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This Is The 714 Sq. Foot Hovel In LA That Can Be Yours For Just $1.1 Million
Submittted by Dr. Housing Bubble
Venice is an interesting place. I’ve always enjoyed the unique atmosphere and it can be argued that Venice was one of the leading hipster enclaves in Southern California. It was cool before it was cool to be cool. Similar to San Francisco, old homes are being sold for ridiculous amounts of money. We recently featured a home in Venice that had 0 beds going for over $1 million. That is how crazy things are getting in SoCal. But there is definitely more of a feeling of “get out at the top” versus “I’m buying to ride some more appreciation” sentiment. Venice has gotten wildly expensive. Even just a few years ago visiting friends in Venice you were entering questionable neighborhoods where it didn’t seem safe. But hey, who needs safety when you can live the life of luxury in a crap shack? Is it any wonder why there is a steady migration out of California by the middle class? Let us take a look at a home in Venice and get your thoughts on it.
Venice in California
Perception is everything when it comes to real estate. Beverly Hills was able to garner fame and notoriety because at least the homes looked nice. At least you were getting a home that looked like a million dollars. Right now the big marketing push is “up and coming” neighborhoods. Get in before you are priced out forever and are destined to a life of eating out of food trucks.
The home we are going to look at today was built back in 1904. You read that correctly. 1904, as in 111 years ago. Let us take a look at this place:
1130 Electric Ave, Venice, CA 90291
1 bed 1.5 baths 714 sqft
I love places that have more restrooms/bathrooms than actual bedrooms. This place has 1 bedroom and is listed at 714 square feet. I love the first few lines in the ad:
“Old School Venice living at its finest! Don”t miss the opportunity to own one of the most unique properties off Abbot Kinney! This bright happy bungalow is loaded with charm and character in one of the most desirable locations around.”
This is definitely old school. Take a look inside:
This place screams dual income hipster household. I love that the place is pitched as old school but the price is definitely new school:
The last recorded sales price was $450,000 back in 2010. It was then listed for $799,000 back in 2011 but was removed shortly after. What justified a $349,000 increase in one year? Apparently nothing. But then in 2014 it was listed for $1,500,000! Bwahahaha! They bought for $450,000 in 2010 and were asking for $1 million more just because. Of course that didn’t work. They had to drop it down to $1,250,000 back in November of 2014. Then down to $1,165,000. And now it is listed at $1,100,000. This is still $650,000 more than what they paid for in 2010. So what justifies a 144% increase in five years?
This is full on mania and with inventory building up, people are starting to crunch the numbers more carefully. I’m curious, how does someone justify a 144% increase on this place? As we all know, real estate is essentially a game of musical chairs, especially in boom and bust California. Someone is trying to cash in on a lottery ticket here for Venice.
No mania here folks. This is all reasonable and makes complete sense.
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What's the price tag matter when the likely buyer will be a Chinese oligarch who was given "money" created out of thin air?
That area is gonna be hit with the New Section 8 crap of moving in the dregs for social equality. That'll take care of house values, real fucking quick.
... and it's not the price ... it is ... if someone is willing to pay the price ... it's like, why would anyone pay $100 million on a piece of woodframe with a splash of paint on a canvas and calls it a masterpiece? ... it's because someone is willing to pay for it ...
you think that's bad...check this out... https://www.redfin.com/CA/Los-Gatos/16394-Bennett-Way-95032/home/837174
"Do not miss out on this unique opportunity."
Hahaha! I think I'll risk missing out. Realtors are almost as worthless as bankers.
Why anyone decided a realtor deserves a 5% commission for walking people through a house and getting a contract signed is beyond me.
The claim was that their value came from knowing the area - schools, recreational spots, basically being an "area expert".
That was before Google. Realtors are truly useless now.
And now most of them don't know ANY of that information either.
Speaking of google, search results are very poor and convoluted now. 10 plus years ago you could find exactly what you were looking for easily, not so anymore. Anyone know a good non-google based search engine?
What are taxes on that place?
Bang Di Ho and Long Er Wong will buy three of them each, sight unseen.
Also listed at $1.1M, 7 bedrooms on the beach, Galveston, Texas...where the garage is 682 sf...
11855 Sunbather Ln, Galveston, TX 77554
7 beds 4.5 baths 3,870 sqft
Garage - Attached, 3 spaces, 682 sqft
One of a kind! fully furnished 7 bedroom beachfront home with amazing views. Beautiful bamboo hardwoods and travertine tile flooring. gourmet kitchen with commercial grade stainless appliances, 2 masters down 5 bedrooms up plus 2 living areas. Incredible electronics convey. imported doors will wow the buyer. Must see this masterpiece.
