La Boheme North Park (DR Horton) Public Auction

[Anonymous]

Well I happen to be a skinny-lipped white fag myself, so I’ve earned the right to use those terms. Now who’s the DUMB-ASS, Nostradamus?

[nostradamus]

You are, more now than before. I think you’re getting dumber and dumberer as the thread progresses.

[sd gal]

Let’s act like adults, I understand newbie’s point. I actually live in a area ( South Park) and after reading his comments about NP, I have a lot more respect in it.

Personally, I love South Park more though….I just like it because SP is more family oriented and quiet, yet SP still has Moms and Pops small business attitude.

It is not just La Boheme, but entire SD housing market is falling apart, and yes, it will go back up in 10 years. there’s nothing wrong with La Boheme in my opinion….

[drunkle]

north park definately has it’s advantages… the original zombie lounge, lancers, the russian joint, the hot chef, the red fox, di milles, close proximity to everything…

(edit: it’s not like we dont have cars either…)

but the way rents have been going up, real estate, you’d think np is the east village of sd or whatever swank place you want. it’s not, it is still a dump and will remain so for some very fundamental, basic reasons:

the scum. try walking up to the liquor store on el cajon at night some time.
the pros. yeah, those girls.
the proximity of all the shtbox stucco mexican prisons to each other.
the rent to own ratio.
the low tax base.
the indifferent landlords.

the downsides can’t be ignored, especially when making an re valuation. compare the 3 bed/3 bath condo my bro owned in loma portal (resort style community pool, empty/quiet streets, private car ports), purchased for 180 in 98 to your new fangled, mc esher wanna be place with no parking, no pool, in the ghetro. it aint 98 no more, but it’s not like we all won the lotto here either.

if that place was reasonably priced, 100-150, i’d be proud to own there too. but as it is, i’d be embarrassed.

[patientlywaiting]

I wonder when you’ll see an auction like this in San Diego.

Downtown Miami is better than North Park IMHO.

http://cbs4.com/topstories/local_story_264095336.html

[Ricechex]

Newbie–don’t stress it. If you enjoy where you live and can continue to afford your mortgage payments, then you are fine.

Personally, I think a $400K loan would have been better spent on a house in City Heights. Yes, City Heights is a worse neighborhood, but a SFR is more of a sure thing. Plus, it is so MUCH better to have all your own walls, and no HOA fees, and a yard, however small. City Heights is certainly very diverse.

Gays are great in the neighborhood, so I think it is great you bought at La Boheme. I am NOT being sarcastic, gays have greatly improved North Park. I would much rather have some fags living next door rather than a large family with a thousand out-of-control children and extended family taking over the neighborhood. Been there, done that, and it ain’t pretty. Crack heads next door ain’t too much fun either if you aren’t into tweak.

I love North Park, and will continue to live here as long as I can. Its close to work, and centrally located. Most of my friends live here too, and have been here for years. It works for many of us.

North Park got too hip, too quick, and the investors snowed some folks with their condo conversions and developments.

In some ways, I love all the people that think this is the hip and cool neighborhood. It breathes some life into an area that has some bad years.

If you are interested, get the book “North Park: A San Diego Urban Village”, 1896-1946, by Donald Covington. It’s great! North Park was originally a suburb, basically. The tract homes of yesteryear, though not as corporate, cookie cutter and overwhelming as they are today. The book is sold at the North Park Community Association and Lost Your Marbles Too on Ray Street.

[JC]

Speaking of auctions of North Park properties…

Does anyone know what this property went for? I think the auction was last weekend.

http://realauctionsusa.com/fp_a_3922_hamilton.asp

[Anonymous]

I’m involved in the finance industry (not for individual buyers, but for developers and investment properties) and have been watching the foreclosure/SD condo market and I’m going to make my predictions.

I’m seeing foreclosure sales/auctions taking place in So. Cal at 20-25% off peak prices. This puts things back to approximatly 2004-5 price levels in most markets, which is probably where they should have stayed if speculators hadn’t entered the market and bid prices up too far.

I expect there will be enough demand to bid the prices about 1/2 way between the opening bids and the former asking prices, which will put them about 20%-25% under the peak, and previous asking prices.

