Upper MId to Lower High End Market in NCC

[Anonymous]

I think you hit the target demographic for these purchases. However, I still am skeptical about how large the pool of people really is in this demographic.

Moreover, the situation is not nearly as good as your example. For one, good luck getting 4.5% on a jumbo loand. Second, you have to factor in property taxes (huge), PMI and possibly Mello Roos or HOA. Finally, the biggest risk is that real estate prices tank some more and you just traded in your safe but low interest investment income into a depreciating asset.

I for one am in that demographic you mention. I rent and am sitting on significant “house money”. I am more than content to keep renting in this environment.

[ocrenter]

very easy to get 4.5% on jumbo conforming. (I just did).

I should have said $697k instead of $700k. =)

property tax is huge, but even with that plus HOA and mello roos, rates are so low that the monthly cost in a lot of cases would be below rental cost.

as for poss additional depreciation. depends on the location and price I suppose. if you are looking at near or over $300/sqft, I think you are right. closer to $200/sqft in a premium area in SD, I think that’s already very close to bottom.

[ocrenter]

very easy to get 4.5% on jumbo conforming. (I just did).

I should have said $697k instead of $700k. =)

property tax is huge, but even with that plus HOA and mello roos, rates are so low that the monthly cost in a lot of cases would be below rental cost.

as for poss additional depreciation. depends on the location and price I suppose. if you are looking at near or over $300/sqft, I think you are right. closer to $200/sqft in a premium area in SD, I think that’s already very close to bottom.

[ocrenter]

very easy to get 4.5% on jumbo conforming. (I just did).

I should have said $697k instead of $700k. =)

property tax is huge, but even with that plus HOA and mello roos, rates are so low that the monthly cost in a lot of cases would be below rental cost.

as for poss additional depreciation. depends on the location and price I suppose. if you are looking at near or over $300/sqft, I think you are right. closer to $200/sqft in a premium area in SD, I think that’s already very close to bottom.

[ocrenter]

very easy to get 4.5% on jumbo conforming. (I just did).

I should have said $697k instead of $700k. =)

property tax is huge, but even with that plus HOA and mello roos, rates are so low that the monthly cost in a lot of cases would be below rental cost.

as for poss additional depreciation. depends on the location and price I suppose. if you are looking at near or over $300/sqft, I think you are right. closer to $200/sqft in a premium area in SD, I think that’s already very close to bottom.

[ocrenter]

very easy to get 4.5% on jumbo conforming. (I just did).

I should have said $697k instead of $700k. =)

property tax is huge, but even with that plus HOA and mello roos, rates are so low that the monthly cost in a lot of cases would be below rental cost.

as for poss additional depreciation. depends on the location and price I suppose. if you are looking at near or over $300/sqft, I think you are right. closer to $200/sqft in a premium area in SD, I think that’s already very close to bottom.

[Anonymous]

In “premium” areas of SD rent is still way less than Mortgage/HOA/Tax even with 4.5% rates.

I definitely agree that $200/sqft is getting near bottom for premium area, but we are nowhere near that today. Maybe we have different definition of premium (mine is coastal SD). Anything approaching $200/sq foot is a dump.

[Anonymous]

In “premium” areas of SD rent is still way less than Mortgage/HOA/Tax even with 4.5% rates.

I definitely agree that $200/sqft is getting near bottom for premium area, but we are nowhere near that today. Maybe we have different definition of premium (mine is coastal SD). Anything approaching $200/sq foot is a dump.

[Anonymous]

In “premium” areas of SD rent is still way less than Mortgage/HOA/Tax even with 4.5% rates.

I definitely agree that $200/sqft is getting near bottom for premium area, but we are nowhere near that today. Maybe we have different definition of premium (mine is coastal SD). Anything approaching $200/sq foot is a dump.

[Anonymous]

In “premium” areas of SD rent is still way less than Mortgage/HOA/Tax even with 4.5% rates.

I definitely agree that $200/sqft is getting near bottom for premium area, but we are nowhere near that today. Maybe we have different definition of premium (mine is coastal SD). Anything approaching $200/sq foot is a dump.

[Anonymous]

In “premium” areas of SD rent is still way less than Mortgage/HOA/Tax even with 4.5% rates.

I definitely agree that $200/sqft is getting near bottom for premium area, but we are nowhere near that today. Maybe we have different definition of premium (mine is coastal SD). Anything approaching $200/sq foot is a dump.

[CA renter]

[quote=deadzone]I think you hit the target demographic for these purchases. However, I still am skeptical about how large the pool of people really is in this demographic.

Moreover, the situation is not nearly as good as your example. For one, good luck getting 4.5% on a jumbo loand. Second, you have to factor in property taxes (huge), PMI and possibly Mello Roos or HOA. Finally, the biggest risk is that real estate prices tank some more and you just traded in your safe but low interest investment income into a depreciating asset.

I for one am in that demographic you mention. I rent and am sitting on significant “house money”. I am more than content to keep renting in this environment.[/quote]

Well put, deadzone. I’m with you on this and your other posts above.

[CA renter]

[quote=deadzone]I think you hit the target demographic for these purchases. However, I still am skeptical about how large the pool of people really is in this demographic.

Moreover, the situation is not nearly as good as your example. For one, good luck getting 4.5% on a jumbo loand. Second, you have to factor in property taxes (huge), PMI and possibly Mello Roos or HOA. Finally, the biggest risk is that real estate prices tank some more and you just traded in your safe but low interest investment income into a depreciating asset.

I for one am in that demographic you mention. I rent and am sitting on significant “house money”. I am more than content to keep renting in this environment.[/quote]

Well put, deadzone. I’m with you on this and your other posts above.

[CA renter]

[quote=deadzone]I think you hit the target demographic for these purchases. However, I still am skeptical about how large the pool of people really is in this demographic.

Moreover, the situation is not nearly as good as your example. For one, good luck getting 4.5% on a jumbo loand. Second, you have to factor in property taxes (huge), PMI and possibly Mello Roos or HOA. Finally, the biggest risk is that real estate prices tank some more and you just traded in your safe but low interest investment income into a depreciating asset.

I for one am in that demographic you mention. I rent and am sitting on significant “house money”. I am more than content to keep renting in this environment.[/quote]

Well put, deadzone. I’m with you on this and your other posts above.

[CA renter]

[quote=deadzone]I think you hit the target demographic for these purchases. However, I still am skeptical about how large the pool of people really is in this demographic.

Moreover, the situation is not nearly as good as your example. For one, good luck getting 4.5% on a jumbo loand. Second, you have to factor in property taxes (huge), PMI and possibly Mello Roos or HOA. Finally, the biggest risk is that real estate prices tank some more and you just traded in your safe but low interest investment income into a depreciating asset.

I for one am in that demographic you mention. I rent and am sitting on significant “house money”. I am more than content to keep renting in this environment.[/quote]

Well put, deadzone. I’m with you on this and your other posts above.

[Author]

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