146567 Stuck on Zero
Tue, 08/26/2014 - 14:54 | 5146009 Kirk2NCC1701
Kirk2NCC1701's picture

For that kind of Cashish you can buy a whole town in Canada...

http://rt.com/news/182476-canada-ghost-town-sale/

"Prepperville"

Tue, 08/26/2014 - 17:12 | 5146625 Matt
Matt's picture

$50,000 for a boarded up shack and 2.5 acres. Seems like a bad deal, unless the town has the capacity to develop its own manmade lake and hydro dam.

Tue, 08/26/2014 - 17:47 | 5146802 SilverRhino
SilverRhino's picture

http://www.landsoftexas.com/texas/land-for-sale/2646-acres-in-Brewster-County-Texas/id/1566073

 

2646 acres (4+ square MILES) and you have a couple hundred thousand left for a trailer, well and off grid power supply construction.

Tue, 08/26/2014 - 14:26 | 5145924 Four chan
Four chan's picture

or 4 square miles of detroit.

Tue, 08/26/2014 - 15:05 | 5146098 zaphod
zaphod's picture

Those 4 sq miles come with $2million in back taxes though, and a ton of expected future fees. 

Tue, 08/26/2014 - 14:28 | 5145926 knukles
knukles's picture

You didn't buy that

I think I'm gonna throw up... tastes great less filling

Tue, 08/26/2014 - 14:42 | 5145988 lordylord
lordylord's picture

You didn't buy that.  You're just renting it.

Tue, 08/26/2014 - 14:28 | 5145930 buzzsaw99
buzzsaw99's picture

now they are buying land by the square foot. lulz

Tue, 08/26/2014 - 14:31 | 5145938 ironmace
ironmace's picture

I remember the only thing open in the off season in Montauk was the couple bars,market, post office and the gas station.

Tue, 08/26/2014 - 14:30 | 5145939 NOTaREALmerican
NOTaREALmerican's picture

This is what happens when the goddamn gov't workers and FSA wins.  

Tue, 08/26/2014 - 14:31 | 5145946 NoDebt
NoDebt's picture

I wonder what a decent sized self-storage locker goes for in Montauk.

Tue, 08/26/2014 - 14:35 | 5145958 swmnguy
swmnguy's picture

For storing yourself?

Tue, 08/26/2014 - 18:57 | 5146998 NoDebt
NoDebt's picture

No, silly.  As a vacation home.

Tue, 08/26/2014 - 14:34 | 5145953 OMG
OMG's picture

I got a piece of the moon by buying a Pink Floyd album

Tue, 08/26/2014 - 14:35 | 5145961 swmnguy
swmnguy's picture

Not on the lit side, though.  You may have been, but the piece of the moon wasn't.

Tue, 08/26/2014 - 18:58 | 5146999 NoDebt
NoDebt's picture

It's all dark, actually.

Tue, 08/26/2014 - 14:37 | 5145972 JustObserving
JustObserving's picture

I would rather buy 51,500 ounces of silver.  Colloidal silver is a potent antibiotic and may work against Ebola.  It also works against vampires and central bankers. But then I repeat myself.

Tue, 08/26/2014 - 14:59 | 5146073 Alea Iactaest
Alea Iactaest's picture

Did you really just type "antibiotic... may work against [virus]"?

Colloidal silver does have antibiotic properties but you're going to need something else if you're fighting a virus.

Got science?

Tue, 08/26/2014 - 15:42 | 5146255 JustObserving
JustObserving's picture
Colloidal Silver is an Antibacterial, Antifungal and Antiviral Miracle

http://www.naturalnews.com/027235_silver_colloidal_antibacterial.html

Tue, 08/26/2014 - 14:38 | 5145977 himaroid
himaroid's picture

"Banker bought it." "Just great, there goes the fucking neighborhood!"

Tue, 08/26/2014 - 14:40 | 5145987 fooshorter
fooshorter's picture

Neither, I would never buy either of these ego inflating fucking paper whorshipping slave quarters.  Long live the debt chains! Keep chassing the carrot you fucking rats...

Tue, 08/26/2014 - 14:47 | 5146013 Its_the_economy...
Its_the_economy_stupid's picture

stack'em bitches.

Tue, 08/26/2014 - 14:47 | 5146016 pelican
pelican's picture

Janet Yellen should go visit the beachs in NY/NJ to see where all the stimulate went.  Beach front properity is having their homes torn down to build manisons.  Two month a year mansions. 

 

Trickle down.... what a bullshit idea.

Tue, 08/26/2014 - 17:19 | 5146419 PrecipiceWatching
PrecipiceWatching's picture

This isn't "Trickle Down", a grossly inaccurate, Communist propaganda term for Reagan's Supply Side fiscal philosophy.

 

Supply Side Stimulus = Get the thieving government the fuck out of the way of the capable, industrious, productive people in the economy, who create wealth, innovation and jobs, raising ALL economic boats.

