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5 reasons to reconsider buying the home of your dreams

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small house farmhouse

Falling in love with a house means a lot of factors have to come together.

It means you decided you could afford to buy it, and the bank agreed to lend you the money. It means you loved the layout, or the spacious backyard, or maybe there was a sense of warmth and comfort that the home exuded, which convinced you to get it.

Plus, the home passed inspection, and a host of other potential problems never surfaced. So you bought the house.

But sometimes, after falling in love with a house, you can quickly fall into hate with your house.

Maybe there is something about your home that failed to register with you when you did a walk-through or two. You just never noticed it until it became impossible to ignore.

Don't become that person. If you're looking for a new house, here are some features a home may have that you probably don't want.

In other words, don't rush to buy a house if

1. It's across the street from a school.

It sounds great for anyone planning to become a parent, doesn't it? Your kids can walk to school. No running for the school bus. If they forgot their lunch, you just walk across the street. Volunteering will be easy. After-school activities, a snap. Really, what's not to love?

But Maigen Thomas, who runs the website Weddingfor1000.com, says there's a lot not to love. Last year, she and her husband bought their first home across the street from the high school.

"We thought, 'Oh, wow, nice residential area,' which is true," Thomas says. "But between the incredibly bright stadium lights, the band practice in the parking lot and the lowered speed limit between the hours of 7 a.m. and 5 p.m., which makes traffic crawl, and it's impossible to exit the neighborhood and turn left … we would never, ever buy a house across from a school again."

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2. You think it's in a declining neighborhood.

This one is tough because nobody in their right mind would buy a house if they really believed the neighborhood would one day go south. But it's easy to picture someone purchasing a home because the prices are low and thinking more about the present than what the future might look like.

In any case, Richard Kelleher, a marketing sociologist who lives in Phoenix, bought his home 25 years ago, and it looks like he may be living there for at least another quarter-century.

Kelleher says not only is Phoenix known for heavy drug trafficking, but the part of town he lives in is also known for crime and poverty

"Thanks to the cartel, my home is now blighted," Kelleher says. "The [homeowners association] has not painted or repaired or maintained it. My complex now only has five homeowners, the rest are rented, most at $500 per month, way below their value. My neighbors are here illegally and selling drugs … I used to be able to go in the evening for walks. Now you can't even leave your home for fear of mayhem. Anyone want to make an offer?" 

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3. There are too many windows.

Sure, natural light is appealing, and you may be someone who would live in a glass house if you could, provided you felt the neighbors wouldn't throw rocks. But you can actually have a house with too many windows, says Karla Lemmon, who lives in the Minneapolis-St. Paul area and has her own business, Karimack Productions LLC, which sells a personal assistant mobile app for parents.

"I hate our windows," Lemmon says. "We have 66 windows in our house." 

And they're not as awesome as you might think. 

"Great views, right? Sure. But half of them face east and half face west. Heat load in the morning sun, heat load in the afternoon sun," Lemmon says. "The upstairs can get to 90 degrees easily while our air-conditioning can only get to 79."

But the kicker may be that her house was built in 1979, "so we're going to have to replace them all at some point," Lemmon says. "Oh, and nine of them are triangles or trapezoids, so they cost twice as much."

4. It's a really old home.

Yes, there's something charming about that 100-year-old farmhouse, and you can find plenty of homeowners who would much rather by a house with some character than one that looks like it came off an assembly line. But there may be one negative.

"Our home was built in 1920. Because of this, it feels like it needs constant attention," says Bill Fish, founder of ReputationManagement.com and a resident of Cincinnati. He and his wife live in an older but trendy neighborhood, and much of it is wonderful, he says.

"We can walk to a square with restaurants and shops, have a yard, but are close enough to downtown that when the Reds hit a home run, we can hear the fireworks," Fish says.

But about that maintenance. "This summer, I thought I heard someone on our roof, but went outside and saw that part of our chimney had collapsed."

Fish is now having a new chimney built. He also had to have the air conditioning system revamped, but because his home was built before air conditioning, it was more complicated and complex than most homeowners go through. He says it cost him four times what a normal air-conditioning system would cost.

"Having an older home in a nice area has its perks, but the constant maintenance is something I didn’t expect to be dealing with," Fish says.

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5. There's a creek next to your house.

It isn't that it might flood, although it might. You might want to ask yourself if you'll mind the neighborhood kids traipsing through your yard to get to the creek. That's happened a lot to Dana Sims, a public relations professional in Columbus, Ohio.

"The trees and creek aren't on my property, but one needs to walk through my property to access it," Sims says.

She could put up a fence, but she bought the house in large part because — you guessed it — it has a scenic view of the creek.

SEE ALSO: How to tell if the housing market is bouncing back in your neighborhood before you sell your house

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Living in a tiny house might not be as cheap as you'd think

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Tiny house living has been a growing trend over the past few years. In fact, there are numerous television programs that follow supporters of the lifestyle. In an effort to scale back, live in a more environmentally-friendly way and be more frugal, tiny house supporters have cast aside sprawling homes in favor of much tighter living quarters. For those of you still unfamiliar with the concept, it's a house that is 500 square feet or less in size.

