[quote=AN]BG, no, lot size is not indicative of value. Location is indicative of value. You can increase your lot size, but you can’t change the zip code or the latitude and longitude of your lot. That’s why the RE mantra is, location location location. Not lot size, lot size, lot size. If this is true:
[quote=BG] In coastal CA counties, a larger lot usually means the property is worth more.[/quote]Then those houses in Ramona with 1/2+ lot would cost more than your cracker box, 0 lot line, detached condo in Carmel Valley. To take this to an extreme, tell me, how big is the lot of this house: http://www.sdlookup.com/MLS-120003963-2430_Oceanfront_Ave_Del_Mar_CA_92014? Do you think most houses on many acre (even in RSF) would be more expensive than this one?[/quote]
Of course it’s location first and then lot size (within a location). Clairemont wins both contests over MM (no offense intended).
[quote=AN]I didn’t say 1/1 in MM. Based on the prices from the 70s and 80s, most of the mortgage(if not refied to take cash out) would be around $300-700/month. That’s probably cheaper than most 1/1 anywhere in San Diego County. So, I’d say, a 60 year old with a free and clear house or a 50 year old with 10 year left on their mortgage of about $550 would be more stable than those in their 80s with failing health. Try making repair when you’re on fixed income and your health start failing. Maintain your house would probably be pretty low on your priority list.[/quote]
$300 to $700 in the 70’s was PITI. Remember that if they bought in or before April 1978 and still own the property, their taxes are held down by Prop 13. And 20-year mortgages were prevalent prior to the late 50’s.
Actually, many, many of this age group are NOT on a “fixed income.” They have investment income. Even if they are in so-so or failing health, they STILL have home healthcare workers and people to come over and do landscaping, cleaning and other errands (whether paid or family members).
AN, you bring up an interesting topic, here. I think it would be very time-consuming to cull the public records for this info, but I’ve often wondered which zip codes in the county have the most free and clear homeowners. I know the current 70-90+ age group who still own properties they bought 50-70 years ago have likely never taken “cash out” of it. How do I know it? Because their properties were likely paid off by the 70’s (at the latest) and “cash-out” was virtually unheard of back then unless it was an FHA 203k (purchase/rehab) mortgage. This would have given them a very large portion of their monthly income since that payoff decades ago to live mortgage-free and save for retirement. This would be true unless they found it necessary at some point to take out a reverse mortgage.
I have no proof but believe (anecdotally) that the majority of “cash out” was taken by owners who have purchased their property since 1990, the vast majority since about 2003.
Thus, it would lead one to believe that the older the area is, the more free-and-clear owners it has. So even though this “older area,” at first blush may look “modest” by today’s “mcmansion” standards, most of the residents there likely have a higher net worth than those in newer “mcmansion” tracts.
[quote=AN]BTW, how can you own a house for 50-55 years if you’re only 73? Are you suggesting people who bought in the best area of CM bought when they’re 18-23 years old? I’m not that old, but maybe you’d know something I don’t.[/quote]
In short, yes. It was commonplace at that time to get married, buy a house and start a family all before the age of 22-23. The models on the Mt Streets of Clairemont cost approx $11K to $18K new in 1961-ish, depending on lot size, location and square footage and most originally sold VA/FHA.
[quote]There’s no apple to apple comparison between CM and MM. So, you’re trying to compare something that’s not comparable. Now, if you want to compare the whole area, then if you’re going to pick the best of CM, then it would make sense to compare with the best of MM.[/quote]
AN, even the “best of MM” doesn’t compare with the “best of Clairemont” (92111) due to lot size, topography, setback, very mature landscaping, proximity to ocean/bay, weather … many factors.
