Relocating from SD to OC

[sd2oc]

thank you all for your insightful comments! in answer to SD Realtor’s question, if we rented out our SD home, moved to OC, and just started stockpiling money for 2-3 years, then yes, we would probably be able to afford to buy up there without selling our home in SD (this process would be accelerated in the event of more OC declines/slowed in the event of a faster OC recovery). Former San Diegan, you make a good point about us owning the home free and clear in 15 (now 13 =) years, and in the meantime having someone pay our mortgage for us while we still get to deduct interest and property taxes. do even the most bearish of bears on this forum think the house will be worth more in 13 years than it is now (independent of inflation, that is)?

[patientlywaiting]

sd2oc, take my opinion as a very bearish one.

You’ve hardly paid anything to principal so to me, it’s not beneficial to hang on to the house. I believe that houses in Carmel Valley have another 30% more to drop.

The only reason you would be cash flow positive is because you have a large down payment. If you cash out, you can invest the money other places and make it grow.

15 years from now, prices might just be the same they are now.

You cannot deduct interest expenses on a rental against ordinary income. Of course, interest expenses would offset your rental income. When you depreciate your rental house, you defer taxes but you have to recapture depreciation upon sale. Talk to your CPA.

[patientlywaiting]

sd2oc, take my opinion as a very bearish one.

You’ve hardly paid anything to principal so to me, it’s not beneficial to hang on to the house. I believe that houses in Carmel Valley have another 30% more to drop.

The only reason you would be cash flow positive is because you have a large down payment. If you cash out, you can invest the money other places and make it grow.

15 years from now, prices might just be the same they are now.

You cannot deduct interest expenses on a rental against ordinary income. Of course, interest expenses would offset your rental income. When you depreciate your rental house, you defer taxes but you have to recapture depreciation upon sale. Talk to your CPA.

[patientlywaiting]

sd2oc, take my opinion as a very bearish one.

You’ve hardly paid anything to principal so to me, it’s not beneficial to hang on to the house. I believe that houses in Carmel Valley have another 30% more to drop.

The only reason you would be cash flow positive is because you have a large down payment. If you cash out, you can invest the money other places and make it grow.

15 years from now, prices might just be the same they are now.

You cannot deduct interest expenses on a rental against ordinary income. Of course, interest expenses would offset your rental income. When you depreciate your rental house, you defer taxes but you have to recapture depreciation upon sale. Talk to your CPA.

[patientlywaiting]

sd2oc, take my opinion as a very bearish one.

You’ve hardly paid anything to principal so to me, it’s not beneficial to hang on to the house. I believe that houses in Carmel Valley have another 30% more to drop.

The only reason you would be cash flow positive is because you have a large down payment. If you cash out, you can invest the money other places and make it grow.

15 years from now, prices might just be the same they are now.

You cannot deduct interest expenses on a rental against ordinary income. Of course, interest expenses would offset your rental income. When you depreciate your rental house, you defer taxes but you have to recapture depreciation upon sale. Talk to your CPA.

[patientlywaiting]

sd2oc, take my opinion as a very bearish one.

You’ve hardly paid anything to principal so to me, it’s not beneficial to hang on to the house. I believe that houses in Carmel Valley have another 30% more to drop.

The only reason you would be cash flow positive is because you have a large down payment. If you cash out, you can invest the money other places and make it grow.

15 years from now, prices might just be the same they are now.

You cannot deduct interest expenses on a rental against ordinary income. Of course, interest expenses would offset your rental income. When you depreciate your rental house, you defer taxes but you have to recapture depreciation upon sale. Talk to your CPA.

[sd2oc]

patientlywaiting, i appreciate your bearish perspective! it’s true our mortgage is so low only because our down payment is so high. i find it ironic that although my husband and i didn’t make some of the typical mistakes of bubble buyers (i.e. buying too much house with too little down, utilizing exotic loan structures, etc.), we still were pretty idiotic (i.e. playing into the fear that if we didn’t buy now we would eventually be priced out of the market, getting a 15 year fixed when we’re 29 and 30 years old, and of course, reversing the standard 20/80 downpayment/mortgage breakdown). good point about the tax rules concerning rentals, as well!

[sd2oc]

patientlywaiting, i appreciate your bearish perspective! it’s true our mortgage is so low only because our down payment is so high. i find it ironic that although my husband and i didn’t make some of the typical mistakes of bubble buyers (i.e. buying too much house with too little down, utilizing exotic loan structures, etc.), we still were pretty idiotic (i.e. playing into the fear that if we didn’t buy now we would eventually be priced out of the market, getting a 15 year fixed when we’re 29 and 30 years old, and of course, reversing the standard 20/80 downpayment/mortgage breakdown). good point about the tax rules concerning rentals, as well!

[sd2oc]

patientlywaiting, i appreciate your bearish perspective! it’s true our mortgage is so low only because our down payment is so high. i find it ironic that although my husband and i didn’t make some of the typical mistakes of bubble buyers (i.e. buying too much house with too little down, utilizing exotic loan structures, etc.), we still were pretty idiotic (i.e. playing into the fear that if we didn’t buy now we would eventually be priced out of the market, getting a 15 year fixed when we’re 29 and 30 years old, and of course, reversing the standard 20/80 downpayment/mortgage breakdown). good point about the tax rules concerning rentals, as well!