According to the American Enterprise Institute, the average house size has increased more than 1,000 square feet from 1973 to 2013. With that fact in mind, it's understandable why some people pursue the tiny living model instead. A starter home for a couple or small family doesn't need to be nearly 3,000 square feet.

A smaller house can mean less consumption and mindless spending and a more positive impact on the environment. But there are also other factors to consider when weighing whether it makes sense for you and your budget to join the tiny house movement.

Here are three reasons why living in a tiny home can end up costing you more money, not less:

SEE ALSO: 5 reasons to reconsider buying the home of your dreams

1. It's not sustainable.

The main argument against living in a tiny home is that it's not sustainable. That argument makes sense. Consider some of the following questions: Will your family grow to include additional members? Do you or your family members prefer privacy? What are you going to do when you're too old to climb over your kitchen to get in your bed? Where are you going to store personal keepsakes that you don't want to part with?

Those are just but a few of the questions to consider. For some people, answering these questions might confirm that a tiny house is right for them. But that will be true for a very small portion of the population.

Read more about Chris and Malissa Tack, shown in the photo, who live in a tiny house.



2. It's too expensive.

How can a tiny house be expensive? Many who pursue tiny house living do so to spend and consume less. When you look at the cost of an average tiny house compared to more traditional homes, you actually see tiny houses often cost more, relatively speaking.

Forbes reports the average cost of a tiny home is $200 to $400 per square foot. Compare that against what a standard house costs per square foot. The 2010 Census breaks down the average cost of a new, single-family house at just over $84. The highest region of the county, the Northeast, averages just over $110.

A quick check reveals that a tiny house is anywhere from two to nearly five times higher than the cost of a single-family home. They also tend to come with less land attached.



3. Potential legal issues.

Zoning related to tiny houses pose another issue. As many tiny houses come on wheels, they can run into issues with municipalities who have little to no legal establishments for tiny house dwellers.

This isn't meant to say living in a tiny house is illegal, per se, but rather that many regions of the country simply aren't set up to allow for tiny house living. Safety issues, potential difficulties hooking up to utilities and more can lead to expensive and time-consuming legal challenges.

As long as you are mindful of these challenges to frugality, then tiny house living might still make sense for you. The point is to be mindful. Benefits include lower utility bills, less of a temptation to fill your home with expensive things and a lower or no mortgage.

The desire to live more frugally and be free of debt are great things to pursue. But you can also reduce your impact on the environment while living in an average-sized house.

Living in a tiny house has been glamorized as a way to cut down. That might work for some people, but for others, the factors mentioned above can change the equation. Be sure to consider all costs, including long-term ones, before deciding to move into a tiny house. Ultimately, the best frugal choice for you depends on more than just the size of your home.



See the rest of the story at Business Insider

The coolest apartment in New York City is locked in a warehouse in Brooklyn

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Apartments in New York City are notorious for being cramped and not exactly aesthetically pleasing. 

But this 20th century apartment, designed by famed architect Michael Graves, is totally spacious and stunning. 

There's just one problem, it's locked up in a warehouse. 

Designed between 1979 and 1981, the postmodern style rooms — a bedroom, playroom, and library — were found inside an apartment at 101 Central Park West, Gothamist reports

However, in 1986 the rooms were dismantled and donated to the Brooklyn Museum. They've never been displayed and are stored inside the museum's private storage warehouse. 

Keep reading to take a tour of the secret apartment. 

Here's a look inside the apartment.



"The suite exemplifies Graves’ signature style of muted colors and abstracted classicism," architectural preservation website Ducomomo explains of the apartment's architectural style.

Source: Ducomomo



Take a closer look at that window seat. Check out the clean lines in the design.



See the rest of the story at Business Insider

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How to sell an ugly house

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Sometimes you can't sell the house you want to sell. You have to sell the house you have.

Perhaps you're broke or rushed, and you don't have the time or money to make home improvements, like finishing the basement or painting the house. Maybe even hiring a cleaning crew to scrub down your home seems like a financial reach. You simply need to sell your not-so-awesome house.

What do you do?

 

 

SEE ALSO: How to buy a home you can afford, in 9 steps

Money talks.

If your house is something of an eyesore, you can still sell it. But you'll almost certainly have to sell it for less than you could have otherwise.

"Price solves all problems," says Bruce Ailion, a real estate agent and attorney in Atlanta. In addition to selling homes, Ailion manages a hedge fund that buys and rehabs properties to rent or flip. So he has purchased a few dumps in his day.

"I’ve sold all sorts of difficult homes, cracked foundations, a side ripped off by strong winds, mold," Alison says. He adds that he was able to sell another home, which had a resident who was something of a dog hoarder. “The pet stains had pet stains, and the smell opening the door was overpowering," he says.

