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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dracos_ghost's picture

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

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.

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?

hedgeless_horseman's picture

 

 

What to put on your trailer lot in the Hamptons?

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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
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Starting at $145,634.

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

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.

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?

max2205's picture

Hey, can I borrow a can of PBR.

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.

JRobby's picture

Where is your RV lot located?

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.

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. 

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"

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.

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.

Four chan's picture

or 4 square miles of detroit.

zaphod's picture

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

knukles's picture

You didn't buy that

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

lordylord's picture

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

buzzsaw99's picture

now they are buying land by the square foot. lulz

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.

NOTaREALmerican's picture

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

NoDebt's picture

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

swmnguy's picture

For storing yourself?

NoDebt's picture

No, silly.  As a vacation home.

OMG's picture

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

swmnguy's picture

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

NoDebt's picture

It's all dark, actually.

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.

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?

himaroid's picture

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

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...

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.

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.

SickDollar's picture

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

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.....

 

 

 

 

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.

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

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. 

 

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.

 

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.

hedgeless_horseman's picture

 

 

The crank helps with the fear.

zipit's picture

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

homiegot's picture

Sucks he has to spend it on his infirmed mother.

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?

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.

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 !!!!