Forbes offers 6 investing tips for buying suburban McMansions

A contributor to Forbes offers “6 Investing Tips For Buying That McMansion In The Suburbs Now.”

Buy like a landlord.

Check your price-rent ratio.

Look at inventory.

Consider an ARM.

Know when to buy new.

Consider realty stocks instead.

Renting McMansions has been suggested as a possible opportunity but I don’t know of anyone doing this on a large scale. The real estate dip in recent years boosted demand for rental units yet the construction of larger homes has been one of the healthier parts of the housing market.

If critics are right, how much demand would there be to rent McMansions in sprawling neighborhoods? Even this investor notes:

Both renters and buyers will pay a premium for close-in or “new urbanist” suburbs with short commutes to offices, high walkability and nearby stores and restaurants.

This doesn’t describe the typical McMansion. The price point for purchasing a McMansion to make a decent rental income must be pretty low.

British soccer team not happy at serving as the site for college field trip on gender

One British sociology class plans to visit Millwall FC to examine how gender is performed. The club is not happy:

Varndean College in Brighton is offering AS-level sociology students the chance to watch Brighton and Hove Albion take on the “notorious” Millwall Football Club at their home team’s American Express Community Stadium…

There will also be a chance to observe “issues around sexuality, race and ethnicity,” “women challenging gender norms” and to “even talk to football fans,” it promises.

A schedule of planned trips on the college’s website says the football excursion would help teach students about class, leisure and masculinity, and possible racism and homophobia as well.

But Millwall FC appeared less than happy with the idea of being studied as a sociological phenomenon.

“It does make me wonder why they chose Millwall for that,” a source at the club said.

One Varndean sociology student and Millwall fan said describing the club as notorious was “a bit outdated as we’re no longer in the 1980s.”

Sounds like an interesting exercise in seeing gender in action. I understand that few teams would want to explicitly be charged with racism or homophobia but such attitudes are certainly expressed at sporting events. Soccer has a particular history with racism (see a brief overview here) and even with explicit efforts and sanctions from professional associations, racist actions still occur. And professional sports tend to invoke commentary from some fans about masculinity, which in soccer can be associated with toughness, body times, and typical actions off the pitch (such as using their status to pursue women, drink, etc.).

I wonder if any teams would be willing to take part in such field trips because they had such confidence that students and observers wouldn’t see racism or homophobia. Imagine Millwall said, “Sure. Come observe and you won’t see anything like that” and then the observations backed that up. But, even inviting this sort of opportunity would probably be too risky in the eyes of most teams.

Modern wonder: NYC’s water system

Here is a look at the vast system that keeps pumping clean water flowing in New York City:

The pipes that carry this life-giving force are largely invisible to New York’s thirsty masses. (Here’s a great map.) The system includes 19 reservoirs nestled in the rolling hills and mountains, draining a sprawling 1.2 million-acre watershed; three controlled lakes; 300 miles of underground thruways, including one that burrows 1,100 feet underneath the Hudson River; and thousands of miles of thin pipe under New York’s streets. Together, they deliver fresh, potable water to 8.4 million people in New York City and another 1 million people upstate…

The system emerged as a matter of necessity. “New York City developed this water system because it was unlucky,” says Kenneth T. Jackson, the Columbia University historian and authority on New York City. “It couldn’t could take water out of the rivers, because the Hudson is salty all the way up to Poughkeepsie.” In the 18th and early 19th centuries, the city’s growing number of residents relied on wells, water brought in on ships, and spring-fed ponds like the Collect (near what is now Foley Square), which quickly turned into dumping grounds for sewage and garbage. The fetid waters helped spawn the cholera epidemic of 1832, which killed more than 3,500 residents. And the absence of significant water sources in city streets thick with wooden buildings led to a series of disastrous fires. After the Great Fire of 1835, which consumed about 700 structures, municipal leaders were moved to act…

