Such a deal! Don't forget your euros

For sale: A brand-new, three-bedroom contemporary Mediterranean in the north-of-Sunset area of 90210. The private hillside manor has a pool, views and 3,600 square feet. Price: 2,486,398 euros. That’s right, euros.

Builder and co-owner Joe Folender will include the $3,895,000 price tag when he lists the house for sale in mid-August, but his goal is to also attract foreigners seeking a "bargain" (everything is relative) amid this country’s economic turbulence.

"The dollar is weaker," Folender said. "We’re capitalizing on the strength of other currencies." Whatever works!

Marketing a home in both currencies isn’t a flaming trend yet in Los Angeles, but it is being seen in New York City. "Lots of Europeans will now get what that dollar amount is in their currency," said Mark Goldsmith, a Beverly Hills Coldwell Banker agent who’s listing the home.

Can’t hurt.

-- Diane Wedner

Photo: Agence-France Presse

Questions or comments? E-mail diane.wedner@latimes.com.

Comments

[Tombstone Realty]

Looks in dresser.... 10, 5, 2, 50, 50. 18 Euros!

Cool . Now all I gotta do is get 2,486,380 more, and a pool property is MINE!

But the dollar listing will be worth $3,973,000 by the time August rolls around.

[Laker]

Better price that in Mexican pesos.

[Lou]

Don't blame him. Republicans are printing dollars to fund an unjustified war. Democrats are printing dollars to fund their unchecked out of control entitlement systems. Both parties are printing dollars to bail out Wall St fat cats, Fannie, Freddie, and irresponsible borrowers. And when all these banks fail, the FDIC wil start printing dollars to pay out people because they don't have enough reserves to cover all the losses. All while the FED is printing money left and right unchecked. The dollar will be no better than Charmin soon.

[RZ]

I guess US sellers and some of their realtors think that Europeans are very dumb and they can't convert $ into Euros???? Can't find idiots here, got to look overseas.

[IToldu2CashOut]

The thing about foreigners is that they live in other countries. They live in other countries because they like it there or else they would live in this country. Moves like this smack of desperation. Furthermore real estate all over Europe is going down as well. Just like the price of this place is going to go down, and some lame as marketing ploy is unlikely to help.

[Uncle Billy Loves Naomi Klein]

Hey, what have you guys done with Pete?

[RM]

Better yet, bring your gold coins or cash out your oil futures and buy 2 to 4 times more homes today than in 2000. In 2000 a $300,000 could have been bought with about 1200 ounces of gold. Today that same 1200 ounces could buy you at least two houses even if the same 300K house is selling for over 500K. If you have been buying oil futures since 2000 your buying power is even better. It's the people who are totally convinced that the value of their dollars is stable and that it's only losing 2% to 3% per year that are going to be the most shocked by how fast it has become devalued.

[MyLessThanPrimeBeef]

What's wrong with the Dirham, Mr. Folender?

Aren't we a bit Euro-centric here?

[Tombstone Realty]

OMG! They sold Pete for Euros!

Guess we know how the Tribune Group is planning to improve the bottom line....

[RM]

Laker, are aware that the Mexican Peso actually had three zeros taken out because the numbers were too large to easily compute. The current exchange rate at about 10-11 pesos to one dollar is actually about 10,000-11,000 pesos to one dollar. Try computing this: currently a $150,000 house in Mexico would sell for about 1,500,000 new pesos, or 1,500,000,000 unadjusted pesos. That's some inflation, just the kind of thing that happens when governments run the money printing presses full speed and nonstop. But that of course would never happen here in the U.S., I hope!

[sfvrealestate]

Just wondering what happens with all the other escrow costs and expenses. I guess they get converted to euros too?

[Nelcisco]

maybe we're seeing a new British invasion. Hell, we're seeing Coldplay at the top of the rock world now, why not??

