33% loss (single family home) in Mira Mesa

[jimmyle]

http://www.sdlookup.com/MLS-078031578-10159_Clauser_St_San_Diego_CA_92126

This West Mira Mesa house in a quiet neighborhood was purchased in March 2005 for $600K. Now listing at $425K-$445K. Even though it is a short sale, it seems like the lender has approved the listed price.

Assuming it will be sold at $425K and 2 years inflation of 6%, then it is a 33% loss. When people on this website was talking about a 40% percent reduction, I thought it would be impossible. But now, I think i might be a reality after all.

[(former)FormerSanDiegan]

Nice example.

Assuming 425K and a 30-year fixed loan at 6.25% and 20% down, the monthly carrying coasts are about 2635 before tax considerations. Assuming 30% combined fed/state break that’s less than 2000 after taxes.

I think rents in this area are in the range of 2000-2400.

[jimmyle]

80% of $425K is $340K and with 6.25% interest the payment is around $2100 before taxes and insurance. What do you mean by carrying coast?

[jimmyle]

80% of $425K is $340K and with 6.25% interest the payment is around $2100 before taxes and insurance. What do you mean by carrying coast?

[jimmyle]

80% of $425K is $340K and with 6.25% interest the payment is around $2100 before taxes and insurance. What do you mean by carrying coast?

[jimmyle]

80% of $425K is $340K and with 6.25% interest the payment is around $2100 before taxes and insurance. What do you mean by carrying coast?

[jimmyle]

80% of $425K is $340K and with 6.25% interest the payment is around $2100 before taxes and insurance. What do you mean by carrying coast?

[(former)FormerSanDiegan]

Nice example.

Assuming 425K and a 30-year fixed loan at 6.25% and 20% down, the monthly carrying coasts are about 2635 before tax considerations. Assuming 30% combined fed/state break that’s less than 2000 after taxes.

I think rents in this area are in the range of 2000-2400.

[(former)FormerSanDiegan]

Nice example.

Assuming 425K and a 30-year fixed loan at 6.25% and 20% down, the monthly carrying coasts are about 2635 before tax considerations. Assuming 30% combined fed/state break that’s less than 2000 after taxes.

I think rents in this area are in the range of 2000-2400.

[(former)FormerSanDiegan]

Nice example.

Assuming 425K and a 30-year fixed loan at 6.25% and 20% down, the monthly carrying coasts are about 2635 before tax considerations. Assuming 30% combined fed/state break that’s less than 2000 after taxes.

I think rents in this area are in the range of 2000-2400.

[(former)FormerSanDiegan]

Nice example.

Assuming 425K and a 30-year fixed loan at 6.25% and 20% down, the monthly carrying coasts are about 2635 before tax considerations. Assuming 30% combined fed/state break that’s less than 2000 after taxes.

I think rents in this area are in the range of 2000-2400.

[The OC Scam]

I agree with Jimmy the payment before taxes is around 2100 with Taxes your looking at 2600 as month. Therefore this is a good deal if you have a good job! Oh but for how much longer?

[ibjames]

Aren’t some homes in this area already in the 300’s?

[jimmyle]

Yes, you can find some in the high 300’s but usually they are built in the early 70’s and in the eastern part of Mira Mesa which is slightly less desirable.

This house was built in 1985 and is in a nicer neighborhood of Mira Mesa closer to Sorrento Valley.

[jimmyle]

Yes, you can find some in the high 300’s but usually they are built in the early 70’s and in the eastern part of Mira Mesa which is slightly less desirable.

This house was built in 1985 and is in a nicer neighborhood of Mira Mesa closer to Sorrento Valley.

[jimmyle]

Yes, you can find some in the high 300’s but usually they are built in the early 70’s and in the eastern part of Mira Mesa which is slightly less desirable.

This house was built in 1985 and is in a nicer neighborhood of Mira Mesa closer to Sorrento Valley.

[jimmyle]

Yes, you can find some in the high 300’s but usually they are built in the early 70’s and in the eastern part of Mira Mesa which is slightly less desirable.

This house was built in 1985 and is in a nicer neighborhood of Mira Mesa closer to Sorrento Valley.

[jimmyle]

Yes, you can find some in the high 300’s but usually they are built in the early 70’s and in the eastern part of Mira Mesa which is slightly less desirable.

This house was built in 1985 and is in a nicer neighborhood of Mira Mesa closer to Sorrento Valley.

[Eugene]

Aren’t some homes in this area already in the 300’s?

Not in this specific neighborhood. Some homes in 92126 are, but this area is considerably newer than most of 92126 (built in 1989 as opposed to early 70’s). Better comparison is vs. 92121 (Sorrento Valley) or south 92129 (RP south of 56) and you’ll have a hard time finding a 4br house there for less than 600k.

