Oh definitely I agree with you BG that San Diego will always be an attractive area to own properties. Especially from people from fly over states as you mentioned before. I know several people that live in Texas that fly over to San Diego once a month even for a long weekend. (They have houses in La Jolla).
One woman I just had coffee with in La Jolla lives in Dallas and she originally bought a house for her daughter to live in but her daughter moved to Los Angeles so the house just sits empty! She said she uses it but rarely. Lots of people like her as well.
Also, again BG is correct about the Mexican nationals that own in the area. I’ve met several. And as she mentioned it’s NOT drug money or anything to do with drugs. It’s clean money. MANY business owners that own successful small, medium and large companies over there.
My friend in La Jolla that lives in a gated community said his community is chock full of wealthy Mexican owners like this. And I know Coronado has many as well. (Heck, look at that woman that was busted in Mexico that was stealing money from the school system there). She had a place or two in Coronado. (In her case the money was tainted).
Also, lately I’ve met several people from South America that own places here in San Diego. Just got introduced from friends of friends. People have this mistaken assumption that anyone from Latin America that has millions to buy a place cash but be a druglord or something.
I lived in South America for many years and I can tell you the wealth over there would shock you. Argentines, Brazilians, Uruguayans, Peru, Colombians…… many many own businesses over there or just family money and they make Americans look like paupers.
People down there don’t have the cheap and easy credit like we have here. In many areas down there you MUST pay cash for your properties. Mortgage products like we have don’t exist in some of these places.
I actually love it down there because you see someone that “owns” a place and they really do “OWN” it. Not the bank. There are NO foreclosures there. You see a guy driving around a BMW or Audi or Mercedes and it means they have a lot of $$$$. Here it means nothing where someone lives or what they drive.
Heading into the future I believe you will see more and more foreign nationals buying properties in San Diego. Sure, lots already do in Florida but I’ve noticed a trend over the past 2 years that more are starting to shift their investments to California now that it’s more affordable.
[quote=ctr70]”3. I was just offered a stated income loan at 3%, max stated income being 3x liquid assets after closing, letters of reference required. Don’t be so sure — creative financing is back, at least on the right coast. Of course, this is still better than a NINA or NINJA loan of years past.”
—–>Yes but you need a huge down payment for a loan like that today, 30-40% down. A loan with 20%-40% down has almost ZERO risk of default. 2003-2007 they were doing stated income ZERO DOWN for people with shitty credit! HUGE difference! Apples and oranges! So I disagree with you, creative financing is NOT back. Anything with more than 20% down is not creative financing IMO.[/quote]
Absolutely ctr70 is spot on target. This is nothing compared to the “creative financing” you saw leading up to the bubble. That simply will NOT happen again. I do think the VA and FHA needs to be more stringent but it’s not like that is funny money either like before.
We will NEVER see the type of thing we saw before. It simply won’t be allowed. Not only apples and oranges. But apples vs. coconuts!
