January 30, 2007 at 4:23 PM #8307
I live in Kensington. Rent a beautiful newer construction condo – 2/2 with garage, washer/dryer, vaulted ceilings, fireplace, granite, dishwasher, heat, a/c, etc. All for only $1400.
I used to rent a room in a townhome in Solona Beach for $750. Then I rented a room in a house in Del Mar for $900. Then I rented a room in a 3 bedroom Mission Beach townhome for $950. Then I rented a one bedroom in Pacific Beach for $1000.
So, now I am 32 years old and still renting. I am an attorney…make good money, my fiance, whom I live with, makes good money too. We have talked to lenders and know that we could get into a place if we want, but then our monthly payments would be around $2500 to $3500. And that is for a dilapdated, piece of shit, long ago forgotten, unkempt, small yard (if any), shitty neighborhood, disgusting and all in all embarrasing place to call home.
So do the math. I think it is hilarious the prices people want for their homes. I don’t feel sorry for people using their homes as ATM’s and are now stuck with horrible payments and/or facing foreclosure.
I used to think I was doing something wrong with my life because I couldn’t afford to purchase here, now I realize that I am doing everything right. We have so much money left over at the end of the month, that I can’t imagine a lifestyle any different.
There are good quality homes in San Diego that demand a high price, but this double digit appreciation was a bad thing from day one on homes where the only improvements were a $8 can of paint and shitty Home Depot cabinets for $3000. If people couldn’t see what comes up must come down, then to hell with ’em.
I hope someday to be able to afford a home here in which I am proud of and feel that both myself and the seller got a good deal.
In the meantime I hope all the assholes in the real estate business that purposefully and willfully drove up home prices for their personal gain get their egotistical asses sued and end up living in a studio in El Centro.
I’m out.January 30, 2007 at 4:29 PM #44433ibjamesParticipant
did you read any posts? We are saying not to buy either..January 30, 2007 at 4:34 PM #44436
Yes, I read most of the posts, except ones that don’t deal with housing. I am an active Piggington reader. I am just throwing more reasons not to buy into the mix, aside from the standard ones, i.e. interest rates, surplus of homes, loans resetting, blah blah.January 30, 2007 at 4:35 PM #44437AndrastParticipant
I can understand what you are saying. It it nice to be able to have low monthly payments and be able to have the ‘liquidity’ of your residence (being able to pretty much walk away at any time).
If I were to come here today, I would not buy a place. I would do exactly what you are doing. The amount of money reqired to buy a house and keep up with the payments is tough, especially considering what you can get by renting here.
But, what if you would have bought a place from the beginning instead of renting all of those rooms? Sure, you would not have been living in Del Mar or Solana Beach. But, you would have had an appreciating asset along with a vehicle for tax write-offs, etc.
In the long term, real estate makes great sense. For short term, you need to keep an eye on the market. As I said, now I would not buy. Kensington is a great place by the way.January 30, 2007 at 4:43 PM #44438
Andrast I would have bought when I first moved here if I wasn’t a poor graduate student. I was living off student loans and the occasional parental supplement.
I am trying to see the big picture here. San Diego is not LA and it’s not San Francisco. I could go there and work my same job for about twice the salary. So why then, is housing more or less comparable. (Obviously there are differences, and yes SF is a little more expensive) It makes no sense.
p.s. my first night in Kensington, I saw two bums fighting over a bag with most likely some booze in it. One of the bums put the other in a sleeper hold and the guy started screaming.January 30, 2007 at 4:51 PM #44440lendingbubblecontinuesParticipant
Just think of all those poor bastards in El Centro who’d be forced to live near Registered “Truth” Offenders, though. Doesn’t seem fair to the people of El Centro.
Maybe we could construct tent cities for them or they could wander like gypsies, peddling copies of David Lereah’s “Are You Missing the Boom?” or giving hand-jobs for crack?
Perhaps there should be a registry, like a “Lereah’s List” or something, to help prospective homebuyers know how many washed up REIC people live in a particular neighborhood, so they could avoid having to move so close to such riff-raff.