[(former)FormerSanDiegan]

What do you mean by carrying coast?
Sorry I meant costs: PITI. The mortgage is only P&I. You still have to account for about $450 per month in property tax and about 75-100 bucks for insurance.

[an]

If you account for property tax, then you also have to account for tax deduction as well.

[ibjames]

Even though it is approaching rental numbers, don’t you guys think that this area could depreciate more?

[gn]

Even though it is approaching rental numbers, don't you guys think that this area could depreciate more?

Yes. And the reasons are:

1. In a correction, prices always over-correct.

2. At some point in the future, when prices are low enough, investors will scoop up these properties & put them on the market for rent, thus, increasing the rental supply & result in lower rents. So, the "floor" (i.e. rents) is not static, it can move down.

And of course, there is the possibility of a recession.

 

[gn]

Even though it is approaching rental numbers, don't you guys think that this area could depreciate more?

Yes. And the reasons are:

1. In a correction, prices always over-correct.

2. At some point in the future, when prices are low enough, investors will scoop up these properties & put them on the market for rent, thus, increasing the rental supply & result in lower rents. So, the "floor" (i.e. rents) is not static, it can move down.

And of course, there is the possibility of a recession.

 

[gn]

Even though it is approaching rental numbers, don't you guys think that this area could depreciate more?

Yes. And the reasons are:

1. In a correction, prices always over-correct.

2. At some point in the future, when prices are low enough, investors will scoop up these properties & put them on the market for rent, thus, increasing the rental supply & result in lower rents. So, the "floor" (i.e. rents) is not static, it can move down.

And of course, there is the possibility of a recession.

 

[gn]

Even though it is approaching rental numbers, don't you guys think that this area could depreciate more?

Yes. And the reasons are:

1. In a correction, prices always over-correct.

2. At some point in the future, when prices are low enough, investors will scoop up these properties & put them on the market for rent, thus, increasing the rental supply & result in lower rents. So, the "floor" (i.e. rents) is not static, it can move down.

And of course, there is the possibility of a recession.

 

[gn]

Even though it is approaching rental numbers, don't you guys think that this area could depreciate more?

Yes. And the reasons are:

1. In a correction, prices always over-correct.

2. At some point in the future, when prices are low enough, investors will scoop up these properties & put them on the market for rent, thus, increasing the rental supply & result in lower rents. So, the "floor" (i.e. rents) is not static, it can move down.

And of course, there is the possibility of a recession.

 

[ibjames]

Even though it is approaching rental numbers, don’t you guys think that this area could depreciate more?

[ibjames]

Even though it is approaching rental numbers, don’t you guys think that this area could depreciate more?

[ibjames]

Even though it is approaching rental numbers, don’t you guys think that this area could depreciate more?

[ibjames]

Even though it is approaching rental numbers, don’t you guys think that this area could depreciate more?

[pepsi]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

 

[patientlywaiting]

You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank.

Don’t get too emotionally invested in owning a house. It’s not the end-all-be-all that you think. You’ll make mistakes if you’re on the fence waiting to jump.

Take the long view. Wait for the market to cleanse itself before you even consider buying.

[jimmyle]

“You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank. ”

Actually I was considering about buying but have decided that late 2008 is the earliest I would buy because of the observed accelerated price reduction the last few months.

However, I think this house is one of the few houses in the market that are well priced for the current market.

I believe this is a new milestone (at least for Mira Mesa). Whenever you see a major price reduction such as this, the nearby house prices start to drop as well. You have seen this in the Westview, Galvin and Calle Cristobal neigborhoods.

[jimmyle]

“You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank. ”

Actually I was considering about buying but have decided that late 2008 is the earliest I would buy because of the observed accelerated price reduction the last few months.

However, I think this house is one of the few houses in the market that are well priced for the current market.

I believe this is a new milestone (at least for Mira Mesa). Whenever you see a major price reduction such as this, the nearby house prices start to drop as well. You have seen this in the Westview, Galvin and Calle Cristobal neigborhoods.

[jimmyle]

“You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank. ”

Actually I was considering about buying but have decided that late 2008 is the earliest I would buy because of the observed accelerated price reduction the last few months.

However, I think this house is one of the few houses in the market that are well priced for the current market.

I believe this is a new milestone (at least for Mira Mesa). Whenever you see a major price reduction such as this, the nearby house prices start to drop as well. You have seen this in the Westview, Galvin and Calle Cristobal neigborhoods.

[jimmyle]

“You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank. ”

Actually I was considering about buying but have decided that late 2008 is the earliest I would buy because of the observed accelerated price reduction the last few months.

However, I think this house is one of the few houses in the market that are well priced for the current market.

I believe this is a new milestone (at least for Mira Mesa). Whenever you see a major price reduction such as this, the nearby house prices start to drop as well. You have seen this in the Westview, Galvin and Calle Cristobal neigborhoods.