It's great, until the next hurricane wipes it out.
Drought, forest fire, earthquake, tsunami, nuclear reactor meltdown, hurricane...that is why they sell insurance.
Do HO insurance policies cover nuclear reactor meltdowns?
I don't imagine Nationwide is on the side of policyholders in Hawaii that are sick of ingesting hot particles from Fukushima.
And the generous gubmint subsidizes that hurricane insurance so rich assholes can build houses on barrier islands. There isn't an insurance company in the world that would fully insure a structure that will suffer damage or destruction every 10 years. Thanks Uncle Sam! Now get busy cutting "entitlements". I'm building a new mansion on the ocean.
round here, northeast florida beach town, the houses generally are irrelevant unless super posh and really recently (no more than five years) built. it's the land. most everything is torn down.
It's not stupid who asks the price, it's stupid the one who pays the money.
chosen
and the place in California is safer?
Hedgeless.
Congrats on your find.
Want to tell me what the best deal is in playa del carmen , Mexico? thanks.
Won Hung Lo also wants in on the action.
$5,891 in 2014 (assessed @ $484,000), according to Zillow.
www.duckduckgo.com - it doesn't record searches either so you're not confined to your own "search bubble" either.
Venice, what a shithole. Wanna get jabbed in the ass by a used syringe? Sit down on a public bench.
Funny thing is, as soon as you cross the railroad tracks from LA county into Orange county, there is a STARK difference in cleanliness.
LA = the BUTTHOLE of California
California = the BUTTHOLE of the US
Ah c'mon. Have you ever lived behind the "Orange Curtain"?
You may a lot of money, but the uniformity and the blandness.......
Yeah, cuz Arkansas is so nice. Or Mississipppi. Or New Jersey.
Yeah, I'd much rather live in any of those places... maybe North Dakota.
I'd rather pay $1 million for a shack and twice as much for food and gas while surrounded by 30 million third world peasants. California used to be great 20-30 years ago. Now it's full of illegals, aging hippies, and scammers from all over the world. If you can make $250K you can afford to live in a nice area. When you leave that area, it's full of filth again
California is a big state (alas), and you are talking Southern CA. Northern California, (way north - Del Norte, Humboldt, Mendocino) is a completely different place.
Um....butthole of US = Jersey.
Speaking of Electric Avenue....
Wait for it....
https://www.youtube.com/watch?v=vtPk5IUbdH0
It has all the charm & comforts of...a tow behind camper...lol.
Cept you can't move it to where the water is, what a steal ;-)
Ahhhhh..........hahahahahaha
My soda is running out my nose.
And check out the relator babe selling the place- does she not exude trust with that warm and friendly smile?
This is the RedFin place in Los Gatos, this reply got buried way the fuck down the list.
Fawk Venice. Fawk real estate. Fawk the Armenian dream. Buh Bitcoin!
https://localbitcoins.com
...and Fawk you too!
How about some venicecoin for you?
www.venicecoin.com
Sir Waylon bits? ever looked at BitGold?
that must mean that I can list my house at 2 billion. 3 bedrooms, 1.5 bath fixing it upper with over 2000 sq. ft.. Walk to the beach, large lot with organic gardening in up-and-coming no-fly nuclear hit zone....then I will drop the price until it hits.
it has to be a nice thing to be a babyboomer in California: you buy any crap on your 20's/30's and before retirement you can sell it to the generations after you for 20 times the price; then pocket the different, cash the social security before implodes, while keep calling them lazy and reminding them how hardworking your generation was
funny, how that works out for them. meanwhile, we get sold the American Dream as kids and watched it boom into nightmare. ah, at least I grew up in the gold 'ole days, kids these days are starting out completely fucked.
Take my money that I don't have, please!!
This makes sense if you have plenty of Daddy's money. And Daddy just wants to write a check and make the "problem" go away.
it's a fucking dejavu all over again ... didn;t shit like this happen back in '98 and then again at '07?
That was before the magic negro rode in on his unicorn. Everything is now awesome.
Look at the google street view. It is surrounded by three story condos. I also like the camping trailer parked in the front yard--That must be for the kiddos
Thats either the guest room or the grow.
No thanks ill keep my little cabin by the riva in ky , I can eat my neighbors
The sale price in 1982 is the correct price point. The rest is mark to fantasy.