Built at a time when the city’s population stood at about 200,000, the Croton system served well until the early 1900s. By then, New York’s population soared to more than 3 million, thanks to immigration, expansion, and the annexation of the Bronx and Brooklyn. In the early 20th century, the city expanded the system to develop new resources in the Catskills. The Ashokan Reservoir, whose creation required the submerging of seven villages, came into service in 1915. A system of pipes and canals were constructed to ferry water via the Catskill Aqueduct 92 miles to the Kensico and Hillview Reservoirs in Westchester—including a circular tunnel with a diameter of 14 feet that goes 1,100 feet under the Hudson River near West Point. Water Tunnels No. 1 (completed in 1917) and No. 2 (completed in 1937) carried the water from Yonkers into Manhattan. Next came the Delaware system to the city’s northwest. Starting in the 1950s, vast pools of water created by damming tributaries of the Delaware River were fed into new infrastructure, including the Delaware Aqueduct, which at 82 miles is the longest continuous underground water tunnel in the world. Here, again, gravity does the work. The highest reservoirs are about 1,200 feet above sea level. And the volume of water pushing down through the pipes creates an enormous amount of power. Today, Bosch notes, “the pressure is so great that it can take it to the sixth floor of most boroughs without any pumping,” said Bosch.

The 500 miles of fat pipes upstate are augmented by 6,500 miles of narrower underground conduits that run underneath the five boroughs, from the crags of Riverdale to the distant, wave-tossed shores of the Rockaways. From the Hillview Reservoir in Yonkers, right on the Bronx border, pipes plunge a few hundred feet into one of the three massive water tunnels that carry water to the south about 500 feet below ground level. Every 20 blocks or so, vertical tunnels sprout up to feed into trunk water mains, with a diameter of about a foot. Ultimately, they connect to buildings, whose pipes are private property.

It would be really difficult to have the #1 global city without a well-designed water system. Such planning and engineering may not get much attention in explaining New York City’s rise but it certainly had to be present. Interestingly, histories of Chicago tend to note the importance of reversing the flow of the Chicago River so that waste was sent downstream towards the Mississippi rather than into Lake Michigan where it polluted the water supply.

University press releases exaggerate scientific findings

A new study suggests exaggerations about scientific findings – for example, suggesting causation when a study only found correlation – start at the level of university press releases.

Yesterday Sumner and colleagues published some important research in the journal BMJ that found that a majority of exaggeration in health stories was traced not to the news outlet, but to the press release—the statement issued by the university’s publicity department…

The goal of a press release around a scientific study is to draw attention from the media, and that attention is supposed to be good for the university, and for the scientists who did the work. Ideally the endpoint of that press release would be the simple spread of seeds of knowledge and wisdom; but it’s about attention and prestige and, thereby, money. Major universities employ publicists who work full time to make scientific studies sound engaging and amazing. Those publicists email the press releases to people like me, asking me to cover the story because “my readers” will “love it.” And I want to write about health research and help people experience “love” for things. I do!

Across 668 news stories about health science, the Cardiff researchers compared the original academic papers to their news reports. They counted exaggeration and distortion as any instance of implying causation when there was only correlation, implying meaning to humans when the study was only in animals, or giving direct advice about health behavior that was not present in the study. They found evidence of exaggeration in 58 to 86 percent of stories when the press release contained similar exaggeration. When the press release was staid and made no such errors, the rates of exaggeration in the news stories dropped to between 10 and 18 percent…

Sumner and colleagues say they would not shift liability to press officers, but rather to academics. “Most press releases issued by universities are drafted in dialogue between scientists and press officers and are not released without the approval of scientists,” the researchers write, “and thus most of the responsibility for exaggeration must lie with the scientific authors.”

Scientific studies are often complex and probabilistic. It is difficult to model and predict complex natural and social phenomena and scientific studies often give our best estimate or interpretation of the data. But, science tends to steadily accumulate findings and knowledge more than a model where every single study definitively proves things. This can mean that individual studies contribute to the larger whole but often don’t set the agenda or have a radically new finding.

