[quote=gzz]They accepted my initial offer after I remade it. Their counteroffer was 25k higher, I said no, they took the initial.
I think the sale is a win all around. Sellers up about 500k, sliding right under the capgains exemption for a married couple. I am getting a place that’s about 10% below March 2022 peak price and perhaps 3% below market price, giving me a little safety cushion. I really don’t expect or care if I make money on this one, it is huge so will have high monthly expenses, and I don’t think RSD is especially well positioned for appreciation. (Santee and Mira Mesa are suburban areas that will outperform RSD in my opinion.)
I will probably end up with a 4.375% 7/30 Jumbo ARM.
Looking at my increased costs, my house in OB I believe will rent for about 4400. Net cost of the new place will be about 7000. 2600 a month isn’t peanuts, but if the new place appreciates 1.5% a year, then the appreciation makes this a break even, and anything more than 1.5% is profit.
As for the risk on the ARM, the interest savings will be about 30k before the rate resets. I am ok with the additional risk that in 7 years I will still have the mortgage and it will reset higher. Part of me being OK with this risk is that all my other debt is fixed at lower rates.[/quote]
well done. I enjoy the way you (and me, and all of us) tell ourselves little stories about money, the pockets of it, where it goes and why it’s ok. Many many years ago when I worked as junior assistant bond counsel, I was in a meeting where the guy who put the bonds on the market (I forget what his role was called) was explaining to some governmental entity humans (the people who get the money, whatever they’re called) about how and why he did a spectacular job managing the money and getting the very best interest rate of that particular day. I still remember how beautifully he told the story. At the end I was like, man, this guy’s a financial genius! Now, I think, naah, not a financial genius, but I still think he was a type of genius; a storytelling genius.
Money is a story. I liked your story. While you may (or may not) be a genius, you did good. Also, you sound heroic to me for fighting for the 1%. Enjoy, to the extent possible, in this anxiety-ridden capitalist madhouse. Perhaps more important that enjoyment for some is the creation of a story that makes sense.
