As I mentioned in my original post purchaseing a home through the housing commision is a hybrid purchase. These homes, townhomes, condo are not money makers. That is not the intent of the program. The home prices are set by a combination of Median income, Interest rate, and Housing prices. All in all they have an expectation that you should be able to pay 30% of you monthly income based on the Median Imcomes in San Diego. There fore they are locking you into a fixed monthly payment. Lets say the home price is 150K, %rate is 6% monthly payment is now 1500 a month. If the interest rate goes down to 4% the owner can now sel for 160K becasue the monthly payment is still 1500. If the median income goes from 50K in an area to 60 k this means that people can now afford more than 1500 which has the effect of increasing the 150 selling price to lets say 160.
The bottom line is that you are not going to participate in reapid appreciation. When I was in between jobs I targeted La Jolla, Del Mar, and Carmel Valley for properties. They are out there. I had a 2 bed 2 bath Carmel Valley property lined up for 140K. It would have worked out to 1500 a month. Back out the tax deduction and the pay down on the loan and I was looking at 900$. That is a damn good deal. Problen her is that the seller wanted me to pay all the closing costs. I am in sales and I knew where my income would be in a matter of months and with a wife who is close to obtaining her dental licenses here in the US I felt I would ahve an easier time in a few year of just buying a plce and hoping for the best. In any event go through psots for Temecula and the areas you are interested in. The key is getting your name on the lists. This is a very good deal for someone in your situation.