Yet, translating that understanding into something fit for public consumption is difficult. Academics are often criticized for dense and jargon-filled language so pieces for the general public have to be written differently. Academics want their findings to matter and colleges and universities like good publicity as well. Presenting limited or weaker findings doesn’t get as much attention.

All that said, there is an opportunity here to improve the reporting of scientific findings.

The “something of a fad” of walking every block of a city

Want to walk every street in your community? The New York Times suggests you may be part of a fad:

Even in the era of Google Street View, walking each mile of a city has become something of a fad. A woman finished walking every street in Berkeley in 2007. A man in his mid-90s walked over 300 miles of Sydney, Australia, before he died in 2008. It took three years for a Minneapolis woman, Francine Corcoran, to walk the 1,071 miles that make up the city. London has been walked, as has San Francisco.

And while the other walkers did not set off explicitly to round up wackiness the way Mr. Dalzell did, at a walker’s pace, they no doubt saw plenty of it anyway.

“When you walk a city block by block, you are forced to slow down and look at everything — you see more, you feel more, you get into the rhythm of the neighborhoods,” said William B. Helmreich, a professor of sociology at City College of New York who wrote “The New York Nobody Knows,” a book about walking every street — some 6,000 miles — of the city’s five boroughs.

“In urban areas, you often don’t feel like an individual, which makes you want to put your stamp of uniqueness on something,” Professor Helmreich said, “even if it is just the paint on your house.”

I agree that this approach would get you closer to day-to-day life in a large city. However, I wonder at the use of the phrase “something of a fad.” A fad implies something that is quite popular but dies out quickly. In other words, it is a trend. But, the article goes on to cite at least six people who have done this over a seven year stretch. Is this enough to be a pattern or trend? The only way I see this working is due to the unusual nature of this activity: it requires a lot of dedication and time. Because of this, even getting a few people to do this and record their activities (are there secret whole-city walkers out there?) might be enough to qualify as a fad. But, it is hard to imagine this truly becoming a fad, either in being something people want to do or actually do.

Does posting the number of highway deaths in Illinois lead to safer driving?

A columnist discusses the effects of signs on Illinois Tollways that post the number of automobile fatalities on area highways:

The first time I saw one of those grim Illinois expressway signs was in 2012. I was merrily driving to the family farm in Indiana to visit my mom when I spotted a roadside sign dishing a little shock and awe to commuters and vacationers. There was something cold about the little electric bulbs in the sign above my expressway lane letting me know: “679 TRAFFIC DEATHS THIS YEAR.”

It made me think…

That’s precisely what the sign was meant to do. While many states were seeing fewer traffic fatalities during the summer of 2012, Illinois was seeing a substantial increase in the number of people killed on Illinois roads in the first half of that year. After the Illinois Department of Transportation started posting a running total of the dead in July, the last half of 2012 saw fewer fatalities than the last half of sign-free 2011.

Still, the number of fatalities went up in 2012, from 918 to 957. Last year, with those same signs updating our death toll daily and urging us to drive more safely, our fatalities inched higher again, to 973.

This evidence suggests the signs had little effect. This would line up with research that suggests drivers don’t pay all that much attention to road signs; hence, the suggestion that perhaps no signs might even be better. Indeed, the Illinois Department of Transportation has moved on to other strategies to reduce traffic deaths:

Michael Rooker, the actor who played Merle Dixon on TV’s “The Walking Dead,” stars in the latest IDOT safety campaign, a series of videos at thedrivingdeadseries.com and Facebook posts titled “The Driving Dead.” The postings don’t have anything close to the power of watching a young mother of two die while pinned in her car, but perhaps they will prove more effective than the road signs. The catchphrase of “The Driving Dead” gives those behind the wheel a new way of thinking about driving.