So as bad as your home may seem, it's probably not unsellable. But you will have to lower the price.

By how much? Bill Golden, a real estate agent in Atlanta for almost 30 years, has a simple formula. If you have repairs, and you can calculate what it would cost to repair your roof or paint the walls, "simply subtract the cost of the repairs from what the value of the home would be if the repairs were not needed," he says. 

Even there, it isn't quite that simple. Golden adds that buyers will still want enough of a discount to cover what he calls "the hassle factor." Those buyers, after all, are going to have to spend time finding the right painter or flooring company or roofer or whatever contractor they need, and the buyer doesn't know if there will be additional, unexpected costs related to the repairs.

"The fine line to walk in pricing is to list it low enough that those repairs are taken into account, but with enough wiggle room to offer a further discount so the buyer will feel that it's worth taking on the project," Golden says.



Don't assume the worst.

You may feel like you would never buy your home in its current state, and therefore, nobody else would either.

But your real estate agent may not see this as a big deal. For instance, Kella McCaskill, a real estate agent with Keller Williams Tampa Central, in Tampa, Florida, lists some minor issues that may feel major to you:

1. Your house is outdated.

2. Your flooring isn't very good.

3. You have no air-conditioning.

4. The exterior of the house looks shabby.

5. There's junk everywhere.

6. You have minor mold and mildew issues.

Of course, you may wonder what a major issue would be, and McCaskell cites a few items like structural damage, water damage and drywall problems. So if the house isn't falling apart, you're probably going to get a decent price relative to the area – just not top dollar.



Focus on the best.

So your house looks shabby in some areas. Work on making the best parts of your home even better.

McCaskell says she once sold a home with interior fire damage.

"The only thing that remained intact was the exterior … the entire inside was destroyed," she says.

So what did she do?

"We made sure the grass was cut. The outside was at its best. I wanted anyone interested in buying this home to see the possibilities. I would encourage a seller to do the same. Make the home great in the areas you can make an impact," she says.

 



See the rest of the story at Business Insider

No one wants to buy the Obamas' former vacation rental on Martha's Vineyard

Blackstone is nearing a deal to buy Stuyvesant Town for $5.3 billion

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(Reuters) - Blackstone Group LP is nearing a deal to acquire Manhattan's Stuyvesant Town-Peter Cooper Village apartment complex for around $5.3 billion, according to a person familiar with the matter who was not authorized to discuss it publicly.

The deal would put Manhattan's biggest apartment complex in the hands of the world's largest private equity firm, and end five years of squabbling and litigation that have held up a sale of the property.

Stuyvesant Town, a sprawling complex of 56 high-rise brick buildings with a private park on 80 acres on Manhattan's East Side, was at the center of a $3 billion default five years ago.

CWCapital Asset Management LLC, a special servicer representing bondholders, took control of the complex in 2010 after its owners missed a debt payment.

The roughly 11,000-apartment complex was sold by MetLife Inc to Tishman Speyer Properties L.P. and an affiliate of BlackRock Inc for a record $5.4 billion at the top of the commercial real estate market in 2007.

Blackstone declined to comment on Monday. CWCapital was not immediately available for comment. 

(Reporting by Gregory Roumeliotis in New York and Rishika Sadam in Bengaluru; Editing by Richard Chang, Bernard Orr)

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A shockingly affordable apartment just opened up on Manhattan's 'Billionaires' Row'

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100 West 57th St 10G

The luxury condominiums that line Manhattan's West 57th Street have earned the nickname "Billionaires' Row."

But according to a new listing, you don't have to be a billionaire to live in the ritzy neighborhood. 

Unit 10G in the Carnegie House (100 West 57th St.) just hit the market for a modest $1.199 million. 

Mind you, the average price of a condominium in Manhattan hit $3.4 million this spring, according to The Real Deal.  

The newly renovated, two bedroom apartment has not one, but three closets, including a walk-in and one that's dedicated to shoes. Because if you live on Billionaires' Row, you probably own enough shoes to fill an entire closet.

100 West 57th St 10GEastern-facing rooms boast oversize windows and cascading natural light.

The Lake Tana Birch hardwood floors have a special underlay to minimize noise between floors, and the finishings throughout the home are top of the line. For instance, marble countertops and a Vissani 50-bottle wine fridge are part of the remodeled kitchen's design. 

100 West 57th St 10GBoth of the apartment's two bathrooms feature Kraus waterfall faucets and stainless steel fixtures.

Carnegie House is located two blocks from Central Park and one block from Carnegie Hall. It's surrounded by museums, restaurants, bars, and shopping opportunities.  

Michel Madie Real Estate Services holds the listing.

SEE ALSO: No one wants to buy this famous interior design family's apartment — which just got a $9 million price chop

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Millennials are better off buying than renting in these housing markets

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Buying a home is 23% cheaper than renting nationwide for millennials and now is the best time to buy since 2012 when interest rates were a tad lower.

