Tough Spot TG…In other posts I may have been a bit harsh in my comparisons of Temecula to other areas, but bottom line I still lurk on these boards so that shows I do like the area…You obviously know the area well, like living there, and the security of dictating your fate as an owner does give peace of mind. Unfortunately in Temecula there is not a predominance of foreign owners who put heavy down payments on their homes or a large corporate entity such as the Irvine Company to rent from.
Aside from running the tax records of your next rental to get a better picture, renting with security in Temecula is not an easy thing to do. You know what is best for you and your family, but for what it is worth, here is my take if I was in your position:
ID the area you want to stay, and eventually buy. If you have kids that will keep them in the same schools, and keep focus only on this area.
Rent a mailbox in this area where all bills go and for continuity.
Rent a storage unit where all non essential possessions go, and have organized with shelving for easy access.
Pick the best rental you can, and live simple and modestly in the home, where you can be ready to move with some friends’ help in a weekend.
Stay in tune with the market…
It’s not the easiest scenario, but it is the smartest, and we have practiced what we preach and did use the above scenario.
Why is it the smartest? Any bulls in this market are flat out wrong. The economy will be ok this year during the election year, and through the honeymoon period of the first year of whomever gets elected. Despite the economy being OK, housing is getting killed. When all the ARM resets hit in conjunction with the economy downtrend timing, it’s going to be VERY rough waters. But you know this already, and if you need further validation, check out the incredible analysis on Irvine housing blog. And as much as I like it in Temecula, and have concern for family and friends who own out there, bottom line is that area is going to get hit HARD, worse than SD or OC. Why? On the fringe, no jobs, the mortgage fraud scandal, lack of equity and stable owners, etc.
With that being said, many of the bears that lurk on these sites are just blindly wishing that prices will drop to nothing so that they could buy. That won’t happen either, and if it does, the dollar would be so weak anarchy would ensue.
I might be off in waiting for $80 sq ft, but $100 is realistic and $120 is a slam dunk in Temecula. So if you wait, you will save. If $300-400k for a house is streching it for you, save yourself from the unnecessary pressure of the financial burden of buying a home in a downward spiral market.
The stress of having to move on short notice is much easier to deal with.
