expensive La Jolla townhomes – how low will they go?

[Scarlett]

Rents in mid 3000/mo.

At least that’s what I was able to figure out from the very few that hit the craigslist.

Rent neutral would be low 600K, maybe mid 600K…
I think we are going to see those soon, in fact some are almost there.

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?

[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.

[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.

[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.

[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.

[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.

[Scarlett]

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

[Scarlett]

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

[Scarlett]

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

[Scarlett]

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

[Scarlett]

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

[Eugene]

Property taxes are included in PITI, and they are substantially smaller than tax deduction.

If you contribute maximum to both of your 401k’s, your housing payment would be around 40% of your net income. Two kids … 2500/month for full-time care, 5 days a week, in the child care place in UTC mall, till they are old enough to go to school, much less after that. And why do you have car loans if you make that kind of money?

Pay off your car loans first, save up for the down payment if you don’t have 150-200k in the bank already … those places may not go below 600’s, but they probably won’t shoot right up, either.

I like those townhomes, and I like the area (I lived across the freeway from them for 5 years). If I could be comfortable with only 3 bedrooms and 2000 sf, I’d probably buy one of those myself. Sadly, I need a lot more room to keep my family happy, and I don’t expect to make enough money to afford a 3000 sf home in La Jolla without a major career change… For now, I’ll live in the boonies and focus on trying to score 175 on LSAT.

[Eugene]

Property taxes are included in PITI, and they are substantially smaller than tax deduction.

If you contribute maximum to both of your 401k’s, your housing payment would be around 40% of your net income. Two kids … 2500/month for full-time care, 5 days a week, in the child care place in UTC mall, till they are old enough to go to school, much less after that. And why do you have car loans if you make that kind of money?

Pay off your car loans first, save up for the down payment if you don’t have 150-200k in the bank already … those places may not go below 600’s, but they probably won’t shoot right up, either.

I like those townhomes, and I like the area (I lived across the freeway from them for 5 years). If I could be comfortable with only 3 bedrooms and 2000 sf, I’d probably buy one of those myself. Sadly, I need a lot more room to keep my family happy, and I don’t expect to make enough money to afford a 3000 sf home in La Jolla without a major career change… For now, I’ll live in the boonies and focus on trying to score 175 on LSAT.

[Eugene]

Property taxes are included in PITI, and they are substantially smaller than tax deduction.

If you contribute maximum to both of your 401k’s, your housing payment would be around 40% of your net income. Two kids … 2500/month for full-time care, 5 days a week, in the child care place in UTC mall, till they are old enough to go to school, much less after that. And why do you have car loans if you make that kind of money?

Pay off your car loans first, save up for the down payment if you don’t have 150-200k in the bank already … those places may not go below 600’s, but they probably won’t shoot right up, either.

I like those townhomes, and I like the area (I lived across the freeway from them for 5 years). If I could be comfortable with only 3 bedrooms and 2000 sf, I’d probably buy one of those myself. Sadly, I need a lot more room to keep my family happy, and I don’t expect to make enough money to afford a 3000 sf home in La Jolla without a major career change… For now, I’ll live in the boonies and focus on trying to score 175 on LSAT.

[Eugene]

Property taxes are included in PITI, and they are substantially smaller than tax deduction.

If you contribute maximum to both of your 401k’s, your housing payment would be around 40% of your net income. Two kids … 2500/month for full-time care, 5 days a week, in the child care place in UTC mall, till they are old enough to go to school, much less after that. And why do you have car loans if you make that kind of money?

Pay off your car loans first, save up for the down payment if you don’t have 150-200k in the bank already … those places may not go below 600’s, but they probably won’t shoot right up, either.

I like those townhomes, and I like the area (I lived across the freeway from them for 5 years). If I could be comfortable with only 3 bedrooms and 2000 sf, I’d probably buy one of those myself. Sadly, I need a lot more room to keep my family happy, and I don’t expect to make enough money to afford a 3000 sf home in La Jolla without a major career change… For now, I’ll live in the boonies and focus on trying to score 175 on LSAT.

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