- This topic has 17 replies, 6 voices, and was last updated 12 years, 2 months ago by
scaredyclassic.
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November 14, 2012 at 8:25 AM #20284November 14, 2012 at 9:00 AM #754674
spdrun
ParticipantI’d have though that he would pay less in the Inland Empire, even for a 4-bed.
November 14, 2012 at 10:25 AM #754678no_such_reality
ParticipantMoreno Valley is remote? Have you seen the bleeping traffic jams on the 60/215 every day?
With a down payment as low as a security deposit on an apartment and a monthly payment at half of what it costs to rent, it’s a no brainer.
November 14, 2012 at 10:55 AM #754679bearishgurl
Participant[quote=no_such_reality] . . . With a down payment as low as a security deposit on an apartment and a monthly payment at half of what it costs to rent, it’s a no brainer.[/quote]
When you add in 1/12 property taxes, 1/12 insurance premiums and HUGE monthly MIP premiums to the P&I, I doubt seriously it is cheaper to buy than rent every month, particularly in this part of the (gridlocked?) IE. And I don’t see this subset of buyers qualifying for the lowest mortgage rates, either.
How much does is cost to rent an 1800-2000 sf 4/2 there? And are they really “worth” ~$180K today??
November 14, 2012 at 11:08 AM #754681spdrun
ParticipantInsurance is about $1200/yr(?). Mortgage (principal + interest) say 6%. Taxes 1.125%. Comes to about $1100/mo. Unless PMI premiums are sky-high, I’ guess he’d be paying less than the $1500-1800 (SWAG) required to rent such a place. Defs not 50% of rent, but still an ok deal.
November 14, 2012 at 11:19 AM #754684bearishgurl
Participant[quote=spdrun]Insurance is about $1200/yr(?). Mortgage (principal + interest) say 6%. Taxes 1.125%. Comes to about $1100/mo. Unless PMI premiums are sky-high, I’ guess he’d be paying less than the $1500-1800 (SWAG) required to rent such a place. Defs not 50% of rent, but still an ok deal.[/quote]
As of April of this year, FHA MIP’s are “sky high.”
http://themortgagereports.com/7948/fha-mortgage-insurance-premium-april-2012
November 14, 2012 at 11:24 AM #754685bearishgurl
Participant[quote=bearishgurl][quote=spdrun]Insurance is about $1200/yr(?). Mortgage (principal + interest) say 6%. Taxes 1.125%. Comes to about $1100/mo. Unless PMI premiums are sky-high, I’ guess he’d be paying less than the $1500-1800 (SWAG) required to rent such a place. Defs not 50% of rent, but still an ok deal.[/quote]
As of April of this year, FHA MIP’s are “sky high.”
http://themortgagereports.com/7948/fha-mortgage-insurance-premium-april-2012
[/quote]edit: spdrun, you forgot to add in Mello-Roos. 85%+ of Moreno Valley has MR . . . and do any Piggs know how many of these tracts have HOA dues, as well?
November 14, 2012 at 12:43 PM #754691bearishgurl
Participant[quote=spdrun]Insurance is about $1200/yr(?). Mortgage (principal + interest) say 6%. Taxes 1.125%. Comes to about $1100/mo. Unless PMI premiums are sky-high, I’ guess he’d be paying less than the $1500-1800 (SWAG) required to rent such a place. Defs not 50% of rent, but still an ok deal.[/quote]
Since an 1100 sf 2/1 up to a 1500 sf 3/1.5 SFR in Chula Vista (10 mi from dtn SD and ~1 mi from SD Bay) rents for $1600 to $1800 … and in other parts of SD County, SFR rents are even less than that, what’s the “draw” for a SD County worker to rent (or buy) in the “remote IE” (85+ miles away)?
Were there ever really enough jobs in the “remote IE” (or in “nearby” East LA, East OC) to justify the building of all the tract developments out there which rose up just before and during the millenium boom??
