I was thinking that perhaps with this economy people may have become a little more frugal also in terms of housing and get a nicer house that is not La Jolla zipcode for 1000 less a month…
[quote=Eugene][quote=Scarlett]
My question is, wouldn’t the rents in this higher end be more influenced by economy and tend to go down along with the prices?[/quote]
Unemployment among prospective tenants of these townhomes is considerably lower than among general population. So far those rents were probably _less_ influenced by economy.
If you adjust for tax deduction, anything below 700K is rent neutral. E.g. if you buy 8843 Caminito Sueno in the middle of its asking range, 20% down, assuming 150K household income, 5.25% mortgage … PITI $3900, tax deduction ~$950, downpayment opportunity cost ~$250, rent equivalent $3200/month.[/quote]
You are probably right, except for the income. We, at almost 200K HH income, don’t think we can afford a 700K house with 2 kids and 2 car loans and even 600K is a stretch. And property taxes will compensate for the tax deduction
