Highlands Village in Carmel Valley: need advice!

[CA renter]

[quote=SD Realtor]My belief is unchanged….that we will not see substantial price drops in San Diego until mortgage rates increase dramatically. We may see smaller price fluctuations and flatness as the market reaches a new yet manipulated equilibrium. However until our credit is disrupted by bond market distortions, it is happy times.[/quote]

We’re very much in agreement on this. Interest rates will play an important part in housing prices as we move forward.

[joec]

[quote=CA renter][quote=SD Realtor]My belief is unchanged….that we will not see substantial price drops in San Diego until mortgage rates increase dramatically. We may see smaller price fluctuations and flatness as the market reaches a new yet manipulated equilibrium. However until our credit is disrupted by bond market distortions, it is happy times.[/quote]

We’re very much in agreement on this. Interest rates will play an important part in housing prices as we move forward.[/quote]

Agreed as well. Not really a CV area discussion, but your best bet maybe to save up a bit more for a bigger down and perhaps see if you can get into a SFH rather than a TH if that’s what you really want…

Since moving and buying is a pain and a large expense, you may want something you can be stuck in for a while if rates change or your situation changes (people who buy should look to stay put for 6-7 years+ anyways)…

That said, a good thing with buying is you can stop or slow down all the housing searches! A lot of pigg members have bought in the past 2 years I think and it’s incredibly nice to not have to worry about interest rates, visit open homes constantly, look through housing ads, track housing prices in the area you want to buy in, compete with other short sale buyers, etc…

The amount of time you get back is huge and you can spend time on family, hobbies, fun. 🙂

Good luck!

[joec]

[quote=CA renter][quote=SD Realtor]My belief is unchanged….that we will not see substantial price drops in San Diego until mortgage rates increase dramatically. We may see smaller price fluctuations and flatness as the market reaches a new yet manipulated equilibrium. However until our credit is disrupted by bond market distortions, it is happy times.[/quote]

We’re very much in agreement on this. Interest rates will play an important part in housing prices as we move forward.[/quote]

Agreed as well. Not really a CV area discussion, but your best bet maybe to save up a bit more for a bigger down and perhaps see if you can get into a SFH rather than a TH if that’s what you really want…

Since moving and buying is a pain and a large expense, you may want something you can be stuck in for a while if rates change or your situation changes (people who buy should look to stay put for 6-7 years+ anyways)…

That said, a good thing with buying is you can stop or slow down all the housing searches! A lot of pigg members have bought in the past 2 years I think and it’s incredibly nice to not have to worry about interest rates, visit open homes constantly, look through housing ads, track housing prices in the area you want to buy in, compete with other short sale buyers, etc…

The amount of time you get back is huge and you can spend time on family, hobbies, fun. 🙂

Good luck!

[joec]

[quote=CA renter][quote=SD Realtor]My belief is unchanged….that we will not see substantial price drops in San Diego until mortgage rates increase dramatically. We may see smaller price fluctuations and flatness as the market reaches a new yet manipulated equilibrium. However until our credit is disrupted by bond market distortions, it is happy times.[/quote]

We’re very much in agreement on this. Interest rates will play an important part in housing prices as we move forward.[/quote]

Agreed as well. Not really a CV area discussion, but your best bet maybe to save up a bit more for a bigger down and perhaps see if you can get into a SFH rather than a TH if that’s what you really want…

Since moving and buying is a pain and a large expense, you may want something you can be stuck in for a while if rates change or your situation changes (people who buy should look to stay put for 6-7 years+ anyways)…

That said, a good thing with buying is you can stop or slow down all the housing searches! A lot of pigg members have bought in the past 2 years I think and it’s incredibly nice to not have to worry about interest rates, visit open homes constantly, look through housing ads, track housing prices in the area you want to buy in, compete with other short sale buyers, etc…

The amount of time you get back is huge and you can spend time on family, hobbies, fun. 🙂

Good luck!

[joec]

[quote=CA renter][quote=SD Realtor]My belief is unchanged….that we will not see substantial price drops in San Diego until mortgage rates increase dramatically. We may see smaller price fluctuations and flatness as the market reaches a new yet manipulated equilibrium. However until our credit is disrupted by bond market distortions, it is happy times.[/quote]

We’re very much in agreement on this. Interest rates will play an important part in housing prices as we move forward.[/quote]

Agreed as well. Not really a CV area discussion, but your best bet maybe to save up a bit more for a bigger down and perhaps see if you can get into a SFH rather than a TH if that’s what you really want…

Since moving and buying is a pain and a large expense, you may want something you can be stuck in for a while if rates change or your situation changes (people who buy should look to stay put for 6-7 years+ anyways)…

That said, a good thing with buying is you can stop or slow down all the housing searches! A lot of pigg members have bought in the past 2 years I think and it’s incredibly nice to not have to worry about interest rates, visit open homes constantly, look through housing ads, track housing prices in the area you want to buy in, compete with other short sale buyers, etc…

The amount of time you get back is huge and you can spend time on family, hobbies, fun. 🙂

Good luck!