Trulia’s Rent vs. Buy Report has traditionally assumed a 30-year fixed rate mortgage with a 20% down payment for households moving every seven years. With these assumptions, buying is 36% cheaper than renting on a national basis, based on September home prices. That’s the best differential since 2012 when it was 38% cheaper to buy than rent. Buying is also cheaper than renting in each of the nation’s 100 largest metros.

However, using the Census’ 2014 American Community Survey and a new Trulia consumer poll, we’ve found that the math is different for young households (ages 25-34), who tend to move every five years (*) and can only afford up to a 10% down payment (**). This edition of Rent vs. Buy crunches the numbers for these prospective home buyers.

To compare the costs of owning and renting for young home buyers, we also assumed a 3.85% mortgage rate on a 30-year fixed-rate loan, itemized federal tax deductions and a 25% tax bracket. With those assumptions, buying is not only 23% cheaper than renting nationally, it is also only cheaper than renting in 98 of the nation’s top 100 markets.

It's 23% cheaper for millennials to buy than rent in 98 out of the 100 largest metro areas.

Personal choices aside, here are the current economic conditions that influence today’s market. Nationally, home price growth has outpaced rent growth since 2012. That favors the rent side of the buy vs. rent equation. However, interest rates have returned to near historic lows, now at about 3.85%, after climbing to 4% or higher in 2013 and 2014. In October 2012, rates were about 3.4% for a 30-year-fixed rate mortgage. In that year, young households found that it was 28% cheaper to buy than rent.



It's cheaper to rent in Honolulu and Silicon Valley.

The rent vs. buy gap differs vastly across metros, largely because home prices and rents, property taxes, and home-price appreciation differs by metro. Taking these factors into account, young home buyers in the nation’s 100 markets would find that buying a home ranges from being 5% more expensive than renting in Honolulu to being 46% cheaper to buy a home in Houston.

The only other metro in the top 100 where buying is more expensive than renting a home for young buyers is San Jose, where they’d pay 2% more to buy a home than to rent. Rounding out the top 10 is New York, where buying is now 11% cheaper for younger consumers than renting.

Our rent vs. buy metric is especially tight for young prospective buyers in California. Of the 10 markets nationwide where buying vs. renting is a tougher call, seven are in the Golden State: San Jose, Orange County, San Francisco, Oakland, Sacramento, San Diego, and Ventura County.



The South and Midwest housing markets are great for young buyers.

Buying is clearly a better deal in many Southern markets. Metros in Texas, Florida and Louisiana dominate the top ten list of places where young households will find buying an easier call. In No. 1 Houston, for instance, it is 46% cheaper for younger buyers to buy than rent.



See the rest of the story at Business Insider

8 under-the-radar search terms to help you find your next home faster

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Searching online home listings can be a fine art — especially if you’re in a market with a large inventory or in a seller’s market, where the homes sell superfast. The key is to make your search terms narrow enough that you aren’t sifting through thousands of homes, but broad enough that you’ve got plenty of options.

Here are eight of our favorite hidden-gem real estate words that will help guide your home search and find your dream space in no time.

SEE ALSO: If you're serious about buying a home, there are 3 things you should have

1. Separate move-in-ready homes from the fixer-uppers.

Dave Fontana of The Orlando Real Estate King says words such as “showplace,” “modern,” and “pride” really separate properties that are move-in ready from those that need more work.

On the flip side, terms such as “TLC,” “vintage,” and “handyman special” usually denote fixer-uppers. “These usually mean the home has been gutted and foreclosed on,” Fontana says. “My personal favorite is ‘blank canvas’!” Good to know.



2. Study up on schools.

If you’re thinking of having kids in the next few years, public school ratings are probably important to you. But even if you’re not planning on adding to your family anytime soon, checking out local schools is worth the time.

But instead of having to scroll to see what schools the properties you’re looking at are zoned for on every single listing you view, try typing “A-rated” into the search box. Typically, when a family-style property is in an A-rated school district, the seller wants you to know that — and mentions it in the listing.



3. Townhouse or condo? Try this.

Two words: “end unit.” If you’re looking for a condo or townhouse, this term is powerful. Not only do end units have attached neighbors only on one side, but they also tend to get better natural light.

And it’s usually mentioned right in the listing description, because it’s in pretty high demand.



See the rest of the story at Business Insider

The Hugh Hefner of Laguna Beach is selling his 'Clayboy Mansion' for $20 million

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Laguna Beach Party House

A huge party palace in Laguna Beach, California, is up for grabs — if you have $20 million to spare.

The Wall Street Journal reports that the seller is entrepreneur Clay Berryhill, who made millions when he sold his company, Simple Mobile, to Carlos Slim's Mexican telecom conglomerate, América Móvil, in 2012. Berryhill gave the house its "Clayboy Mansion" moniker after he christened it with a giant housewarming party a couple of years ago. Brian G. Johnson of Teles Properties has the listing.

