Summer 2012 SD Housing Price Top

[bearishgurl]

[quote=pemeliza]BG may rub some people the wrong way but I believe that there is some truth in what she says.

However … BG you seem to be referring to an era in SD when housing close to downtown SD was much more affordable. When you could buy an old house close in to SD for 150k-200k that had good bones and a great location, that was certainly an attractive proposition for a middle class family. These days that same house is 600-700k and frankly for that kind of money most people are not looking for a “project”. BTW, those same families that bought when prices in SD were dirt cheap are also some of the main benefactors of prop 13 and have ridiculously low property tax bills now compared to what today’s family is looking at.[/quote]

I would say it was primarily the oldest set of boomers (over 60 today) who were able to avail themselves of Prop 13. And many of the ones that did and purchased a 1500 sf property in the best area they could afford in the ’70’s DIDN’T MOVE UP when their kids filled the house! They just added on or remodeled to fit their families and did so WHILE they occupied it. Often their lots were sufficient to do this for a one-story. Some even added second stories WHILE their families were living in a portion of it! And some, like myself, purchased another home instead, although I wouldn’t call what we did “moving up.” Except for maybe one property, they were “lateral moves” very close geographically to one another … to make small profits.

pem, I understand the price has gone up exponentially for a well-located, well-built older home in SD Co with “good bones.” HOWEVER, in this time period professional salaries have also gone up, vacation time has gone WAY up at most firms (which could be used for DIY, like we did) and, most importantly, mortgage interest rates have PLUMMETED in recent years.

Our conventional mtgs ranged from 7.25% to 11.5% (or T-Bill/COFI ARMS).

The properties we bought ranged from $73K to $267K and ALL were 4 bdrm w/garages, ranging from 3-16 mi from dtn SD. ALL needed some work but ALL were “livable” upon COE (most after haul-away trips to the dump).

Honestly, I don’t understand why a young family of today would prefer Stonebridge over Del Cerro or Fleetridge (both with many stunning-view properties at the same price point). In the big picture, who CARES if some still have Formica in the kitchens?? I’d move in and start cooking in my knotty-pine kitchen with Formica countertops (PL) and “vintage” built-ins if I could afford to buy a place there! It can all be fixed later. But that’s just me.

[spdrun]

Not everyone in the US is as handy as you and your family. Especially since today’s 30 year olds are typically children of desk jockeys, and shop classes in schools have been cut to extinction.

[sdrealtor]

In the past higher earnings came with years of experience and seniority. Today its all about productivity and innovation. The younger set has that hands down over the older set in the high paying job sectors around here. The world is turning upside down and comparisons with yesteryear are for old goats.

[briansd1]

BG, you have it wrong… Consumer expectations have changed. Lifestyle have changed.

People today want brand name designer clothing. They also expect granite counter tops. And they definitely can’t live with popcorn ceilings.

Interest rates are lower, so people drive more expensive cars today.

And BG, it’s true that people are not as handy as you. I have a friend who can’t fix a small sink leak.

People today don’t improvise as easily to fix things around the house. Look at the proliferation of expensive cleaning products all specialized for different applications.

[spdrun]

BG, you have it wrong… Consumer expectations have changed. Lifestyle have changed.

People today want brand name designer clothing. They also expect granite counter tops. And they definitely can’t live with popcorn ceilings.

Interest rates are lower, so people drive more expensive cars today.

And BG, it’s true that people are not as handy as you. I have a friend who can’t fix a small sink leak.

People today don’t improvise as easily to fix things around the house. Look at the proliferation of expensive cleaning products all specialized for different applications.

If people can’t improvise and end up buying a house based on the countertops, then I’ll call them IDIOTS. That’s the home-buying equivalent of buying a K-car for the Rich Corinthian Leather.

As far as cars, average age of a car in the US is 10+ years. Remember when a 5-year old car was considered “old?”

[an]

[quote=bearishgurl]Honestly, I don’t understand why a young family of today would prefer Stonebridge over Del Cerro or Fleetridge (both with many stunning-view properties at the same price point). In the big picture, who CARES if some still have Formica in the kitchens?? I’d move in and start cooking in my knotty-pine kitchen with Formica countertops (PL) and “vintage” built-ins if I could afford to buy a place there! It can all be fixed later. But that’s just me.[/quote]
Is it really that hard to understand? Here are examples of 2 houses, one in Stonebridge and another in Del Cerro. Both are ~$1.2M.

http://www.sdlookup.com/MLS-120027149-14896_Whispering_Ridge_Rd_San_Diego_CA_92131
http://www.sdlookup.com/MLS-120020803-6836_Elaine_Way_San_Diego_CA_92120

Both have a view but the Del Cerro have a lake view. The Stonebridge is 1300 sq-ft larger (how much does it cost to add 1300 sq-ft, especially if that 1300 sq-ft includes 2 more bathrooms?). The Stonebridge not is easily 30-40% larger (assuming only useable part). Then look at the interior quality (how much would it cost to upgrade to a kitchen and bathrooms like that and flooring for 5500 sq-ft, etc)? My guess is, to make the Del Cerro house to be as big and as well appointed as the Stonebridge house, it would probably cost you another $400-500k ($600k+ if you believe in their claim of $600k in upgrades). So, unless you’re fine with the Del Cerro house the way it is, it wouldn’t make financial sense to buy the Del Cerro home and upgrade it to the level you can get from the Stonebridge house.

