I echo the point about wanting to stay informed. I sold in April ’05, I’m renting, and I’m trying to gather information. I’m hoping that when there is a good deal out there I’ll be able to recognize it.
As for the bloodbath that may or may not be brewing, the potential is terrifying to me. I had an opportunity to speak to the CEO of the county and asked if there was a Plan B if property taxes drop significantly, to pay for schools, mental health care, basic infrastructure, etc. He said, “No”, but he didn’t treat me like it was a crazy question, which is both comforting (he’s not stupid) and unsettling (he’s not stupid, but there’s no contingency plan). As previous posts point out, the government is a huge employer in San Diego, and many city/county/state services are stretched to the limit already. A budget decrease of any amount could have far reaching consequences. I’m not necessarily predicting lay-offs; my concern is what will happen to the already-poor, children, sick, and mentally ill during a bad economic downturn. And forget about luxuries like libraries and pools and working street lamps.
As a professional, I’ve watched fellow county employees who make half of what I make leverage themselves like you wouldn’t believe to buy that second or third condo. I’m afraid they are going to be completely wiped out. And my peer colleagues, who earn more money, are almost as bad: off the top of my head, I know four over 100k earners in my office who think their IO loans are a great deal, even though their rates are resetting soon and they’re not paying down any extra principle.
I HOPE I’m wrong. But for me, this whole thing is as compelling as a horror movie. I think I know what’s going to happen, and I don’t want to watch, but I can’t seem to turn away. It’s fascinating and terrifying at the same time.