Keep scrolling for a tour of the sprawling mansion with a recording studio and breathtaking ocean views. 

SEE ALSO: A former Apple executive is selling his incredible $35 million California smart home

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“This house has its own personality, and it’s a party animal,” Berryhill's wife, Delphine, told The Wall Street Journal.

Source: The Wall Street Journal



The spacious interiors allow Berryhill's frequent guests to socialize without feeling cramped.



Indoor-outdoor living spaces take full advantage of the crisp ocean air and beautiful scenery.



See the rest of the story at Business Insider

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This could be home to Asia's future tech unicorns

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Australia’s economic challenge right now is filling the gap left behind from its once-in-a-generation mining boom that was fuelled by China’s demand.

The nation has a fresh prime minister in Malcolm Turnbull, who has talked about the country becoming “more agile” and embracing the challenges of the 21st century.

Concept Glebe Island Tech ParkWhether the services-based sectors of the economy, such as healthcare, tourism, education and technology, can grow fast enough to replace the economic hole being left behind by the mining boom has been the big question hanging over the sustainability of Australia’s continuing economic growth.

After some wobbles earlier this year, it now looks like the picture is coming together.

Employment is steady. Business conditions are picking up. Confidence is still lagging, but the all-important tourism sector is showing signs of a renaissance.

Many people believe high-growth companies, especially technology outfits in the major cities, could provide the boost the economy needs. And governments are trying to lay the groundwork.

The head of the New South Wales government, Mike Baird, today gave his first clear vision for the massive $20 billion redevelopment on waterfront land in Sydney’s inner west, revealing he wants to turn the disused, heritage-listed White Bay power station next to the Anzac Bridge, which straddles Sydney’s world-famous harbour, into a tech hub.

The premier is looking at redeveloping 95 hectares area of government-owned land, dubbed the Bays Precinct, as part of the city’s largest urban-renewal program since the Sydney Olympics.

He will announce the full details later this morning, but last night, while delivering the Bradfield Oration for The Daily Telegraph, Baird said that, inspired by tech hubs in London and San Francisco, the government will seek proposals to transform the rusting power station into the regional HQ of a global tech company or educational facility, with construction to begin in 2017.

“The industrial waterfront of Glebe Island and the White Bay Power Station will be transformed into a global centre for high-tech jobs and innovation. It will be a place where global giants of technology and innovation cluster and connect with startup entrepreneurs, business incubators and accelerators,” Baird said.

“Like London’s Tech City, New York’s Roosevelt Island, and California’s Silicon Valley, we can create Australia’s quantum harbour.”

NSW Health has also proposed creating a MedTech hub in the area.

“Over the next 25 years, the digital economy will grow as a share of the total economy from just over 5% now, to 22% in 2040,” Baird said.

The 5.5km stretch of shoreline from the Sydney Fish Market to the second cruise-ship terminal in Balmain is set to be redeveloped over the next 30 years under the government’s plan, announced by Baird in July last year.

But during his address last night the premier flagged there may be resistance to some of his ideas.

“It is rare that anything significant comes easily. Big projects will face resistance every step of the way, but they are exactly what we need to put this city ahead of the curve,” he said.

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You can buy Bruce Springsteen's humble songwriting cottage in New Jersey for $299,000

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It ain’t a beauty, but, hey, it’s all right — and it’s getting lots of attention as the home where Bruce Springsteen wrote “Born to Run,” “Thunder Road” and “Backstreets.”

This 828-square-foot cottage, listed for $299,000 in The Boss’ hometown of Long Branch, NJ, is a couple of blocks from the beach.

In the mid-’70s, the neighborhood was bohemian and the songwriter was under pressure to write a breakout album — which he did. 

The songs are iconic, and they’re also tied to their place in the same way Springsteen is.

He was sitting on the edge of his bed in this home when the words “born to run” came to him, Springsteen said in the documentary “Wings for Wheels.”

“I worked very, very long on the lyrics to ‘Born to Run,’ because I was very aware that I was messing with classic rock’n’roll images that easily turned into cliches,” he said.

born_run2

The current owners bought the home six years ago because of its rock legacy.

Saving it from possible demolition, they planned to renovate and turn the home into a tribute to Springsteen. Marriage, divorce and work got in the way, although the home does have a new roof and new wood floors.

They hope the next owners will preserve the spirit of the 40-year-old album that started here. While it’s no mansion of glory, one of the owners told NJ.com, “I hope it doesn’t just become some house on West End Court.”

The listing agent is Gloria Nilson & Co. Christie’s International Real Estate.

SEE ALSO: The Incredible Vacation Homes Of The Rich And Famous

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Hong Kong's property market is looking really bearish

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CLSA has joined the chorus of investment banks predicting that Hong Kong will run into a bear property market as it forecast a 17 per cent price drop in the next 27 months.

In a research report, the investment bank said buying power in the property market had been exhausted as developers rushed to dispose of their assets.

