I don't understand people like Mia and the others who want people to give away a house to someone that can't afford to buy one?  That makes no sense, if you can't afford to buy a new 400K house, you shouldn't be living in a 400K house, that would be living beyond your means.  Every person makes decisions on how and where to spend their money, take responsibility and stop requesting handouts.  I agree with the posts saying that owning a 1.6 million dollar house does not make you rich.  It means that you are living in a 1.6 million dollar house.  In LA, that 1.6 million dollar house is equivalent to a 200K house in Dallas or San Antonio, or a 400K house in Utah.  I'd much rather like in LA than anywhere else though, which is why real estate is so much more.  I agree that the 2 for 1 thing is a way for builders to decrease their inventory, the mark up is so high, that I doubt they are losing any money when they sell them, the reason they are losing money now is because they have the inventory and do not have income on the properties.  They are banking on selling "2 million dollars" of home for 1.6mil to one person in one transaction, rather than having to sell 2 homes to 2 people at let's say 1.3 and 300K in 2 transactions.  It's the same thing at the mall, that Coach purse that retails for 400, costs them 130, it's marked up 3X, then goes on sale for 50% off at $200, they aren't losing money, they are just making less.

The way the builder is making the offer is illegal and therefore misleading.  I think everyone agrees that prices for houses are arrived at through a process of negotiations.  This is what the FTC says about "Free" offers:

Section 251.1(g) " Negotiated sales. If a product or service usually is sold at a price arrived at through bargaining, rather than at a regular price, it is improper to represent that another product or service is being offered "Free'' with the sale. The same representation is also improper where there may be a regular price, but where other material factors such as quantity, quality, or size are arrived at through bargaining."

Lets commoditize the greatest source of most peoples net worth that has to be good for the economy.

a free house if you buy one for 1.6, people just get more stupid by the day.  I agree, give the house too a family who has lost their only house. You can even base it certain things;do they currently have a job, can they pay the taxes, upkeep, how long have they been in the community, check them out, give the dam things away.

The Best deal would be to lower the price of the $1.6 Million home to $1.2 Million instead of taking the free $400.000 home. wich will generate more expenses, like Property taxes, manteinance,etc.

Chris – The unfortunate thing is that people think that there is too much development but when you look at the facts only approx. 6% of the continental United States is populated and in California it is only 3% populated. If you drive approx. 1 hour away from any major city you will find open areas for land.

People like Mia b would just as soon the government owned all property and that we just payed taxes.  The government would issue a home based upon your class and political affiliations, your ancestors would determine what your class position is.  Each individual would own no personal property, its all issued based upon how you are ranked by the political system.

Ohh -- that's China --- sorry move there Mia b

Arrghhh, this is no long a true statement...  My neighborhood usually is in the 650 - 700K range, now one- forclosured one, just sold for 315 K - a whopping 50% off...  There are sooo many... check out some those auction homes web site...  Too bad, i dont have any money left :((

V

========

Owing a home for 1.6 million in California does not mean your rich. The average cost of a home in Southern California is over 600,000. A million dallor home is more like a medium priced house unfortunately. 1.6 million will probably get you 3-4 bedrooms and 2-3 baths. I live in Southern California and had to pay 500,000 for a townhouse. We couldn't even afford a single family home. Back to my point that 1.6 does not mean your rich in this housing market.

Nobody gives away anything for free! What you get is an OVER PRICED 1.6 million dollar house that you will not be able to sell because the Real Value is less then a Million right now together with a pig in the poke, not so free, 200,000 dollar rent house, and very big tax bill. You see, The Builder is doing the SO CAL Fluff & Stuff! He wins! The Bank and the Buyer will suffer! The Builder is pushing the Greed and Get Rich quick Buttons of unwitting so called investors/buyers.

AMEN to Chris & Spaceage 4 eva.  Take your plans and leave them in the city and already overflowing burbs where there are jobs and roads already.  Us folks in the country don't want or need the new homes and plans, traffic and global retailers that follow them.  There are MILLIONS of houses that are already built and are perfectly suitable for immediate occupancy.  New home in a plan $500K....existing sturdy well-built home $250K, do the math!