23109VC I have been following this thread. You have said that you don't feel like you are talking yourself into buying this home, but it is exactly what you are doing.
as to the property taxes…. good luck finding ANY House up in this area, built nit eh last few years that doens' thave 1.8-2.0% property taxes. that's the norm up here.
Completely not true, while most newer homes in Temecula have high taxes, there are MANY areas of Temecula that have Taxes under 1.3% and more in Murrieta too. BTW there are some NEW homes with low taxes. I bought a new home in 2002 with a 1.1% tax in this valley and there are still more. The entire communities of Temeku Hills, Chardonnay Hills, Meadowview, Starlight Ridge, Alta Murrieta, and MANY more all have taxes under 1.3% as well as small or no HOA fees. Those are "older" but still great communities, and they have larger homes that would suit you better. Why do you need a "newer home"? You can granite-ify and stainless-ify out any kitchen, then add custom paint, molding, and shutters, and you will feel just like you were in Harveston, except you will be paying less taxes and you will actually have a decent lot.
the big question is what will this house be worth when the market finally stops falling and begins to rebound. will it have fallen to what i paid or will it have fallen so low that i'm $50-100k upside down.
This is dependent on the economy as a whole. Temecula is a bedtime community that has little employment to offer that will sustain high end home prices alone. You have to think, how will our economy be doing in 3-5 years, what will gas prices be then? Will it always be practical to commute to SD or OC or LA from Temecula? Personally, I feel our economy is very fragile and faces a lot of hurdles in the future. We have high inflation, negative savings, tons of excess debt in all levels you can think of, rising commodity prices, weak dollar getting weaker, and a nation full of citizens that prefer to consume vs. work harder. The only reason we consume, is because the money is loaned to us so cheap. Other countries work way harder and spend less than us and it shows. Throw is higher rates, the dems taking over, and geo political volatility, and anyone who is "banking" on smooth sailing has huge balls or really has a crystal ball.
IMO…Anyone doing 100% financing shouldn't be buying a home. Don't take this the wrong way, But you have 2 kids and pay $1400/month for rent and you have limited savings in your pocket. What makes you think that you can keep paying a mortgage comfortably at around 2700/month with a 3rd kid on the way.
Sorry, but I have to agree with this post. It really doesn't matter how much money you make, you should be able to say, and now is a great time to save.
do you think temecula houses will fall to 2001-2002 prices?? ….in which case this house will sell for 250-275k max. i'd be bummed to be that much upside down.
I absolutely think they can go to those prices. Thats only 5 years ago right after things started to get crazy.
if rates are up a lot – payment may not be much different. rents will be up..and the whole rent/buy thing may be the same.
I have to disagree with the rents situation. Rents do seem pricier now, but there is SO much competition in the rental market right now due to speculators that are trying to "ride it out" via rentals and excess inventory that rent prices actually came back down a bit, and in many cases the price is negotiable. I would never go look at a house, and sigh up for a lease without at least ASKING about flexibility, and playing hardball for a while. Many homeowners are desperate for a quality tenant, and after having their homes sit on craigslist for months, they are tired of loosing money on payments towards the empty home. I bet you can rent a 4 nice bed home in Temecula for under 1900 which will still be considered chump change to your 100% financing 350k loan with 2% tax… ouch.
Rents are great in that they truly will reflect supply and demand, and there are only so many people living in Temecula that can pay a high rent amount. Normally rents don't go down, but call me crazy, in Temecula, in the future, I think it is possible. Due to its crazy over-built-ness and lack of high end jobs, and with rising gas prices.. its possible. I may be wrong, and that is fine, but I will still be renting here for at least 2 more years, if I stay here that long.
if prices fall…but not TOO MUCH…then buyign now before it's harder to get 100% financing is a decent idea.
I think the answer lies in the statement…if in the future it is "harder" to get 100% financing, then I guarantee prices will fall "very much" as that will eliminate nearly all first time buyers.
if 100% financing is totally gone…i could be in trouble.
I disagree, this would be a good thing for you and all of us, as prices will revert to the norm again. 100% financing in greatly responsible for the current situation , RE being way overvalued. You need to get away from this mentality. Personally,I don't think its right to buy a home with 0 down.
I'm a believer in savings, and responsibility. 2 very important values our country is leaving behind.