[sd2oc]

patientlywaiting, i appreciate your bearish perspective! it’s true our mortgage is so low only because our down payment is so high. i find it ironic that although my husband and i didn’t make some of the typical mistakes of bubble buyers (i.e. buying too much house with too little down, utilizing exotic loan structures, etc.), we still were pretty idiotic (i.e. playing into the fear that if we didn’t buy now we would eventually be priced out of the market, getting a 15 year fixed when we’re 29 and 30 years old, and of course, reversing the standard 20/80 downpayment/mortgage breakdown). good point about the tax rules concerning rentals, as well!

[sd2oc]

patientlywaiting, i appreciate your bearish perspective! it’s true our mortgage is so low only because our down payment is so high. i find it ironic that although my husband and i didn’t make some of the typical mistakes of bubble buyers (i.e. buying too much house with too little down, utilizing exotic loan structures, etc.), we still were pretty idiotic (i.e. playing into the fear that if we didn’t buy now we would eventually be priced out of the market, getting a 15 year fixed when we’re 29 and 30 years old, and of course, reversing the standard 20/80 downpayment/mortgage breakdown). good point about the tax rules concerning rentals, as well!

[jimmyle]

4) stay in SD and commute to OC for the time being (and if so, for how long?).

I think I am the most qualified to answer this question.

I am commuting from Carmel Valley (Carmel Vista Rd. and Carmel Center Dr.) to Orange County (Garden Grove)to work. The drive is 80 miles one way. Shorter if your husband works in South Orange County. My work schedule is 6:30AM to 3:30PM. I leave my apartment at 5:10AM and get home at 5-5:15PM. My boss allows me this special work schedule because they need me. I drive 3 days a week. Staying at my sister’s house in OC on Wednesday nights and work from home on Fridays.

If your husband has to drive 5 days a week, then I don’t recommend it. But if he can negotiate for one or two days telecommuting then it is worth it.

I don’t mind driving 3 days a week and working from home on Fridays. Actually I enjoy the drive after getting Prius (a must) and getting 55 MPG.

People don’t believe I get 55+ MPG (9 MPG better than EPA) but here is the proof:

http://priuschat.com/forums/fuel-economy/43476-over-60-mpg-san-diego-anaheim-back.html

[jimmyle]

4) stay in SD and commute to OC for the time being (and if so, for how long?).

I think I am the most qualified to answer this question.

I am commuting from Carmel Valley (Carmel Vista Rd. and Carmel Center Dr.) to Orange County (Garden Grove)to work. The drive is 80 miles one way. Shorter if your husband works in South Orange County. My work schedule is 6:30AM to 3:30PM. I leave my apartment at 5:10AM and get home at 5-5:15PM. My boss allows me this special work schedule because they need me. I drive 3 days a week. Staying at my sister’s house in OC on Wednesday nights and work from home on Fridays.

If your husband has to drive 5 days a week, then I don’t recommend it. But if he can negotiate for one or two days telecommuting then it is worth it.

I don’t mind driving 3 days a week and working from home on Fridays. Actually I enjoy the drive after getting Prius (a must) and getting 55 MPG.

People don’t believe I get 55+ MPG (9 MPG better than EPA) but here is the proof:

http://priuschat.com/forums/fuel-economy/43476-over-60-mpg-san-diego-anaheim-back.html

[jimmyle]

4) stay in SD and commute to OC for the time being (and if so, for how long?).

I think I am the most qualified to answer this question.

I am commuting from Carmel Valley (Carmel Vista Rd. and Carmel Center Dr.) to Orange County (Garden Grove)to work. The drive is 80 miles one way. Shorter if your husband works in South Orange County. My work schedule is 6:30AM to 3:30PM. I leave my apartment at 5:10AM and get home at 5-5:15PM. My boss allows me this special work schedule because they need me. I drive 3 days a week. Staying at my sister’s house in OC on Wednesday nights and work from home on Fridays.

If your husband has to drive 5 days a week, then I don’t recommend it. But if he can negotiate for one or two days telecommuting then it is worth it.

I don’t mind driving 3 days a week and working from home on Fridays. Actually I enjoy the drive after getting Prius (a must) and getting 55 MPG.

People don’t believe I get 55+ MPG (9 MPG better than EPA) but here is the proof:

http://priuschat.com/forums/fuel-economy/43476-over-60-mpg-san-diego-anaheim-back.html

[jimmyle]

4) stay in SD and commute to OC for the time being (and if so, for how long?).

I think I am the most qualified to answer this question.

I am commuting from Carmel Valley (Carmel Vista Rd. and Carmel Center Dr.) to Orange County (Garden Grove)to work. The drive is 80 miles one way. Shorter if your husband works in South Orange County. My work schedule is 6:30AM to 3:30PM. I leave my apartment at 5:10AM and get home at 5-5:15PM. My boss allows me this special work schedule because they need me. I drive 3 days a week. Staying at my sister’s house in OC on Wednesday nights and work from home on Fridays.

If your husband has to drive 5 days a week, then I don’t recommend it. But if he can negotiate for one or two days telecommuting then it is worth it.

I don’t mind driving 3 days a week and working from home on Fridays. Actually I enjoy the drive after getting Prius (a must) and getting 55 MPG.

People don’t believe I get 55+ MPG (9 MPG better than EPA) but here is the proof:

http://priuschat.com/forums/fuel-economy/43476-over-60-mpg-san-diego-anaheim-back.html

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