- This topic has 133 replies, 22 voices, and was last updated 15 years, 4 months ago by
(former)FormerSanDiegan.
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AuthorPosts
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November 14, 2007 at 2:58 PM #10904
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November 14, 2007 at 3:09 PM #99435
JWM in SD
ParticipantWe can’t answer that question or else we’ll be accused of being a NostraDumbass….
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November 14, 2007 at 3:09 PM #99501
JWM in SD
ParticipantWe can’t answer that question or else we’ll be accused of being a NostraDumbass….
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November 14, 2007 at 3:09 PM #99518
JWM in SD
ParticipantWe can’t answer that question or else we’ll be accused of being a NostraDumbass….
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November 14, 2007 at 3:09 PM #99520
JWM in SD
ParticipantWe can’t answer that question or else we’ll be accused of being a NostraDumbass….
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November 14, 2007 at 3:09 PM #99527
JWM in SD
ParticipantWe can’t answer that question or else we’ll be accused of being a NostraDumbass….
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November 14, 2007 at 3:15 PM #99439
patientlywaiting
ParticipantI’ll wait until at least the next recession. Sad to say but when people lose jobs, inventory will swell.
After that, I’ll watch inventory levels carefully and won’t buy as long as inventory is increasing, regardless of where prices and rents are.
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November 14, 2007 at 3:15 PM #99506
patientlywaiting
ParticipantI’ll wait until at least the next recession. Sad to say but when people lose jobs, inventory will swell.
After that, I’ll watch inventory levels carefully and won’t buy as long as inventory is increasing, regardless of where prices and rents are.
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November 14, 2007 at 3:15 PM #99523
patientlywaiting
ParticipantI’ll wait until at least the next recession. Sad to say but when people lose jobs, inventory will swell.
After that, I’ll watch inventory levels carefully and won’t buy as long as inventory is increasing, regardless of where prices and rents are.
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November 14, 2007 at 3:15 PM #99525
patientlywaiting
ParticipantI’ll wait until at least the next recession. Sad to say but when people lose jobs, inventory will swell.
After that, I’ll watch inventory levels carefully and won’t buy as long as inventory is increasing, regardless of where prices and rents are.
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November 14, 2007 at 3:15 PM #99532
patientlywaiting
ParticipantI’ll wait until at least the next recession. Sad to say but when people lose jobs, inventory will swell.
After that, I’ll watch inventory levels carefully and won’t buy as long as inventory is increasing, regardless of where prices and rents are.
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November 14, 2007 at 3:17 PM #99443
cr
Participantlol JWM,
I’ll answer: when prices drop 40%. If they don’t drop that far before they start going up, but right now things aren’t good for prices.
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November 14, 2007 at 3:42 PM #99457
kev374
Participantfor me personally…when price reach 2001 or 2002 levels I will feel comfortable to get into the market. Regardless of what I can afford I want to be able to see reversion to some kind of historical average or “reversion to mean” as they call it.
I’m with Goldman Sachs on this one, will wait for a 40% from the current median. This implies around 2002 prices, as per Dataquick OC median was somewhere in the low 300s I believe.. 312k or so. I believe the national median would go down to around $150-160k or so and that would make OC double the national average, sounds about right, even though OC does not nearly have double the national income!
If you think about it 312k under 28/36 ratio and 20% down is still VERY expensive, I mean people need to have $63,000 cash to put down and another $10,000 in closing costs and what about additional expenses..emergency fund, moving etc. but then again OC is an expensive place to live.
Who knows, it may go down more to the mid-high 200s if foreclosures skyrocket because of the ARM tsunami ahead of us and financing dries up even more! I’m trying to be conservative with the 40% drop estimate.
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November 14, 2007 at 3:58 PM #99469
patb
ParticipantUse these tests to look for to buy a house/condo
1) Is the cost close to current construction costs, if it’s a premium hold,
if it’s a discount, adjust for condition.2) Will the unit cash flow to give a cap rate close to Prime.
if it’s not above prime, leave it in the bank3) have costs reverted to the trend adjusted line for case-shiller.
if it’s at or below the trend line, it’s probably close to a market resistance
point.4) Are there cover stories in Time Magazine saying “Housing, the bane
of the middle class and “Why renting a trailer is such a good idea”The time cover is my sign to exit.
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November 14, 2007 at 3:58 PM #99541
patb
ParticipantUse these tests to look for to buy a house/condo
1) Is the cost close to current construction costs, if it’s a premium hold,
if it’s a discount, adjust for condition.2) Will the unit cash flow to give a cap rate close to Prime.
if it’s not above prime, leave it in the bank3) have costs reverted to the trend adjusted line for case-shiller.
if it’s at or below the trend line, it’s probably close to a market resistance
point.4) Are there cover stories in Time Magazine saying “Housing, the bane
of the middle class and “Why renting a trailer is such a good idea”The time cover is my sign to exit.
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November 14, 2007 at 3:58 PM #99558
patb
ParticipantUse these tests to look for to buy a house/condo
1) Is the cost close to current construction costs, if it’s a premium hold,
if it’s a discount, adjust for condition.2) Will the unit cash flow to give a cap rate close to Prime.
if it’s not above prime, leave it in the bank3) have costs reverted to the trend adjusted line for case-shiller.
if it’s at or below the trend line, it’s probably close to a market resistance
point.4) Are there cover stories in Time Magazine saying “Housing, the bane
of the middle class and “Why renting a trailer is such a good idea”The time cover is my sign to exit.
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November 14, 2007 at 3:58 PM #99559
patb
ParticipantUse these tests to look for to buy a house/condo
1) Is the cost close to current construction costs, if it’s a premium hold,
if it’s a discount, adjust for condition.2) Will the unit cash flow to give a cap rate close to Prime.
if it’s not above prime, leave it in the bank3) have costs reverted to the trend adjusted line for case-shiller.
if it’s at or below the trend line, it’s probably close to a market resistance
point.4) Are there cover stories in Time Magazine saying “Housing, the bane
of the middle class and “Why renting a trailer is such a good idea”The time cover is my sign to exit.
