NEED your input, About to buy a new Pienza home in 4S Ranch

[ocrenter]

“we make a decent living, just enough to cover mortgage and mello roos, and a tiny bit $ left”

you need to give us a little more than this. what is “tiny bit?” $1000 a month to save? what’s “a decent living?” $200,000 a year?

be more specific

[ocrenter]

“we make a decent living, just enough to cover mortgage and mello roos, and a tiny bit $ left”

you need to give us a little more than this. what is “tiny bit?” $1000 a month to save? what’s “a decent living?” $200,000 a year?

be more specific

[Nancy_s soothsayer]

Survival Rule #1: Don’t listen to advice given by people, specially non-family, with vested interest to partake with your hard-earned money.

[Nancy_s soothsayer]

Survival Rule #1: Don’t listen to advice given by people, specially non-family, with vested interest to partake with your hard-earned money.

[Nancy_s soothsayer]

Here’s my other take: Those who are itching to buy now, despite having read many well-reasoned Piggington warnings, should go ahead and buy (cure that itch ASAP). Two or three years from now, when so many houses will be selling at huge discounts, I prefer that there will be less competition for me. May those with patience like me be rewarded and enjoy the “feast” of many juicy selections of houses and buy two or three at super discounts! So…. for you, go ahead, and buy that overpriced POS. (Reverse-psychology is fun, doh.)

A moment ago, this was what my ZipRealty searched as noted:
“There are 21,562 homes for sale in
San Diego, CA as of 9 minutes ago.”

Two or three years from now this same day, what would be your quess???

[Nancy_s soothsayer]

Here’s my other take: Those who are itching to buy now, despite having read many well-reasoned Piggington warnings, should go ahead and buy (cure that itch ASAP). Two or three years from now, when so many houses will be selling at huge discounts, I prefer that there will be less competition for me. May those with patience like me be rewarded and enjoy the “feast” of many juicy selections of houses and buy two or three at super discounts! So…. for you, go ahead, and buy that overpriced POS. (Reverse-psychology is fun, doh.)

A moment ago, this was what my ZipRealty searched as noted:
“There are 21,562 homes for sale in
San Diego, CA as of 9 minutes ago.”

Two or three years from now this same day, what would be your quess???

[Anonymous]

Here’s something I don’t get.

this same lot sold back in Apr this year for $721,390 without any upgrades, but the deal fell through. We are paying $765,110 – $30,000 incentive = $735,110 (total) but with upgrades such as granite, upgraded cabinets, jet tub, nicer master shower, french patio doors…

Does this mean the house sold in April for $721K and you are paying $735 in the month of June (that is if we make the assumption that those upgrades are really worth 35K)? Now, I may be wrong, but that means that your house must have been the only one to have APPRECIATED in two months in a market that is widely viewed as FLAT even by real estate shills. You are acting as if you were caught in a time warp and we were still in August 2005. Where have you been?

If I were you, I would eat my pride and tell my husband that he was right. Lose the $10K, it is not that much money and you can be sure that you would be loosing A LOT more in the long run if you decide to go through with the deal. Sometimes it’s better to cut your losses.

On the other hand, if you do decide to go through with it, I would advise you to take a traditional loan, just as others have advised you on this board. I have children too and I know how it feels to want to give your child a nice home. But small babies don’t need backyards. You can afford to wait a couple of years. I’m sorry if I sound too blunt, I guess a part of me thinks I would have done exactly the same had it not been for these blogs. Good luck.

[Anonymous]

Here’s something I don’t get.

this same lot sold back in Apr this year for $721,390 without any upgrades, but the deal fell through. We are paying $765,110 – $30,000 incentive = $735,110 (total) but with upgrades such as granite, upgraded cabinets, jet tub, nicer master shower, french patio doors…

Does this mean the house sold in April for $721K and you are paying $735 in the month of June (that is if we make the assumption that those upgrades are really worth 35K)? Now, I may be wrong, but that means that your house must have been the only one to have APPRECIATED in two months in a market that is widely viewed as FLAT even by real estate shills. You are acting as if you were caught in a time warp and we were still in August 2005. Where have you been?

If I were you, I would eat my pride and tell my husband that he was right. Lose the $10K, it is not that much money and you can be sure that you would be loosing A LOT more in the long run if you decide to go through with the deal. Sometimes it’s better to cut your losses.

