Off the fence

[sd_matt]

Well folks

I bought a house a couple months ago. The first one. A 2/2 with a granny flat attached to the back of the garage that looks out at a big back yard. I live in the flat and rent the front part. Tenants even came with the house 🙂

The justification;
I’m prepared to be underwater in the future. But I believe that by that time my rents will be much higher due to inflation. So I feel that I will be reasonably safe with this investment.
Aaand…I like the area (near the Vons shopping center and down town La Mesa)

I’ve been reading this blog for a long time now and threw in the occasional comment. Being here has definitely helped me in my decision making process.

Regards

[bearishgurl]

Congrats sd_matt!

The LM village is a very charming and walkable area to live in or around!

IIRC, the vast majority of the “granny flats” in that area are considered “grandfathered-in” by the city council and are legal rentals. Some even have separate addresses than the main house and some have a “Certificate of Non-Conforming Use” filed on the property.

Congratulations also on “inheriting” a good (longtime?) tenant!

[CafeMoto]

Way to go man. Sounds great, especially if you keep use of the garage. Thumbs up

[sd_matt]

Thanks all.

I’m sharing the garage 50/50. Before buying I looked up properties with attachments. Mine has what is called an “accessory dwelling unit”. I have a printout of the description. Whatever that is it allows me to have a complete unit, kitchen and all.

[CAwireman]

Congrats Matt

We too bought, about 1 and a half years ago.

All the best with your new place.

[CA renter]

Congratulations, sdmatt!!! 🙂

Sounds like a good justification as far as rents go. Not that they can’t drop, too, it’s just that being short assets (including housing) in any way is a very dangerous place to be with all the central banks around the world doing their darndest to keep asset prices high.

Houses with rental units are going to be in higher and higher demand going forward, IMHO. Nice job on your housing choice!

[sdrealtor]

Definitely take advantage of being an owner occupant and lock in the best long term financing you can get. Someday you may not want to live there anymore but with a mortgage in 3’s and rents rising with inflation over time it should work out really well for you.

[Reality]

Low interest rates are great for sellers and those refinancing.

For buyers not so much. They’re already baked into the demand and the price. But they make great talking points for realtors.

[CA renter]

[quote=JohnAlt91941]Low interest rates are great for sellers and those refinancing.

For buyers not so much. They’re already baked into the demand and the price. But they make great talking points for realtors.[/quote]

Very true. When a particular incentive is available to all potential buyers — like mortgage interest rates being available to all qualified buyers — prices will go up to counter any benefit. Not only that, but prices will likely increase beyond that because of the increased demand that will form as more people *think* they are getting a better deal because of the incentive.

[sdrealtor]

Nice threadjack, my comment was directed at someone who already made the irreversible decision to buy.

Ummmm….interest rates have been dropping the past few years along with prices. Guess who’s been crowing about that the whole time and is now talking out of both sides of her mouth.

Get ready for the excuses as to why that happened in her sterile laboratory theoretical world. Sorry CAR life doesnt happen in vacuum. The perfectly rational things that you think should happen dont always.

[scaredyclassic]

life is messy and non vacuum like. organic things can be kind of grossand slimy.

but there is great beauty in it.

THE SOUND OF A WILD SNAIL EATING.

great little nonfiction book about a very sick woman who finds great companionship with a snail. maybe the best book i have ever read.

as for housing, I want to be interested, but it seems like a boring period right now. not that nothing strange is going to happen, but right now, seems dull. more interested int he wild snail…which is not to say im not congratualting you on your purchase. you’ll be ok… have fun…life is short…

[CA renter]

[quote=sdrealtor]Nice threadjack, my comment was directed at someone who already made the irreversible decision to buy.

Ummmm….interest rates have been dropping the past few years along with prices. Guess who’s been crowing about that the whole time and is now talking out of both sides of her mouth.

Get ready for the excuses as to why that happened in her sterile laboratory theoretical world. Sorry CAR life doesnt happen in vacuum. The perfectly rational things that you think should happen dont always.[/quote]

IMHO, prices would have been dropping further and faster without those interest rate drops. Nothing incongruous about my stance at all.

[sdrealtor]

You said when incentives like low interest rates are available to all qualified buyers prices will go up to counter that. Prices fell all over the country amidst falling interest rates. Whether they would have dropped further or faster is a matter of opinion and not direction. You were wrong. No two ways about it

[spdrun]

CA Renter is forgetting that the interest-rate incentive is only available to those who either have:
(a) rock-steady credit, a very steady income, and a moderate down payment available
(b) a much larger amount of cash in order to create a steady income using that cash, and then cash-out refi

[sdrealtor]

Also at some point prices will start going up again while rates are rising too. Rates will rise because the economy is booming again. When the economy booms people have more money and feel more confident. They buy more houses and prices rise. This laboratory thinking of CARs is flawed in so many ways. It’s far too simplistic

[Author]

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