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November 14, 2007 at 3:58 PM #99567
patb
ParticipantUse these tests to look for to buy a house/condo
1) Is the cost close to current construction costs, if it’s a premium hold,
if it’s a discount, adjust for condition.2) Will the unit cash flow to give a cap rate close to Prime.
if it’s not above prime, leave it in the bank3) have costs reverted to the trend adjusted line for case-shiller.
if it’s at or below the trend line, it’s probably close to a market resistance
point.4) Are there cover stories in Time Magazine saying “Housing, the bane
of the middle class and “Why renting a trailer is such a good idea”The time cover is my sign to exit.
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November 14, 2007 at 3:58 PM #99575
patb
ParticipantUse these tests to look for to buy a house/condo
1) Is the cost close to current construction costs, if it’s a premium hold,
if it’s a discount, adjust for condition.2) Will the unit cash flow to give a cap rate close to Prime.
if it’s not above prime, leave it in the bank3) have costs reverted to the trend adjusted line for case-shiller.
if it’s at or below the trend line, it’s probably close to a market resistance
point.4) Are there cover stories in Time Magazine saying “Housing, the bane
of the middle class and “Why renting a trailer is such a good idea”The time cover is my sign to exit.
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November 14, 2007 at 3:42 PM #99526
kev374
Participantfor me personally…when price reach 2001 or 2002 levels I will feel comfortable to get into the market. Regardless of what I can afford I want to be able to see reversion to some kind of historical average or “reversion to mean” as they call it.
I’m with Goldman Sachs on this one, will wait for a 40% from the current median. This implies around 2002 prices, as per Dataquick OC median was somewhere in the low 300s I believe.. 312k or so. I believe the national median would go down to around $150-160k or so and that would make OC double the national average, sounds about right, even though OC does not nearly have double the national income!
If you think about it 312k under 28/36 ratio and 20% down is still VERY expensive, I mean people need to have $63,000 cash to put down and another $10,000 in closing costs and what about additional expenses..emergency fund, moving etc. but then again OC is an expensive place to live.
Who knows, it may go down more to the mid-high 200s if foreclosures skyrocket because of the ARM tsunami ahead of us and financing dries up even more! I’m trying to be conservative with the 40% drop estimate.
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November 14, 2007 at 3:42 PM #99543
kev374
Participantfor me personally…when price reach 2001 or 2002 levels I will feel comfortable to get into the market. Regardless of what I can afford I want to be able to see reversion to some kind of historical average or “reversion to mean” as they call it.
I’m with Goldman Sachs on this one, will wait for a 40% from the current median. This implies around 2002 prices, as per Dataquick OC median was somewhere in the low 300s I believe.. 312k or so. I believe the national median would go down to around $150-160k or so and that would make OC double the national average, sounds about right, even though OC does not nearly have double the national income!
If you think about it 312k under 28/36 ratio and 20% down is still VERY expensive, I mean people need to have $63,000 cash to put down and another $10,000 in closing costs and what about additional expenses..emergency fund, moving etc. but then again OC is an expensive place to live.
Who knows, it may go down more to the mid-high 200s if foreclosures skyrocket because of the ARM tsunami ahead of us and financing dries up even more! I’m trying to be conservative with the 40% drop estimate.
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November 14, 2007 at 3:42 PM #99545
kev374
Participantfor me personally…when price reach 2001 or 2002 levels I will feel comfortable to get into the market. Regardless of what I can afford I want to be able to see reversion to some kind of historical average or “reversion to mean” as they call it.
I’m with Goldman Sachs on this one, will wait for a 40% from the current median. This implies around 2002 prices, as per Dataquick OC median was somewhere in the low 300s I believe.. 312k or so. I believe the national median would go down to around $150-160k or so and that would make OC double the national average, sounds about right, even though OC does not nearly have double the national income!
If you think about it 312k under 28/36 ratio and 20% down is still VERY expensive, I mean people need to have $63,000 cash to put down and another $10,000 in closing costs and what about additional expenses..emergency fund, moving etc. but then again OC is an expensive place to live.
Who knows, it may go down more to the mid-high 200s if foreclosures skyrocket because of the ARM tsunami ahead of us and financing dries up even more! I’m trying to be conservative with the 40% drop estimate.
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November 14, 2007 at 3:42 PM #99552
kev374
Participantfor me personally…when price reach 2001 or 2002 levels I will feel comfortable to get into the market. Regardless of what I can afford I want to be able to see reversion to some kind of historical average or “reversion to mean” as they call it.
I’m with Goldman Sachs on this one, will wait for a 40% from the current median. This implies around 2002 prices, as per Dataquick OC median was somewhere in the low 300s I believe.. 312k or so. I believe the national median would go down to around $150-160k or so and that would make OC double the national average, sounds about right, even though OC does not nearly have double the national income!
If you think about it 312k under 28/36 ratio and 20% down is still VERY expensive, I mean people need to have $63,000 cash to put down and another $10,000 in closing costs and what about additional expenses..emergency fund, moving etc. but then again OC is an expensive place to live.
Who knows, it may go down more to the mid-high 200s if foreclosures skyrocket because of the ARM tsunami ahead of us and financing dries up even more! I’m trying to be conservative with the 40% drop estimate.
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November 14, 2007 at 3:17 PM #99511
cr
Participantlol JWM,
I’ll answer: when prices drop 40%. If they don’t drop that far before they start going up, but right now things aren’t good for prices.
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November 14, 2007 at 3:17 PM #99528
cr
Participantlol JWM,
I’ll answer: when prices drop 40%. If they don’t drop that far before they start going up, but right now things aren’t good for prices.
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November 14, 2007 at 3:17 PM #99529
cr
Participantlol JWM,
I’ll answer: when prices drop 40%. If they don’t drop that far before they start going up, but right now things aren’t good for prices.
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November 14, 2007 at 3:17 PM #99537
cr
Participantlol JWM,
I’ll answer: when prices drop 40%. If they don’t drop that far before they start going up, but right now things aren’t good for prices.
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November 14, 2007 at 3:58 PM #99465
XBoxBoy
ParticipantI suggest waiting as long as you can manage, or until it becomes quite clear we have hit bottom. One thing to keep in mind is that Real Estate cycles change very slowly. When we do hit bottom, you will have several years to figure out that we’re at the bottom and to find a place to buy. Nothing will come shooting back up rapidly. And if it does, stay away!!! It’s a bouncing knife!!!
