Margin for error?

[5yearwaiter]

[quote=CA renter]Personally, I don’t want to lose a single cent on a purchase, but if an “acceptable loss” had to be quantified, the total losses would have to be no more than equivalent rent for the same type of house and duration of occupancy.[/quote]

CA renter – you are absolutely correct and this is what the correct understanding our fellow purchasers need to have at the time of house purchasing these days. Honestly this time home buying is more careful than the last time peak price home buyers. Most of them those bought past years (2004- 2006) may not be losing a dime at all due to various attractive baliout vs NODs. But now one has to be prepared to lose minimum 20% loss from their pocket for sure and the future of entire US economy is kid of foggy – it never ever get back to the stream line – though it gets back, not housing surge at all. Keep in mind first the forthcoming era is to increase taxes and interest rates – how long the housing will surge when high interest rates exist? I do agree rent vs home mortgage should be somewhat equivalent level instead losing saved money 20% and further downthe road live life with stress.

[an]

[quote=briansd1]
A bottom is NOT a time when buyers bid against each other.
[/quote]
So, you’re saying the coastal properties are at the bottom and the cheaper areas are far from bottom? Since no one is bidding against each other in the coastal areas but there are plenty of multiple offers in the low end areas.

As for the OP, I’m fine with buying when it’s cheaper for me to buy vs renting the same house. Since I have no intention of ever selling the house, rental rates is more important to me. When I do move up, I will be renting out my house. One thing I also noticed, especially when looking at well established areas vs new for primary resident, you might not like any of the house that’s on the market at the bottom.

[an]

[quote=briansd1]
A bottom is NOT a time when buyers bid against each other.
[/quote]
So, you’re saying the coastal properties are at the bottom and the cheaper areas are far from bottom? Since no one is bidding against each other in the coastal areas but there are plenty of multiple offers in the low end areas.

As for the OP, I’m fine with buying when it’s cheaper for me to buy vs renting the same house. Since I have no intention of ever selling the house, rental rates is more important to me. When I do move up, I will be renting out my house. One thing I also noticed, especially when looking at well established areas vs new for primary resident, you might not like any of the house that’s on the market at the bottom.

[an]

[quote=briansd1]
A bottom is NOT a time when buyers bid against each other.
[/quote]
So, you’re saying the coastal properties are at the bottom and the cheaper areas are far from bottom? Since no one is bidding against each other in the coastal areas but there are plenty of multiple offers in the low end areas.

As for the OP, I’m fine with buying when it’s cheaper for me to buy vs renting the same house. Since I have no intention of ever selling the house, rental rates is more important to me. When I do move up, I will be renting out my house. One thing I also noticed, especially when looking at well established areas vs new for primary resident, you might not like any of the house that’s on the market at the bottom.

[an]

[quote=briansd1]
A bottom is NOT a time when buyers bid against each other.
[/quote]
So, you’re saying the coastal properties are at the bottom and the cheaper areas are far from bottom? Since no one is bidding against each other in the coastal areas but there are plenty of multiple offers in the low end areas.

As for the OP, I’m fine with buying when it’s cheaper for me to buy vs renting the same house. Since I have no intention of ever selling the house, rental rates is more important to me. When I do move up, I will be renting out my house. One thing I also noticed, especially when looking at well established areas vs new for primary resident, you might not like any of the house that’s on the market at the bottom.

[an]

[quote=briansd1]
A bottom is NOT a time when buyers bid against each other.
[/quote]
So, you’re saying the coastal properties are at the bottom and the cheaper areas are far from bottom? Since no one is bidding against each other in the coastal areas but there are plenty of multiple offers in the low end areas.

As for the OP, I’m fine with buying when it’s cheaper for me to buy vs renting the same house. Since I have no intention of ever selling the house, rental rates is more important to me. When I do move up, I will be renting out my house. One thing I also noticed, especially when looking at well established areas vs new for primary resident, you might not like any of the house that’s on the market at the bottom.

[jpinpb]

I’m w/CAR. I want to be able to at least get close to my rents. I’ll take a higher mortgage w/the tax write-off, even a little higher. But right now, looking in coastal areas, that is not happening. Only in really distressed condos in UTC or CV is it really close. I don’t know about D/T. Brian would know better. I doubt it.

AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.

[jpinpb]

I’m w/CAR. I want to be able to at least get close to my rents. I’ll take a higher mortgage w/the tax write-off, even a little higher. But right now, looking in coastal areas, that is not happening. Only in really distressed condos in UTC or CV is it really close. I don’t know about D/T. Brian would know better. I doubt it.

AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.

[jpinpb]

I’m w/CAR. I want to be able to at least get close to my rents. I’ll take a higher mortgage w/the tax write-off, even a little higher. But right now, looking in coastal areas, that is not happening. Only in really distressed condos in UTC or CV is it really close. I don’t know about D/T. Brian would know better. I doubt it.

AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.

[jpinpb]

I’m w/CAR. I want to be able to at least get close to my rents. I’ll take a higher mortgage w/the tax write-off, even a little higher. But right now, looking in coastal areas, that is not happening. Only in really distressed condos in UTC or CV is it really close. I don’t know about D/T. Brian would know better. I doubt it.

AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.

[jpinpb]

I’m w/CAR. I want to be able to at least get close to my rents. I’ll take a higher mortgage w/the tax write-off, even a little higher. But right now, looking in coastal areas, that is not happening. Only in really distressed condos in UTC or CV is it really close. I don’t know about D/T. Brian would know better. I doubt it.

AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.

[an]

[quote=jpinpb]
AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.[/quote]
That makes no sense. Where would you consider the bottom to be then? If you list it for 1980 price, I’m sure you’ll get a massive bidding war. Would you consider 1980 price to be well below the “bottom”? You just confirm what I’m saying, if you list your house at price well above the bottom, you won’t get any offer. But if you list it near, at or below the bottom, you’ll get a bidding war. Looking back, we all can say bottom of the last cycle was around 1996-1997. If you would have listed your house in the early 90s at 96-97 price, you would have gotten a bidding war too. But you were trying to sell it at peak price, that’s why you didn’t get any offer.

[an]

[quote=jpinpb]
AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.[/quote]
That makes no sense. Where would you consider the bottom to be then? If you list it for 1980 price, I’m sure you’ll get a massive bidding war. Would you consider 1980 price to be well below the “bottom”? You just confirm what I’m saying, if you list your house at price well above the bottom, you won’t get any offer. But if you list it near, at or below the bottom, you’ll get a bidding war. Looking back, we all can say bottom of the last cycle was around 1996-1997. If you would have listed your house in the early 90s at 96-97 price, you would have gotten a bidding war too. But you were trying to sell it at peak price, that’s why you didn’t get any offer.

[an]

[quote=jpinpb]
AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.[/quote]
That makes no sense. Where would you consider the bottom to be then? If you list it for 1980 price, I’m sure you’ll get a massive bidding war. Would you consider 1980 price to be well below the “bottom”? You just confirm what I’m saying, if you list your house at price well above the bottom, you won’t get any offer. But if you list it near, at or below the bottom, you’ll get a bidding war. Looking back, we all can say bottom of the last cycle was around 1996-1997. If you would have listed your house in the early 90s at 96-97 price, you would have gotten a bidding war too. But you were trying to sell it at peak price, that’s why you didn’t get any offer.

[an]

[quote=jpinpb]
AN – I understood what Brian was saying. If there is a bidding frenzy, then tough to say bottom. When I tried to sell my house in the early ’90’s in Carmel Valley, I had it listed for the same price I bought it just a few years earlier. No offers for a year!!

I was lucky enough to be able to ride it out. The coast is not getting any offers b/c they’re still listed at 2005 prices, from what I can see. If there were down to 2002 prices, there probably would be a bidding frenzy. And so it wouldn’t be bottom then. The only thing close to 2002 pricing is in The Plaza in PB. Condos are the weakest link and a sign of things to come.

We are far from bottom. That said, I’d be tempted to get something if it were at least close to rents. I qualify this. I have no intention of putting 20% down. I will do an FHA 3%. I did 20% down before and learned. I’ll keep the 20% on stand by in case of emergency.[/quote]
That makes no sense. Where would you consider the bottom to be then? If you list it for 1980 price, I’m sure you’ll get a massive bidding war. Would you consider 1980 price to be well below the “bottom”? You just confirm what I’m saying, if you list your house at price well above the bottom, you won’t get any offer. But if you list it near, at or below the bottom, you’ll get a bidding war. Looking back, we all can say bottom of the last cycle was around 1996-1997. If you would have listed your house in the early 90s at 96-97 price, you would have gotten a bidding war too. But you were trying to sell it at peak price, that’s why you didn’t get any offer.

[Author]

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