"We expect [a] 17 per cent price correction in the next 27 months, with 2 per cent in the fourth quarter, 10 per cent [next year] and 5 per cent in 2017," Nicole Wong, CLSA's regional head of property research, said in the report.

CLSA said demand from upgraders was declining. That could be seen from the falling number of double stamp duty payments, down for four consecutive months, from 4,544 to 2,952 - a 12-month low.

The ratio of primary market sale value to gross domestic product climbed to 8.6 per cent in the second quarter, which was a 15-year high, the report said.

On the other hand, the sell-through rate of new launches has plummeted, with 65 per cent recorded this month, against 90 per cent last month.

Midland Realty said in a report sales of homes valued at more than HK$10 million fell 19.5 per cent quarter on quarter to 107 deals in the past three months.

Estate agents continued to report price cuts in transactions, reflecting the market's cautious sentiment.

In an example, a flat owner at Valiant Park on Conduit Road in Mid-Levels West sold an 802 square foot unit for HK$13 million, HK$2 million below his asking price.

The transacted price was also 8 per cent below the market rate, according to Ivan Cheung, a senior manager at Ricacorp Properties.

hong kong peak victoria

With an increase in interest rates looming in the United States and an expected economic slowdown, an increasing number of investment banks are expecting the city's home prices to come under downward pressure.

Some are predicting prices will fall as much as 30 per cent from the current level by 2017. CLSA expects a smaller decline.

Given the Hong Kong dollar's peg to the US dollar, any movement in United States interest rates will affect the city's property market.

The US Federal Reserve is due to meet next week to possibly look at the timing of raising rates.

Property buyers who acquire more than one flat are required to pay double stamp duties, which were introduced by the government in 2012.

Under the rules, buyers will be refunded the duty for the second flat if the first is sold within a certain period.

Deals in the secondary market, as represented by Midland's 35 key housing estates, hit a low of 41 per week, 40 per cent fewer than in the first quarter of 2003 during the outbreak of severe acute respiratory syndrome.

CLSA said residential prices, as represented by the Centaline City Leading Index, which has been rising this year, was unsustainable and had to fall.

In the second week of this month, the index declined 1.6 per cent from this year's peak.

"We see more downside price risk," it said.

The investment bank also expects to see a fall in rents amid an increase in the number of flats, mainly smaller units, being completed.

SEE ALSO: An economics professor has an outrageous solution for China's millions of bachelors

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A New York City socialite has hoisted her home onto the market for $65 million

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Shafi Roepers, New York City socialite and ex-wife of hedge fund billionaire Alexander Roepers, has listed her sprawling Manhattan apartment for $65 million, the New York Observer reports

Roepers, who famously nicknamed her Gulfstream IV jet the "Shafi Express," is well-known on the Manhattan social circuit. Property records show she bought the home for $15.75 million in 2013, possibly as a condition of the divorce. 

The home has nearly 7,500 square feet of space and is located in an Upper East Side co-op building where Microsoft billionaire Paul Allen, Deutsche Bank director Kevin Parker, and pharmaceuticals exec Howard Soloman also own units. 

Its thirteen rooms have high ceilings, and many have views of Central Park.

According to the Observer, the interiors were recently done by noted architect Peter Marino, who is sometimes known as the "leather daddy of luxury" and has done retail work for Louis Vuitton and Christian Dior. He also designed the Shafi Express. 

SEE ALSO: The Hugh Hefner of Laguna Beach is selling his 'Clayboy Mansion' for $20 million

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The apartment is on the third floor of a co-op building fronting Central Park on the Upper East Side. A private elevator opens to a marble-covered entrance hall.



This living room is positively huge, but a fireplace presumably keeps it warm.



The apartment is also notable for its art collection. Roepers reportedly owns several works by the late artist Jean-Michel Basquiat.

Source: WSJ



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10 questions to ask before you buy that country home you've always dreamed of

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After 30 years of renting on the Upper East Side, Nancy Snell and her husband bought a summer house this year: a one-bedroom co-op in Westhampton Beach on Long Island.

It took three decades to find "the right thing that my husband and I could agree upon," which was also "manageable and affordable, Snell said.

"You don't even have to put your shoes on to go onto the sand. I like to call it a pied-a-mer," she said of the area where one-bedrooms are currently listed from $259,000 to $669,000.

New Yorkers have long been buying second homes while renting their main residences. After all, nearly 70 percent of New Yorkers rent.

But real estate brokers say they're seeing a uptick in the number of renters buying country homes, especially since more families are being priced out of the city's hyper-competitive market. They still want to take advantage of historically low mortgage rates, so they look outside the city.

"We have seen a huge demand from New Yorkers looking to purchase homes in markets outside of the city," said Kathy Braddock ofWilliam Raveis Real Estate, whose newly launched "Raveis Escapes" division targets this population, with the firm's city office acting as the conduit to more than 100 sister offices in the Northeast. "For someone in a rental whose budget is $200,000, there are cute little cabins within 2 hours from the city. They're not in the Hamptons, of course, but they are little sweet places that provide what people want: a getaway."