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November 14, 2007 at 3:58 PM #99536
XBoxBoy
ParticipantI suggest waiting as long as you can manage, or until it becomes quite clear we have hit bottom. One thing to keep in mind is that Real Estate cycles change very slowly. When we do hit bottom, you will have several years to figure out that we’re at the bottom and to find a place to buy. Nothing will come shooting back up rapidly. And if it does, stay away!!! It’s a bouncing knife!!!
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November 14, 2007 at 3:58 PM #99553
XBoxBoy
ParticipantI suggest waiting as long as you can manage, or until it becomes quite clear we have hit bottom. One thing to keep in mind is that Real Estate cycles change very slowly. When we do hit bottom, you will have several years to figure out that we’re at the bottom and to find a place to buy. Nothing will come shooting back up rapidly. And if it does, stay away!!! It’s a bouncing knife!!!
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November 14, 2007 at 3:58 PM #99554
XBoxBoy
ParticipantI suggest waiting as long as you can manage, or until it becomes quite clear we have hit bottom. One thing to keep in mind is that Real Estate cycles change very slowly. When we do hit bottom, you will have several years to figure out that we’re at the bottom and to find a place to buy. Nothing will come shooting back up rapidly. And if it does, stay away!!! It’s a bouncing knife!!!
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November 14, 2007 at 3:58 PM #99562
XBoxBoy
ParticipantI suggest waiting as long as you can manage, or until it becomes quite clear we have hit bottom. One thing to keep in mind is that Real Estate cycles change very slowly. When we do hit bottom, you will have several years to figure out that we’re at the bottom and to find a place to buy. Nothing will come shooting back up rapidly. And if it does, stay away!!! It’s a bouncing knife!!!
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November 14, 2007 at 4:46 PM #99473
no_such_reality
ParticipantSimple, when paying the mortgage principle, interest, taxes and HOA is less then what it costs me to rent.
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November 14, 2007 at 4:51 PM #99477
Arty
ParticipantEasy when the housing price when up 2-4 quarters straight.
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November 14, 2007 at 4:51 PM #99551
Arty
ParticipantEasy when the housing price when up 2-4 quarters straight.
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November 14, 2007 at 4:51 PM #99568
Arty
ParticipantEasy when the housing price when up 2-4 quarters straight.
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November 14, 2007 at 4:51 PM #99571
Arty
ParticipantEasy when the housing price when up 2-4 quarters straight.
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November 14, 2007 at 4:51 PM #99577
Arty
ParticipantEasy when the housing price when up 2-4 quarters straight.
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November 14, 2007 at 4:51 PM #99586
Arty
ParticipantEasy when the housing price when up 2-4 quarters straight.
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November 14, 2007 at 4:46 PM #99546
no_such_reality
ParticipantSimple, when paying the mortgage principle, interest, taxes and HOA is less then what it costs me to rent.
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November 14, 2007 at 4:46 PM #99563
no_such_reality
ParticipantSimple, when paying the mortgage principle, interest, taxes and HOA is less then what it costs me to rent.
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November 14, 2007 at 4:46 PM #99564
no_such_reality
ParticipantSimple, when paying the mortgage principle, interest, taxes and HOA is less then what it costs me to rent.
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November 14, 2007 at 4:46 PM #99572
no_such_reality
ParticipantSimple, when paying the mortgage principle, interest, taxes and HOA is less then what it costs me to rent.
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November 14, 2007 at 4:46 PM #99581
no_such_reality
ParticipantSimple, when paying the mortgage principle, interest, taxes and HOA is less then what it costs me to rent.
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November 14, 2007 at 6:34 PM #99519
Coronita
Participant<$1million for a 3500sqft home in Carmel Valley at 0% financing for 30years.
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November 14, 2007 at 6:34 PM #99594
Coronita
Participant<$1million for a 3500sqft home in Carmel Valley at 0% financing for 30years.
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November 14, 2007 at 6:34 PM #99613
Coronita
Participant<$1million for a 3500sqft home in Carmel Valley at 0% financing for 30years.
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November 14, 2007 at 6:34 PM #99622
Coronita
Participant<$1million for a 3500sqft home in Carmel Valley at 0% financing for 30years.
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November 14, 2007 at 6:34 PM #99630
Coronita
Participant<$1million for a 3500sqft home in Carmel Valley at 0% financing for 30years.
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November 14, 2007 at 9:28 PM #99589
PadreBrian
ParticipantA 2001 price.
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November 14, 2007 at 11:27 PM #99626
one_muggle
ParticipantCapitulation.
Meaning, when the NAR gives up their last pretension of credibility and finally hires the actual Baghdad Bob, rather than these cheap impostors!
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November 14, 2007 at 11:27 PM #99700
one_muggle
ParticipantCapitulation.
Meaning, when the NAR gives up their last pretension of credibility and finally hires the actual Baghdad Bob, rather than these cheap impostors!
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November 14, 2007 at 11:27 PM #99718
one_muggle
ParticipantCapitulation.
Meaning, when the NAR gives up their last pretension of credibility and finally hires the actual Baghdad Bob, rather than these cheap impostors!
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November 14, 2007 at 11:27 PM #99729
one_muggle
ParticipantCapitulation.
Meaning, when the NAR gives up their last pretension of credibility and finally hires the actual Baghdad Bob, rather than these cheap impostors!
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November 14, 2007 at 11:27 PM #99736
one_muggle
ParticipantCapitulation.
Meaning, when the NAR gives up their last pretension of credibility and finally hires the actual Baghdad Bob, rather than these cheap impostors!
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November 14, 2007 at 9:28 PM #99664
PadreBrian
ParticipantA 2001 price.
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November 14, 2007 at 9:28 PM #99683
PadreBrian
ParticipantA 2001 price.
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November 14, 2007 at 9:28 PM #99692
PadreBrian
ParticipantA 2001 price.
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November 14, 2007 at 9:28 PM #99699
PadreBrian
ParticipantA 2001 price.
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November 15, 2007 at 12:11 AM #99631
hpi
Participantdepends on
1. whether you are able to use your money, since you hold a lot of cash right now. If you can get very good return from stocks … probably it is reasonable to stay as renters for a few years.
2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
3. what and where you want to buy. The bottom is different from area to area …
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November 15, 2007 at 12:22 AM #99636
hipmatt
ParticipantI’ll buy a home when they lend me the money (103%) on stated income like everyone else. – j/k
I probably won’t buy unless the market drops like I expect it will. I’m waiting for at least 50% off of peak. If it never does, I’m happy renting and saving the extra cash… or we might move anyways. I feel that it will, especially up here in Temecula area.