I would be curious to know whether IDOT is pursuing these strategies based on evidence that suggest they work or the agency is mounting what they think might work and/or what is publicly visible. Driving is a dangerous activity – one of the most dangerous the average person will partake in each day – and you would want solutions that work rather than guesses.

Buy friends and families barrels of oil for Christmas

I’ve thought about this before…

Oil prices continued to fall today, with two different measures of the commodity’s price hitting five-year lows. Oil can currently be had for $64.10 a barrel in some circumstances.

A barrel of oil is 42 gallons.

Who do you know that could use 42 gallons of freshly drilled oil? Everyone! Oil is important for producing energy, which powers cars and flat-screen televisions through a scientific process known as “pushing the button on the remote control or turning the key in the ignition.”

And what season is it? Christmas season! The season for giving things to people. Do you see where I’m going with this? Oil is this year’s hottest and most affordable Christmas gift.

The practical issues are immense – how would an individual refine the oil? how many people could easily store the barrels? These barrels can’t exactly be bought and sold at Walmart – but it is hard to argue with giving people something they need. Why give superfluous gifts when every driver could use cheap oil?

When public anger can prompt the collection of better data

I’ve seen this argument several places, including this AP story: collecting national data about fatalities due to police would be helpful.

To many Americans, it feels like a national tidal wave. And yet, no firm statistics can say whether this spate of officer-involved deaths is a growing trend or simply a series of coincidences generating a deafening buzz in news reports and social media.

“We have a huge scandal in that we don’t have an accurate count of the number of people who die in police custody,” says Samuel Walker, emeritus professor of criminal justice at the University of Nebraska at Omaha and a leading scholar on policing and civil liberties. “That’s outrageous.”…

The FBI’s Uniform Crime Reports, for instance, track justifiable police homicides – there were 1,688 between 2010 and 2013 – but the statistics rely on voluntary reporting by local law enforcement agencies and are incomplete. Circumstances of the deaths, and other information such as age and race, also aren’t required.

The Wall Street Journal, detailing its own examination of officer-involved deaths at 105 of the nation’s 110 largest police departments, reported last week that federal data failed to include or mislabeled hundreds of fatal police encounters…

Chettiar is hopeful that recent events will create the “political and public will” to begin gathering and analyzing the facts.

A few quick thoughts:

1. Just because this data hasn’t been collected doesn’t necessarily mean this was intentional. Government agencies collect lots of data but it takes some deliberate action and foresight regarding what should and shouldn’t be reported. Given that there are a least a few hundred such deaths each year, you would think someone would have flagged such information as interesting but apparently not. Now would be a good time to start reporting and collecting such data.

2. Statistics would be helpful in providing a broader perspective on the issue but, as the article notes, statistics have certain kinds of persuasive power as do individual events or broad narratives not necessarily backed by statistics. In our individualistic culture, specific stories can often go a long ways. At the same time, social problems are often defined by their scope which involves statistical measures of how many people are affected.

What are the “dead giveaways” in landscaping outside a McMansion?

One forum generates ideas about what kind of landscaping clearly marks a McMansion:

Most mcmansions in this area (mind you that’s only upper-middle class, not very upper class) have one tortured looking weeping nootka falsecypress, one fat albert spruce, a weeping mulberry and/or a callery pear…

MULCH. Large expanses of mulch dotted with discrete plants. Screams modern, if not commercial…

I think black mulch is the 2014 version of red mulch. Any dyed mulch screems Mc mansion to me. Undyed mulch used for function is ok but any munch used as decoration looks unnaturally trendy to me…

Faux “outcroppings” of rock are another big millennial landscaping conceit to avoid. I am not aware of many spontaneous outcroppings of rocks and plants with a waterfall springing out of it in the middle of Indiana. The ones that are there are probably planted. Just say “no”…

Too many hydrangeas. But ultimately, I think the “McMansion” look is one that is too manicured, too perfect and planned out…

Basically, 98% of American McMansions (or even what pass for mansions these days) are ridiculously over landscaped, at least compared to the European manors and stately homes they are claiming as inspiration. Just as the building architecture itself is often a bad, ham-fisted copy, the “design on the land” descends into contrivance and excess. I’ve heard of more than one case now of a 10-20 year old planting of “foundation shrubs” being ripped out because it had become unmaintainable and was overpowering the facade of the house. I suspect we are at a tipping point where there is soon going to be an article about it and partial backlash.