For renters, who dream of owning a country house, here are some things to consider:

What do you want in a country house?

fireplace

"There is a 'wish list,' a 'want list' and a 'must-have list,'" Braddock said.

Is it more important to live near a golf course or lake? Do you want a house so your kids can have a backyard or so you can have a great kitchen for entertaining? she asked.

For partners or spouses, she stressed, "You both have to create these lists and somewhere in between they have to merge."

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What are the extra costs?

Besides your mortgage payments, you will have additional expenses, like taxes, fuel costs, snow removal and lawn care, to name a few.

Taxes can vary widely from town to town, noted Jennifer Grimes, a New York City transplant who founded Country House Realty, serving the Catskills' region of Sullivan and Ulster counties.

The town of Neversink, where the city's drinking reservoir is located, for instance, has extremely low taxes. Towns that are home to many nonprofits that are not paying taxes, on the other hand, may have higher property taxes.

"Be aware of your annual costs," Grimes said. "You never want your second dwelling to be a financial burden. Try to buy below what you have, so you have money for unforeseen events."

You will also have to figure out how you will maintain the house in all kinds of weather: will you hire someone to help or use new technology to manage some things remotely?

How far is the closest grocery store?

New Yorkers are spoiled with corner delis and grocery stores, open at all hours, so it's important to find the closest place where you can buy a quart of milk, Braddock said.

What activities does the town offer?

coldspring

Read the local newspaper, talk to local shop owners and go to parks and pubs to find out what the vibe is like, brokers advise.

There are hip areas in the Catskills, like Narrowsburg (where locals made T-shirts joking "Narrowsburg, not Williamsburg") and the up-and-coming Livingston Manor, where the Catskill Brewery recently opened, Grimes noted.

Can you make money by renting out your country house?

Increasingly, owners are renting out their second homes to help cover their costs.

But they should understand whether their space is "the type of property that resonates with the public," in terms of décor and amenities, suggested Grimes, who also runs a vacation rental company Red Cottage Inc.

Her firm nets owners anywhere between $8,000 to $60,000 a year, but she noted that many counties require you pay a room tax, which means you have to keep track and file such transactions. You also have to deal with cleaning and upkeep and being OK with strangers using your spatulas.

"You can usually cover your taxes by renting it and still using your house yourself a lot," Grimes said.

Can you pool money with friends?

More and more, groups of two or three friends are coming to discuss the possibility of buying a second home together, Braddock said.

"It makes it very affordable to go in together rather than spend $10,000 on a vacation," Braddock said, "But I always tell people it's easier to buy together than get out [of the joint ownership]."

She advises such groups to speak with a lawyer first to understand how to structure the ownership and deal with such events like a sale, rift or death.

Can you get tax breaks for your land?

If you want lots of land, there are ways to get more bang for your buck — so long as you commit to preserving space.

A conservation easement allows owners to get an income tax deduction for promising not to subdivide their land for further development, explained Connecticut-based Raveis broker Stacy Matthews.

"If you don't need more than 10 acres and it's a 30-acre property, by the time you do conservation easement you'll get several hundred thousand back," she said.

There's also a "farm exemption" where you can get a property tax reduction based on the amount of land you farm or promise to keep undeveloped for 10 years, she said.

How will you get there and how long will it take to get there?

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Many buyers want to travel less than 2.5 hours if they plan to go up every weekend, said Braddock. She also asks clients about their tolerance for traffic and whether they want to avoid bridges and tunnels. (That would put New York and Connecticut higher on the list than New Jersey.)

"If you only have one car and you don't both go together, then someone needs to take a train or bus," Braddock added.

Do you have cellphone service?

Make sure you have cell service, Braddock advised.

"There are so many communities that don't have cell phone service," she said. "That's even true in the Hamptons."

Consider renting before buying

Make sure you like the town before you decide to make a big investment, Braddock advised.

"I am a firm believer in renting first to see if you like going out every weekend," she said. "The reality is: for some people, it's just like, 'Let's go to an inn and get this out of our system.' It's a costly mistake if you really don't like the community and having a house."

SEE ALSO: 9 things to buy secondhand for your new home

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Look inside the $86 million apartment that could shatter Manhattan co-op sale records

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An apartment in one of Manhattan's toniest residential hotels has hit the market for an asking price that could set a new record for the city's most expensive co-op sold, according to The Real Deal.

The apartment is a seven-bedroom, full-floor space in the historic Sherry-Netherland Hotel overlooking Central Park. It was originally listed in 2012 with an asking price of $95 million and spent three years languishing on the market.

Liberty Travel cofounder Gilbert Haroche finally sold it to an unnamed Chinese buyer for $67 million last year. That mystery buyer is now flipping the hotel co-op for a near $20 million profit. Kathleen Sloane of Brown Harris Stevens has the listing.

Keep scrolling to see inside the $86 million penthouse.