Tue, 08/26/2014 - 14:49 | 5146021 SickDollar
SickDollar's picture

hmmm A lot of CIA "MK-Ultra" mind control research was done in Montauk.

Tue, 08/26/2014 - 14:53 | 5146034 PrecipiceWatching
PrecipiceWatching's picture

For HALF of that I can have:

160 acres of decent Missouri farmland, with a 4500 square foot home, nice new barn, chicken house, huge shop with concrete floor and electric, a drilled well, numerous additional outbuildings.

Also 1 acre pond and frontage on one of Missouri's superb natural rivers.

 

And more.....

 

 

 

 

Tue, 08/26/2014 - 14:56 | 5146057 Duc888
Duc888's picture

Meh,

for 30K I'll take a few acres in the mountains east of Asheville NC.

Hell, I might even roll in there with a trailer.

Tue, 08/26/2014 - 16:51 | 5146519 sdmjake
sdmjake's picture

Roll in there with a 'Tumbleweed' [OR a 'tumbleweed plan' and build a sweet place of your own]

(With those few added acres you could have a nice workshop/storage, greenhouse, etc with money not wasted on a big 'house')

http://www.tumbleweedhouses.com/pages/houses

Tue, 08/26/2014 - 15:00 | 5146080 Atomizer
Atomizer's picture

A sucker is born every day. Whatever fucking insecure lunatic that needs attention will shortly find out he is supporting the lower class working peasants taxation and benefits. Leave it at that..

What idiot will buy it? 

China, England, Russia, African, or a Jewish Talmud Pedophile who wants to expand his child sex trafficking industry?

Monaco will bleed the new home owner. Don't forget, you have to pay off the police and public officials. Special security interest needs is similar to payoff or get robbed.

You're better off staying on your yacht to visit, then head out of dodge. 

 

Tue, 08/26/2014 - 15:13 | 5146133 Downtoolong
Downtoolong's picture

I remember seeing this kind of thing happening in the Florida Keys ten years ago. The cheapest property on the Key West MLS was an old trailer inside a park for $399k. Old fishing shaks built in the 50's the size of a double wide were being walled down the middle and subdivided so each side could be sold for $500-600k. I watched homes exchange hands three times in three years (often between realtors and brokers) with each transaction priced 40-60% above the last.

It's clearly not about supply and demand for goods and services. It's about supply and demand for money.

Keep printing Janet, so the buyers of this parcel can flip it to someone else for $2million in 12-18 months. That's what this shit is all about.

 

Tue, 08/26/2014 - 15:13 | 5146136 blu
blu's picture

I can't live in a trailer because it would mean getting a skanky tattoo on my ass, and I'm afraid of needles.

Tue, 08/26/2014 - 15:56 | 5146313 hedgeless_horseman
hedgeless_horseman's picture

 

 

The crank helps with the fear.

Tue, 08/26/2014 - 16:50 | 5146521 zipit
zipit's picture

If you are over 20, you can skip the tramp stamp.

Tue, 08/26/2014 - 15:34 | 5146226 homiegot
homiegot's picture

Sucks he has to spend it on his infirmed mother.

Tue, 08/26/2014 - 17:06 | 5146595 walküre
walküre's picture

That's what stood out for me as well. Going, huh? Is this guy for real? Who is he kidding or is the assisted living home on Park Ave?

Tue, 08/26/2014 - 17:18 | 5146655 Matt
Matt's picture

At least $4K/ month, so $50K per year easy. Try getting $50K in yield off $1 million with little or no risk. Probably going to mostly be coming out of the principal, if she lives more than 20 years or inflation continues, they'll need to sell more stuff.

Tue, 08/26/2014 - 15:36 | 5146235 Seasmoke
Seasmoke's picture

Just getting back from a week at the Jersey Shore. Took my informal poll of how Summer 2014 was for the businesses, some of who I know and others who I never met. 

 

All, and I mean All, said WORSE SUMMER EVER !!!!

Tue, 08/26/2014 - 17:08 | 5146606 walküre
walküre's picture

There's always next summer which again will be worse and the one after that will be worse then the one before and down it goes.

The few rich fucks aren't eating enough ice cream, renting enough boats and taking out enough bait and tackle to make up for the mass of newly impoverished, nickel rubbing mass tourists.

Tue, 08/26/2014 - 18:31 | 5146932 SmittyinLA
SmittyinLA's picture

The jails are much better in Monaco, plus French babes, in "the Hamptons" you get "real housewives of NJ"

 

 

Tue, 08/26/2014 - 18:55 | 5146987 Salsipuedes
Salsipuedes's picture

Work hard, play by the rules and always give 108% and one day, you too Billy, can be Long Island trailer trash!

                           Love, Uncle Reemus

Tue, 08/26/2014 - 19:48 | 5147176 himaroid
himaroid's picture

Now I know what to do with the big old marble bathtub I have leaning on the shed. 

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