Temecula’s falling knife :)

[4plexowner]

I picked a bad example – downtown and Temecula are too far apart for comparison

A better example in this case would be the apartments down the freeway

Let’s say I can rent a 2 bdrm close to work for $1600 and the apartment down the freeway is only $1425 – it is a personal decision whether the drive is worth $175/month

But then the economy takes a turn and the apartment down the freeway lowers rents to $1300 and offers first month’s rent for free with a 1 year lease

Now the equation has changed – there will be some people who are willing to drive for $300/mo savings but wouldn’t do the drive for $175 – the demand for the $1600 apartment has been reduced by factors OUTSIDE of the area of interest

And that is my main point (although I haven’t stated it explicitly) – there are numerous changes happening right now in San Diego that are likely to significantly change rental rates and purchase prices – making a buy decision based on current rental rates is not the most prudent course of action IMO – if you really have to buy right now it should be an absolute steal (like $100K for a $200K condo)

[4plexowner]

I picked a bad example – downtown and Temecula are too far apart for comparison

A better example in this case would be the apartments down the freeway

Let’s say I can rent a 2 bdrm close to work for $1600 and the apartment down the freeway is only $1425 – it is a personal decision whether the drive is worth $175/month

But then the economy takes a turn and the apartment down the freeway lowers rents to $1300 and offers first month’s rent for free with a 1 year lease

Now the equation has changed – there will be some people who are willing to drive for $300/mo savings but wouldn’t do the drive for $175 – the demand for the $1600 apartment has been reduced by factors OUTSIDE of the area of interest

And that is my main point (although I haven’t stated it explicitly) – there are numerous changes happening right now in San Diego that are likely to significantly change rental rates and purchase prices – making a buy decision based on current rental rates is not the most prudent course of action IMO – if you really have to buy right now it should be an absolute steal (like $100K for a $200K condo)

[patientlywaiting]

4plex, what you say makes a lot of sense. There are too many factors that will affect the maket. Assuming that rents won’t drop is optimistic.

I believe that we’ll see some major out-migration and unemployment just like we had in the 1990s.

Remember, that as desirable as San Diego is, we’ve been surpassed in population by areas such as Dallas, Minneapolis, Atlanta and Phoenix.

[patientlywaiting]

4plex, what you say makes a lot of sense. There are too many factors that will affect the maket. Assuming that rents won’t drop is optimistic.

I believe that we’ll see some major out-migration and unemployment just like we had in the 1990s.

Remember, that as desirable as San Diego is, we’ve been surpassed in population by areas such as Dallas, Minneapolis, Atlanta and Phoenix.

[patientlywaiting]

4plex, what you say makes a lot of sense. There are too many factors that will affect the maket. Assuming that rents won’t drop is optimistic.

I believe that we’ll see some major out-migration and unemployment just like we had in the 1990s.

Remember, that as desirable as San Diego is, we’ve been surpassed in population by areas such as Dallas, Minneapolis, Atlanta and Phoenix.

[patientlywaiting]

4plex, what you say makes a lot of sense. There are too many factors that will affect the maket. Assuming that rents won’t drop is optimistic.

I believe that we’ll see some major out-migration and unemployment just like we had in the 1990s.

Remember, that as desirable as San Diego is, we’ve been surpassed in population by areas such as Dallas, Minneapolis, Atlanta and Phoenix.

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