London 1988 – San Diego 2006

[mydogsarelazy]

Hi lendingbubbleco,

I think your Frasier Crane issues are showing…

As far as your ideas about what kind of people live in Temecula, I don’t have time to argue with you. Need to get to be early, as tomorrow we catch the netjet at French Valley so we can make it to Aspen for lunch with Warren Buffet and his new wife before they leave for Davos.

We hear from Steven Spielberg that she is just lovely!

JS

[powayseller]

If London suburb lost 60% in a regular recession, put me down for 80% drops in Temecula, El Cajon, and other far-flung and less desireable areas. Mydogs must be a homeowner, hoping that his property values won’t drop. This brings me to another point: too many “housing bears” who cling tightly to the dream their property or town is special, and will have a soft landing. mydogs, you’re a great guy, love your posts, but the market will not step out of its way to save you. If you can’t handle the drop, sell now. Maybe you are a renter already; good.

[lendingbubblecontinues]

Mydogs-not exactly sure what to make of the last post there..either you were kidding about living the Robin Leach lifestyle or else the lifestyle of the Rich & Famous is exactly the same as what I do a lot of the time…spend time at piggington.com.

C’mon dude…Temecula???

[mydogsarelazy]

Hi lendingbubbleco,

In previous post you said:

“People are going to one day wake-up from their comas and go “Oh, my God, I live in TEMECULA/MURRIETA/LAKE ELSINORE!!!…somebody PLEASE KILL ME”

Do I need to explain why I found that insulting?

Also, you stated that you thought that few students from this area would be going on to Ivy League schools. I don’t know about other top schools, but three years ago my wife and I gave the Stanford Alumni Association farewell party for Temecula area Stanford freshmen, and there were five.

We don’t actually lunch with Warren Buffet, but a guy who beat me up in fourth grade did go on to become Sharon Stone’s first husband.

JS

[technovelist]

We don’t actually lunch with Warren Buffet, but a guy who beat me up in fourth grade did go on to become Sharon Stone’s first husband.

It must be thrilling to be so famous!

[powayseller]

Hey, leave Mydogsarelazy alone! Temecula is a beautiful area, and his posts are really good.

[lendingbubblecontinues]

mydogs,

sorry. It is easy to take pot-shots at places like Temecula for fun and that is exactly what I did. I apologize for the insult.

I actually drove through Temecula recently and thought the valley and surrounding mountain scenery were quite pretty.

[mydogsarelazy]

Hi lendingbubbleco,

The apology is appreciated.

This board is a lot of fun — most of the time — and I am glad that my posts are contributing to it all.

I grew up in an affluent part of Southern California in a home that it would now take me a lottery win and three extra jobs to afford. I didn’t appreciate it, didn’t appreciate the beach, didn’t appreciate what it took may parents to make it all happen.

There isn’t a community in any price range that doesn’t have problems and every community is going to be hit by the problems of over-indebted families coping with upside-down properties. I always thought of myself as a “homeowner” until a a few years ago when I realized that I was more of a speculator, just like everyone else.

I love our big new tract home, hate the insane traffic, wish the beach was closer and worry for California. I would imagine that you do too.

JS

[speedingpullet]

@ ctlmdjb

OT:

…but Tulse Hill has a BR station, no?

I never understood that “ugh! no Tube!’ mentality

When the Docklands Light Railway was built in Lewisham – my manor 😉 – house prices generally sprouted a ‘1’ in front of them almost overnight. “But…but..you have no Underground system in South East London” my friends north of the river would say…despite the fact that British Rail runs from Lewisham to Charing Cross every 10 minutes and takes a grand total of 15 minutes to get to there.
Once the DLR came everyone suddenly saw places like Deptford/New Cross/Lewisham as ‘viable’ places to live, despite the fact that myself, and a few hundred thousand other people, successfully commuted from that part of London for decades by train.
Oh, how I wish now that I had had the finances, and will, to buy the 5 bed unconverted Edwardian villa with the 150′ garden that was going next door to me -in 1994 – for 85K GBP! Now it worth well north of 1/ 2 a millon…

But I digress.
I remember the housing crash of the late 80’s very well.
Although most of my friends were too young and feckless to buy during that toxic time, I did have a few friends that went into serious ‘negative equity’.

A mate bought a tiny 1 bed 1 bath near Lewisham hospital for an astounding 60K. About a year into the mortgage his interest rate soared to 15% for about 6 months, almost wiping him out.
Suddenly the whole thing unravelled and it was only worth about 35K. He ended up staying in it another 10 years before he started making inroads into the principal again.
He even considered renting out the bedroom – and this is a minute – maybe 600sq ft – apartment, to help with the payments, but fortunately the interest rates fell again from double digits, and he was able – just – to pay the mortgage again. Albeit he was till ‘underwater’ for many years afterwards.

Fortunately, he had bought wisely – in that the place was the right size and the right location for his long-term needs, so wasn’t left holding an ‘albatross’ while he had to find somewhere else.

[ctlmdjb]

Nice to see there are some other Brits on the site!

The point I was trying to make is that less desirable properties get wacked hardest. Mine was in a poor location (BR station but no tube, BR station only ran to the city – 3 miles down the road in Brixton you are on the Victoria line), it was an appartment (bad) it was one bedroom (bad), it was on a busy road (bad), it had no garden (in England very bad), it faced North (bad). As the market goes down buyers still have about the same amount of money to spend – they just buy nicer places. When I did list it we were into the next upswing and I had 2 buyers in a week – ’cause it was all they could afford. It also had some really toxic legal issues to do with the building being owned by one party and the appartments being actually on a 99 year lease. Meant all the common areas needed maintenance but all 5 leasees had to agree and pay for them….which never happened. The buyers didn’t care all of a sudden – we were into the next upturn.
So condo conversions in Lemon Grove WILL sell. Sometime in 2012.

[sdcellar]

As the market goes down buyers still have about the same amount of money to spend – they just buy nicer places.

See, right in the middle of the post, not even trying to make the point. This is why the median holds up.

[Author]

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