State of the economy and affect on housing in S California

[bearishgurl]

I just got a snail mail offer of 1.2% on a 12-month CD at Synchrony Bank (NJ). $2K minimum; offer code CCD19. They are FDIC insured to $250K.

[bearishgurl]

[quote=rockingtime]Since you have lot of money for cash down, I’d say invest in some good relatively safe place to get you 4-5% return….[/quote]

Uuh, maybe I’m ignorant but can you make some suggestions in this regard?

[scaredyclassic]

This opportunity is no longer avsilable, also Immoral, now illegal and evil, but Thomas Jefferson’s journals say he was getting a 4 percent return on his slaves through births.

http://www.smithsonianmag.com/history/the-dark-side-of-thomas-jefferson-35976004/

[Coronita]

Make a big error on your 1040 tax this year so that you overpay. At the end of next year, file a 1040X amended return. Get your money back + receive your 2% return on your money you loaned to the IRS. Probably beats most short term CD’s.

Just kidding…Sort of.

[fun4vnay2]

Cash in chase investment account and their conservative model pay almost 4-5%/year, their moderate model pays almost 7%/year.
The money is liquid.
One can always argue there are better options but I am not aware of any. I chose chase as I bank with them primarily.

[bearishgurl]

[quote=rockingtime]Cash in chase investment account and their conservative model pay almost 4-5%/year, their moderate model pays almost 7%/year.
The money is liquid.
One can always argue there are better options but I am not aware of any. I chose chase as I bank with them primarily.[/quote]

Is that with the JP Morgan Private Bank? I’m somewhat familiar with their conservative model.

I’ll check into that, rockingtime. You can pm me if you wish with more info. Thanks.

[jeff303]

[quote=rockingtime]Cash in chase investment account and their conservative model pay almost 4-5%/year, their moderate model pays almost 7%/year.
The money is liquid.
One can always argue there are better options but I am not aware of any. I chose chase as I bank with them primarily.[/quote]

What’s the minimum investment?

[wallers]

[quote=rockingtime]Cash in chase investment account and their conservative model pay almost 4-5%/year, their moderate model pays almost 7%/year.
The money is liquid.
One can always argue there are better options but I am not aware of any. I chose chase as I bank with them primarily.[/quote]

Yes would like more info on that as well if possible.

[FlyerInHi]

[quote=scaredyclassic]This opportunity is no longer avsilable, also Immoral, now illegal and evil, but Thomas Jefferson’s journals say he was getting a 4 percent return on his slaves through births.

http://www.smithsonianmag.com/history/the-dark-side-of-thomas-jefferson-35976004/
[/quote]

Put all your money in negroes. The return he was talking about was the resale value. Plus he got free services.
It was sound advice at the time.

[fun4vnay2]

Guys,

I’d advise to to do a quick stop at chase bank
I guess minimum was $45K or so.

Thanks

[Jazzman]

[quote=bearishgurl]

Hahahahahaha, scaredy :=D. I well remember your months/years? of musings on here during your “overthinking” period before you finally purchased your current home.

I also remember all of Jazzman’s musings during and after his failed search up and down the state for a suitable CA retirement home. As I recall, 90% of his search occurred at the very bottom of the market (2010-2011?). As far as he’s told us, he still hasn’t purchased a CA home and I’m unclear if he still wants to. In any case, that train has long ago left the station.[/quote]

Ah! BG is back. Not sure the train ever arrived. I’m not looking in CA for the time being, thanks, but I’ll be sure you let Realtors (including you) know, if ever that changes.

[paramount]

This is the year of the Shemittah…

[(former)FormerSanDiegan]

[quote=rockingtime]Since you have lot of money for cash down, I’d say invest in some good relatively safe place to get you 4-5% return.

In couple of years, when and if the interest rates hit high, I am sure the prices would come down

Real estate prices in CA are cyclical in general and if anyone says otherwise, please look at the history.

Of course no one knows the future..[/quote]

If you look at the history of housing prices and interest rates you will note that the periods of interest rates increasing (notably mid 1960s to 1980, for example) coincided with home price increases.

SO, higher rates does not necessarily equate to lower prices. In fact, historically it has been the other way around. Higher interest rates generally track over the long run with higher inflation.

[fun4vnay2]

Yeah, you are right about the historical fact.
I am one of the least educated person about data and facts.

I report/act on what I observe at the ground level.
I knew in 2007/8 that this much housing prices in sd is not sustainable as wages are not supportable. I waited till 2011 to buy.

I feel the same now. I feel all this is bubble. But I’ve been wrong before 🙂
The high paying wages are not really growing. Job uncertainty is there/increased.

SD may have seen big job growth but how many of these jobs are paying $150K ?

I feel that a decently earning ( ~$100K/year ) middle class family can’t really live here …

[The-Shoveler]

“I feel that a decently earning ( ~$100K/year ) middle class family can’t really live here ..”

IMO it’s just that SD has grown up and become more like L.A.

A middle class family can make it in L.A. (or SD) they just have to commute 35-45 miles to work like they have in L.A. for the last 35 or so years.

[Author]

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