Who are the buyers in San Diego now?

[SD Realtor]

myito –

I understand your situation perfectly. Your position is not unique. I would pretty much agree with what everyone has said. In my situation, I would much rather buy a few years down the line, then when I will end up buying.

Your point about your mom not buying is well taken, however I do not view the prevailing opinion of most on this blog to be in that vein. I think the prevailing opinions here are well thought out and based upon real data. Thus most of the people here who will indeed wait for a few more years will most likely get fantastic deals. I do not believe they will be on the sidelines forever.

SD Realtor

[Bugs]

myito,

I think everyone on this board would agree that all of the reasons you gave for buying now are legitimate reasons. Your decision to purchase is based on fulfilling what you percieve to be your emotional needs; the financial aspect of it is apparently very secondary to you, if relevant at all.

Like you, I choose to enjoy the benefits of ownership rather than making the long dollar; unlike you, I chose to buy at the bottom of the cycle so I can hold without risking any of my down payment. I haven’t sold my residence and will not sell my residence, even though financially I’d come out ahead. Money isn’t everything.

But it is something. If I wasn’t already holding, I wouldn’t buy right now because from an economic standpoint I don’t hold my sentimentality THAT much higher than my economic well being. You might say I fall in between the two extremes – sell now to maximize profit vs. buy now at any price to enjoy homeownership. Despite my personal situation I don’t criticize anyone whose priorities are different than mine.

I do disagree with those people who think they can have it both ways. If you want the emotional benefits of homeownership you need to be prepared to live with the downside of that priority, which in this case will probably be a massive economic loss. You’re not the only one who has to deal with compromises, though. The renters need to be able to live with their compromise, and us ‘tweeners need to live with ours’.

If you made your decision in an informed and considered manner then we agree that you made the right decision for your situation. If you made an ill-informed decision and are now trying to rationalize that decision by saying that anyone who disagrees with you is just being negative then you’re probably going to run into some opposition here. For one thing, you’d be wrong about the negativity. Some of the biggest bears on this board are foaming at the mouth at the prospects of making a killing during the next RE cycle by buying at the bottom of this cycle in a few years. I call that an optimistic attitude – what do you call it?

As long as you don’t mind living with the stigma of buying at the worst possible time and losing all that money, I’m pretty sure the bears won’t mind being saddled with the stigma of being out of sync with the social pressures to own their home.

[Bugs]

myito,

I think everyone on this board would agree that all of the reasons you gave for buying now are legitimate reasons. Your decision to purchase is based on fulfilling what you percieve to be your emotional needs; the financial aspect of it is apparently very secondary to you, if relevant at all.

Like you, I choose to enjoy the benefits of ownership rather than making the long dollar; unlike you, I chose to buy at the bottom of the cycle so I can hold without risking any of my down payment. I haven’t sold my residence and will not sell my residence, even though financially I’d come out ahead. Money isn’t everything.

But it is something. If I wasn’t already holding, I wouldn’t buy right now because from an economic standpoint I don’t hold my sentimentality THAT much higher than my economic well being. You might say I fall in between the two extremes – sell now to maximize profit vs. buy now at any price to enjoy homeownership. Despite my personal situation I don’t criticize anyone whose priorities are different than mine.

I do disagree with those people who think they can have it both ways. If you want the emotional benefits of homeownership you need to be prepared to live with the downside of that priority, which in this case will probably be a massive economic loss. You’re not the only one who has to deal with compromises, though. The renters need to be able to live with their compromise, and us ‘tweeners need to live with ours’.

If you made your decision in an informed and considered manner then we agree that you made the right decision for your situation. If you made an ill-informed decision and are now trying to rationalize that decision by saying that anyone who disagrees with you is just being negative then you’re probably going to run into some opposition here. For one thing, you’d be wrong about the negativity. Some of the biggest bears on this board are foaming at the mouth at the prospects of making a killing during the next RE cycle by buying at the bottom of this cycle in a few years. I call that an optimistic attitude – what do you call it?

As long as you don’t mind living with the stigma of buying at the worst possible time and losing all that money, I’m pretty sure the bears won’t mind being saddled with the stigma of being out of sync with the social pressures to own their home.

[Nancy_s soothsayer]

“We are paying a hefty sum for a 4 bdrm/4.5 bath home that is about 3000 sq ft on a 1/2 acre lot.” For a HEFTY sum.

Umm, do you think 3000 sq ft is adequate or good enough for your special family? That is too small for you, my dear. I bet the bedrooms are so tiny (like Paris Hilton’s jail cell). You should have bought a 5000 sq feet or more. If I were you with millions in the bank, I would not be contented with 3000 sq ft. Too constricting. That is just the size of a walk-in closet in the hedge-fund heaven enclaves of CT.