There is a lot more out there than socal, and I’ve been here all my life. A big change could be cool for our family.
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November 15, 2007 at 12:47 AM #99641
drunkle
Participantif things get really shitty, buying a home might be besides the point…
so i guess, being confident in my income stability, social/political stability and then price stability would be the factors to consider in my mind.
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November 15, 2007 at 8:43 AM #99720
(former)FormerSanDiegan
ParticipantHere’s my proxy …
I’m looking for 3/2 SFRs in bread-and-butter areas for rental purposes to be priced at about zero cash flow with 20% down before I even start tracking seriously. Bread-and-butter SFRs would be in areas like Clairemont, Serra Mesa, Kearny Mesa. If things go far enough down, then maybe even Point Loma will hit zero cash flow and the others areas slightly positive. I recently ran the numbers for some low-end Clairemont houses, they were still 15-20% too high for zero cash flow.Assuming rates and rents are about where they are today, I’ll start looking to buy at another -15%. If long-rates go up 1%, I’d need to see another -25% or so. If long-rates go down 1%, it might make sense 5-10% below today’s prices. If rents drop, I would need prices to drop proportionally.
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November 15, 2007 at 8:43 AM #99795
(former)FormerSanDiegan
ParticipantHere’s my proxy …
I’m looking for 3/2 SFRs in bread-and-butter areas for rental purposes to be priced at about zero cash flow with 20% down before I even start tracking seriously. Bread-and-butter SFRs would be in areas like Clairemont, Serra Mesa, Kearny Mesa. If things go far enough down, then maybe even Point Loma will hit zero cash flow and the others areas slightly positive. I recently ran the numbers for some low-end Clairemont houses, they were still 15-20% too high for zero cash flow.Assuming rates and rents are about where they are today, I’ll start looking to buy at another -15%. If long-rates go up 1%, I’d need to see another -25% or so. If long-rates go down 1%, it might make sense 5-10% below today’s prices. If rents drop, I would need prices to drop proportionally.
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November 15, 2007 at 8:43 AM #99813
(former)FormerSanDiegan
ParticipantHere’s my proxy …
I’m looking for 3/2 SFRs in bread-and-butter areas for rental purposes to be priced at about zero cash flow with 20% down before I even start tracking seriously. Bread-and-butter SFRs would be in areas like Clairemont, Serra Mesa, Kearny Mesa. If things go far enough down, then maybe even Point Loma will hit zero cash flow and the others areas slightly positive. I recently ran the numbers for some low-end Clairemont houses, they were still 15-20% too high for zero cash flow.Assuming rates and rents are about where they are today, I’ll start looking to buy at another -15%. If long-rates go up 1%, I’d need to see another -25% or so. If long-rates go down 1%, it might make sense 5-10% below today’s prices. If rents drop, I would need prices to drop proportionally.
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November 15, 2007 at 8:43 AM #99825
(former)FormerSanDiegan
ParticipantHere’s my proxy …
I’m looking for 3/2 SFRs in bread-and-butter areas for rental purposes to be priced at about zero cash flow with 20% down before I even start tracking seriously. Bread-and-butter SFRs would be in areas like Clairemont, Serra Mesa, Kearny Mesa. If things go far enough down, then maybe even Point Loma will hit zero cash flow and the others areas slightly positive. I recently ran the numbers for some low-end Clairemont houses, they were still 15-20% too high for zero cash flow.Assuming rates and rents are about where they are today, I’ll start looking to buy at another -15%. If long-rates go up 1%, I’d need to see another -25% or so. If long-rates go down 1%, it might make sense 5-10% below today’s prices. If rents drop, I would need prices to drop proportionally.
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November 15, 2007 at 8:43 AM #99831
(former)FormerSanDiegan
ParticipantHere’s my proxy …
I’m looking for 3/2 SFRs in bread-and-butter areas for rental purposes to be priced at about zero cash flow with 20% down before I even start tracking seriously. Bread-and-butter SFRs would be in areas like Clairemont, Serra Mesa, Kearny Mesa. If things go far enough down, then maybe even Point Loma will hit zero cash flow and the others areas slightly positive. I recently ran the numbers for some low-end Clairemont houses, they were still 15-20% too high for zero cash flow.Assuming rates and rents are about where they are today, I’ll start looking to buy at another -15%. If long-rates go up 1%, I’d need to see another -25% or so. If long-rates go down 1%, it might make sense 5-10% below today’s prices. If rents drop, I would need prices to drop proportionally.
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November 15, 2007 at 12:47 AM #99716
drunkle
Participantif things get really shitty, buying a home might be besides the point…
so i guess, being confident in my income stability, social/political stability and then price stability would be the factors to consider in my mind.
-
November 15, 2007 at 12:47 AM #99734
drunkle
Participantif things get really shitty, buying a home might be besides the point…
so i guess, being confident in my income stability, social/political stability and then price stability would be the factors to consider in my mind.
-
November 15, 2007 at 12:47 AM #99744
drunkle
Participantif things get really shitty, buying a home might be besides the point…
so i guess, being confident in my income stability, social/political stability and then price stability would be the factors to consider in my mind.
-
November 15, 2007 at 12:47 AM #99751
drunkle
Participantif things get really shitty, buying a home might be besides the point…
so i guess, being confident in my income stability, social/political stability and then price stability would be the factors to consider in my mind.
-
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November 15, 2007 at 12:22 AM #99711
hipmatt
ParticipantI’ll buy a home when they lend me the money (103%) on stated income like everyone else. – j/k
I probably won’t buy unless the market drops like I expect it will. I’m waiting for at least 50% off of peak. If it never does, I’m happy renting and saving the extra cash… or we might move anyways. I feel that it will, especially up here in Temecula area.
There is a lot more out there than socal, and I’ve been here all my life. A big change could be cool for our family.
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November 15, 2007 at 12:22 AM #99728
hipmatt
ParticipantI’ll buy a home when they lend me the money (103%) on stated income like everyone else. – j/k
I probably won’t buy unless the market drops like I expect it will. I’m waiting for at least 50% off of peak. If it never does, I’m happy renting and saving the extra cash… or we might move anyways. I feel that it will, especially up here in Temecula area.