On the other hand, if you do decide to go through with it, I would advise you to take a traditional loan, just as others have advised you on this board. I have children too and I know how it feels to want to give your child a nice home. But small babies don’t need backyards. You can afford to wait a couple of years. I’m sorry if I sound too blunt, I guess a part of me thinks I would have done exactly the same had it not been for these blogs. Good luck.

[PerryChase]

If the builder buys out the mello-roos it’ll be only for new owners, never for existing owners. You’ll be stuck with higher property taxes while your newer neighbors down the street enjoy a lower tax rate.

See related thread.
http://piggington.com/pardee_homes_drops_mello_roos_in_new_development_in_moorpark_ven

[PerryChase]

If the builder buys out the mello-roos it’ll be only for new owners, never for existing owners. You’ll be stuck with higher property taxes while your newer neighbors down the street enjoy a lower tax rate.

See related thread.
http://piggington.com/pardee_homes_drops_mello_roos_in_new_development_in_moorpark_ven

[PerryChase]

Simple calculation:

Assuming you can earn the same interest on investment as you could on mortgage payments.
Interest only on $735,000 at 6.5% = $47,775 year.

You can rent a gated community house at Aviara for $2,775/mo = $33,300/year
http://sandiego.craigslist.org/apa/348068782.html

For simplicity, ignore property taxes, hoa, maintenance, insurance, tax benefit of mortgage interest, inflation and opportunity costs, and most importantly RISK.

You save $14,775/year by renting.

After 7 years you have $103,425, plus you still get to live in a nice home, in a nice neighborhood.

If you have time, put all the numbers in a spreadsheet and make your own calculations.

[PerryChase]

Simple calculation:

Assuming you can earn the same interest on investment as you could on mortgage payments.
Interest only on $735,000 at 6.5% = $47,775 year.

You can rent a gated community house at Aviara for $2,775/mo = $33,300/year
http://sandiego.craigslist.org/apa/348068782.html

For simplicity, ignore property taxes, hoa, maintenance, insurance, tax benefit of mortgage interest, inflation and opportunity costs, and most importantly RISK.

You save $14,775/year by renting.

After 7 years you have $103,425, plus you still get to live in a nice home, in a nice neighborhood.

If you have time, put all the numbers in a spreadsheet and make your own calculations.

[Bugs]

Before you get overly connected to that $10,000, consider how much of a loss that builder has already suffered on that unit between the time it was previously in escrow and now. At the retail price of the upgrades their loss is a lot more than the $10,000. Now project that rate of loss over the next 12 months.

Taking a $10,000 hit right now is definitely the better choice compared to what’s going to happen to your financial position if you buy that house now. At some point it is not unreasonable to think that house could lose $10,000 in value every couple of months. An annual loss of $60k is not at all beyond the realm of reason.

Stick around for a while I’m sure you’ll save a ton of money on that house.

[Bugs]

Before you get overly connected to that $10,000, consider how much of a loss that builder has already suffered on that unit between the time it was previously in escrow and now. At the retail price of the upgrades their loss is a lot more than the $10,000. Now project that rate of loss over the next 12 months.

Taking a $10,000 hit right now is definitely the better choice compared to what’s going to happen to your financial position if you buy that house now. At some point it is not unreasonable to think that house could lose $10,000 in value every couple of months. An annual loss of $60k is not at all beyond the realm of reason.

Stick around for a while I’m sure you’ll save a ton of money on that house.

[NotCranky]

If you and your husband decide to cancel fight for your deposit on the grounds that the sellers rep and mortage guy are being misleading.Accuse them of teaming up on you if they are in anyway affiliated. Ask the builders sales Rep if they have ever sold a model like the one you are interested in for less or if the would ever consider it in the future.Ask them what they would do for you if that happened,especially since you feel you are being mislead.
Put it in writing registered mail.Quote some of the things the posters here are saying. If they offer you a lower price ,which they might take it or tell them you don’t trust them and that the price would have to be 20%or more lower to make sense stand your ground. CC and send a copy to the mediation center of the local NAR if you have to.Maybe take them to small claims. I know I would get my deposit back.

Best wishes

[Author]

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