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- This topic has 38 replies, 9 voices, and was last updated 16 years, 11 months ago by
23109VC.
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October 11, 2007 at 11:25 AM #10576October 11, 2007 at 12:25 PM #88114
snail
ParticipantCorrect me if I am wrong, but I believe you pay about/close to $100/sq.ft. for your house?! My opinion is prices will not go much lower than that (OPINION was not back by any data!). My personal dislike about Harveston and the Spencer Crossing developments are the high tax rate (1.9%) which just going to kill my budget, however Harveston is actually really convenient location and pleasant and if you have kids it should be great (Spencer is just to remote for my taste).
Regarding the Rent in Temecula, I sure don’t see any pricing going up. Its probably just people trying to minimize their monthly losses.
Well don’t worry about the bear here, enjoy your home. A house is a home not an investment anyway…..October 11, 2007 at 12:25 PM #88119snail
ParticipantCorrect me if I am wrong, but I believe you pay about/close to $100/sq.ft. for your house?! My opinion is prices will not go much lower than that (OPINION was not back by any data!). My personal dislike about Harveston and the Spencer Crossing developments are the high tax rate (1.9%) which just going to kill my budget, however Harveston is actually really convenient location and pleasant and if you have kids it should be great (Spencer is just to remote for my taste).
Regarding the Rent in Temecula, I sure don’t see any pricing going up. Its probably just people trying to minimize their monthly losses.
Well don’t worry about the bear here, enjoy your home. A house is a home not an investment anyway…..October 11, 2007 at 12:35 PM #88122gn
Participant23109VC,
Kudos to you for having the courage to look at things the way they are. Many folks who have bought are in total denial about the current state of the market.
hey, if prices fall badly enough, i'll buy ANOTHER House and rent out the one i'm in now. 🙂Â
If you can afford the negative cashflow from renting out your current house, that's not a bad strategy.Â
I was suprised to see rents have gone UP in my area
The main reason that rents have gone up is because of the supply reduction. Many investors who previously rented out their houses have given up & let the lenders foreclose. These houses are currently vacant but are not available for rent. At some point in the future, the lenders will dump these houses a fire-sale prices & investors will scoop them up & rent them out. Then, rent will come down. Basically, rents have gone up because of an artificial reduction in the rental supply.
Of course, people who lost their primary residences to foreclosure also contribute to the rental shortage. But this is a minor factor.
October 11, 2007 at 12:35 PM #88127gn
Participant23109VC,
Kudos to you for having the courage to look at things the way they are. Many folks who have bought are in total denial about the current state of the market.
hey, if prices fall badly enough, i'll buy ANOTHER House and rent out the one i'm in now. 🙂Â
If you can afford the negative cashflow from renting out your current house, that's not a bad strategy.Â
I was suprised to see rents have gone UP in my area
The main reason that rents have gone up is because of the supply reduction. Many investors who previously rented out their houses have given up & let the lenders foreclose. These houses are currently vacant but are not available for rent. At some point in the future, the lenders will dump these houses a fire-sale prices & investors will scoop them up & rent them out. Then, rent will come down. Basically, rents have gone up because of an artificial reduction in the rental supply.
Of course, people who lost their primary residences to foreclosure also contribute to the rental shortage. But this is a minor factor.
October 11, 2007 at 1:38 PM #88162patientlywaiting
Participant23109VC, I can’t believe you’ve been reading this site and still you went out and bought a few months back.
Anyway, do keep us to date on Temecula. Yes, kudos to you for being realistic even though you purchased recently.
October 11, 2007 at 1:38 PM #88167patientlywaiting
Participant23109VC, I can’t believe you’ve been reading this site and still you went out and bought a few months back.
Anyway, do keep us to date on Temecula. Yes, kudos to you for being realistic even though you purchased recently.
October 11, 2007 at 1:49 PM #88173snail
Participant$100/sq.ft. for your house?! My opinion is prices will not go much lower than that
I was wrong…so…wrong…sic
http://housing-kaboom.blogspot.com/2007/10/broken-100-sqft-barrier.htmlOctober 11, 2007 at 1:49 PM #88168snail
Participant$100/sq.ft. for your house?! My opinion is prices will not go much lower than that
I was wrong…so…wrong…sic
http://housing-kaboom.blogspot.com/2007/10/broken-100-sqft-barrier.htmlOctober 11, 2007 at 2:07 PM #88170bsrsharma
ParticipantSnail: Your link doesn’t have any Temecula homes; Right? I think the OP bought a Temecula home for $100/sqft. That is a good deal. When at least 25% of SD county homes reach $100 mark, I think you can call bottom.