[joec]

[quote=CA renter][quote=SD Realtor]My belief is unchanged….that we will not see substantial price drops in San Diego until mortgage rates increase dramatically. We may see smaller price fluctuations and flatness as the market reaches a new yet manipulated equilibrium. However until our credit is disrupted by bond market distortions, it is happy times.[/quote]

We’re very much in agreement on this. Interest rates will play an important part in housing prices as we move forward.[/quote]

Agreed as well. Not really a CV area discussion, but your best bet maybe to save up a bit more for a bigger down and perhaps see if you can get into a SFH rather than a TH if that’s what you really want…

Since moving and buying is a pain and a large expense, you may want something you can be stuck in for a while if rates change or your situation changes (people who buy should look to stay put for 6-7 years+ anyways)…

That said, a good thing with buying is you can stop or slow down all the housing searches! A lot of pigg members have bought in the past 2 years I think and it’s incredibly nice to not have to worry about interest rates, visit open homes constantly, look through housing ads, track housing prices in the area you want to buy in, compete with other short sale buyers, etc…

The amount of time you get back is huge and you can spend time on family, hobbies, fun. 🙂

Good luck!

[Anonymous]

Hi,

We are also considering buying the highland village townhome in CV.

I would like to know how much did your friend purchase it for?

Are thier prices negotiable or not?If yes, by how much?
I am interested in thier plan 3 and plan 2 Townhomes.

Please let me know.

Thanks,

[Anonymous]

Hi,

We are also considering buying the highland village townhome in CV.

I would like to know how much did your friend purchase it for?

Are thier prices negotiable or not?If yes, by how much?
I am interested in thier plan 3 and plan 2 Townhomes.

Please let me know.

Thanks,

[Anonymous]

Hi,

We are also considering buying the highland village townhome in CV.

I would like to know how much did your friend purchase it for?

Are thier prices negotiable or not?If yes, by how much?
I am interested in thier plan 3 and plan 2 Townhomes.

Please let me know.

Thanks,

[Anonymous]

Hi,

We are also considering buying the highland village townhome in CV.

I would like to know how much did your friend purchase it for?

Are thier prices negotiable or not?If yes, by how much?
I am interested in thier plan 3 and plan 2 Townhomes.

Please let me know.

Thanks,

[Anonymous]

Hi,

We are also considering buying the highland village townhome in CV.

I would like to know how much did your friend purchase it for?

Are thier prices negotiable or not?If yes, by how much?
I am interested in thier plan 3 and plan 2 Townhomes.

Please let me know.

Thanks,

[cabal]

Le Petit Ange – I was troubled reading your posts. More information is needed to properly advise on your situation.

First, what are your plans for your severely underwater 4s townhouse purchased in 2007? If you paid 450K, it’s probably worth 330K today. If you paid 350K, it’s worth 220K. Rents will scale accordingly. My guess is you’re looking at $300-$500 minimum negative cash flow before factoring in maintenance costs and vacancy rates. Hopefully you have a fixed rate loan since you can’t refi without plopping down significant cash. You can’t get a loan mod because you’re not distressed, and a short sale will hurt your credit eliminating the option to buy another house without a co-signor, at least for a few years. Basically, you are stuck with your townhouse and will have to carry this burden going forward.

Second, having kids starting in a few years will put a severe dent in your cashflow, and continue to do so until they are out of college. If you both continue to work, you will have to pay for childcare, or if you stay home, you lose your income. I don’t know how you can afford a 600K home assuming you put down most of your money in the townhouse. To save 120K liquid in 3 years is possible, if your combined income exceeds 130K while living an extremely frugal lifestyle. However, you should have 170K cash on hand, 120K for downpayment and 50K in reserves.

Based on the limited information provided, my recommendation is not to purchase another home unless you can dump your 4s townhouse relatively unscathed. If you are able to sell the townhouse, buy a SFH, not another townhouse. Condo/townhouse appreciation are parasitic in nature riding on the coattails of adjacent prime SFH property.

Regarding the double dip in prices, I don’t see it happening in good SD locations, especially at this price point and location. Don’t worry about rates either. They won’t be allowed to increase until consumer confidence is nearly reestablished in the housing market. When that happens, the rest of the sideline money will come out further fueling demand/greed and countering any effects from incremental rate increases. That’s why home prices can sometimes increase with increasing rates.

[cabal]

Le Petit Ange – I was troubled reading your posts. More information is needed to properly advise on your situation.

First, what are your plans for your severely underwater 4s townhouse purchased in 2007? If you paid 450K, it’s probably worth 330K today. If you paid 350K, it’s worth 220K. Rents will scale accordingly. My guess is you’re looking at $300-$500 minimum negative cash flow before factoring in maintenance costs and vacancy rates. Hopefully you have a fixed rate loan since you can’t refi without plopping down significant cash. You can’t get a loan mod because you’re not distressed, and a short sale will hurt your credit eliminating the option to buy another house without a co-signor, at least for a few years. Basically, you are stuck with your townhouse and will have to carry this burden going forward.

