The rich are out again shopping for trophy mansions, as second, third or fourth homes - WSJ

[somone]

http://online.wsj.com/article/SB10001424052748704405704576064123213962598.html

The $60 Million Dream House
Sand imported from the Bahamas. An indoor Olympic-size pool. Now all these developers need is a buyer. Betting the house on a multimillion-dollar spec home.
By CANDACE JACKSON

A group of wealthy art collectors and philanthropists dined on risotto and listened to chamber music at a 10-bedroom estate on a private island off Florida's Biscayne Bay last month. The mansion isn't owned by a Russian oligarch or a certain NBA player who recently moved to town. It was built purely on speculation by developers in search of a buyer. Its asking price: $60 million.

Three years into the housing bust, at a time when home values are hitting new lows in many markets, a small group of developers has plunged into the risky business of betting millions on high-end speculative homes. They are erecting amenity-rich mansions for wealthy buyers that they hope will materialize. While the vast majority of the "spec" market remains moribund, some developers, pointing to a handful of big sales and the recent recovery of the stock market, believe the world's wealthiest buyers are out again shopping for trophy mansions, often as second, third or fourth homes.

While there aren't any national sales statistics for homes in this range, there are signs that purchases by the super-rich have begun to rebound. Though down from the peak three or four years ago, art auctions in New York and London in 2010 brought in total sales that far surpassed 2009, including an all-time auction record of $104.3 million for sale of a Giacometti sculpture in February, topped in May by a $106.5 million sale of a Picasso painting.

The current crop of newly built spec mansions on the market includes a five-bedroom, seven-bathroom ski home on 1.2 acres of land in Aspen, Colo.'s Red Mountain neighborhood. Built by a group of investors last year, it has hand-scraped wide-plank ash floors, an onyx-and-steel chandelier in the dining room and a garage that has a dock for charging hybrid or electric vehicles as well as a dog-washing facility. Price tag: $23.9 million. In New York's Hamptons, an eight-bedroom farmhouse-style home in Sagaponack, built last year, is on the market for $26 million. In Los Angeles, a minimalist house with a 26-foot-long fire trough and a home theater with stadium seating is on the market for $13.7 million....

[ladjf]

1. Ill gotten gains while one in six Americans are living in poverty.

What is wrong with America?

[HughBeaumont]

6. We're not gibbetting the predatory and shameless wealthy, that's what's wrong.

They'll never get the point until they're running for their lives.

Of course, that's never going to happen in Horatio Alger-believin' 'Murka, where half of these dopes think they're going to BE the 60-million-dollar man someday.

[ladjf]

8. An Eisenhower tax rate would fix the economy in three years.

It could then move to the Clinton era rate.

But, it order to make that happen, a lot of muricans would have to do some wising up, fast.

[avaistheone1]

2. I've noticed the same.

The price of these first, second and third homes is staggering.

The people have the top have all the money. It could not be more clear.

[snappyturtle]

3. It's too bad that so many need work. Those big mansions do not

take care of themselves....I would love to see the owners unable to find anyone to service all the needs of such a 'home'.

[badtoworse]

4. Like "The Money Pit"?

[StandingInLeftField]

5. I would love to see those "mansions" burn to the ground.

By an Act of God, mind you...

[kestrel91316]

7. I think they would make great group homes for the formerly homeless,

And fancy digs for seniors who don't want to live alone, etc.

[onpatrol98]

9. I like that idea...

[StandingInLeftField]

10. Of course you are correct.

A much more fitting use.

[shireen]

15. +1 nt

[Quantess]

11. No, I would like to see someone

rent it out to a large, extended family of poor Mexicans. Hopefully they work on their cars out front all the time, and play loud mariachi music all day.

[Initech]

12. Urge to kill rising!!!

Some people can't even afford *A* home and these assholes are buying third and fourth homes. God damn it. :argh:

[bullwinkle428]

13. Thank God it passed!

;)

[shireen]

14. could you imagine working for those creepy rich people?

They need maids, gardeners, chauffers, and personal assistants to maintain their properties and serve their every need. Ugh! The very thought of it makes my skin crawl. What kind of mindset necessitates such a lavish wasteful pointless lifestyle?

[Gaedel]

16. That sounds suspiciously like

JOBS!

When you are unemployed, a job as a chauffeur, gardener, maid, or personal assistant is a lot better than being a Walmart greeter.

[MichiganVote]

20. Not much difference that I can see between one or the other.

[CrispyQ]

17. And I thought the clients on "Selling New York" were high end.

This wouldn't bother me if every American had three hots & a cot & free healthcare. ~read my sig line...

[lumberjack_jeff]

18. It's free money.

Form an LLC, raise the bare minimum investment that your ability to persuade the bank and a group of wealthy elderly widows will allow, and build. Interest rates are minimal.

Might as well swing for the fence when you have an unlimited number of strikes available to you.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x131583

Fiscal policy encourages this.

[greytdemocrat]

19. And if the Clintons

were buying one of these no one would say a word other than they "deserve it"
or it's "their money".

You can build anything you want on spec, doesn't mean someone is gonna bite.

[MichiganVote]

21. Perhaps. But then its not likely these rich silver spoon types are going to Haiti anytime soon.

Its one thing to be wealthy. Its another to toast oneself at the expense of others and not to give back something as opposed to nothing.