I hate to say it, but truthfully, they are all worthless. (with the exception of all of you guys here on this board, bugs, sdr, SD R, and anyone else I may have missed..I think you guys are all a class act.)January 30, 2007 at 4:53 PM #44444
I feel sorry for the RE professionals that have paid their dues and made it through the various cycles only to be brought down by all the scam/sham RE professionals in this recent cycle.
I have to be honest, growing up in Minnesota, I never heard the term “investment property” or “flip”. People bought their homes to live in an establish their place in a community.
Southern California has fucked itself now. Nobody even wants to establish a community anymore here. The beach communities are full of college students and vacationers, and the other communities are full of greedy pigs checking “comparables” every day wondering if the time is right.
I think I will have to have a couple of beers tonight to calm down.January 30, 2007 at 4:56 PM #44445AndrastParticipant
That makes total sense. I wan’t meaning to say you did the wrong thing. I was only making the point that RE is a good investment, just now now as you said.
I have lived here in San Diego for almost 30 years. Real estate has always been more expensive here than LA/SF with respect to wages. SD is so much better than LA although the influx of people over the last 5-10 years has been insane. Traffic is unbelieveable around here sometimes. But, I guess that is the price to be paid to live in a nice area. We could be in Kentucky or something.January 30, 2007 at 5:07 PM #44449Nancy_s soothsayerParticipant
I am guessing that the cockroaches who committed the Temecula $1.5-Billion+ fraud have already fully paid up front their hideout mansions in the Philippines and the lifetime maids who will serve them hand-and-foot. Who knows if they have all bailed out from the US already. From where they originally came from, under a system of total free market capitalism with zero checks and balances (because there, you can bribe almost anyone including the judges), they were thoroughly schooled in the Academies of Ponzi Schemes and Corruption, and now are going back to showcase how stellar their accomplishments were in the US. How do I know that? My parents were victimized by the same cockroaches back in the old country. So disgusting – my blood boiled when I read that the perps are Filipinos. I hope they all rot in hell.January 30, 2007 at 5:19 PM #44452
I am anxious to see the type of lawsuits that arise in the next few years. Here are the types I see:
1) Construction defects…along with the massive amount of building over the last 5 years came an abundance of shitty construction by untrained illegals.
2) Fraud and misrepresentation. Against RE “professionals”. This will be a big one and should have the RE p’s running scared and hiding assets.
3) Deficiency actions. self-explanatory.
4) Foreclosure actions.
It is a good time to be an attorney in SoCal. YIPEE!!!!!January 30, 2007 at 5:31 PM #44455anxvarietyParticipant
I think you’re probably a little disgruntled, but I agree with you… you were probably a min wage worker during the last boom, and then you got your law degree(nice work) and were in school during this latest, but a little too late to get in on this boom.. My scenario is similar.. BUT real estate can be a great way to make life changing money through favorably high leverage with little risk(considering a basic understanding of timing and cycles).. just be happy that prices are on the way down and be ready to get in early on the next cycle..January 30, 2007 at 7:56 PM #44466BuyerWillEPBParticipant
Wow, I was going to bring up how fraud is responsible for much of this huge run up in prices… Then I saw your post. You said it much better than I would have! 🙂
I have a good sense of humor about most of life. But when you think about this housing ponzi scheme, we really do need to get angry and get some justice.
A lot of good families in San Diego are homeless because they were “priced out” by the real estate speculation these last few years.January 30, 2007 at 9:00 PM #44468sdrealtorParticipant
What do you call 1,000 lawyers at the bottom of the sea?
A good start.
Hearing an attorney blaming the RE industry for the decline of Western Civilization is one of the funnier things I’ve heard on this board. Construction at…you may be on of the good one’s but from my experience there is no shortage of egotistical asses in the legal community.
Personal injury suits for everyone!January 30, 2007 at 9:00 PM #44469AnonymousGuest
sdr, that’s not funny!
Construction, which part of MN are you from? We lived in Edina for four (very happy) years, and our two kiddies were born there.
Great place, except for the mosquitoes, MN is.January 30, 2007 at 9:06 PM #44470sdrealtorParticipant
Sure it is! Lawyers are one of the most loathed professionals in the world. I have lots of good friends that are very good and very respectable attorneys. Nothing against our new participant but that industry is just as riddled with slime as mine is.
BTW, it was the market forces that drove up prices and the sellers that benefited most from it not the RE industry.
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