Second, having kids starting in a few years will put a severe dent in your cashflow, and continue to do so until they are out of college. If you both continue to work, you will have to pay for childcare, or if you stay home, you lose your income. I don’t know how you can afford a 600K home assuming you put down most of your money in the townhouse. To save 120K liquid in 3 years is possible, if your combined income exceeds 130K while living an extremely frugal lifestyle. However, you should have 170K cash on hand, 120K for downpayment and 50K in reserves.

Based on the limited information provided, my recommendation is not to purchase another home unless you can dump your 4s townhouse relatively unscathed. If you are able to sell the townhouse, buy a SFH, not another townhouse. Condo/townhouse appreciation are parasitic in nature riding on the coattails of adjacent prime SFH property.

Regarding the double dip in prices, I don’t see it happening in good SD locations, especially at this price point and location. Don’t worry about rates either. They won’t be allowed to increase until consumer confidence is nearly reestablished in the housing market. When that happens, the rest of the sideline money will come out further fueling demand/greed and countering any effects from incremental rate increases. That’s why home prices can sometimes increase with increasing rates.

[cabal]

Le Petit Ange – I was troubled reading your posts. More information is needed to properly advise on your situation.

First, what are your plans for your severely underwater 4s townhouse purchased in 2007? If you paid 450K, it’s probably worth 330K today. If you paid 350K, it’s worth 220K. Rents will scale accordingly. My guess is you’re looking at $300-$500 minimum negative cash flow before factoring in maintenance costs and vacancy rates. Hopefully you have a fixed rate loan since you can’t refi without plopping down significant cash. You can’t get a loan mod because you’re not distressed, and a short sale will hurt your credit eliminating the option to buy another house without a co-signor, at least for a few years. Basically, you are stuck with your townhouse and will have to carry this burden going forward.

Second, having kids starting in a few years will put a severe dent in your cashflow, and continue to do so until they are out of college. If you both continue to work, you will have to pay for childcare, or if you stay home, you lose your income. I don’t know how you can afford a 600K home assuming you put down most of your money in the townhouse. To save 120K liquid in 3 years is possible, if your combined income exceeds 130K while living an extremely frugal lifestyle. However, you should have 170K cash on hand, 120K for downpayment and 50K in reserves.

Based on the limited information provided, my recommendation is not to purchase another home unless you can dump your 4s townhouse relatively unscathed. If you are able to sell the townhouse, buy a SFH, not another townhouse. Condo/townhouse appreciation are parasitic in nature riding on the coattails of adjacent prime SFH property.

Regarding the double dip in prices, I don’t see it happening in good SD locations, especially at this price point and location. Don’t worry about rates either. They won’t be allowed to increase until consumer confidence is nearly reestablished in the housing market. When that happens, the rest of the sideline money will come out further fueling demand/greed and countering any effects from incremental rate increases. That’s why home prices can sometimes increase with increasing rates.

[cabal]

Le Petit Ange – I was troubled reading your posts. More information is needed to properly advise on your situation.

First, what are your plans for your severely underwater 4s townhouse purchased in 2007? If you paid 450K, it’s probably worth 330K today. If you paid 350K, it’s worth 220K. Rents will scale accordingly. My guess is you’re looking at $300-$500 minimum negative cash flow before factoring in maintenance costs and vacancy rates. Hopefully you have a fixed rate loan since you can’t refi without plopping down significant cash. You can’t get a loan mod because you’re not distressed, and a short sale will hurt your credit eliminating the option to buy another house without a co-signor, at least for a few years. Basically, you are stuck with your townhouse and will have to carry this burden going forward.

Second, having kids starting in a few years will put a severe dent in your cashflow, and continue to do so until they are out of college. If you both continue to work, you will have to pay for childcare, or if you stay home, you lose your income. I don’t know how you can afford a 600K home assuming you put down most of your money in the townhouse. To save 120K liquid in 3 years is possible, if your combined income exceeds 130K while living an extremely frugal lifestyle. However, you should have 170K cash on hand, 120K for downpayment and 50K in reserves.

Based on the limited information provided, my recommendation is not to purchase another home unless you can dump your 4s townhouse relatively unscathed. If you are able to sell the townhouse, buy a SFH, not another townhouse. Condo/townhouse appreciation are parasitic in nature riding on the coattails of adjacent prime SFH property.

Regarding the double dip in prices, I don’t see it happening in good SD locations, especially at this price point and location. Don’t worry about rates either. They won’t be allowed to increase until consumer confidence is nearly reestablished in the housing market. When that happens, the rest of the sideline money will come out further fueling demand/greed and countering any effects from incremental rate increases. That’s why home prices can sometimes increase with increasing rates.

[Author]

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