Man bought a luxury house for $16!

If someone you knew claimed to have bought a new house for $16, you’d probably expect it to be a rundown hut.

But for Kenneth Robinson, that princely sum could see him as the new owner of a $300,000 home in a well-manicured part of Flower Mound, Texas.

Robinson took advantage of a little known Texas law to move into the abandoned home.

The house had been in foreclosure for more than a year and its owner walked away.

Then, the mortgage company went bust.

After months of research, Robinson used the obscure law ‘adverse possession’, filled out some paperwork costing just $16, and moved some of his belongings into the home.

Under the law, if someone moves into an abandoned home they have exclusive negotiating rights with the original owner.

If the owner wants them to leave, they have to pay off the mortgage debt on the home and the bank has to file a complicated lawsuit to get them evicted.

Robinson believes that because of the cost required to move him out, he will be able to stay in the house. Under occupancy laws, if he remains there for three years he can ask the court for the title.

He told WFAA.com: ‘I want to be owner of record. At this point, because I possess it, I am the owner.

‘This is not a normal process, but it is not a process that is not known. It’s just not known to everybody.’

Robinson printed out an online form at the Denton County courthouse which states that he is claiming ownership of the abandoned property.

The house has just a few pieces of furniture inside and has no running water or electricity.

Robinson has put ‘no trespassing’ signs outside the house after neighbors called police to arrest him for breaking in.

But he claimed to have found a key and said he gained access to the property legally.

Police have said they can’t remove him from the property because home ownership is a civil matter.

But neighbors have accused him of being nothing more than a squatter.

Leigh Lowrie, who lives nearby, said: ‘What paperwork is it and how is it legally binding if he doesn’t legally own the house? He just squats there.

‘If he wants the house, buy the house like everyone else had to. Get the money, buy the house.’

To me, it sounds like the neighbors are jealous that this dude bought a house for a song!

News source: wishididntknow.com

A "homeless" generation

When can I own my dream home? Where do I find the money to buy a house? These are the questions that constantly plague the new generation of first-time house buyers. Many young adults are struggling to buy a house due to the escalating prices of houses in Klang Valley and Penang.

Property prices in urban areas such as Penang and Kuala Lumpur rose by up to 40 per cent last year fuelled by low interest rates and a surge in speculative buying whereby investors snapped up multiple properties in hope that prices keep on rocketing upwards.

The prices of houses are exorbitant and it is beyond reach of an average income earner. The average price of a KL residential property is now about RM485,000, or roughly nine times the average urban household annual income of RM54,000 and there will be a possible sign that the market is heading for a bubble.

The Demographia International Housing Affordability Survey rates markets, whose property prices are 5.1 times median income or more, as “severely unaffordable”. The sharp increase in prices of houses are far outpacing income growth thus creating many who are unable to buy a house. Some have resorted to buying a house far from the city resulting lengthy commutes to work.

Secondary markets of older homes are not cheap either and one may need to fork out more money for house repairs.

The government imposed RPGT (Real Property Gain Tax) has been less effective in curbing the escalating prices of houses. The high prices of property in urban areas prompted the Najib administration to introduce a first-home ownership scheme in March in addition to the loan-to-value ratio cap in a bid to stave off discontent.

The government’s My First Home Scheme launched in March will enable young adults aged up to 35 and earning less than RM3,000 to get 100 per cent financing to buy houses worth between RM100,000 and RM220,000 with a repayment period of up to 30 years. However, lawyers and bankers say the first-home ownership scheme will not help those who take home RM3,000 in total household income as the amount will not cover loan repayments due to rising prices for food, other basic necessities and utilities.