I can see the whites of their eyes

[Aecetia]

Wishing you Christmas in your new home. Where are you going to buy rentals next- in hurricane alley?

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[peterb]

Basic economics should be more respected here and I think this is why our country is in such trouble. From Wall Street to main street.

Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.

Rationalizing the reasons and logic is all well and fine…it’s a home, rents will cover PITI, prices cant get too much lower, etc… Are all just that, rationalizations not logical analysis.

Again, buying a highly leveraged asset that’s depreciating in value is extremely risky.

I would not harp on this except that purchasing real estate is usually the largest single financial decision most people ever make. This is not like deciding to buy a latte verses making coffee at home.

I will now shut up.

[Ren]

[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]

Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.

The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.

[Ren]

[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]

Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.

The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.

[Ren]

[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]

Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.

The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.

[Ren]

[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]

Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.

The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.

[Ren]

[quote=peterb]
Buying a highly leveraged asset that is depreciating in value is a very good way to become insolvent. BK, to you and I.
[/quote]

Not when the mortgage is so cheap you can work at 7-11 to pay it (slight exaggeration, but not far off). He has to live somewhere, so why would he rent a condo for $1,500, when he could buy a 3,000 sq foot house and pay the same? Sure he might “lose” the down payment, but again, at $100/sq and $1,500/month, I don’t think he cares much.

The only issue I see with it is, depending on the down payment, he may have trouble getting a conventional loan on a rental 6-12 months from now as he may not have the required equity. There’s always cash, but it’s a better return to put up as little as possible for rental property.

[Anonymous]

TG is dialed in on his area. Riverside is a different universe compared to San Diego county. They are light years ahead in the decline of real estate values. At $100(or less) per square foot and 2001(or earlier) prices, that sounds pretty good. Is $75 a square foot going to happen in a desirable section of Temecula?

From the beginning, I’ve always thought prices were headed back to the 2001 level. Wacky financing started in 2002 and income hasn’t increased. Take away the wacky financing, I figured prices would work their way down to a level where people could actually afford a real payment.

Another poster asked about the San Diego decline % in the next 6 months. San Diego has so many pockets that you need to follow TG’s approach and be one with the pocket of San Diego that you are interested in.

[Anonymous]

TG is dialed in on his area. Riverside is a different universe compared to San Diego county. They are light years ahead in the decline of real estate values. At $100(or less) per square foot and 2001(or earlier) prices, that sounds pretty good. Is $75 a square foot going to happen in a desirable section of Temecula?

From the beginning, I’ve always thought prices were headed back to the 2001 level. Wacky financing started in 2002 and income hasn’t increased. Take away the wacky financing, I figured prices would work their way down to a level where people could actually afford a real payment.

Another poster asked about the San Diego decline % in the next 6 months. San Diego has so many pockets that you need to follow TG’s approach and be one with the pocket of San Diego that you are interested in.

[Anonymous]

TG is dialed in on his area. Riverside is a different universe compared to San Diego county. They are light years ahead in the decline of real estate values. At $100(or less) per square foot and 2001(or earlier) prices, that sounds pretty good. Is $75 a square foot going to happen in a desirable section of Temecula?

From the beginning, I’ve always thought prices were headed back to the 2001 level. Wacky financing started in 2002 and income hasn’t increased. Take away the wacky financing, I figured prices would work their way down to a level where people could actually afford a real payment.

Another poster asked about the San Diego decline % in the next 6 months. San Diego has so many pockets that you need to follow TG’s approach and be one with the pocket of San Diego that you are interested in.

[Anonymous]

TG is dialed in on his area. Riverside is a different universe compared to San Diego county. They are light years ahead in the decline of real estate values. At $100(or less) per square foot and 2001(or earlier) prices, that sounds pretty good. Is $75 a square foot going to happen in a desirable section of Temecula?

From the beginning, I’ve always thought prices were headed back to the 2001 level. Wacky financing started in 2002 and income hasn’t increased. Take away the wacky financing, I figured prices would work their way down to a level where people could actually afford a real payment.

Another poster asked about the San Diego decline % in the next 6 months. San Diego has so many pockets that you need to follow TG’s approach and be one with the pocket of San Diego that you are interested in.

[Author]

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