It once took me 3-1/2 hours to go from the San Fernando Valley to Anaheim. It's a 60-mile drive. I wanted to leave my rental car on the freeway and walk away.
1982
Federal spending: $745.76 B
Federal debt: $1137.3 B
Upside: This shack + a surfboard will get you laid (and later, picked clean) in Venice.
Downside: Have your papers in order. Everybody knows when you're hitting the pipe.
Correction: No Medicating allowed. Next to an elementary school.
What a buzz-kill!
Pity...I was actually in the market for a $1.1 million stoner shack too.
Yes?!? Who is buying this stuff?
Good time to get in before prices go up. It must be different this time.
How does someone justify it? Because this is the economy we have created...why SHOULDN'T they expect this? They'd be STUPID not to.
Asking why a particular excess exists in a market designed to encourage and reward excess is a bit ingenuous, no?
You might get $1.5 mill in Vancouver for this 'lovely bungalow'. Prices there are just insane as well.
only idiots must live there... welfare rates in CA must be good to cover that rent
It's a steal. Way cheaper than this shack in the woods: https://sfbay.craigslist.org/scz/reo/5121175038.html
Sure sign of a dump, probably a foreclosure, when they have lots of pictures of the exterior, and none of the interior.
fuckk, real estate not ur thing!
That property has Water , usable land , energy , location, 3 shit construtions ,(.. acres)...maybe you want that in meters?
Water = average world price = 1 million.
Given that location, that is not a bad price at all. Welcome to Silicon Valley and enviorons. Tear it down and build your dream house in the woods - this is really close to country living while being also close to city amenities.
It is not outrageous in today's market in the Silicon Valley/Santa Cruz environs.
If I had taken that job offer at UCSanta Cruz as assistant personnel manager in 1969, (and I considered it long and hard) I might be living there now -and it wouldn't be for sale at any price.
Exactly! This is every house in Santa Cruz....
Tech Money trickling down to the bottom feeders!
1982 value seems reasonable, with a sub prime loan
There's no sales happening after 2010 at $450K.
All you're really seeing here is someone fantasizing about their property value with the help of a real estate agent and nothing more. Hell, I wouldn't be surprised if the current owner is an agent, either looking for a sucker or someone who owns other nearby properties and is trying to jack up the value of the whole neighborhood by showing that even the shittiest house in the neighborhood is listed > 1M.
It's amazing how in this country real estate agents were once touted as respectable "professionals", but in reality are a bunch of shysters, liars, theives, and scammers.
How many out there will say "oh you NEED to fix up this or that" and then get the owner a "good deal" using their brother in law as the contractor?
How many had their own homes foreclosed upon thinking the gravy train would last forever?
Look up some of your real estate agents in local court records. It's fun. So many of them have gone through foreclosures (a judicial matter in my state) and bankruptcies it's ridiculous. Many of them steal like the dickens when holding open houses. Never let one into your home unsupervised.
A while ago I had to decide what to do with my parents' house after my dad died and mum went into a care home.
I actually found a lawyer that I could actually talk to - often at no charge (very unusual, I know)
He told me not to even approach a real estate type with an empty house in good shape.
Said there would likely be a visitation, at dead of night, by people with a destructive bent.
Followed by a real low ball offer from a contractor buddy of RE dude.
To quote him....
'The level of mendacity in this world beggars belief'
He's no longer a lawyer, by the way.
When we rennovated before moving in I hired all the subs and played contractor. Had some friends who were going to do the same a few years later and told them I had some good people for certain tasks. Nope, family member wants to mickey mouse the house for them. This isn't always the case, in my engineering circle those people actually do know others that can get it done cheaper than normal.
Real Estate agents are one of the biggest scumbag professions. Most I found extremely useless. Especially the ones on Redfin. What a joke. Like the above, they aren't all bad but good luck finding one that does know the area and things about a house. Like a chalk outline on the street is probably not something a young couple wants to be a part of.
Wow, I wonder if the furnishings come with it. That could clinch the deal for me. Man, oh man, that bedroom with the ten dollar chair, twenty dollar bureau and ten dollar foot stool just add so much charm.
https://www.youtube.com/watch?v=QGeYD3rCUG0
Now in the street, there is violence
And-and a lots of work to be done (now where've I heard that before?)
No place to hang out our washing
And-and I can't blame all on the sun
Oh no, we gonna rock down to Electric Avenue
And then we'll take it higher
Oh, we gonna rock down to Electric Avenue
And then we'll take it higher
Workin' so hard like a soldier (can't drive the caddillac with a broken back)
Can't afford a thing on TV (is that all you get for your money?)