[jimmyle]

“You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank. ”

Actually I was considering about buying but have decided that late 2008 is the earliest I would buy because of the observed accelerated price reduction the last few months.

However, I think this house is one of the few houses in the market that are well priced for the current market.

I believe this is a new milestone (at least for Mira Mesa). Whenever you see a major price reduction such as this, the nearby house prices start to drop as well. You have seen this in the Westview, Galvin and Calle Cristobal neigborhoods.

[patientlywaiting]

You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank.

Don’t get too emotionally invested in owning a house. It’s not the end-all-be-all that you think. You’ll make mistakes if you’re on the fence waiting to jump.

Take the long view. Wait for the market to cleanse itself before you even consider buying.

[patientlywaiting]

You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank.

Don’t get too emotionally invested in owning a house. It’s not the end-all-be-all that you think. You’ll make mistakes if you’re on the fence waiting to jump.

Take the long view. Wait for the market to cleanse itself before you even consider buying.

[patientlywaiting]

You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank.

Don’t get too emotionally invested in owning a house. It’s not the end-all-be-all that you think. You’ll make mistakes if you’re on the fence waiting to jump.

Take the long view. Wait for the market to cleanse itself before you even consider buying.

[patientlywaiting]

You guys are funny looking at houses in this market.

You sound like kids looking for a sale to maximize your toy purchase from your allowance piggybank.

Don’t get too emotionally invested in owning a house. It’s not the end-all-be-all that you think. You’ll make mistakes if you’re on the fence waiting to jump.

Take the long view. Wait for the market to cleanse itself before you even consider buying.

[(former)FormerSanDiegan]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

If you are a couple and make about 110K (about what would be needed to qualify to buy this property) then you would already have a state tax burden of about $7000. Throw in some charitable donations and other itemized deductions equal to about 2.5% of your income and you’ll hit or be really close to the standard deduction before you even consider prop tax and mortgage interest.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

But rents also increase over a 10 year period. So your tax benefit starts to decline over a decade, but after 10 years what will rents be ?

[(former)FormerSanDiegan]

You guys are funny looking at houses in this market.
…
Take the long view. Wait for the market to cleanse itself before you even consider buying.

I agree with the latter statement.
But how would one know at what state of cleansing the market is in without looking at houses.

It’s like saying that you should stop watching the price of steak and continue to eat double cheeseburgers until the price of steak bottoms out.

[(former)FormerSanDiegan]

You guys are funny looking at houses in this market.
…
Take the long view. Wait for the market to cleanse itself before you even consider buying.

I agree with the latter statement.
But how would one know at what state of cleansing the market is in without looking at houses.

It’s like saying that you should stop watching the price of steak and continue to eat double cheeseburgers until the price of steak bottoms out.

[(former)FormerSanDiegan]

You guys are funny looking at houses in this market.
…
Take the long view. Wait for the market to cleanse itself before you even consider buying.

I agree with the latter statement.
But how would one know at what state of cleansing the market is in without looking at houses.

It’s like saying that you should stop watching the price of steak and continue to eat double cheeseburgers until the price of steak bottoms out.

[(former)FormerSanDiegan]

You guys are funny looking at houses in this market.
…
Take the long view. Wait for the market to cleanse itself before you even consider buying.

I agree with the latter statement.
But how would one know at what state of cleansing the market is in without looking at houses.

It’s like saying that you should stop watching the price of steak and continue to eat double cheeseburgers until the price of steak bottoms out.

[(former)FormerSanDiegan]

You guys are funny looking at houses in this market.
…
Take the long view. Wait for the market to cleanse itself before you even consider buying.

I agree with the latter statement.
But how would one know at what state of cleansing the market is in without looking at houses.

It’s like saying that you should stop watching the price of steak and continue to eat double cheeseburgers until the price of steak bottoms out.

[(former)FormerSanDiegan]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

If you are a couple and make about 110K (about what would be needed to qualify to buy this property) then you would already have a state tax burden of about $7000. Throw in some charitable donations and other itemized deductions equal to about 2.5% of your income and you’ll hit or be really close to the standard deduction before you even consider prop tax and mortgage interest.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

But rents also increase over a 10 year period. So your tax benefit starts to decline over a decade, but after 10 years what will rents be ?

[(former)FormerSanDiegan]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

If you are a couple and make about 110K (about what would be needed to qualify to buy this property) then you would already have a state tax burden of about $7000. Throw in some charitable donations and other itemized deductions equal to about 2.5% of your income and you’ll hit or be really close to the standard deduction before you even consider prop tax and mortgage interest.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

But rents also increase over a 10 year period. So your tax benefit starts to decline over a decade, but after 10 years what will rents be ?

