- This topic has 25 replies, 12 voices, and was last updated 17 years, 3 months ago by LA_Renter.
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September 6, 2007 at 9:52 AM #10186September 6, 2007 at 9:55 AM #83561Ex-SDParticipant
For those of you who have been posting that you believe we are near the bottom and you’re thinking of buying a home in SD within the next few months…………is this news a wake-up call for you?
September 6, 2007 at 10:00 AM #83563LA_RenterParticipant“Three-month US Libor set at 5.72375 per cent on Thursday, a new peak in the floating rate benchmark since the credit crunch emerged early last month.”
Has anyone else noticed that Gold is up about $14 to $704??
September 6, 2007 at 10:15 AM #83569crParticipantIs it me or are these moves by the FED accomplishing the following:
– Throwing good money at bad
– Forcing liquidity into a tapped out market
– Further enabling people to spend money they don’t have
– Increasing inflation
– Artificially propping up home prices
– Continued devaluation of the dollar
– Allowing banks to continue to buy/sell bad mortgages
– Trying to prevent toxic MBS from becoming completely worthless
– Spending tomorrow’s money on today’s problemsI must be missing something; i.e. the benefit.
September 6, 2007 at 10:29 AM #83571JWM in SDParticipant“For those of you who have been posting that you believe we are near the bottom and you’re thinking of buying a home in SD within the next few months…………is this news a wake-up call for you?”
You’re starting to sound like me….
No, it’s not a wake-up call for them because they still don’t know how to connect the dots from the macro to the micro. If you want proof, look at the recent post from lostcat.
September 6, 2007 at 10:36 AM #83573HereWeGoParticipantIt looks like an extension of the repos from last week. A significant number of repos mature today.
September 6, 2007 at 11:32 AM #83592Ex-SDParticipantJWM: Why ANYONE would even remotely think of buying a home in SoCal within the next two years (at a minimum) is simply beyond my ability to comprehend. It seems that there are still people who just have to have what they want, today, and it’s “damn the torpedo’s..full speed ahead” despite the glaring body of evidence that this is NOT a wise thing to do with your money.
I’m with you on just letting the fools squander their money and then sit back and watch them lose $100’s of thousands of dollars that will take them many, many years to replace. In addition, I am convinced that a hard recession is coming soon and possibly a total depression. Very few people have jobs that will survive the massive cuts that will take place with either.
I give up.September 6, 2007 at 12:11 PM #83601mixxalotParticipantAgreed or buy in a cheaper place like Texas.
I will buy in San Diego when it costs about same as rent until then no way jose. I hope prices drop another 100k to 200k on homes. That would be fantastic!!! Then we can shout at chowderhead on how much a liar and fool he really is.
He is gone- some dude named Chip replaced him recently on KOGO have you noticed?
September 6, 2007 at 1:15 PM #83614patientlywaitingParticipantjwm and ex-sd, I give up too. Let others do what they will… I just hope they don’t go around crying wolf when they lose their jobs and can’t afford the house payments.
People don’t realize that, even if they can “afford” it, working to pay back a debt they don’t need to be paying is simply idiotic.
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mixxalot, Texas is also overvalued. It’s overvalued everywhere because the easy money permeated the whole country. RENT!!
September 6, 2007 at 1:40 PM #83618bsrsharmaParticipantIt's overvalued everywhere
Not true! I read about some nice homes at affordable prices in northern suburbs of Indianapolis (Hamilton county). Around $100/sq ft SFRs (my idea of fair price for a nicer neighborhood – not ghetto stuff). Same with many nicer places in Ohio and Atlanta too. For cash buyers, there are many places where you can live nicely for $100/sqft.
September 6, 2007 at 1:50 PM #83621Ex-SDParticipantbsrsharma: Yep! I’ve lived in one of those $100 per sq. ft. homes in South Carolina for the last two years since I sold my home in Leucadia.
September 6, 2007 at 2:28 PM #83628patientlywaitingParticipantbrsharma, by overvalued, I mean with a good chance of price drops.
If you mean fairly valued then I would agree.
It’s all supply and demand, and despite houses going for $100/sf in Indianapolis (cheap by SD standards) that area has some of the highest foreclosure rates in the nation. That means that prices are bound to drop.
My point was to avoid paying for something that will be worth less in a couple of years. The alternative of renting is always available.
I run a business and I’m renting the building. A broker called me trying to sell me a building. I told him no. Then he had the temerity to show up at my office uninvited. I told him that as long as the interest + tax + maintenance on a new building is more than my NNN lease, I’ll be renting.
People should do that cost analysis before buying.
September 6, 2007 at 3:07 PM #83634kicksavedaveParticipant“Not true! I read about some nice homes at affordable prices in northern suburbs of Indianapolis (Hamilton county). Around $100/sq ft SFRs (my idea of fair price for a nicer neighborhood – not ghetto stuff). Same with many nicer places in Ohio and Atlanta too. For cash buyers, there are many places where you can live nicely for $100/sqft.”
My wife and I recently left San Diego for the Denver area. Yesterday we finalized a contract on a brand new construction 3450 sq ft SFR house by Centex, who is a solid, reputable affordable builder. Add in the unfinished 1500 sq ft basement and it’s ~5000 sq ft total. It has a beautiful unobstructed view of the Rockies, and is 30 minutes from downtown Denver, and 20 minutes from Boulder.
The price after we added in every single option they had? $295K, or $85/sq ft. Add in the space in the unfinished basement and the price is $59/sq ft, for a nice brand new house in a good suburb of a great city. So there are definitely affordable houses out there, just not in SoCal or San Diego.
Edit: The Buy vs Rent calculation came out for a buy here. We have a super cheap rental at $1400, the buy after taxes will be right around $1400 ($2100 total PITI minus ~$700 tax break). Other comparable rentals are going for $1600 to $2000.
September 6, 2007 at 3:58 PM #83639patientlywaitingParticipantwow, kicksavedave, that’s quite a deal you got there. Can you finish the basement and eventually make that space habitable? Is the basement about 3/4 way into the ground with small windows at the top? Would be cool if you can eventually finish the basement.
On the subject of Denver, how do you explain that the foreclosure rate in Denver is so high? Should people not be clamoring to buy if it’s cheaper than rent?
Your illustration also show how much profit margin there is in California. I read that CA is the biggest source of profits for the builders. Sure land costs a lot in CA but somebody is making big profit on land. By builders, I mean the industry of landowners/developers and builders combined.
September 6, 2007 at 4:33 PM #83645donaldduckmooreParticipantCooprider14, if they are doing this, the economy will get stablized for a while. If they did not do it, the economy will collapse shortly. Will you do it or not?
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