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Every day is like a vacation when your house comes with daily housekeeping and turn-down service, a 24-hour concierge, and room service.



But you'll have to pay for all that white-glove service — $57,000 per month, to be exact. The service fee is included in the asking price.



For those nights when room service won't do, the kitchen is up to professional standards.



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DONALD TRUMP: 'My father gave me a small loan of a million dollars'

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Real-estate tycoon Donald Trump downplayed his upbringing during a town-hall event Monday morning.

The Republican presidential front-runner was asked if he's ever been told "no."

"My whole life really has been a 'no' and I fought through it," Trump said at the New Hampshire town hall, hosted by NBC's "Today" show. "It has not been easy for me. It has not been easy for me."

The billionaire businessman launched his real-estate empire with the support of his father, Fred Trump, who built homes in Queens and Brooklyn. But Donald Trump dismissed the support as "a small loan" of $1 million.

"I started off in Brooklyn. My father gave me a small loan of a million dollars. I came into Manhattan and I had to pay him back, and I had to pay him back with interest. But I came into Manhattan, I started buying up properties, and I did great," Trump continued. "I did a good job. But I was always told that would never work."

NBC anchor Matt Lauer, who was moderating the town hall, interjected.

"Let's just put this in perspective. You said this hasn't been easy for you, but 'my dad gave me a million-dollar loan.' That probably is going seem pretty easy to a lot of people," Lauer told Trump.

Trump agreed but said that loan pales in comparison to the size of his real-estate projects.

"You're right, but a million dollars isn't very much compared to what I built," he said. "I mean, I built one of the great companies."

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Michael Jordan is trying really hard to sell his outrageous Chicago mansion

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Michael Jordan's lavish 56,000-square-foot compound has sat on the market for nearly three years. And it seems the basketball superstar and his real-estate agents have had enough.

Price cuts have not helped. It was listed in 2012 with a selling a price of nearly $29 million and is now down to roughly half that: $14.855 million. It had previously been available at auction twice, but no one picked it up.

The new strategy is a massive promo campaign with a glitzy website and Hollywood-style commercials for the property. The marketing materials include references to its famous owner, suggesting that the property is just as legendary as Jordan himself.

Only time will tell if the renewed campaign will move the needle on interest for the nine-bedroom property, which is in the affluent Chicago suburb of Highland Park, Illinois.

Kofi Nartey at The Agency Real Estate is the latest realtor to get the listing.

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The view from above tips you off to how massive this property is. It measures a total of 56,000 square feet.



The famous 23 — Jordan's most famous playing number — welcomes visitors. The numbers in the listing price ($14.855 million) also add up to 23.



Built in 1995, the mansion's exterior looks a bit dated.



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Malibu's rich and famous to pay $31 million to keep their homes from washing away

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The millionaire residents of an exclusive enclave in Malibu, California, have a major coast erosion problem on their hands. 

The owners of 121 individual parcels of land in the Broad Beach community have pledged $31 million over the next 10 years to rebuild and fortify their prized beachfront, according to the Los Angeles Times.

Some of the community's residents include Dustin Hoffman, Ray Romano, and Pierce Brosnan.

The money will be used to truck gigantic mounds of sand from California quarries to the 1.1 mile beachfront.

That sand will recreate 65 to 75 feet of beachfront and 50 to 60 feet of natural dunes above a new man-made seawall, which will protect the multimillion dollar homes from storm surges.  

The objective is to make the beach look more like it did back in the 1970s, according to the Los Angeles Times.

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The fact that this plan is being funded entirely by the homeowners is unprecedented. But that doesn't mean it wasn't a long road to get to this point.

The California Coastal Commission only approved the plan by a vote of 7 to 5, with dissenting voices claiming the plan might not work as intended and may end up limiting public beach access.

Some coastal access advocates claim the new seawall will exacerbate the loss of the sea-facing sand in front of the wall. The homeowners originally asked for a 20-year plan, but the commission only approved the current 10-year.

The work is slated to begin after this coming winter. 

SEE ALSO: After 32 years of headaches, David Geffen may sell his massive Malibu beach house

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The 10 states with the most 'zombie foreclosures'

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The undead are still invading the housing market, but at a slower pace.

Zombie homes -- or properties that are in the foreclosure process but have not yet been repossessed by the lender -- are taking a smaller bite of the housing market these days, according to housing data firm RealtyTrac.

There were 20,050 zombie foreclosures nationwide at the end of the 3rd quarter of 2015, which is 43% lower than the same period in 2014.

Keep reading to find out which 10 states had the most zombie foreclosures in Q3 2015.

(Note: The states are ranked from least to most zombie foreclosures)

10. Nevada

Number of zombie foreclosures in Q3 2015: 522

Change from Q3 2014: Down 12%



9. Pennsylvania

Number of zombie foreclosures in Q3 2015: 567

Change from Q3 2014: Down 43%



8. California

Number of zombie foreclosures in Q3 2015: 612

Change from Q3 2014: Down 64%



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