There is a lot more out there than socal, and I’ve been here all my life. A big change could be cool for our family.
-
November 15, 2007 at 12:22 AM #99738
hipmatt
ParticipantI’ll buy a home when they lend me the money (103%) on stated income like everyone else. – j/k
I probably won’t buy unless the market drops like I expect it will. I’m waiting for at least 50% off of peak. If it never does, I’m happy renting and saving the extra cash… or we might move anyways. I feel that it will, especially up here in Temecula area.
There is a lot more out there than socal, and I’ve been here all my life. A big change could be cool for our family.
-
November 15, 2007 at 12:22 AM #99746
hipmatt
ParticipantI’ll buy a home when they lend me the money (103%) on stated income like everyone else. – j/k
I probably won’t buy unless the market drops like I expect it will. I’m waiting for at least 50% off of peak. If it never does, I’m happy renting and saving the extra cash… or we might move anyways. I feel that it will, especially up here in Temecula area.
There is a lot more out there than socal, and I’ve been here all my life. A big change could be cool for our family.
-
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November 15, 2007 at 12:11 AM #99704
hpi
Participantdepends on
1. whether you are able to use your money, since you hold a lot of cash right now. If you can get very good return from stocks … probably it is reasonable to stay as renters for a few years.
2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
3. what and where you want to buy. The bottom is different from area to area …
-
November 15, 2007 at 12:11 AM #99722
hpi
Participantdepends on
1. whether you are able to use your money, since you hold a lot of cash right now. If you can get very good return from stocks … probably it is reasonable to stay as renters for a few years.
2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
3. what and where you want to buy. The bottom is different from area to area …
-
November 15, 2007 at 12:11 AM #99733
hpi
Participantdepends on
1. whether you are able to use your money, since you hold a lot of cash right now. If you can get very good return from stocks … probably it is reasonable to stay as renters for a few years.
2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
3. what and where you want to buy. The bottom is different from area to area …
-
November 15, 2007 at 12:11 AM #99741
hpi
Participantdepends on
1. whether you are able to use your money, since you hold a lot of cash right now. If you can get very good return from stocks … probably it is reasonable to stay as renters for a few years.
2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
3. what and where you want to buy. The bottom is different from area to area …
-
November 15, 2007 at 9:47 AM #99768
sdduuuude
ParticipantCome on you guys – have you learned nothing from this web page?
The time to buy a house is when the leading indicators and other fundamentals start to show that prices have some strong upward pressure on them.
I mean – why even bother putting a stake in the ground now and saying things like “I’m waiting until prices drop 40%” or “I’ll buy when we get to 2002 prices” or “I’m waiting until 2010” when you really have no idea how far it will go or how long it will take.
Every month, look at the numbers – months of inventory, sales growth, forclosure trends, the availability of credit, interest rates, the cost of rent vs, wages (especially your own), the money you have saved for a down payment – and decide on a month-to-month basis if this is the month to buy.
Right now I can say that Nov 2007 isn’t the month for me to buy.
In the meantime, save, save, save so you have the down payment that you will need in order to qualify for a loan in the tight (but loosening) credit market that you will encounter when the time to buy is right.
-
November 15, 2007 at 10:43 AM #99797
(former)FormerSanDiegan
ParticipantRight now I can say that Nov 2007 isn’t the month for me to buy.
At some point everyone will be saying this. When that happens, it is time to buy.
-
November 15, 2007 at 10:43 AM #99876
(former)FormerSanDiegan
ParticipantRight now I can say that Nov 2007 isn’t the month for me to buy.
At some point everyone will be saying this. When that happens, it is time to buy.
-
November 15, 2007 at 10:43 AM #99892
(former)FormerSanDiegan
ParticipantRight now I can say that Nov 2007 isn’t the month for me to buy.
At some point everyone will be saying this. When that happens, it is time to buy.
-
November 15, 2007 at 10:43 AM #99904
(former)FormerSanDiegan
ParticipantRight now I can say that Nov 2007 isn’t the month for me to buy.
At some point everyone will be saying this. When that happens, it is time to buy.
-
November 15, 2007 at 10:43 AM #99910
(former)FormerSanDiegan
ParticipantRight now I can say that Nov 2007 isn’t the month for me to buy.
At some point everyone will be saying this. When that happens, it is time to buy.
-
November 15, 2007 at 10:48 AM #99793
pencilneck
ParticipantWell said, Sdduuuuude.
One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.
Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.
http://www.federalreserve.gov/releases/housedebt/default.htm
I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.
-
November 15, 2007 at 10:48 AM #99871
pencilneck
ParticipantWell said, Sdduuuuude.
One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.
Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.
http://www.federalreserve.gov/releases/housedebt/default.htm
I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.
-
November 15, 2007 at 10:48 AM #99887
pencilneck
ParticipantWell said, Sdduuuuude.
One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.
Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.
http://www.federalreserve.gov/releases/housedebt/default.htm
I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.
-
November 15, 2007 at 10:48 AM #99899
pencilneck
ParticipantWell said, Sdduuuuude.
One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.
Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.
http://www.federalreserve.gov/releases/housedebt/default.htm
I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.
-
November 15, 2007 at 10:48 AM #99905
pencilneck
ParticipantWell said, Sdduuuuude.
One of my favorite indicators is the the Household Debt Service and Financial Obligations Ratios put out quarterly by the Federal Reserve Board. It shows the ratio of debt payments to disposable personal income.
Over time this tends to show the consumer’s sentiment towards debt. Here on the West Coast where real estate is very debt driven (since most of us have to take out loans to purchase a home) this ratio looks to be at least coincident with housing booms and busts, and sometimes leads by a few years.
http://www.federalreserve.gov/releases/housedebt/default.htm
I keep my eye on the DSR. The federal gov’t added renter and homeowner columns a few years ago that I find less than helpful.
-
November 15, 2007 at 11:28 AM #99819
ibjames
Participantgood job sdduuude (how do you remember the number of U’s when you login by the way)
some sense has been restored in this recycled thread
QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters
-
November 15, 2007 at 11:45 AM #99839
kev374
Participant2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
Of course it will go down but not 30%, perhaps more like 40-50%.
