- This topic has 16 replies, 10 voices, and was last updated 9 years, 6 months ago by
Balboa.
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March 17, 2015 at 11:49 AM #21441March 17, 2015 at 1:25 PM #783901
scaredyclassic
ParticipantYeah. What’s gonna happen. We’ve been looking at condos near sdsu. Kinda make sense if I compel all my kids to go there which I might.
But price seems a bit high. Although not terrible…
March 17, 2015 at 1:29 PM #783902spdrun
ParticipantYou can always use the downpayment to buy a rental in a cheaper/less desirable city and have some other Joe pay for part of your rent in SD.
March 17, 2015 at 2:10 PM #783903
CoronitaParticipant[quote=scaredyclassic]Yeah. What’s gonna happen. We’ve been looking at condos near sdsu. Kinda make sense if I compel all my kids to go there which I might.
But price seems a bit high. Although not terrible…[/quote]
Really? Just curious. How much is room and board these days at SDSU?
March 17, 2015 at 2:32 PM #783904bewildering
ParticipantI think Rich still states that house prices are not in a bubble for San Diego. Prices may be slightly overvalued, but not by a large amount. Also, rent is really high in San Diego at the moment. If you are planning a long term stay then just buy.
Use this tool to help your decision:
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0
I also have some saved money and I am not sure what investment to make. Schiller says both the stock market and bonds are over valued.
March 17, 2015 at 2:38 PM #783905Participant2800 for a 2 br split 4 ways
March 17, 2015 at 4:22 PM #783906CoronitaParticipant[quote=scaredyclassic]2800 for a 2 br split 4 ways[/quote]
Really? I’m assuming this has to be on campus. Do you know how many sqft?
Off campus nearby, 2/2’s rent for $1400
March 17, 2015 at 5:04 PM #783911The-Shoveler
ParticipantDepends IMO,
If you are planning to buy in an area that is already over the last bubble peak price, most likely you can rent considerably cheaper than buying.
If the area you are interested in is still down 20% or so from peak and the area looks likely to grow (which most outlying area’s in SoCal do), then I would consider buying.
I don’t think the area’s already past peak will crash, just not as likely to appreciate as much percent wise as maybe some outlying area’s that are still growing fast.
March 17, 2015 at 5:08 PM #783912CA renter
Participant[quote=scaredyclassic]2800 for a 2 br split 4 ways[/quote]
People really love to rip off college kids (and their parents). 🙁
Our neighborhood is very desirable with good schools and great neighbors. You can easily find a nice 4/2 with a big backyard for that price around here.
March 17, 2015 at 5:14 PM #783913ParticipantBack on topic…
As to Mugums’ post, I think it depends on what you want to do. If you really plan to live in the house indefinitely, and if you’re financing the purchase, and if you really hate renting, you might as well buy.
If you were paying cash, I’d suggest that you either finance to buy or hold off for awhile until interest rates get higher.
The low interest rates have been pushing prices up, and when looked at from just a price perspective, I’d say that prices are bubbly and due to come down at some point…the question being when, of course. But if you’re financing, the monthly payment is going to be fairly close to rent, and that’s an indication that buying is probably the right choice, especially if it’s a very long-term purchase.
Welcome back, and good luck on your house hunt! FWIW, I would at least wait until September-December to buy, as you can usually save tens of thousands of dollars vs. purchasing in the late winter-early summer months because of seasonal changes in the market.
March 17, 2015 at 5:30 PM #783914joec
ParticipantI think instead of guessing where the market will go, look at how you want to live your life. People have been saying interest rates will be going up for a few years now and they have all been wrong.
No one knows where interest rates will go, but rates are negative in Europe and Japan has been low for 20+ years?
I think India or some place just cut rates too.
In a global economy, US rates look very attractive compared to other places. I’ve been saving rates won’t move for a long time and even though I guess, it’s been the correct call for the last few years.
All that said, buying a home that you plan to stay in for the long term is a nice feeling. You have a fixed known housing payment and every month, you build a miniscure amount of equity. Also, if rates go higher/lower, and you have more savings, you can buy investment properties or refi.
Since you also have 20% down, that money is doing zip now. If you have more down, you’d probably save money compared to rent and I know in my hood, rents for 3k sqft econoboxes go for near 3800+ now a month. Pretty sick. Add in your tax deduction as well and you are probably ahead if the mortgage is only 200 more a month.
As other conditions are putting pressure like kids and school, HATE renting, I think for your own life/well being, buying isn’t the worst thing in the world if you can afford the payments, like the area you pick, and your mortgage isn’t comparably more than your rent.
Unlike some posters here, I don’t see housing collapsing unless rents collapse. Also, many people who bought in the last five years have high cash flowing properties so may prefer to rent instead of selling if they can (I know a few in my area)…
Good luck!
March 17, 2015 at 7:05 PM #783915Participant[quote=CA Renter]I would at least wait until September-December to buy[/quote]
August is also a good month. It actually seems like the slowest month outside of December-early January.
March 17, 2015 at 9:43 PM #783924Participant[quote=flu][quote=scaredyclassic]2800 for a 2 br split 4 ways[/quote]
Really? I’m assuming this has to be on campus. Do you know how many sqft?
Off campus nearby, 2/2’s rent for $1400[/quote]
for reals. I don’t know. This is what his pals picked. Too complex at this point. Gets really difficult to find a place near there soon…at least it was last yr.
March 18, 2015 at 8:57 AM #783935FlyerInHi
GuestIt’s an OK time to buy. Most times to buy are just OK. So go ahead.
March 19, 2015 at 12:05 PM #783951Mugums
ParticipantThank you for all your thoughts on this. After reading this forum for so long when prices were much lower, I start to panic about buying now. For our current situation it still seems like it might be the best idea and I’d have to have a lot of data behind me to overcome my spouses determination to buy.
Interesting point on August… I watched numerous properties that I liked sit for awhile around that time last year and eventually sell for less than asking. BUT.. I have also seen a few that didn’t sell come back on the market recently for 40K more. I’m annoyed. I definitely won’t be in too big a rush to buy immediately, but it is tempting when the houses I like come and go in a matter of days and August is pushing it for the start of school. I suppose the kids can start a few weeks late… more attention anyway : )
I’m curious as to how far out you mean by “outlying” areas. Are you talking Temecula or San Marcos?
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