Deep in my heart, I abhor ya
Can't get food for the kid
Good God, we gonna rock down to Electric Avenue
And then we'll take it higher
Ho, we gonna rock down to Electric Avenue
And then we'll take it higher
Oh God, we gonna rock down to Electric Avenue
And then we'll take it higher
Ho, we gonna rock down to Electric Avenue
And then we'll take it higher
Who is to blame in one country?
Never can get to the one
Dealin' in multiplication (manipulation?)
And they still can't feed everyone
Ho, out in the street
Out in the street
Out in the daytime
Out in the night
Out in the street
Out in the playground
In the dark side of town
Ho, we gonna rock down to Electric Avenue
And then we'll take it higher
37 is 420. Rasta out ;) Thanks for the Eddie G.
Its always 420 somewhere, Jack.
I think I'd rather live on the street in the song than in this POS.
The original is better because the visualization is that he's underwater in the house, then everywhere.
https://www.youtube.com/watch?v=xCjR90ul4Fo
Still cheap by Australian standards
Some uh rittle china man come to buy it fol arr cash, chop chop.
cause will never touch stocks again. But real estate, what can go wong?
That shithole isn't worth $50k to anyone with a brain. Sadly, the brainless backed by the fed make it worth $1.1 million.
Someday reality will reassert itself. Can't wait.
The question is, with it being built back in 1904, will the 'big one' take care of this particular home first?
If it's a scrape, then nothing about any structure on the property matters as long as it isn't a big expense or liability.
Yep, certainly a tear-down. It's the land that is expensive in So Cal, especially near the beach.
To a Chinese thats a four bedroom dream home!
They will live in the backyard anyway to not wear the interior.
Gotta love how house prices in Cali are listed in MM. As in, a $400,000 house lists for $0.4. LOL I have to go water the garden/flowers... using the 'free' and abundant water from the well in my backyard. Ohh!
Fuck it Dude. Let's go bowling.
How much dirt?
So are they telling us that this house is worth 1000 oz of gold?
I think I know where the intrinsic value is and it's not this house.
When I was suppyling to Solyndra before the FBI showed up. The employees took me around Fremont, CA. 850k to live in a birdcage. Check Zillow or something else to verify current prices.
Venice is a hippie fuckhole.
We just sold our place in Santa Monica and got the fuck out. Recouped the original 2008 purchase price, which was a lot of goddamn money. Let someone else listen to the goddamn airport and get parking tickets for having the temerity to park in front of their own house. Fuck that place.
I can only agree with you SILENCER and Good on You Getting you bux back, The People's Republic of Santa Monica is rapidly becoming an Overpriced, Over Crowded Shithole itself.
As for Venice, You've gotta Love The Local Motto "Venice where Art Meets Crime". That pretty much sums it up! :) MartyFlesh
Just want to post this because I'm drinking ALOT.
Real estate agent SCUM sold me a piece of land earlier this year (jsut land, trees and a stream, OK?) that was 5.7 acres. The place next door was for sale when I bought (March, this year) for $135K. I said they'd be lucky to get $80K.
The place is still for sale. Occasionaly - about once every three weeks - a real estate agent walks some people through it and the 4.5 acres.
It is still empty and I am very pleased. Hoping they'll up the price a little, so nobody will even think about buying it. In the meantime, my 'hood is nice and quiet.
Thank you banksters and dumnasses hoping to cash in on mom and dad's home.
After the crash, maybe I'll pick it up for around $35,000. Maybe less. Maybe I'll just use it to store stuff.
Shit, man, use that place for a Justice Shed and dole out your own brand of Frontier Lawkeepin'.
You can get a totally killer place in the French Riviera for the price of the $1.1M Venice rats nest.
lol , link?
About 3 years ago I had the PA Amish build me a really nice 198 sq ft back yard workshop/garden shed. Zero bedrooms and 0 baths. Nice front porch and shed as 3 working windows. Huge plus - I did run electricity to it. So, I paid about $3800. hCould get what - maybe if I push it - $500K? JOKING! I could rent it out to some local illegals that reside in the area.
It's pure propaganda to keep prices from sinking.
this article should have been shelved until it either SOLD or a BID for near that amount materialized. otherwise, it's got no real relevant pricing information, except demonstrating high aspirations. hey, ive got a tic-tac in my pocket for sale for $1bn!! write an article about that! no? oh yeah.. it only matters what someone BIDS.
