[Alex_angel]

So they thought that the mortgage on a $700k home would be affordable on a $15k per year job. THOSE DAMN TRICKY MORTGAGE LENDERS MUST PAY!!! lol. Whatever.

Maybe I should get that $3 million Rancho Santa Fe home now then complain my $65k per year job is not enough to cover the sleazy lenders loan I got and hope for a bailout. This is a JOKE!

[Alex_angel]

For some people a 5% to 10% down will help a lot but most people don’t have the income or savings so they take the 5% kick back and put is as a down payment.

So the house sells for $500k. The buyer needs $25k for a down payment. The seller then says I will sell it to you for $530k, give you the $30k needed as your down payment. The seller gets the $500k they wanted and the buyer gets the $30k they need and only gets a loan for $500k which works out the same for them. They won’t pay more in anything but property tax.

It is a back door method of getting the home you want. An old realtor played this same game with me. I told him there was this house i wanted for $700k but cannot afford the taxes, closing fees and down payment. He said he will get the seller to sell for $750 and the seller will pay my down payment and all fees. This guy was SLEEEEEEEZY to say the least.

[Alex_angel]

There is one part of this that I don’t get. Say that the home gets priced $60k and it will be kicked back to the buyer to offset the 20% loan. How does the seller give the buyer that money without tax ramifications. Now we are talking about tax evasion.

[Alex_angel]

I said it wasn’t the norm but let me explain. It is the norm for the realtor to increase the price 10-15K to cover all closing costs for you and the realtors fee. Jacking it up over 50k is not the norm.

[Alex_angel]

Iniles. What you speak of happens but it is not the standard in home sales. It has beomce the widest spreading rumour of what happens in the market. It is not the realtor that drives the market, it is the BUYER. People want to blame the feds, lenders, realtors etc… but the person to blame is the BUYER. Without a buyer who is dumb enough or willing enough to pay 5x what a home is worth the seller wouldn’t be able to sell it.

The consumer is responsible for the run up because they didn’t hold strong, they ran like sheep and got the biggest sucker loan they could. People need to look in the mirror to find the real culprit of the RE run-up.

[Alex_angel]

What you are seeing is correct. The people that talk about forclosures and prices spiraling down are pointing to south east and south San Diego. Areas like Carlsbad, Carmel Valley, Scripps are still selling homes at or above asking. There still seems to be a slew of people with money who are buying.

Some people see a positive when they hear a 5% drop in price but to me that is a crock. A home that went up from $200k to $800k then dropped to $750k is not a drop at all. It is still priced 400% more than what its worth. Some people look at that $750 and think they’re getting a deal. You look at pigginton members and see that most are realists, but for everyone that agrees with the members here there are people that disagree. For every blog or website that predicts gloom in real estate there is a blog and website that predicts blue skies ahead. Sitting on the sideline and waiting is only going to get most people an ulcer. One month RE will be down 5%, the next month it will be back up etc…

The rule of thumb with common economics is if you can afford it then buy it. If you have to stretch to your last penny then reevaluate where you live and what your needs are.

[Alex_angel]

The government should bail out everyone who bought in the last 3 years, move them to apartments and burn all of the houses down thus eliminating a flood of inventory.

[Alex_angel]

Of course Bush can’t run but he is responsble in ensuring the flame is carried on through the repubelickin party. They want to continue the tirade they have caused in the white house. How else can they get the poor lowerclass vote than to bail them out financially from the mortgage mess.

[Alex_angel]

I agree forsale. People think of immigrants running across the border. I’m talking about immigrants coming to America with money and would rather put that money into something they can see like a house than a bank account where Uncle Sam can tap at them. Not Indian families working in high tech but familes from Hong Kong. Property in Hong Kong is so expensive that San Diego looks like a low rental community compared to it.

Please do me a favor. Go to any community that are still touring model homes and note who you see there. You will no doubt see about 75% asian families. Like people said. They spend smart, they save and they double the opccupancy to take the sting out of the mortgage. Most have money from China and Hong Kong. There are still a huge amount of Honk Kong people leaving because of the Chinese influence and do not want to leave their cash in a communist system.

The inital growth was due to flippers and people looking to upgrade. Now it is sustained through money from outside of the US. These people are not dumb and are not going to move to San Ysidro or east county. They know what the good areas are and they settle in there.

Like someone said earlier. In the chinese culture, owing a home shows that you are responsible and it is not uncommon for a newly married couple to have their parents living with them.

Visit these communities and you will see light of day. Now don’t get me wrong. I have no issues with asian families. They are quiet, respectful and very helpful. You won’t see an asian family having a BBQ until 2 am on a wednesday night keeping up all the neighbours like someone straight out of Texas. They respect their neighbors and their home.

[Alex_angel]

Again I am refering to recent purchases and why some areas refuse to go down in price and remain steady. This is mostly due to foreign money coming in and buying. They were not responsible for the run up. This run up was caused by the dumb greedy American looking to flip. What is sustaining new home sales is foreign money. The option of selling and upgrading while still possible is not happening as much as before. The people buying have money, cash, moola and are buying the house out right and really don’t care or worry about the cost. They assume because it is pricey that the neighbourhood must be nice. LOL. There are some parts or Rancho PQ that are in the $700’s and I felt like I was in an IOWA trailer park driving thorough.

[Alex_angel]

This makes me sick. Why the hell should our tax dollars help out those dumb people who couldn’t and shouldn’t have purchased a home in the first place. What’s next, helping out the poor who want to drive a benz or bmw, maybe helping out the people who want to take a greek cruise.

This is sick and people should pay for their own mistakes but of course Bush will grant this to buy some more votes for the ’08 election. What a shame.

[Alex_angel]

The asian groups are not window shopping. It is plainly obvious in a lot of areas. Almost every new home in the Pardee developments in Carmel Valley West are now being sold to Asian families. The same goes in Del Sur and 4s. Take a walk around and it is obvious. They have the money to spend and really don’t care about the market. They are in this to own a home and house their families for a long time in them. When you walk into any model tour the agents push aside the white people when they see an Asian family walk in. It is plainly obvious that they know who is window shopping and who has the money to buy.

[Alex_angel]

Please no bashing of foreigners. I do notice that 90% of people that look at open homes or model tours are Asian. Now it makes sense because even selling a 500 sqft pad in Hong Kong will net you $1 million.

My question is. I always wondered where the Asian families get their money from because they seem to be the only ones buying now.

[Alex_angel]

For the last few years I have had a nesting feeling but continued to rent. I felt guilty not buying a home but now I can reflect back and know I did the right thing and I am not stuck in this slump. I have the option to leave SD if I want or stick around and watch home prices drop more before buying. It feels good to be in the drivers seat.

[Alex_angel]

Zillow does nothing more than price comparisons and past sales and tries to predict trends. To be quite clear that home is not worth 1.9 or even 1.15 million. If is easily a 700k home but jacked up on the current inflated market.

Remember. Zillow does not have people sitting there trying to judge prices. It is done on pure raw data.

Zillow has caused as many headaches for the real estate agents and buyers. It is very inconsistent where it over prices some homes and under prices others.

Please remember these words next time.

A HOUSE IS ONLY WORTH WHAT SOMEONE IS WILLING PAY FOR IT.

[Author]

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