Back in 2005 I began reading Piggingtons. Rich onfirmed what many of us suspected, that housing in California and elsewhere was in bubble territory. I saw a graph I still remember that showed personal income vs. housing prices – and it was obvious the market was headed for a “pop”. I sold a middle of the road house in Castro Valley Ca for three times what I had paid for it 10 years earlier.
I waited patiently for the market to correct – knowing that in one or two years I could buy back at a “non-bubble” price. That was 6 1/2 years ago. And I just closed on my replacement house. Instead of the downsizing I expected, I went the other direction and bought a REO “McMansion” in Montclair (94611). Dealing with a bank was challenging, but we got it done.
The house was built in 1996 after the fire and was occupied by the same family that had it built. It was on the market for about two years at 1.4 million – Then foreclosed on for just over a million. The asking price started around 950,000 and had dropped to 780,000 when I made my first offer of 675. They rejected it. The house sold to an investor, but deal blew up. Came back on the market at 740,000. I offered 685, and they accepted within a week (overall a three month process).
My logic for buying now may be suspect (emotional not logical) but for me, it was time to buy. Standard 25% down, 30 year fixed mortgage. The rates are great (4.2), cost of the loan is near zero after rebate (send note if you want mort. broker info). House is everything I want and could never be replaced at the price/sq ft. I paid (165) With any luck it will be the last home I ever live in.
Definitely a right time. You are pretty logical. Congrats man. I can’t believe you waited that long. That’s free interest (4.2)…in a few year when inflation may eat it out 🙂
Sound like you got a heck of a deal. You are near Piedmont? When we were in high school the cops would kindly escort us out of there after they asked us if we lived in the neighbohood and we said no.
Well, shades of Alameda County, where I am also from! I was just back in that area about 3 weeks ago and love it. That’s fantastic, bubba99, and hope your new “leafy” lot is surrounded by plenty of beautiful open space. Besides the Oakland Hills, I also love the Rheem Valley area (nka “Moraga”) 1-2 hills east of you.
Congratulations are in order as there is a dearth of single-family listings in multiple zip codes in your immediate area.
Sounds like you were able to land a “keeper” property in a coveted close-in area. Do you happen to have a view?
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