Hey, this article stimulated a lot of interesting discussion, so who the fuck cares if it sells? It is a data point on how crazy RE is getting in various parts of the world (CA, Vancouver, Austrialia, etc.) - that's all. And a lot of ZHers have interest and/or experience in various RE shit. So this thread had been a great read. It matters not one goddamn bit whether this Venice 'cottege' sells at the asking price or not.
Not One God Damn Bit.
As if the 'markets' have, to quote you, '...relevant pricing information'. You want 'relevant pricing information' for a place in Venice, go visit a bunch of relators in Venice. (Ok, I'm joking here....)
Don't you GET ZH at ALL?
That place is so small ya gotta go outside just to change your mind.
If you need to move, you can put the house in your pocket and hop on a bus......
Looking at Zillow even the lot is under 2000 square feet, and the adjacent house and lot also for sale at $1.8m is barely larger - was last sold one year ago at *half* the current asking price. So even in Los Angeles these are crazy, speculative toys. The two together might go for like $1.1m, tear down both houses and build something tall and exotic.
Most of Venice is commercial or semi commercial, it is the Marijuana capital of southern CA, pot shops can pay 50-100k a month easy.
All pot distribution in CA is non-profit, like baby part sales, Lois Lerner approved.
Venice is really busy and noisy like Disneyland 24/7/365, McCain would like it.
I read all the comments and I must say. You just don't get it.
Real estate is all about location, location, location. No? And this place has it to the 9's. Venice is hip, but also has a some very dangerous areas. Makes it hip doncha know? Near the beach. Gentrification. And on westside adjacent to Santa Monica, Playa Vista, Culver City..
And, yes, the sellers are greedy idiots that do not seem to quite get the true value of their property (like they cannot hear what the broker is telling them) and so they blunder on..
There is a mini tech boom going on in the area. Google is the biggest expansion story that is moving into Playa Vista, but not the only one. Playa Vista continues to get built out and that it has attracted Google and other tech firms to expand into a "cheaper" tech region that has a thriving creative vibe all on it's on..Sony, all that is Hollywood... Sand Beach...speaks volumes.
So. The underlying story is about the boom
Amen - Thanks, Sawgill.
Yeah the Playa Vista development is nutz, when all that crap opens next year the traffic in that area is going to set new congestion records, several million square feet of new office space, a couple of thousand overpriced condos ass to elbow, and no new roads. Fortunately it's all in a tsunumi warning zone, so I'm hoping it will all receive a reset back to swampland ASAP, maybe a strong El Nino and a bonus tide like Hurricane Sandy did to Manhattan would do it.
There are a couple of very modest residential neighborhoods adjacent that are probably going to triple in price and all the little old houses be torn down and replaced with Persian Palaces and Monster Mansions. But Venice? Maybe.
In Palo Alto, the price would be 3x as much
Wow great deal! Think they'd consider an even trade for my parking spot in NYC?
http://mobile.nytimes.com/2014/09/10/realestate/million-dollar-parking-s...
Wow great deal! Think they'd consider an even trade for my parking spot in NYC?
http://mobile.nytimes.com/2014/09/10/realestate/million-dollar-parking-s...
I'm a loyal Zero Hedge reader and I live in Venice just around the corner from the dump listed in this article. My partner bought the property where we live in 1998 and we recently completed building a new house on 2/3 of the property. We rent the lower level of the structure (1 bedroom 1,000 square feet 'house') on AirBnB and net over $11k a month. The other 1/3 of the property has a small 'cottage' that we rent our for $6,000 a month (900 square feet, 2 small bedrooms and 2 small bathrooms, and NO parking). We had a line out the door to rent it. Venice is crazy right now. The tear downs down the street (away from the ocean!) for a 40' x 135' lot are going for over $2M.
And the buyers (and renters) are the technology $$$ that has landed in Silicon Beach. Everybody is in either Santa Monica or Venice now.....Microsoft, Google, Snapchat, Yahoo, Amazon, and we've even heard Apple has people down here.
The owner's of the dump pictured above are just trying to ride the wave. The problem is no one wants to live on Electric Avenue....its very busy, lots of foot and auto traffic, and its' just across the street from the commercial part of Abbott Kinney Blvd. But you never know....I'm shocked every day at the amount of $$ people throw around in this neighborhood.
I applaud you as a landlord. Collect the premium as long as it's not a rathole.
Rodents included?
Yellen will tell you that you are wrong, there is no inflation.
It's completely realistic, unless you forgot to take your medication today.
And yet Zillow is STILL estimating its value at $1.5 million. Despite never being appraised at more than a third of that.
I wouldn't even give 450k for it