40% drop on M.V. Condo, does it make fundamental sense now?

[Arraya]

Lindismith,

I am watching Hillcrest/Bankers hill condos pretty closely as well. It seems that the sub 1000 sq ft are getting clobbered. I’d say over 50% of the sub 1000 are listing at a loss. I’ve seen many 50-100K losses off of peak.

Also if you notice the the inventory is probably close to 15 months if you count all the newly developed that they are not listing. Plus Deca which is schedualed to be finnished in sept I with another 187 units. Ughh… It’s ugly.

Interesting watching all the bank owned undercut peak buyers that are trying to sell at what they bought it for.

I see a fundementals approching quickly as well maybe less than 12 months.

[temeculaguy]

bazman, welcome aboard! To answer your tax question, at 50k the tax bene’s are not that great, as your income rises it has greater benefit. The first 50k isn’t taxed too heavily, if your income is likely to rise higher in the near term it starts becoming beneficial, over 77k for singles is it 28% but the first 8k is 10% and from 8-32k is 15%, 32k to 77 is 25%. If your income were to go up 12k but you bought a house and shielded 12k, you would avoid $3k in taxes a year or $250 a month. 100k earners are shielding their 28% taxes and a 2k mortgage shields 28% of 24k, somewhere near $700 a month, so by doubling the income and the house payment you almost triple the tax benefit. You are wise to realize that on 50k a 150k pruchase is plausable, 3x income and you will be fine. It is likely your income and savings will rise and the prices will come down so you can meet somewhere in the middle.

[temeculaguy]

bazman, welcome aboard! To answer your tax question, at 50k the tax bene’s are not that great, as your income rises it has greater benefit. The first 50k isn’t taxed too heavily, if your income is likely to rise higher in the near term it starts becoming beneficial, over 77k for singles is it 28% but the first 8k is 10% and from 8-32k is 15%, 32k to 77 is 25%. If your income were to go up 12k but you bought a house and shielded 12k, you would avoid $3k in taxes a year or $250 a month. 100k earners are shielding their 28% taxes and a 2k mortgage shields 28% of 24k, somewhere near $700 a month, so by doubling the income and the house payment you almost triple the tax benefit. You are wise to realize that on 50k a 150k pruchase is plausable, 3x income and you will be fine. It is likely your income and savings will rise and the prices will come down so you can meet somewhere in the middle.

[temeculaguy]

bazman, welcome aboard! To answer your tax question, at 50k the tax bene’s are not that great, as your income rises it has greater benefit. The first 50k isn’t taxed too heavily, if your income is likely to rise higher in the near term it starts becoming beneficial, over 77k for singles is it 28% but the first 8k is 10% and from 8-32k is 15%, 32k to 77 is 25%. If your income were to go up 12k but you bought a house and shielded 12k, you would avoid $3k in taxes a year or $250 a month. 100k earners are shielding their 28% taxes and a 2k mortgage shields 28% of 24k, somewhere near $700 a month, so by doubling the income and the house payment you almost triple the tax benefit. You are wise to realize that on 50k a 150k pruchase is plausable, 3x income and you will be fine. It is likely your income and savings will rise and the prices will come down so you can meet somewhere in the middle.

[thebazman]

Thanks Temecula Guy!

[thebazman]

Thanks Temecula Guy!

[thebazman]

Thanks Temecula Guy!

[citydweller]

temeculaguy,

Good question about whether the 180K was the sale back to the bank or to a new buyer. I have no idea. Does anyone here know how to find that out?

[citydweller]

temeculaguy,

Good question about whether the 180K was the sale back to the bank or to a new buyer. I have no idea. Does anyone here know how to find that out?

[citydweller]

temeculaguy,

Good question about whether the 180K was the sale back to the bank or to a new buyer. I have no idea. Does anyone here know how to find that out?

[citydweller]

bazman,
That’s funny that you found Piggington on craigslist. My first thought when I read that, was that George Chamberlain won’t be very happy to hear about it.

[citydweller]

bazman,
That’s funny that you found Piggington on craigslist. My first thought when I read that, was that George Chamberlain won’t be very happy to hear about it.

[citydweller]

bazman,
That’s funny that you found Piggington on craigslist. My first thought when I read that, was that George Chamberlain won’t be very happy to hear about it.

[SD Realtor]

Citydweller if you print out the address you can find out. I have some good experience with Mission Valley. I bought a 1/1 in Mission Plaza back in 02 and sold it a few months ago. I am not so sure about the 1050 rent but that sounds about right as that was the rent I was charging my client. Overall it was okay for me and worked out well. I sold it at about 10% below what the current market was back in the spring and am glad I did.

I think the condo market will continue to depreciate substantially condominiums. That 1/1 for 180k may indeed been a “true” sale as in an REO that went from the lender to a private party. I have seen other prices in that range. As for the 300k for the 1/1 at the top of the market… mmmm I am not so sure about that but I am sure you can find an isolated case or two. The 1/1s in Mission Plaza maxed out at like 250-260 at the height of the frenzy.,. maybe more if I went and dug around.

Anyways point being for any of you guys thinking about condos as first time buyers.. try to hold out awhile longer.

SD Realtor

[SD Realtor]

Citydweller if you print out the address you can find out. I have some good experience with Mission Valley. I bought a 1/1 in Mission Plaza back in 02 and sold it a few months ago. I am not so sure about the 1050 rent but that sounds about right as that was the rent I was charging my client. Overall it was okay for me and worked out well. I sold it at about 10% below what the current market was back in the spring and am glad I did.

I think the condo market will continue to depreciate substantially condominiums. That 1/1 for 180k may indeed been a “true” sale as in an REO that went from the lender to a private party. I have seen other prices in that range. As for the 300k for the 1/1 at the top of the market… mmmm I am not so sure about that but I am sure you can find an isolated case or two. The 1/1s in Mission Plaza maxed out at like 250-260 at the height of the frenzy.,. maybe more if I went and dug around.

Anyways point being for any of you guys thinking about condos as first time buyers.. try to hold out awhile longer.

SD Realtor

[Author]

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