When should we buy new home in 4S Ranch?

[fromnj]

More precisely, people are running out of money to buy a decent house in San Diego. It will be much more serious issue than the ones you listed. In 92127, no worries, Del Sur has a lot of land, and will have many more houses to come (2500+). I do not think they will exhaust houses to sell in next 10 years.

[fromnj]

More precisely, people are running out of money to buy a decent house in San Diego. It will be much more serious issue than the ones you listed. In 92127, no worries, Del Sur has a lot of land, and will have many more houses to come (2500+). I do not think they will exhaust houses to sell in next 10 years.

[kewp]

Foreclosure activity still seems brisk in the area:

http://www.realtytrac.com/Mapping/Mapping/DetailsMap.aspx?criteriaType=zip&criteriaValue=92127&code=

…so if you can wait a year go for it.

[kewp]

Foreclosure activity still seems brisk in the area:

http://www.realtytrac.com/Mapping/Mapping/DetailsMap.aspx?criteriaType=zip&criteriaValue=92127&code=

…so if you can wait a year go for it.

[recordsclerk]

4S Ranch is priced very competitively compared to Del Sur and current Re-Sale homes. Due to the limited sought after Poway Unified School district and no competition, I don’t see them lowering their prices anytime soon. I would still wait out this current down cycle. Newer Scripps Ranch is also part of PUSD and is also competitively priced for 4,000+sqft homes. Eventually when must sell inventory increases in those areas, there will be more price declines. The banks holding these REOs will need to discount them in order to move product. So basically if Re-Sale home sellers want their homes to move they will eventually have to lower their prices, thus making builders lower their prices. Remember prices are very sticky on the way down. I would wait until November to see what happens with all these NODs and NOTs from July-September.

[recordsclerk]

4S Ranch is priced very competitively compared to Del Sur and current Re-Sale homes. Due to the limited sought after Poway Unified School district and no competition, I don’t see them lowering their prices anytime soon. I would still wait out this current down cycle. Newer Scripps Ranch is also part of PUSD and is also competitively priced for 4,000+sqft homes. Eventually when must sell inventory increases in those areas, there will be more price declines. The banks holding these REOs will need to discount them in order to move product. So basically if Re-Sale home sellers want their homes to move they will eventually have to lower their prices, thus making builders lower their prices. Remember prices are very sticky on the way down. I would wait until November to see what happens with all these NODs and NOTs from July-September.

[fromnj]

Dear recordsclerk

I have a question about bank-owned houses. I do not understand why banks need to move their asset so soon. Is there any benefit to do so?

As far as I know, they love to own physical assets like buildings. My classmates from the college works for bank to buy power plants etc since they can deduct the cost they amortized from the tax. I simply do not know the difference between the residential house and commercial building in terms of asset management and tax point of view.

Could you educate me a little?

[fromnj]

Dear recordsclerk

I have a question about bank-owned houses. I do not understand why banks need to move their asset so soon. Is there any benefit to do so?

As far as I know, they love to own physical assets like buildings. My classmates from the college works for bank to buy power plants etc since they can deduct the cost they amortized from the tax. I simply do not know the difference between the residential house and commercial building in terms of asset management and tax point of view.

Could you educate me a little?

[recordsclerk]

Banks don’t want to be landlords. There are monthly carrying cost when a home sits empty. There is a brown lawn theory that has been discussed recently about lower pricing for homes with brown lawns. I don’t think banks are lowering prices currently because they don’t want this whole thing to snowball (this is my speculation only).

[recordsclerk]

Banks don’t want to be landlords. There are monthly carrying cost when a home sits empty. There is a brown lawn theory that has been discussed recently about lower pricing for homes with brown lawns. I don’t think banks are lowering prices currently because they don’t want this whole thing to snowball (this is my speculation only).

[fromnj]

I am just curious if there is a management company that becomes a landlord for the banks since there are already such companies existed to manage commercial properties.

I forgot the exact number, but there are several amortization methods up to 10, 15 years etc. So, that’s why it is difficult for me to understand the benefit of selling houses in such a short time by banks. So, they can wait for many years until they fully amortize their assets and can decide what to do about it when the time comes.

[fromnj]

I am just curious if there is a management company that becomes a landlord for the banks since there are already such companies existed to manage commercial properties.

I forgot the exact number, but there are several amortization methods up to 10, 15 years etc. So, that’s why it is difficult for me to understand the benefit of selling houses in such a short time by banks. So, they can wait for many years until they fully amortize their assets and can decide what to do about it when the time comes.

[PerryChase]

Foreclosed properties are non-performing assets. There are banking regulations on how long banks can keep them on their balance sheets without taking write-downs.

We’ll se more foreclosure inventory when it comes closer to financial reporting time later this year.

[PerryChase]

Foreclosed properties are non-performing assets. There are banking regulations on how long banks can keep them on their balance sheets without taking write-downs.

We’ll se more foreclosure inventory when it comes closer to financial reporting time later this year.

[NotCranky]

The banks end up upside down on the houses just the same as an individual owner would be. The houses will continue depreciating.Rent doesn’t cover the debt for the banks any better than it would if one of us went out and bought up a bunch of houses right now. The best way to deal with the red ink is to get rid of them.

I didn’t see your post Perry, mine is obviously just a different version of the same thing.

[Author]

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