[Nancy_s soothsayer]

“We are paying a hefty sum for a 4 bdrm/4.5 bath home that is about 3000 sq ft on a 1/2 acre lot.” For a HEFTY sum.

Umm, do you think 3000 sq ft is adequate or good enough for your special family? That is too small for you, my dear. I bet the bedrooms are so tiny (like Paris Hilton’s jail cell). You should have bought a 5000 sq feet or more. If I were you with millions in the bank, I would not be contented with 3000 sq ft. Too constricting. That is just the size of a walk-in closet in the hedge-fund heaven enclaves of CT.

[doublewide]

Regarding the OP:

Jason I can give you one example of a current buyer. My Mother-in-law just bought a SFR in Carmel Mt. Ranch. All the advice she got from her son who is a CPA, her other son who is very frugal and even her mortgage broker could not stop the train. She was obsessed w/ owning. One reason seems to be psychological – she’d been renting Downtown for a year and felt she was throwing away money, I think it’s a generational thing, her generation bases a lot of self worth on owning. Another reason was her obsession with moving her tax basis. The place she’d sold before renting had a tax basis of 350K and she had until Feb. ’09 to move it so she was in full blown panic mode to buy because it was that or sign a 6 mo. long lease somewhere and have to pay rent and a mortgage if she bought in the Fall. She paid about 625K for a 1600sf place so the way I figure it she’s saving about 3k in property taxes a year. I’m afraid she’s going to lose that much and more over the next couple of years as things “adjust” but hey she’s now one less renter w/ whom I’ll have to compete for a rental home.

As to Myito:

Why does it seem the buyers are always trying to justify their purchases? Hey, if you want to buy you’ll get no argument from me. One less renter with whom to compete. You’ll be paying a nice property tax on that inflated price supporting our public services. I’m a renter and proud of it. It’s a personal choice to buy vs. rent. We’ve done the 3000 sf SFR w/ pool and granite and all that rot – was not our cup of tea! Too much dusting, too many expenses. We have a kid and love to travel so renting works for us and will for many years to come. My beef is with the rotten Realtors and Flippers – I hope they sink like stones during this “correction”. To the average Joe who wants to buy and put down roots, be my guest. For us, security is watching our money grow slowing in our 5% CD and knowing we can up and scoot at the first wiff of adventure. If security for buyers is having that deed right now and taking the risk of watching your home depreciate, while paying property taxes, repair costs, homeowners insurance, etc. have at it.

Doublewide

[doublewide]

Regarding the OP:

Jason I can give you one example of a current buyer. My Mother-in-law just bought a SFR in Carmel Mt. Ranch. All the advice she got from her son who is a CPA, her other son who is very frugal and even her mortgage broker could not stop the train. She was obsessed w/ owning. One reason seems to be psychological – she’d been renting Downtown for a year and felt she was throwing away money, I think it’s a generational thing, her generation bases a lot of self worth on owning. Another reason was her obsession with moving her tax basis. The place she’d sold before renting had a tax basis of 350K and she had until Feb. ’09 to move it so she was in full blown panic mode to buy because it was that or sign a 6 mo. long lease somewhere and have to pay rent and a mortgage if she bought in the Fall. She paid about 625K for a 1600sf place so the way I figure it she’s saving about 3k in property taxes a year. I’m afraid she’s going to lose that much and more over the next couple of years as things “adjust” but hey she’s now one less renter w/ whom I’ll have to compete for a rental home.

As to Myito:

Why does it seem the buyers are always trying to justify their purchases? Hey, if you want to buy you’ll get no argument from me. One less renter with whom to compete. You’ll be paying a nice property tax on that inflated price supporting our public services. I’m a renter and proud of it. It’s a personal choice to buy vs. rent. We’ve done the 3000 sf SFR w/ pool and granite and all that rot – was not our cup of tea! Too much dusting, too many expenses. We have a kid and love to travel so renting works for us and will for many years to come. My beef is with the rotten Realtors and Flippers – I hope they sink like stones during this “correction”. To the average Joe who wants to buy and put down roots, be my guest. For us, security is watching our money grow slowing in our 5% CD and knowing we can up and scoot at the first wiff of adventure. If security for buyers is having that deed right now and taking the risk of watching your home depreciate, while paying property taxes, repair costs, homeowners insurance, etc. have at it.