 

Some interesting ideas throughout this long thread. McMansions tend to try to impress observers with their features – whether that includes turrets, big entrances and foyers, multi-gabled roofs, stonework (or fake stones), numerous windows, mish-mash of weighty older styles – but the landscaping may not get as much attention. One factor common across these comments is that McMansion landscaping doesn’t account much for long-term appearance and care of plants. In other words, the landscaping is also meant to impress or get the job done but may not serve the home and the owners well 10-20 years down the road. If this is true, then the McMansions are what critics suggest: homes with limited staying power once you get past the facade (or landscaping).

“Why Congress won’t raise the gas tax”

Gas prices are lower and the money is needed for highways but one writer suggests Congress is nowhere near raising the gas tax:

Fuel prices are plunging to their lowest level in years. The Highway Trust Fund is broke, and Congress faces a spring deadline to replenish it. The obvious answer—the only answer, according to many in Washington—is to raise the 18.4 cent-per-gallon gas tax, which hasn’t gone up in more than 20 years. Since prices at the pump have dropped more than a dollar per gallon in some areas, drivers would barely notice the extra nickel they’d be forced initially to pay as a result of the tax hike. That wasn’t true until recently: For years, the pocketbook punch of the Great Recession combined with gas prices that peaked above $4 made an increase both politically and economically untenable.

Yet even with prices at a four-year low, the odds of Congress touching the gas tax are as long as ever. “I think it’s too toxic and continues to be too toxic,” said Steve LaTourette, the former Republican congressman best known for his close friendship with his fellow Ohioan, Speaker John Boehner. “I see no political will to get this done.”…

Advocates on and off Capitol Hill are mounting a new push to lift the gas tax as Republicans prepare to assume full control of Congress in January. Funding for the Highway Trust Fund will run out May 31. On 60 Minutes last month, officials including former Transportation Secretary Ray LaHood and former Pennsylvania Governor Ed Rendell used the specter of a major bridge or highway collapse to warn of the need for new investments. LaHood, a Republican who was once rebuked by the Obama White House for suggesting a switch to a mileage-based tax, is now going public on the gas tax, in his typically colorful style. “The best argument for doing it is is that America is one big pothole,” he told me in a phone interview, “and America’s infrastructure is in the worst shape that we’ve seen in decades.”…

In a separate interview, Blumenauer said the administration had recently “dialed back” its opposition, with senior officials telling lawmakers that if Congress could somehow pass a gas tax hike, he would sign it. Yet just a few hours after his and Petri’s press conference, Obama himself seemed to put their plan back on ice. At a business roundtable at the White House, FedEx CEO Frederick Smith asked Obama why Congress couldn’t just raise the gas tax and solve the infrastructure problem. “In fairness to members of Congress, votes on the gas tax are really tough,” the president replied, after first chuckling that if it he were in charge on Capitol Hill, “I probably already would have done it.”

It sounds like Congress thinks that such a move would be very unpopular. Americans like driving (even if they have cut back in recent years), prefer cheaper gas, believe the country is still experiencing tough economic times, and many don’t want to personally pay more in taxes. Yet, it makes some sense that highways should be funded by the gas tax: if you use the highways and associated infrastructure, you should help bear some of the cost.

Is Congress responsible for this or the American people? The article suggests Congress won’t act but Congress suggests the American people wouldn’t want it. Are both groups pretty blind to infrastructure needs or long-term investments? In the short-term, few people want to pay the necessary costs but no one will like it if the situation becomes dire.