[Laker]

RM,
I like you analogy about gold and housing and i also gave a good example by comparing a house bought in 1970 for $100,000 or back then at 2400 oz of gold. If you convert that gold today back to dollars you get $2,400,000. Now this house is for sale asking $700,000.
So from this logic, the house is undervalued and should at least cost $2,400,000 assuming no REAL appreciation....
Now, if this house is for sale and nobody can even pay $700,000 for it, what does it mean? Only one answer, and that is that gold is at a bubble stage and is only "worth" about $250-300 per oz.
There are no people that can afford to pay 700,000 sure not 2.4M for that dump.
Obviously our real wages have gone DOWN since 1970, but bottom line, houses are only worth what people can pay for them...and since at the end of the day, INCOMES are what paying the mortgages....and right now, we're at the process of getting back to that axiom. So since income went down since 1970 adjusted for true inflation of the dollar, that means that housing (even land) has actually depreciated effectively when accounted for true inflation.
If you think about it, it is shocking...but then wake up and see that Gold and other commodities are at a bubble not less than what our RE market was at 2005,2006 or 2007.

[A.Q.]

"just the kind of thing that happens when governments run the money printing presses full speed and nonstop. But that of course would never happen here in the U.S., I hope!"

Long time reader first time poster here. Just had to chime in on this one. Go and Google the "Amero" and "North American Union". Stuff is already going on while we are all facinated and pre-occupied with timing the housing market. Already happening.

[Nelcisco]

Laker,

I wish we keep the focus of our concern over income because you're right, the bottom line is income and if incomes don't rise this market will NOT turn around, congress and HUD wants to eliminate the down payment assistant programs like Niemiah and Ameridreams for FHA loans.

I have a couple of borrowers that need down payment assistance with their FHA loan, these are people making 75k to 80k a yr. and another couple at 107k combined, yet they need assiatance. Come to find those non profit programs are borderline illegal, which by the way it was a pleasure speaking w/ you sfvrealestate, thanx for that tip

I clearly understand that if one makes enough $ and don't have a sufficiant down payment they should'nt be buying a house, but unfortunatly its where we're at, and until our society changes their mindset regarding money, debt, savings, reserves, tighten their belts during bad times, forget it ,we're done. Yes the rich will continue to live well but they cannot carry a whole economy

[RB]

my first thought is: at least it's not in Pesos. yet anyway.

my second thought is to forget about the mythical North American Union, maybe it is time to petition for EU membership. we just might be able to edge out Turkey or Albania.

[Doug in Toronto]

What's the big deal? I'd rather have euros than the US peso, too. US dollars are no longer the world's most commonly accepted currency, and certainly not the most important or valued one. It's dropping like a rock against most other currencies. The seller is obviously trying to establish a price that will be readily understood by as many potential buyers as possible, and will remain relatively constant, instead of sinking as the dollar's value does.

[CD]

How many Peter is there at the LA Times.?
Peter Gosselin,Peter Hong, Peter Viles....What's up with that ??Is there just one Peter running the entire show....
Now is time to buy at the LA Times, euros,pesos, whatever you have got, the realtards will take it. Boy I hope those Europeans do not have computers and Newspapers and do not read English and do not see themselves as catching"un grand couteau"

[dontmatta]

that's not very smart of him. If he kept it in dollars, with every passing day, the price would get cheaper for people buying in euros.

[renterinmidwilshire]

Foreign investors played a big role in creating LA's ridiculous real estate bubble, driving up escalating prices because it was 'cheap' for them. Talked to a someone who buys commercial real estate last month and she said a realtor commented on how nice it was to see a US buyer. Said nine out of ten of her transactions were sold to foreign investors. I personally think as long as foreigner keep swooping in unregulated buying up properties, the will delay the much needed correction.

[Nelcisco]

renterinmidwilshire-there may not be much more of a correction if foreigner continue this trent

[Kosiuko]

Why buy if you can rent property at fraction? bcz buyers expected a hefty capital gain...well those days are over, "free credit" days are over...want to know real value of property? easy math = 100 times rent.

Cheers.

[Jazzman]

Sorry, but I still fail to see where the bargain is. If house prices are over inflated, a weak dollar to the Euro just brings things back to normal, and not necessarily a bargain. California is just too far from Europe for many (most) buyers, and when you add in property tax, earthquakes, floods, and fires, (which Europeans are not used to) only the fool hardy are going to be tempted.