October 11, 2007 at 2:07 PM #88175bsrsharma
ParticipantSnail: Your link doesn’t have any Temecula homes; Right? I think the OP bought a Temecula home for $100/sqft. That is a good deal. When at least 25% of SD county homes reach $100 mark, I think you can call bottom.
October 11, 2007 at 2:32 PM #8817423109VC
Participanti did NOT buy for $100/sq ft. 🙂 I wish.
I still got a good deal. I paid a good $100k less than ANYONE on my street. The seller bought at peak pricing, and ate the loss. He was a $$$$ investor dumping a lot of property, and wanted out, fast.
the cheapest house I have seen in my immediate neighborhood that is for sale is still priced 50k more than I paid.
there are amazing deals out here, but like another person pointed out, Spencer’s Crossing and stuff in that area, is a bit more remote and less convenient. for people with kids, Harveston is an ideal setting. parks, lake, pool facility, easy access to freeway, mall, and of course COSTCO!. plus it’s 5 min from my office. going home for lunch is hard to beat.
i bet things will still slide down. i’m just not so sure how far.
ultimately, these houses are worth what they will rent out for. so while prices may come down, i don’t see prices falling so low that you could buy one for less than you could rent if for…. someone correct me if i’m wrong…but if you can figure out roughly what a hosue SHOULD rent for, can’t you ultimately determine the bottom line range of what it could sell for – assuming it went to investors who would rent it out?
assume a hous would rent for 1800-2000 – what’s it’s “value”…..wasn’t there a formula that houses are worth 200x the rent or something…
October 11, 2007 at 2:32 PM #8817823109VC
Participanti did NOT buy for $100/sq ft. 🙂 I wish.
I still got a good deal. I paid a good $100k less than ANYONE on my street. The seller bought at peak pricing, and ate the loss. He was a $$$$ investor dumping a lot of property, and wanted out, fast.
the cheapest house I have seen in my immediate neighborhood that is for sale is still priced 50k more than I paid.
there are amazing deals out here, but like another person pointed out, Spencer’s Crossing and stuff in that area, is a bit more remote and less convenient. for people with kids, Harveston is an ideal setting. parks, lake, pool facility, easy access to freeway, mall, and of course COSTCO!. plus it’s 5 min from my office. going home for lunch is hard to beat.
i bet things will still slide down. i’m just not so sure how far.
ultimately, these houses are worth what they will rent out for. so while prices may come down, i don’t see prices falling so low that you could buy one for less than you could rent if for…. someone correct me if i’m wrong…but if you can figure out roughly what a hosue SHOULD rent for, can’t you ultimately determine the bottom line range of what it could sell for – assuming it went to investors who would rent it out?
assume a hous would rent for 1800-2000 – what’s it’s “value”…..wasn’t there a formula that houses are worth 200x the rent or something…
October 11, 2007 at 2:51 PM #88183patientlywaiting
ParticipantSo you were the comp killer what cause that whole slide, ha.haha.
Within $50k from the next best deal… Well, I’m afraid that your great deal will turn out to be mediocre at best It’s all relative anyway so if you’re happy, then that’s all that counts.
Did you add up all the ownership premium over time? And what those would be worth if you had wisely invested the money?
You sound like a realist who can see the market for what it is. Why not keep track of the difference been buy and rent since your purchase and after 10 years see what the difference is. It would be a good lesson to hand down to the kids.
October 11, 2007 at 2:51 PM #88186patientlywaiting
ParticipantSo you were the comp killer what cause that whole slide, ha.haha.
Within $50k from the next best deal… Well, I’m afraid that your great deal will turn out to be mediocre at best It’s all relative anyway so if you’re happy, then that’s all that counts.
Did you add up all the ownership premium over time? And what those would be worth if you had wisely invested the money?
You sound like a realist who can see the market for what it is. Why not keep track of the difference been buy and rent since your purchase and after 10 years see what the difference is. It would be a good lesson to hand down to the kids.
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