Thursday, October 22, 2009

Wherever You Go, There You Are

Or, You can't run away from your problems. Bedroom community blues: foreclosure crisis creating suburban slums | Washington Examiner

Cry some crocodile tears for the snooty bedroom "planned communities" with their gates and homeowners' associations. They are finding life in the Real World ™ tough to deal with.
As in Georgetown South, many once single-family, owner-occupied homes are now being converted into rental properties. Tales are now pouring in from nearly every bedroom community about overcrowding, housingcode violations, blight and petty crime -- the kind of problems those suburbs were created to escape.

"It's a huge black eye," Fairfax County Supervisor Jeff McKay, D-Lee, whose district is littered with hundreds of boarded-up McMansions. "They're infecting entire neighborhoods. That's the tip of the iceberg, I think."
This seems to recall to mind a bible verse about building your house on a foundation of sand. Not sure why.

"You can't lose money in Real Estate." Will anyone ever say that again?
Between 2007 and 2008, property values in Washington's outer suburbs dropped by nearly $111,000 per home, the Metropolitan Washington Council of Governments reported.

"That's the market telling you something," Leinberger said. "When the market value is less than replacement, there's no incentive to put the next dollar into a house. That's the definition of a slum."
So the planned communities were created to make sure everyone painted their houses acceptable colors are now dealing with vacant properties being turned into drug houses.

Don't look to the city for help, they are fighting with a budget shortfall caused by the drop in property taxes.

People are leaving their homes because they are upside down wrt their loans, with little hope of recouping anything. Will people leave even more homes because they don't want to live in a depressed area (and are upside down on their home loans...)

Like I said the other day... buckle up boys and girls, it gets bumpy from here.

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