Another good example to prove my point is:
http://www.sdlookup.com/MLS-110058628-6651_Belle_Haven_Dr_San_Diego_CA_92120
vs
http://www.sdlookup.com/MLS-120034726-11494_Sweet_Willow_Way_San_Diego_CA_92131
3400 sq-ft vs 5000 sq-ft, 1/4 acre lot vs 3/4 acre lot, look at the interior quality. How much would it cost to add 1600 sq-ft? How much would it cost to remodel to get a kitchen and bathrooms like that?

[flyer]

The net worth discussion–as referenced in this thread–is of particular interest to me–especially when you look at the dire statistics on that topic for 95% of US households.

My wife mentioned a piece she saw on a recent program about a family who, to all appearances, seemed to be doing very well in life–nice house, raised 5 kids–etc., etc. Then, something happened, and they are now living in a motor home in their late 40’s!! Scary stuff.

So, regardless of how much anyone makes, or where anyone chooses to live–HOA, no HOA, Mello, no Mello–or what they choose to buy, etc., etc., IMHO the bottom line is net worth.

Of course, there are many other things that can effect your life, but, after we had everything we wanted, if we hadn’t acquired a high net worth by the time we were 50, our lives would not be nearly as enjoyable as they are.

[spdrun]

Bottom line is net worth THAT CAN BE TRANSLATED TO INCOME(!) My hope for the next 2-3 years is to acquire enough income property to pay for all of my fixed expenses, so I’ll never have to be anyone’s b**ch in life. If not in SD, then in NY area. Either is acceptable in my book.

[flyer]

I agree–the trick is to maintain a high net worth for the duration of your life–especially as you go into your later years.

Have known quite a few people who have experienced great swings in their net worth, and lost it all when they needed it most. I have no doubt you’ll be one of the top 5%–but many are not according to the stats.

[Coronita]

[quote=spdrun]Bottom line is net worth THAT CAN BE TRANSLATED TO INCOME(!) My hope for the next 2-3 years is to acquire enough income property to pay for all of my fixed expenses, so I’ll never have to be anyone’s b**ch in life. If not in SD, then in NY area. Either is acceptable in my book.[/quote]

If you’re a geek, you could already not be someone else’s b!tch…It depends on where you want to live and how you want to live.

And let’s face it, you’re eutopia of never being someone else’s b**ch in life is just a holy grail…because unless you are super rich like bill gates/warren buffett/etc, you will always be someone else’s b**ch.

So let’s explore this..

*If you are landlord, you are your tenant’s b**ch at times, especially if it comes to maintanance, repairs, or disputes. You got 10+ rental properties, you’re going to have to deal with it. And if you get a property manager to deal, you’re going to be their b**ch.

*If you own your own business, you’re your customer’s b**tch.

*And if you have a lot of passive income or active income from trading, you’re Uncle Sam’s b**ch, and at times IRS b**ch.

[Coronita]

[quote=bearishgurl](italics added)[/quote]

First off..You know. Most folks don’t need extra “emphasis”. Because if folks really are going to read what you wrote, it doesn’t matter if you bold/italicize things. And if people don’t plan on reading it, then it also doesn’t matter what you bold/italicize anyway.

[quote]
flu, you are clearly the exception here.
[/quote]

Well, that’s the point though. There are always exceptions, and there are many many exceptions. To the point that generalizations aren’t no longer represent the majority.

[quote] And my understanding is that your tract’s MR is not very high. (Correct me if I’m wrong.) I’m aware that a HUGE portion of MR is allocated the respective public school districts. If a young family only has a baby or toddler or a buyer’s children have already finished school, why pay MR years before you have to or years after your family doesn’t use the schools anymore!
[/quote]

Again, from your viewpoint you think it doesn’t make sense and for various reasons to many people it makes a whole lot of sense.

1. If you have baby or toddler, AND if your you’ve got the money to live in a presumably more costly place to live. The last thing you want is to wait until the last minute to buy a home.

2. Presumably after some time Mellos ruse is paid.

3. Even if you don’t have kids, perhaps you just want to live in that part of town because well, it fits your social/economic background.

4. You like living in a newer area than something that looks 20+years old.

[/quote]

[quote]
For that matter, why pay it at all?
[/quote]

Because again, some people can afford it, some people want to. And it’s no different that some people want to drive a new car and can afford to do so… Yes, BG, there are some people in this world that don’t want to save every single cent they earn for whatever reasons, and it is possible that some people earn a lot more cents than others so that paying $2500-5000 year is nothing. BG, some people pay that alone for 1 month’s of rent.

