The Ulti-Meth Investment

November 06, 2023

THE BIG SPLASH

The Ulti-Meth Investment

What you can’t miss today

The real estate market just got a dose of "Breaking Bad" with a $1.5 million listing in San Jose that includes a bonus feature: an inactive meth lab, complete with residual meth smoke contamination, adding a whole new meaning to "fixer-upper."

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  • This spacious 2,743-square-foot abode offers six bedrooms and four bathrooms, an attached garage, and an outdoor pool, making it sound like a suburban dream—until you read the fine print about the meth lab in the basement.

  • The property is situated on a generous 6,000-square-foot lot, conveniently located with easy access to freeways and expressways, ideal for the commuter who doesn't mind coming home to a house that's been on the wrong side of the law.

  • The listing is brutally honest, stating the home has not been decontaminated and is sold as-is, with the new owner being solely responsible for cleaning up the remnants of the home's illicit past, a DIY project for the particularly brave or perhaps foolhardy.

  • Access to the property is currently a no-go as it's barred by the county until it's been given the all-clear by the Santa Clara County Health Department, so potential buyers will need to have patience and vision, and maybe a hazmat suit.

This listing is a stark reminder that in the wild world of real estate, "location, location, location" sometimes comes with unexpected "extras."

A SCOOP OF MARKET DATA

The number you should know

82%

The number of high-earners choosing to rent has surged by 82% from 2015 to 2020, as the wealthy seek flexibility and investment opportunities over the burdens of property ownership.

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  • Rich young Americans are trading white picket fences for rental agreements as skyrocketing mortgage rates and housing costs turn the homeownership dream sour.

  • The average monthly mortgage payment is now a staggering 52% higher than renting an apartment, making the American Dream more of a financial nightmare.

  • Mortgage rates have hit a nearly 20-year high, with a 30-year fixed mortgage averaging around 8%, pushing the dream of homeownership out of reach for many.

  • The income needed to afford a median-priced home has jumped to almost $115,000, nearly $40,000 more than the average household income.

  • Financial educators like Tori Dunlap argue that sometimes the smart money is on renting, preserving the freedom to invest and live without the shackles of a mortgage.

A SCOOP OF INSIGHTS

Something you’ll learn

In Switzerland, the land of luxury watches and fine chocolates, most people rent for life, not because they want to, but because they can't afford the 'luxury' of buying a home.

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  • Philip Skiba, a finance analyst, balks at multimillion-dollar price tags for "ugly houses" near Zurich, where even a studio apartment can cost $1.1 million.

  • The Swiss dream of a house and garden is fading, with the average age of first-time homebuyers at 48, a stark contrast to neighboring France's 33.

  • Homeownership in Switzerland is a wealth indicator, with homeowners in their 30s being six times richer than renters, and the gap only widens with age.

  • The steep 20% down payment requirement and additional costs make the average-priced Swiss home ($1.4 million) a distant dream for many, like coffee shop owner This Schälchli who ends each month at zero balance.

  • Despite the financial benefits of owning a home, many Swiss, like psychologist Alice Hollenstein, find the commitment daunting, with perpetual refinancing and lifelong mortgages being the norm in this renter-majority nation.

A SCOOP OF CONTROVERSY

Everyone will talk about it

In a twist that might have New Yorkers spilling their overpriced coffee, NYC's zip codes have taken a nosedive in the ranking of America's most expensive, with the Big Apple's priciest not even cracking the top 10.

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  • Los Angeles is now the city with the most zip codes in the top 100, leaving NYC's real estate elite to weep into their dwindling property portfolios.

  • The most expensive NYC zip code, 10013, has seen a nearly 10% drop in median asking price, now at a "mere" $3.6 million.

  • New York State's overall representation in the top 100 has shrunk, while California boasts 61 zip codes on the list, thanks to tech tycoons and their Silicon Valley sanctuaries.

  • Atherton, California, reigns supreme with a median house price of $7.95 million, making NYC's real estate look almost a bargain.

  • The report, which may cause existential crises for many a New Yorker, was compiled using median house sales data from January to October of the previous year.

How was today's shake?

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