[(former)FormerSanDiegan]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

If you are a couple and make about 110K (about what would be needed to qualify to buy this property) then you would already have a state tax burden of about $7000. Throw in some charitable donations and other itemized deductions equal to about 2.5% of your income and you’ll hit or be really close to the standard deduction before you even consider prop tax and mortgage interest.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

But rents also increase over a 10 year period. So your tax benefit starts to decline over a decade, but after 10 years what will rents be ?

[(former)FormerSanDiegan]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

If you are a couple and make about 110K (about what would be needed to qualify to buy this property) then you would already have a state tax burden of about $7000. Throw in some charitable donations and other itemized deductions equal to about 2.5% of your income and you’ll hit or be really close to the standard deduction before you even consider prop tax and mortgage interest.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

But rents also increase over a 10 year period. So your tax benefit starts to decline over a decade, but after 10 years what will rents be ?

[pepsi]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

 

[pepsi]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

 

[pepsi]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

 

[pepsi]

If you account for tax deduction, then you also have to consider the Standard deduction (for couples,it is $10700) you lost by itemize.

The tax deduction usually goes away after 20 years (for 30 year loan) or 10 years for 15 year loan, because the standard deduction is adjusted (up) for inflation.

 

[an]

If you account for property tax, then you also have to account for tax deduction as well.

[an]

If you account for property tax, then you also have to account for tax deduction as well.

[an]

If you account for property tax, then you also have to account for tax deduction as well.

[an]

If you account for property tax, then you also have to account for tax deduction as well.

[(former)FormerSanDiegan]

What do you mean by carrying coast?
Sorry I meant costs: PITI. The mortgage is only P&I. You still have to account for about $450 per month in property tax and about 75-100 bucks for insurance.

[(former)FormerSanDiegan]

What do you mean by carrying coast?
Sorry I meant costs: PITI. The mortgage is only P&I. You still have to account for about $450 per month in property tax and about 75-100 bucks for insurance.

[(former)FormerSanDiegan]

What do you mean by carrying coast?
Sorry I meant costs: PITI. The mortgage is only P&I. You still have to account for about $450 per month in property tax and about 75-100 bucks for insurance.

[(former)FormerSanDiegan]

What do you mean by carrying coast?
Sorry I meant costs: PITI. The mortgage is only P&I. You still have to account for about $450 per month in property tax and about 75-100 bucks for insurance.

[Eugene]

Aren’t some homes in this area already in the 300’s?

Not in this specific neighborhood. Some homes in 92126 are, but this area is considerably newer than most of 92126 (built in 1989 as opposed to early 70’s). Better comparison is vs. 92121 (Sorrento Valley) or south 92129 (RP south of 56) and you’ll have a hard time finding a 4br house there for less than 600k.

[Eugene]

Aren’t some homes in this area already in the 300’s?

Not in this specific neighborhood. Some homes in 92126 are, but this area is considerably newer than most of 92126 (built in 1989 as opposed to early 70’s). Better comparison is vs. 92121 (Sorrento Valley) or south 92129 (RP south of 56) and you’ll have a hard time finding a 4br house there for less than 600k.

[Eugene]

Aren’t some homes in this area already in the 300’s?

Not in this specific neighborhood. Some homes in 92126 are, but this area is considerably newer than most of 92126 (built in 1989 as opposed to early 70’s). Better comparison is vs. 92121 (Sorrento Valley) or south 92129 (RP south of 56) and you’ll have a hard time finding a 4br house there for less than 600k.

[Eugene]

Aren’t some homes in this area already in the 300’s?

Not in this specific neighborhood. Some homes in 92126 are, but this area is considerably newer than most of 92126 (built in 1989 as opposed to early 70’s). Better comparison is vs. 92121 (Sorrento Valley) or south 92129 (RP south of 56) and you’ll have a hard time finding a 4br house there for less than 600k.

[ibjames]

Aren’t some homes in this area already in the 300’s?

[ibjames]

Aren’t some homes in this area already in the 300’s?

[ibjames]

Aren’t some homes in this area already in the 300’s?

[ibjames]

Aren’t some homes in this area already in the 300’s?

[The OC Scam]

I agree with Jimmy the payment before taxes is around 2100 with Taxes your looking at 2600 as month. Therefore this is a good deal if you have a good job! Oh but for how much longer?

[The OC Scam]

I agree with Jimmy the payment before taxes is around 2100 with Taxes your looking at 2600 as month. Therefore this is a good deal if you have a good job! Oh but for how much longer?

[The OC Scam]

I agree with Jimmy the payment before taxes is around 2100 with Taxes your looking at 2600 as month. Therefore this is a good deal if you have a good job! Oh but for how much longer?

[The OC Scam]

I agree with Jimmy the payment before taxes is around 2100 with Taxes your looking at 2600 as month. Therefore this is a good deal if you have a good job! Oh but for how much longer?

[Author]

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