I didn’t think so then and I don’t think so now. It’s just excess overbuilding now (predictably) turning into ghost towns. Given the choice, few workers really want to commute that far on a daily basis. The only entity that benefited from this travesty on CA’s environment is Big Development. They were aided and abetted all along thru the “development process” by our (greedy) elected officials, NONE of whom likely live within even 20 miles of the “shantytowns” and “gridlock” caused by the massive overbuilding they voted in 🙁
November 14, 2012 at 12:59 PM #754692spdrun
ParticipantTSOR says that Moreno Valley has a few plastics plants. He may work locally.
Secondly, the house is a recent 4-bedroom (2.5 or 3 baths, probably) according to the article. Depending on HOA/MR and PMI fees, it may be a good deal *for him.*
As to FHA giving a loan to a serial defaulter, it’s not something I’d do for sire.
November 14, 2012 at 1:05 PM #754693bearishgurl
Participant[quote=spdrun]TSOR says that Moreno Valley has a few plastics plants. He may work locally….[/quote]
Agreed for this buyer. But “a few plastics plants” can’t possibly provide enough “living-wage” jobs for the residents of 80-100K living units which were built in and around Moreno Valley in the last ~15 years.
November 14, 2012 at 1:06 PM #754694spdrun
ParticipantSo he’ll have a park with some haunted houses surrounding him :)-
November 14, 2012 at 1:13 PM #754695bearishgurl
Participant[quote=spdrun]So he’ll have a park with some haunted houses surrounding him :)-[/quote]
I guess if today’s scattered “pioneer-buyers” in these “CA ghost towns” want to throw a few cars up on blocks to work on and flip, hang out a clothesline or have a big party and tell their guests not to worry about blocking driveways, they won’t get any complaints from the “neighbors” or run afoul of HOA regs. Its likely most of all of the resident-members of the HOA “Board of Directors” have walked away from the development long ago, lol …
November 14, 2012 at 1:45 PM #754696The-Shoveler
ParticipantGuy’s your way off,
I have never seen Any Ghost towns in the IE…
Even in the most remote locations.
Some parts of “Moreno Valley” are fairly close to industrial centers of L.A. (city of industry etc..)
No further out than and probably a lot closer than say Carlsbad is QCOM.
Maybe 10-15 miles down the 60 at most.
Also there are quite a few Industries and warehouses distribution centers in this corridor so there are a lot of blue collar and white collar Jobs that do pay enough to easily afford this.
Not everyone has to commute to San Diego.There have been a lot of start-up IT firms in some of the better parts of the IE as well,
(HOW IS THAT POSSIBLE!!!) trust me it’s possible.November 14, 2012 at 1:56 PM #754698bearishgurl
Participant[quote=The-Shoveler]Guy’s your way off,
I have never seen Any Ghost towns in the IE…
Even in the most remote locations.
Some parts of “Moreno Valley” are fairly close to industrial centers of L.A. (city of industry etc..)
No further out than and probably a lot closer than say Carlsbad is QCOM.
Maybe 10-15 miles down the 60 at most.
Also there are quite a few Industries and warehouses distribution centers in this corridor so there are a lot of blue collar and white collar Jobs that do pay enough to easily afford this.
Not everyone has to commute to San Diego.There have been a lot of start-up IT firms in some of the better parts of the IE as well,
(HOW IS THAT POSSIBLE!!!) trust me it’s possible.[/quote]Thank you for you input, shoveler.
Every time I have driven to/from Mammoth and South Tahoe thru the back way in recent years, I saw places like Adelanto and the Victor Valley mushrooming bigger and bigger with new (small lot) construction. Off SR-395, there are tile roofs as far as the eye can see on both sides of the hwy … prior to entering the backside of the sierras.
WHERE do all these people work and how far do they have to commute one way? They can’t ALL be “retired.” It’s not a very “desirable” retirement destination.
Or, are all these tracts “relatively empty” now??
I’m referring to the SB County high desert here.
November 14, 2012 at 2:07 PM #754700The-Shoveler
ParticipantThere are quite a few defense industry Jobs in the High desert area, Edwards and there is another experiment aircraft base in Victor Valley that I cannot remember the name of and FAA has a fair sized installation there as well.
Some do commute to the train station and ride the metro into L.A.
(quite a few Truck drivers make their base there). -
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