Cost of ownership is not just the mortgage payment! What about property taxes, HOA, maintainence/repairs, insurance. All those are absent in rents. If you figure in the whole amount of owning it is now over double that of renting an equivalent place.
-
November 15, 2007 at 11:45 AM #99916
kev374
Participant2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
Of course it will go down but not 30%, perhaps more like 40-50%.
Cost of ownership is not just the mortgage payment! What about property taxes, HOA, maintainence/repairs, insurance. All those are absent in rents. If you figure in the whole amount of owning it is now over double that of renting an equivalent place.
-
November 15, 2007 at 11:45 AM #99935
kev374
Participant2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
Of course it will go down but not 30%, perhaps more like 40-50%.
Cost of ownership is not just the mortgage payment! What about property taxes, HOA, maintainence/repairs, insurance. All those are absent in rents. If you figure in the whole amount of owning it is now over double that of renting an equivalent place.
-
November 15, 2007 at 11:45 AM #99945
kev374
Participant2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
Of course it will go down but not 30%, perhaps more like 40-50%.
Cost of ownership is not just the mortgage payment! What about property taxes, HOA, maintainence/repairs, insurance. All those are absent in rents. If you figure in the whole amount of owning it is now over double that of renting an equivalent place.
-
November 15, 2007 at 11:45 AM #99949
kev374
Participant2. the house price will not go down 30%, not mentioned the rent cost set a limit for how low the house price can be (comparing rent a house to own a similar house, it dones’t make sense to compare renting a 1 br apartment to owning a 3-4 br house with private yard)
Of course it will go down but not 30%, perhaps more like 40-50%.
Cost of ownership is not just the mortgage payment! What about property taxes, HOA, maintainence/repairs, insurance. All those are absent in rents. If you figure in the whole amount of owning it is now over double that of renting an equivalent place.
-
-
November 15, 2007 at 11:28 AM #99896
ibjames
Participantgood job sdduuude (how do you remember the number of U’s when you login by the way)
some sense has been restored in this recycled thread
QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters
-
November 15, 2007 at 11:28 AM #99914
ibjames
Participantgood job sdduuude (how do you remember the number of U’s when you login by the way)
some sense has been restored in this recycled thread
QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters
-
November 15, 2007 at 11:28 AM #99924
ibjames
Participantgood job sdduuude (how do you remember the number of U’s when you login by the way)
some sense has been restored in this recycled thread
QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters
-
November 15, 2007 at 11:28 AM #99928
ibjames
Participantgood job sdduuude (how do you remember the number of U’s when you login by the way)
some sense has been restored in this recycled thread
QW, I agree with you. If prices don’t decline enough (which I think they will) my wife and I will probably move also. We don’t want to be life renters
-
-
November 15, 2007 at 9:47 AM #99846
sdduuuude
ParticipantCome on you guys – have you learned nothing from this web page?
The time to buy a house is when the leading indicators and other fundamentals start to show that prices have some strong upward pressure on them.
I mean – why even bother putting a stake in the ground now and saying things like “I’m waiting until prices drop 40%” or “I’ll buy when we get to 2002 prices” or “I’m waiting until 2010” when you really have no idea how far it will go or how long it will take.
Every month, look at the numbers – months of inventory, sales growth, forclosure trends, the availability of credit, interest rates, the cost of rent vs, wages (especially your own), the money you have saved for a down payment – and decide on a month-to-month basis if this is the month to buy.
Right now I can say that Nov 2007 isn’t the month for me to buy.
In the meantime, save, save, save so you have the down payment that you will need in order to qualify for a loan in the tight (but loosening) credit market that you will encounter when the time to buy is right.
-
November 15, 2007 at 9:47 AM #99863
sdduuuude
ParticipantCome on you guys – have you learned nothing from this web page?
The time to buy a house is when the leading indicators and other fundamentals start to show that prices have some strong upward pressure on them.
I mean – why even bother putting a stake in the ground now and saying things like “I’m waiting until prices drop 40%” or “I’ll buy when we get to 2002 prices” or “I’m waiting until 2010” when you really have no idea how far it will go or how long it will take.
Every month, look at the numbers – months of inventory, sales growth, forclosure trends, the availability of credit, interest rates, the cost of rent vs, wages (especially your own), the money you have saved for a down payment – and decide on a month-to-month basis if this is the month to buy.
Right now I can say that Nov 2007 isn’t the month for me to buy.
In the meantime, save, save, save so you have the down payment that you will need in order to qualify for a loan in the tight (but loosening) credit market that you will encounter when the time to buy is right.
-
November 15, 2007 at 9:47 AM #99873
sdduuuude
ParticipantCome on you guys – have you learned nothing from this web page?
The time to buy a house is when the leading indicators and other fundamentals start to show that prices have some strong upward pressure on them.
I mean – why even bother putting a stake in the ground now and saying things like “I’m waiting until prices drop 40%” or “I’ll buy when we get to 2002 prices” or “I’m waiting until 2010” when you really have no idea how far it will go or how long it will take.
Every month, look at the numbers – months of inventory, sales growth, forclosure trends, the availability of credit, interest rates, the cost of rent vs, wages (especially your own), the money you have saved for a down payment – and decide on a month-to-month basis if this is the month to buy.
Right now I can say that Nov 2007 isn’t the month for me to buy.
In the meantime, save, save, save so you have the down payment that you will need in order to qualify for a loan in the tight (but loosening) credit market that you will encounter when the time to buy is right.
-
November 15, 2007 at 9:47 AM #99879
sdduuuude
ParticipantCome on you guys – have you learned nothing from this web page?
The time to buy a house is when the leading indicators and other fundamentals start to show that prices have some strong upward pressure on them.
I mean – why even bother putting a stake in the ground now and saying things like “I’m waiting until prices drop 40%” or “I’ll buy when we get to 2002 prices” or “I’m waiting until 2010” when you really have no idea how far it will go or how long it will take.
Every month, look at the numbers – months of inventory, sales growth, forclosure trends, the availability of credit, interest rates, the cost of rent vs, wages (especially your own), the money you have saved for a down payment – and decide on a month-to-month basis if this is the month to buy.
Right now I can say that Nov 2007 isn’t the month for me to buy.
In the meantime, save, save, save so you have the down payment that you will need in order to qualify for a loan in the tight (but loosening) credit market that you will encounter when the time to buy is right.