At that price, Horton will get out their costs, without any profit, and will be able to figure out the market prices for their other projects and unsold inventory.

Let’s see how close to being correct I am. If you’re planning on buying one for $1 over the minumum bid, I suggest you stay home, as I think you will be outbid. If you’re looking for a reasonable deal at 2004-2005 prices before the market went crazy, grab your checkbook and head for the auction. If you miss the auction, I think that’s about where the market will settle back to over the next few months, and then we’ll see the 4-5% a year increase in the next few years like we should have had in the past.

I think it’s brilliant marketing on Horton’s part. They have free publicity all over the country to drive traffic to their auction.

If you bought 12-24 months ago, sorry. You probably won’t see those prices for another 5-6 years again. Hopefully you have a fixed rate mortgage that you can afford and didn’t buy on a variable hoping you could refinance after the value went up again. Those guys are the ones who are sunk.

By the way, I’m not wealthy but I moved to CA in 1987 and said that I would rent until the market corrected. I bought on an auction just like this in 1992 when the values were 40% off peak prices and did a 30 year fixed rate mortgage. When rates dropped, I did a 15 year fixed rate mortgage and will be paid off in a few years. Wasn’t smart enough to become a flipper in the last few years, so I’m not right all the time…could have made a fortune, but could also have lost it if I didn’t get out at the right time.

[Arraya]

This puts things back to approximatly 2004-5 price levels in most markets, which is probably where they should have stayed if speculators hadn’t entered the market and bid prices up too far.

You need to lay off the pipe! NP condos are doomed…. 01 baby!!

[JC]

Arraya,

I like NP, but have to mostly agree with your comments about NP condos. However, the La Boheme project is newer and I *think* square footage might be good (relatively speaking). Do you think this makes any difference?

Of course, their HOAs are a tad outrageous. Not quite as bad as downtown, but….

[patientrenter]

brl, you might be right, but 2004-2005 was way, way higher than 3 years earlier, which was way higher than 3 years before that, which was higher than 2-3 years before that. So it’s very hard to see 2004-2005 prices as other than a peak in their own right, before the super-peak caused by unprecedentedly lax mortgage underwriting standards. We’ll see if your prediction is optimistic or not in the next few years.

Patient renter in OC

[Arraya]

JC,

I actually like NP too. La Boheme will probably hold up slightly better than the other attached homes in the area. However, slightly better than completely destroyed is not that good.

I have a friend that purchased a condo on Kansas st. for 249,000 back in early 05. She was responsible and put 20% down with a 30 yr fix and is in no distress, besides the mental distress from not liking where she lives anymore. She has outgrown it already and wants to move.

Long story short. Comparables today range from 160-180K with about 15+ months supply of inventory in that size range on the market ( sub 1000 sq ft are really taking a beating).

So she cannot get out with out writing a big check even after putting 50K down. And if she really wanted to move it quickly, she’d have to list around 150K. If she wants to rent it, it would be about -$900 per month.

Not a fun situation to be in…

[JC]

Arraya,

Gotcha. I did not realize it was that bad. I feel for your friend — DEFINITELY not a fun situation to be in.

May I ask how you came up with the -$900/ month? My math might be orrible or maybe my assumptions are wrong.

I assumed 2bed place. 50k down / 249k purchase price = approx. 1,500/ mth + approx 200 HOA= 1,700/mth.

2 bed room rentals in NP – 1100 to 1500 per month. It’s still a loss, but not as dramatic as 900. (To be fair, I don’t know that I would be ok with any loss, so I am not making a judgement here).

Are you factoring in loss due to wear and tear or something like that? Or, am I missing something else big?

[HereWeGo]

If you’re planning on buying one for $1 over the minumum bid, I suggest you stay home, as I think you will be outbid.

Well, I think most of us are aware of the unmentioned “reserve price”, and that there will be those in the audience with the job of bidding the property up to at least that price.

That said, I wouldn’t offer the minimum bids for those condos. Not in that particular location, no way. Now if that building were in a different location, that might be a different story.

[patientlywaiting]

$250k in 2005 was most likely a 1 bedroom.

[Author]

Posts