And no BG, just because some people have the means to do this doesn’t make then “less financially stable”, “less financially prudent” than anything else. Mitt Romney can probably afford a Ferrari or two or three, because that probably represents less than 10% of his net annual income. For the rest of us, we can’t fathom that sort of level of expenditure. One good thing that this economic downturn did though, is it shut down the credit spigot so folks that use to spend on credit have a much more difficult time to..
[/quote]

[quote]
Is the difference is school services the MR buys really WORTH $2500 to $5000+ annually?
[/quote]

For many people, yes. But if you don’t subscribe to the opinion/belief that there is no fundamental difference between different colleges versus vocational versus community-college etc, then you’ll never see understand what others think and why others are willing to pay for more things that *may* (not guaranteed, but may) open more doors. And let’s not get into an argument on whether it will really open more doors or not. Because I said *may*…..It might not for that specific individual(s), but clearly it wouldn’t reduce the person’s opportunities… I mean, let’s face it, if cost wasn’t an issue and your kid has the option of going to say MIT or say CSNorthridge….can you honestly say that it it “wouldn’t matter”? If you really do feel that way (and there’s nothing wrong with that opinion), then you won’t understand the other viewpoint. So the real issue boils down to affordability..And that depends on family/invididual standings…

If cost/income wasn’t an issue, I would be sending my kid to LAJolla Countryday or Bishop Montegomery or some other private school, simply because…why not?

[quote]
The reason I ask this is because MR is not typically used for teacher salaries. It is used for infrastructure, maintenance and possibly programs (not sure about this).
[/quote]

I believe DMUSD, 80% of mello ruse funds the school or close to it.

[quote]
In almost all the CA districts, the most experienced teachers with the most seniority are granted the work assignments of their choice. More often than not, these choices are schools in the the most established areas where families have the resources for school lunches, school trips, extracurricular activities, etc. These schools very often are in older (expensive) coastal areas.
[/quote]

Not sure how this is relevant. Because in a district with MR, I would venture to say probably the district itself is socially/economically consistent so the schools probably are relatively consistent. In DMUSD, the difference between Sage Canyon, Ocean Air, Ashley Falls, Sycamore, or Torrey Hills probably falls within the margin of error of your kid’s ability.

[quote]
Buying a family home in a well-established, well-heeled older urban area in CA coastal counties all but assures your child of a good education, sans the MR and transiency of a large portion of the student body, IMHO.
[/quote]

What’s your definition of well-established? Because just because an area has MR doesn’t mean it’s not well established. CV/Encinitas/Carlesbad have been around for awhile. CV’s been around for like close to 15 years I believe. Seems like it’s pretty consistent to me.

[quote]
Going to your college alumni meetups is a good idea, just to cultivate professional relationships for yourself. Obviously, if you are ever in a position to leave an endowment to your alma mater, that might very well “assist” your kid in getting accepted. I would do so no more than two years before your kid applies to said university, so the “admissions board” has a crystal clear memory of it.
[/quote]

For awhile, I was active in the admissions process. I use to interview prospectives.

[quote]
But flu, isn’t your kid only about 5 yrs old? It’s a bit soon to know what she would even want to major in or where she would want to go.[/quote]

Because if the option is there to go to a more versatile school, one has the option of switching majors. Take my sibling. She started out a bio-engr. Hated it.. Switched freshman year to econ/business. Interview with i-bank on Wall Street, 2 years later,s the rest of enginerd-ville was history. I guarantee such a move would not have been possible if she had the opportunity to go to a more versatile school. Simply because the firm she ended up only recruits out of select schools. Call it what you want, but some companies/opportunities are only available at perceived select schools. That’s not to say their isn’t a lot of other equally good/equivalent opportunities. Just that if the opportunity is there, and if it somewhat is obtainable and possibly desired, no point throwing it away.

[spdrun]

All of these cases are better than coming into the same office in the AM, with a forced smile on your face, while wanting to beat the p!ss out of your boss. BTDT, never again.

I’m not a geek in the sense of an innovator (freely admitted), merely a damn good technician and engineer.

[flyer]

So, true, flu.

I always felt the best plan was to have more than you think you’ll ever need for the duration of your life, so you don’t have to worry about money after 50–because after that age, who knows what might happen!!

[Coronita]

[quote=spdrun]All of these cases are better than coming into the same office in the AM, with a forced smile on your face, while wanting to beat the p!ss out of your boss. BTDT, never again.

I’m not a geek in the sense of an innovator (freely admitted), merely a damn good technician and engineer.[/quote]

You’ll find once you get older in life…You always end up hating complaining about something if you were the type of individual that always hated or complained about something. Grass is always greener on the other side, until you get their and find out it was astroturf that was made in china.

[flyer]

Few can imagine attaining the financial status of Gates or Buffett, but I’m just amazed at how few, again, according to stats, even have $1MM+ in investable assets. Again–scary!!

[Author]

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