Sell and rent until market drops?

[thejq]

More debts by itself is not necessarily a bad thing, as long as its percentage to GDP is stable or decreasing as it’s the case right now. While the US economy is still red hot and near full employment, the rest of the developed world is questionable at best. The strongest economy in EU, Germany only grew 1.8% in 2018, and Italy is -2%. As a result the ECB held its rate in Jan. As a common sense, when the going is good, it’s probably a good time to reduce some of that debt so when the bad time comes, there’s a room to maneuver. But the Fed must have seen something that we don’t see in the last FOMC by leaving the rate unchanged and signaled no increase for the rest of 2019 which is a little surprising.

[FlyerInHi]

Debt to GDP decreasing as compared to when? And what about local government and household debt?

Of course you have the federal deficit as well as the trade deficit. Where is Ron Paul to restore us to the gold standard?

https://tradingeconomics.com/united-states/government-debt-to-gdp

[thejq]

Good we’re looking at the same chart. So 2017 is lower than 2016 and 2018 is also forecast to trend down.

I like some of Ron’s libertarian ideas, but I won’t take financial advice from him as his track record has been pretty bad. I wouldn’t worry so much about federal deficit because it’s mostly financed by the fed and public debt, but trade deficit is a bigger problem, because it’s financed by foreign government.

[23109VC]

thanks to everyone for all the comments and suggestions. I am the OP and yes, I was here back before the crash looking for advice, and I got it, but didn’t take it. Then I bought in Temecula and a year later my house went underwater.. 🙁

Well, fast forward a decade, and diligent payments, and increased income and my house is not all the way paid off but getting there. We have fixed it up along the way, and while it’s getting small for our growing family, it is a nice place to live and I like it. I work locally, so my commute is about 10 minutes. Some days I come home for lunch. I can’t complain.

My wife and I, however, really would like to move back to SAn Diego. We both grew up there, we have family there ,and ideally, when I am retired, that’s where I would like to be. if I can get there sooner, that woujdl be better. My wife really wants to be there, and I want to make her happy.

I’m not in as much of a rush to get there as I still work here, but I am planning on leaving my job in about 3 years. I’ll be able to pull a decent retirement from work and then open up my own business.I would probably be taking on work in both Riverside and San Diego, and could live in either county and make things work.

To me, it is unfortuante we have become accustomed to the housing market in Temecula, where a $500k house is actually quite nice.
then when you see what that gets you in San Diego, it’s some dump in a crummy looking neighborhood…relative to what you would get up here.

I’m starting to think that I’d probably need to spend upwards of $850-$1,000,000 to get a house in san Diego I would honestly like. I have not crunched the numbers to see if that is a realistic price point. My household income is good and debt is low, but I also don’t want to be house poor again.

All of live is a compromise..and moving back to San Diego might mean moving into a smaller place, or an older place. I had simply thought that if the market were to drop this year or next – as some experts have predicted – that might be the only real way to move from Temecula to a comparable San Diego home.

I had read a lot of stuff online predicting housing prices to fall in 2019 or 2020, which got me thinking what if I sold my current house, pocketed my equity, and then either rented a cheap house in Temecula for the next year or move in with mom and pocket more money.

Sounds like a lot of you are not optimistic that prices will drop – at least not like they did last time around.

I would assume if prices do drop, they will drop a lot more in Temecula than San Diego… and my equity would be much less here if I still own a home.

my house here is probably about $450k if I sold it, and I owe under $250k on it. I could rent it for probably $2200-2300/month if I were to rent. But if I rent it, I would have no money for a downpayment on the next house.

we toyed with the idea of renting. half the people say how great their rental worked out, and I have friends who have told me HORROR stories of tenants from hell – which has pretty much convinced me that we will sell and move our equity to the next house and not try to find way to keep this house as an investment. Feel free to tell me if I am wrong/right on that one..but if I move to SD I don’t see how I do it unless I bring every drop of equity I have.

I do appreciate all the info and suggestions. Thanks to everyone who chimed in and I’m open to any other suggestions or words of wisdom. I’m all ears. 🙂

[thejq]

I think most replies had assumed you’d need to rent when waiting/looking for your new forever home. But if you can move in with mom and your wife is ok with it, why not? Spring is the best time to sell. Sounds like if you don’t you will not have the cash for down payment, and most sellers don’t take contingent offers (too much risk), so your only option is to sell first anyway. With the cash from the sale, and while living with mom, you can start looking. The best time to buy is late summer to end of year. Since you’re not under time pressure, you can afford to look around, low ball and negotiate. Buy the worst house in the best neighborhood if you know how to fix it up to get the best price. Personally I don’t expect the market to change too much before 2020 election. It’s pretty high now, but with good economy and low rate, people can still afford it.

[FlyerInHi]

[quote=thejq]I think most replies had assumed you’d need to rent when waiting/looking for your new forever home. But if you can move in with mom and your wife is ok with it, why not? Spring is the best time to sell. Sounds like if you don’t you will not have the cash for down payment, and most sellers don’t take contingent offers (too much risk), so your only option is to sell first anyway. With the cash from the sale, and while living with mom, you can start looking. The best time to buy is late summer to end of year. Since you’re not under time pressure, you can afford to look around, low ball and negotiate. Buy the worst house in the best neighborhood if you know how to fix it up to get the best price. Personally I don’t expect the market to change too much before 2020 election. It’s pretty high now, but with good economy and low rate, people can still afford it.[/quote]

Sounds like the most reasonable option for moving to San Diego.
I lived with my parents in between condos before. They have a comfortable house.

[outtamojo]

Looking very dangerous to be renting and not holding hard assets if we end up with an easy-money politicized Fed.

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