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njtosd.
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August 2, 2016 at 6:35 PM #22068August 2, 2016 at 7:08 PM #800166
Rich ToscanoKeymasterSome thoughts here that might help, I know it’s from last year but the situation hasn’t changed a whole lot since then: http://piggington.com/shambling_towards_affordability_midyear_2015
If it’s your forever home, in a sense it doesn’t matter if prices drop. As long as you are happy in the home and the amount you pay (considering both down payment and monthly payments) is within reason, the market price isn’t that big a deal in theory. There’s a question of whether you could have gotten more, but as you observed, that’s not such a straightforward question.
But if you are worried about home prices dropping, and/or you believe (correctly in my view) that home prices are high, why keep the condo? If you buy an 800k house and keep the condo, you have an awful lot of exposure to SD real estate, for better or worse.
August 2, 2016 at 8:39 PM #800167an
ParticipantAs a home, I think as long as it’s cheaper to buy than rent of comparable home (P+I vs rent), I would buy. Tax deduction will about cancel out the property tax and insurance. So, if you foresee yourself staying put for 5-10+ years, there’s no reason not to buy. Especially if it’s cheaper than renting a similar place.
August 2, 2016 at 8:43 PM #800168Hobie
Participantthis is a no brainer. $ in bank, gainfully employed, pick a location and make a family.
location of condo would be helpful, but not really. if you can swing house+condo+kid go for it.
you are in it for the long game
August 2, 2016 at 9:12 PM #800169La Jolla Renter
ParticipantWhat areas are you considering?
What’s the condo worth, equity and what is the net cash flow ea month?
August 2, 2016 at 9:29 PM #800171Panderso
ParticipantThanks guys.
Rich – I read your linked post and TBH it sounded pretty indecisive. Pretty similar to where I am right now!
Re: the condo – you make a good point about a concentration of assets in SD real estate. Right now we don’t need access to the equity and the condo seems a good place to park it and make some return … Maybe not better than putting it in the market though.
Hobie and La Jolla Renter – the condo is in UTC (La Jolla Colony), worth about $360k, we’ve got about $250k left on the loan, cash flow from renting would be $300-$400 per month assuming 100 percent occupancy. We’re looking to buy a SFH in Scripps Ranch.
August 2, 2016 at 9:44 PM #800172bewildering
ParticipantMy house just appraised for 40% higher than when i bought it in 2014. Seems a bit crazy to me, but I think it is driven by two factors: the rental market is insanely expensive and interest rates are ridiculously low.
The rental market is a mystery to me, have rents ever fallen? Do present rental prices provide a floor for house prices?
For interest rates. If interest rates rise then house prices might go down, but you will be paying a higher payment because of the higher interest rate.
If interest rates fall then house prices will go higher.
One left of field factor: have you factored in child care prices? Can get pricey.
August 2, 2016 at 9:59 PM #800173ParticipantEdit to my last comment: I just checked the Zillow rental estimate again and apparently cash flow would be $100-$200 a month, not $300-$400.
Bewildering – yeah, we’ve considered child-care in our budget. That’s why we have a cap on what we’ll buy. It is expensive and unfortunately we don’t have immediate family in the area so no free day care. 🙁
August 2, 2016 at 10:05 PM #800174Anonymous
GuestYou used the term “forever home.”
That’s your answer.
August 2, 2016 at 10:12 PM #800175scaredyclassic
Participantscaredy is nervous.
August 2, 2016 at 10:16 PM #800176Participant[quote=Panderso]
Bewildering – yeah, we’ve considered child-care in our budget. That’s why we have a cap on what we’ll buy. It is expensive and unfortunately we don’t have immediate family in the area so no free day care. :([/quote]Our daycare/preschool bill is about the same as our principal and interest. It would be great to have any family around.
August 2, 2016 at 10:34 PM #800177ParticipantReally? My understanding was that daycare/preschool is $10k to $15k a year, is that about right? I’m early on in the research process.
August 2, 2016 at 10:38 PM #800178Participantlow overhead.
low stress.
freedom.
happiness…
or massive debt…August 2, 2016 at 10:59 PM #800179njtosd
Participant[quote=Panderso]Really? My understanding was that daycare/preschool is $10k to $15k a year, is that about right? I’m early on in the research process.[/quote]
That seems about right – for one child. If you have two – there’s no bulk discount. It’s like paying college tuition. FWIW – I have known many women (MDs, lawyers, etc.) who were sure they’d be ok with leaving their child at daycare or with a nanny, only to find that it was a completely different decision once the child(ren) came along. Some were OK, but some weren’t (in a big way). It’s a deep dark secret, especially among those who put a lot of time and $ into preparing for their careers. Babies mess with your brain – even if you’re sure they won’t.
When buying a house, if you and your husband can leave yourselves some room to work that issue out (i.e. have a budget that leaves the possibility for one of you take some time off) you will avoid the feeling of having your back against the wall and you will both be happier. If, when the time comes, you find that you have a child care solution that works well for you, you’ll be able to put some extra cash away for college – which comes at you much faster than you will ever imagine.
Best wishes.
August 2, 2016 at 11:19 PM #800180Participant[quote=njtosd][quote=Panderso]Really? My understanding was that daycare/preschool is $10k to $15k a year, is that about right? I’m early on in the research process.[/quote]
That seems about right – for one child. If you have two – there’s no bulk discount. It’s like paying college tuition. FWIW – I have known many women (MDs, lawyers, etc.) who were sure they’d be ok with leaving their child at daycare or with a nanny, only to find that it was a completely different decision once the child(ren) came along. Some were OK, but some weren’t (in a big way). It’s a deep dark secret, especially among those who put a lot of time and $ into preparing for their careers. Babies mess with your brain – even if you’re sure they won’t.
When buying a house, if you and your husband can leave yourselves some room to work that issue out (i.e. have a budget that leaves the possibility for one of you take some time off) you will avoid the feeling of having your back against the wall and you will both be happier. If, when the time comes, you find that you have a child care solution that works well for you, you’ll be able to put some extra cash away for college – which comes at you much faster than you will ever imagine.
Best wishes.[/quote]
yep. dont count on working with the baby. technically, women can go clinically insane after a baby arrives. men on the other hand are excellent at day care drop offs. i used to drop off a 2 mo. old 1st kid and felt nothing but, see ya later, buddy, almost proud that he was up for a day at day care, selfsoothing, sort of. while my wife would weep big salty tears. she could not self soothe as well.
later she had to stay home. couldnt “miss out” …of course, staying home also drove her nuts.
its really too expensive to have a bunch of kids. you figure itll work out cause others make it.
but others are nuts.
this is part of why scaredy is nervous,again.
how tiny is this tiny condo? maybe it is big enough
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