-
November 15, 2007 at 10:59 AM #99814
34f3f3f
ParticipantI’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.
-
November 15, 2007 at 10:59 AM #99891
34f3f3f
ParticipantI’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.
-
November 15, 2007 at 10:59 AM #99908
34f3f3f
ParticipantI’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.
-
November 15, 2007 at 10:59 AM #99920
34f3f3f
ParticipantI’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.
-
November 15, 2007 at 10:59 AM #99923
34f3f3f
ParticipantI’m interested to see what the ‘bifurcation’ study throws out before deciding anything definite. If price declines are going to bite into the higher end ($670K+), I’ll wait for 2-3 years and bargain hunt, based on what I feel prices should be, using historical averages. If they hold out I will possibly leave California because I don’t value it (or anywhere) enough to pay these prices.
-
November 15, 2007 at 1:18 PM #99854
djrobsd
ParticipantFor me, if I hadn’t already bought and I was sitting on the sidelines, at this point, given all the lessons I’ve learned as a buyer who bought during the peek and now can’t sell my home….
I would only buy again if the prices drop to a level where:
a) The payment doesn’t exceed 30-40% of my monthly take home pay.
b) The house I can buy for that amount is in the neighborhood I want to call home, and if the kind of home that I can live in until retirement.
c) Rent is equal to or greater then my housing payment will be. Remember the good old days when they used to say “Why throw your money away on rent when you can own for less?” LOL
When conditions are met, I’ll buy again….
-
November 15, 2007 at 3:05 PM #99880
(former)FormerSanDiegan
ParticipantIf you figure in the whole amount of owning it is now over double that of renting an equivalent place.
It was generally true that renting was about half of “owning” in 2005. However, with home prices down 15-25% in many areas and rents having gone up at least 5% in the past two years you need to update your pat phrase. It is no longer half in many places. For places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
-
November 15, 2007 at 4:22 PM #99894
kev374
ParticipantFor places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
No, it doesn’t, not here in Irvine at least. You can rent a 3 bedroom, 1700sqft house for $2400/mo. That same house will cost $650,000 to buy. PITI+HOA+Maintainance+Mello Roost will at least be $7000/mo. with current jumbo rates and zero down, and that is if you can EVEN get a loan for the full amount.
-
November 16, 2007 at 6:26 AM #100007
Anonymous
GuestIMO, by following this site and taking in all the graphs, updates, discussions etc., you can get a fairly clear picture of where the market actually is at any given moment in time, and you can also project forward with some clarity, although not certainty. By doing this, you are already ahead of the 99% of people who merely read the news and fall for the propaganda. At some point, figures like notices of default, foreclosures, monthly price and sales declines, rent/own ratios etc. will start to look more appealing, or even flat. May also need to see signs that our current state of credit and housing imposed stress on the economy has passed. If that 700k home that is now 600k goes down to 450k and I sense the market has stabilized, I’d probably buy.
-
November 16, 2007 at 6:26 AM #100086
Anonymous
GuestIMO, by following this site and taking in all the graphs, updates, discussions etc., you can get a fairly clear picture of where the market actually is at any given moment in time, and you can also project forward with some clarity, although not certainty. By doing this, you are already ahead of the 99% of people who merely read the news and fall for the propaganda. At some point, figures like notices of default, foreclosures, monthly price and sales declines, rent/own ratios etc. will start to look more appealing, or even flat. May also need to see signs that our current state of credit and housing imposed stress on the economy has passed. If that 700k home that is now 600k goes down to 450k and I sense the market has stabilized, I’d probably buy.
-
November 16, 2007 at 6:26 AM #100103
Anonymous
GuestIMO, by following this site and taking in all the graphs, updates, discussions etc., you can get a fairly clear picture of where the market actually is at any given moment in time, and you can also project forward with some clarity, although not certainty. By doing this, you are already ahead of the 99% of people who merely read the news and fall for the propaganda. At some point, figures like notices of default, foreclosures, monthly price and sales declines, rent/own ratios etc. will start to look more appealing, or even flat. May also need to see signs that our current state of credit and housing imposed stress on the economy has passed. If that 700k home that is now 600k goes down to 450k and I sense the market has stabilized, I’d probably buy.
-
November 16, 2007 at 6:26 AM #100116
Anonymous
GuestIMO, by following this site and taking in all the graphs, updates, discussions etc., you can get a fairly clear picture of where the market actually is at any given moment in time, and you can also project forward with some clarity, although not certainty. By doing this, you are already ahead of the 99% of people who merely read the news and fall for the propaganda. At some point, figures like notices of default, foreclosures, monthly price and sales declines, rent/own ratios etc. will start to look more appealing, or even flat. May also need to see signs that our current state of credit and housing imposed stress on the economy has passed. If that 700k home that is now 600k goes down to 450k and I sense the market has stabilized, I’d probably buy.
-
November 16, 2007 at 6:26 AM #100119
Anonymous
GuestIMO, by following this site and taking in all the graphs, updates, discussions etc., you can get a fairly clear picture of where the market actually is at any given moment in time, and you can also project forward with some clarity, although not certainty. By doing this, you are already ahead of the 99% of people who merely read the news and fall for the propaganda. At some point, figures like notices of default, foreclosures, monthly price and sales declines, rent/own ratios etc. will start to look more appealing, or even flat. May also need to see signs that our current state of credit and housing imposed stress on the economy has passed. If that 700k home that is now 600k goes down to 450k and I sense the market has stabilized, I’d probably buy.
-
November 16, 2007 at 9:58 AM #100122
(former)FormerSanDiegan
ParticipantNo, it doesn’t, not here in Irvine at least.
Good point. I was interpreting from a San Diego perspective.
Irvine appears to be a bit behind SD in the current cycle. -
November 16, 2007 at 9:58 AM #100201
(former)FormerSanDiegan
ParticipantNo, it doesn’t, not here in Irvine at least.
Good point. I was interpreting from a San Diego perspective.
Irvine appears to be a bit behind SD in the current cycle. -
November 16, 2007 at 9:58 AM #100219
(former)FormerSanDiegan
ParticipantNo, it doesn’t, not here in Irvine at least.
Good point. I was interpreting from a San Diego perspective.