Doublewide

[gn]

myito,

Now that you told us about your finances, I can tell you that many folks here at Piggington (including myself) have more money than you. Yet, we chose to rent single family houses instead of buying. And we do that because of STABILITY:

Emotional stability for the children: We have 2 kids. At the house I’m renting, there is 4 bedrooms & a back yard for them to play. Children are happy when they have adequate living space & loving parents. The facts that my wife & I are not home owners is quite irrelevant.

Financial stability: Yes, it’s true that we currently have financial stability. But, the money we save from avoiding equity loss when home prices go down (and they are going down as we speak) means that we have EVEN MORE financial stability in the future.

As you can see, we will NOT be on the sideline forever. We are just waiting for the right time to POUNCE on the real estate market with our buying power 🙂

You said that “Renting sucks plain and simple”. I don’t think so. In fact, I think that buying right now sucks!

[gn]

myito,

Now that you told us about your finances, I can tell you that many folks here at Piggington (including myself) have more money than you. Yet, we chose to rent single family houses instead of buying. And we do that because of STABILITY:

Emotional stability for the children: We have 2 kids. At the house I’m renting, there is 4 bedrooms & a back yard for them to play. Children are happy when they have adequate living space & loving parents. The facts that my wife & I are not home owners is quite irrelevant.

Financial stability: Yes, it’s true that we currently have financial stability. But, the money we save from avoiding equity loss when home prices go down (and they are going down as we speak) means that we have EVEN MORE financial stability in the future.

As you can see, we will NOT be on the sideline forever. We are just waiting for the right time to POUNCE on the real estate market with our buying power 🙂

You said that “Renting sucks plain and simple”. I don’t think so. In fact, I think that buying right now sucks!

[PerryChase]

doublewide, I agree with you — been there, done that.

I still own a mcmansion and I’m disgusted with that lifestyle everyday. The reason I still own the house is that I was lucky to have bought it years ago and the carrying costs are comparatively low. I’m looking to getting something more livable when the time is right.

Your kid is lucky that you love traveling. I lived and traveled in many countries as a kid with my parents and those years were the best of my life. I wouldn’t want to trade my own childhood for the “stability” of a mc mansion in the suburbs.

[PerryChase]

doublewide, I agree with you — been there, done that.

I still own a mcmansion and I’m disgusted with that lifestyle everyday. The reason I still own the house is that I was lucky to have bought it years ago and the carrying costs are comparatively low. I’m looking to getting something more livable when the time is right.

Your kid is lucky that you love traveling. I lived and traveled in many countries as a kid with my parents and those years were the best of my life. I wouldn’t want to trade my own childhood for the “stability” of a mc mansion in the suburbs.

[Reality]

Whatever Myiot. You don’t want to raise your kids in “temporary rental housing”. What was the home they are moving from if not temporary owned housing? But you’re sure you will live in your new home until they are grown. Right.

What’s the point? Housing is high but renting is as well. I’m not willing to rent any longer and sacrifice not having stability in hopes of getting $80K or 90K more off a home. In the end, higher interest rates will mean the same payment anyway or a landlord raising prices will mean the same.

How will higher interest rates mean the same payment? Don’t you understand economics at all? Higher interest rates will make home prices drop faster. There’s only so much buying power. Most aren’t rich like you or at least don’t brag about their good fortune. It won’t be “the same payment anyway”. Also, renting is a lot cheaper than buying. It’s high, but not near buying currently. But I agree the cost to rent will be a lot closer to that to buy in the future. However, it will be from home prices dropping, not the other way around.

[Reality]

Whatever Myiot. You don’t want to raise your kids in “temporary rental housing”. What was the home they are moving from if not temporary owned housing? But you’re sure you will live in your new home until they are grown. Right.

What’s the point? Housing is high but renting is as well. I’m not willing to rent any longer and sacrifice not having stability in hopes of getting $80K or 90K more off a home. In the end, higher interest rates will mean the same payment anyway or a landlord raising prices will mean the same.

How will higher interest rates mean the same payment? Don’t you understand economics at all? Higher interest rates will make home prices drop faster. There’s only so much buying power. Most aren’t rich like you or at least don’t brag about their good fortune. It won’t be “the same payment anyway”. Also, renting is a lot cheaper than buying. It’s high, but not near buying currently. But I agree the cost to rent will be a lot closer to that to buy in the future. However, it will be from home prices dropping, not the other way around.

[lendingbubblecontinues]

myito–

thanks for sharing the story of your mom.

proves the point that apples don’t fall too far from the tree.

[lendingbubblecontinues]

myito–

thanks for sharing the story of your mom.

proves the point that apples don’t fall too far from the tree.

[Author]

Posts