Fashion Valley

[Anonymous]

Unit #119 is now selling for $219k. Listed on 9/8/2006 for $249k. Sellers purchased the unit on 5/2004 for $295k and owe $280,250.00. Tenant occupied. Renting for $1,100/month.

[citydweller]

Realtor in Uptown,
Thanks for the info. I finally went to SDLookup.com, what a great site.

So if it’s renting for $1100 per month, what would be a “sensible” price to pay, for someone who wanted to live there long term?

What’s the formula for figuring out the true value of a unit based on it’s rent potential?

[citydweller]

JWM in S.D.,
You’re right. According to Zillow, another 1 br at this location just sold for $200K. Is THIS the bottom? haha!

[Anonymous]

If you put 20% down for a 30 year fixed maybe you could purchase this unit for $170k max. Your payment would be about $1100 a month. I suggest you speak with your bank or lender to to get a more accurate payment.
I would not hesitate to offer that price. The bank is losing money and they might accept your offer to dump the condo. If they dont you move on.

[Cow_tipping]

Not only were 02 prices inflated from the bubble and 9/11 paranoia (own a piece of american dirt before the terrorists take it all, never mind that if they could and did took it, and you owned it … you’d still be dirt less) … these were high paying and medium paying and low paying jobs in the us in 1997 that have probably disappeared forever into India and china via outsourcing by 2007. IMHO Our bottom is below 1997 prices. Remember in 97 we were furoiusly importing high wage jobs via H1 programs (200 K a year plus) which we now send out at an even furiouser pace.
Cool.
Cow_tipping.

[Anonymous]

Bottom? Probably not. As Winston Churchill said after the British victory in the Battle of Britain, “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”

To put a finer point on the rental scenario – you would most likely get an accepted offer around $200k if they are asking $215K.

Payment $1125
HOA $240 (?)
Prop Tax $170

Your payments would total about $1535. Renting it out for $1100 creates a loss of $435 per month. Living in it gives you a minor tax savings. Renting one instead of buying saves you $435 per month. But over time rents will go up.

So maybe you should save your money and invest in Denver (highest foreclosure rate in nation). Or buy a nice car (BMW Z4?).

[PerryChase]

Rent at $1,100 for an old 1970s 1-bed is high. I think that $950 is more like it. I know someone who pays $950.

Rent will come down when all the for-sale units (including all the condo conversion units) in Fashion/Mission Valley hit the market. I’m willing to bet that rent will be down in the next 5 years, not up. People of working age are moving out of SD and thousands of unit will hit the rental market.

I think that prices for a 1-bd unit will settle at $90k in an old building and $125k in a newer building. Don’t pay more, rent and watch the market. If you buy now, you can easily loose your down-payment and more.

[Anonymous]

PerryChase,

I agree the market will get worse. Just giving the information based on the rent.

[Anonymous]

To make sure you are buying into a good investment check the owner occupancy rate.

[citydweller]

I have no intention of buying anything in the near or not so near future. I believe that when the market hits bottom it’s going to stay there for awhile, so really no need to rush in. Like others have said, I’m just going to sit back and watch for awhile.

[Cow_tipping]

Correct city dweller … fundamentals change slowly … reverting to fundamentals means … it will sit there till they change … that’s however not a bottom, bottom will be when it over shoots the fundamentals and comes back up to fundamentals rather quick … So, we buy when its doing that …
Cool.
Cow_tipping,

[Author]

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