Irvine appears to be a bit behind SD in the current cycle. -
November 16, 2007 at 9:58 AM #100230
(former)FormerSanDiegan
ParticipantNo, it doesn’t, not here in Irvine at least.
Good point. I was interpreting from a San Diego perspective.
Irvine appears to be a bit behind SD in the current cycle. -
November 16, 2007 at 9:58 AM #100233
(former)FormerSanDiegan
ParticipantNo, it doesn’t, not here in Irvine at least.
Good point. I was interpreting from a San Diego perspective.
Irvine appears to be a bit behind SD in the current cycle. -
November 15, 2007 at 4:22 PM #99971
kev374
ParticipantFor places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
No, it doesn’t, not here in Irvine at least. You can rent a 3 bedroom, 1700sqft house for $2400/mo. That same house will cost $650,000 to buy. PITI+HOA+Maintainance+Mello Roost will at least be $7000/mo. with current jumbo rates and zero down, and that is if you can EVEN get a loan for the full amount.
-
November 15, 2007 at 4:22 PM #99990
kev374
ParticipantFor places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
No, it doesn’t, not here in Irvine at least. You can rent a 3 bedroom, 1700sqft house for $2400/mo. That same house will cost $650,000 to buy. PITI+HOA+Maintainance+Mello Roost will at least be $7000/mo. with current jumbo rates and zero down, and that is if you can EVEN get a loan for the full amount.
-
November 15, 2007 at 4:22 PM #100001
kev374
ParticipantFor places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
No, it doesn’t, not here in Irvine at least. You can rent a 3 bedroom, 1700sqft house for $2400/mo. That same house will cost $650,000 to buy. PITI+HOA+Maintainance+Mello Roost will at least be $7000/mo. with current jumbo rates and zero down, and that is if you can EVEN get a loan for the full amount.
-
November 15, 2007 at 4:22 PM #100006
kev374
ParticipantFor places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
No, it doesn’t, not here in Irvine at least. You can rent a 3 bedroom, 1700sqft house for $2400/mo. That same house will cost $650,000 to buy. PITI+HOA+Maintainance+Mello Roost will at least be $7000/mo. with current jumbo rates and zero down, and that is if you can EVEN get a loan for the full amount.
-
-
November 15, 2007 at 3:05 PM #99956
(former)FormerSanDiegan
ParticipantIf you figure in the whole amount of owning it is now over double that of renting an equivalent place.
It was generally true that renting was about half of “owning” in 2005. However, with home prices down 15-25% in many areas and rents having gone up at least 5% in the past two years you need to update your pat phrase. It is no longer half in many places. For places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
-
November 15, 2007 at 3:05 PM #99975
(former)FormerSanDiegan
ParticipantIf you figure in the whole amount of owning it is now over double that of renting an equivalent place.
It was generally true that renting was about half of “owning” in 2005. However, with home prices down 15-25% in many areas and rents having gone up at least 5% in the past two years you need to update your pat phrase. It is no longer half in many places. For places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
-
November 15, 2007 at 3:05 PM #99986
(former)FormerSanDiegan
ParticipantIf you figure in the whole amount of owning it is now over double that of renting an equivalent place.
It was generally true that renting was about half of “owning” in 2005. However, with home prices down 15-25% in many areas and rents having gone up at least 5% in the past two years you need to update your pat phrase. It is no longer half in many places. For places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
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November 15, 2007 at 3:05 PM #99989
(former)FormerSanDiegan
ParticipantIf you figure in the whole amount of owning it is now over double that of renting an equivalent place.
It was generally true that renting was about half of “owning” in 2005. However, with home prices down 15-25% in many areas and rents having gone up at least 5% in the past two years you need to update your pat phrase. It is no longer half in many places. For places that I follow it now costs about 2/3 to 3/4 as much to rent as to “own”.
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November 15, 2007 at 1:18 PM #99931
djrobsd
ParticipantFor me, if I hadn’t already bought and I was sitting on the sidelines, at this point, given all the lessons I’ve learned as a buyer who bought during the peek and now can’t sell my home….
I would only buy again if the prices drop to a level where:
a) The payment doesn’t exceed 30-40% of my monthly take home pay.
b) The house I can buy for that amount is in the neighborhood I want to call home, and if the kind of home that I can live in until retirement.
c) Rent is equal to or greater then my housing payment will be. Remember the good old days when they used to say “Why throw your money away on rent when you can own for less?” LOL
When conditions are met, I’ll buy again….
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November 15, 2007 at 1:18 PM #99948
djrobsd
ParticipantFor me, if I hadn’t already bought and I was sitting on the sidelines, at this point, given all the lessons I’ve learned as a buyer who bought during the peek and now can’t sell my home….
I would only buy again if the prices drop to a level where:
a) The payment doesn’t exceed 30-40% of my monthly take home pay.
b) The house I can buy for that amount is in the neighborhood I want to call home, and if the kind of home that I can live in until retirement.
c) Rent is equal to or greater then my housing payment will be. Remember the good old days when they used to say “Why throw your money away on rent when you can own for less?” LOL
When conditions are met, I’ll buy again….
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November 15, 2007 at 1:18 PM #99960
djrobsd
ParticipantFor me, if I hadn’t already bought and I was sitting on the sidelines, at this point, given all the lessons I’ve learned as a buyer who bought during the peek and now can’t sell my home….
I would only buy again if the prices drop to a level where:
a) The payment doesn’t exceed 30-40% of my monthly take home pay.
b) The house I can buy for that amount is in the neighborhood I want to call home, and if the kind of home that I can live in until retirement.
c) Rent is equal to or greater then my housing payment will be. Remember the good old days when they used to say “Why throw your money away on rent when you can own for less?” LOL
When conditions are met, I’ll buy again….
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November 15, 2007 at 1:18 PM #99963
djrobsd
ParticipantFor me, if I hadn’t already bought and I was sitting on the sidelines, at this point, given all the lessons I’ve learned as a buyer who bought during the peek and now can’t sell my home….
I would only buy again if the prices drop to a level where:
a) The payment doesn’t exceed 30-40% of my monthly take home pay.
b) The house I can buy for that amount is in the neighborhood I want to call home, and if the kind of home that I can live in until retirement.
c) Rent is equal to or greater then my housing payment will be. Remember the good old days when they used to say “Why throw your money away on rent when you can own for less?” LOL
When conditions are met, I’ll buy again….
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