[an]

I agree, CV is very ideal for me as well. It’s also where I’ll be looking at, when the bubble burst. CV and Sorrento Valley will be my top 2 choices.

[an]

I think those 2 problems are in every schools. Drugs might be more of a problem at TP because the kids tend to have more $ for drugs. I think those problem have alot to do with the way the parents raise their kids than where they live. If you go and buy your HS kids luxury cars, that has nothing to do with the schools, but the way you raise your kids.

[an]

My vote has to go to Sorrento Valley. Mostly business, only a few small residential areas. Which make it great if you work in the high tech telecom industry, which I do. Weather wise, it’s just as good as LJ and it’s only 10 min away from the beach. Yet it’s close enough to the freeway, you can go practically anywhere easily. Also, the price is very decent compare to all other coastal towns.

[an]

That sound just about right. You can’t call yourself an investor until you know the odds are on your side.

[an]

sdrealtor, you sound nothing like Donna. I got tired trying to read her post. It has so many run on sentences, I lost track of what her point is. I stopped reading 1/2 way through the post because I have no idea what she’s trying to say.

[an]

I highly doubt housing bull ever do that calculation. Because if they did, even they would see that it’s impossible. If it continues @ 10%, in 10 years, the average median price will be $1.5M. How does that make any sense. When wage goes up at about 3.5% a year, after 10 years, the average wage will be around $91k. A person w/ $91k will never be able to afford a $1.5M house, even w/ a 0% neg-am loan.

[an]

If things goes the way I planned, then as I get older, I’ll be able to save even more every month. Retirement has nothing to do with saving. I have accounts set aside for retirement. I was just trying to show how a little amount of money, like $1k/month can become millions if you have time on your side. Since you’re talking about giving the house to your kids when you die, that’s where I got the 65 years from. I’m 26, 65 years = 90. That’s when I estimate I will die. If I can just save $12k/yr for my heir, i’ll be passing millions to them. That as my point.

[an]

Thanks. Personally, I hope you’re wrong and it drop more :-). But it’s anyone’s guess. Like a very rich man once said, buy when everyone say sell and sell when everyone say buy. I’ll keep my finger on the pulse, and buy when everyone stop saying now is a good time to buy. I rather miss the bottom by 5-10% and be on the up swing than trying to time the market for the bottom. I tried that many time with the stock market and my experience is, when I think it can’t drop anymore, it does. Also, when I think it can’t go up anymore, it does.

[an]

sdrealtor, you’re correct, I’m still young, 26, to be exact. But I don’t think my age matter when it come to saving. I came from a family that emphasize saving over spending, and so is my wife. Saving has alot more to do with mindset than age. Just to prove a point, I have more saved for my retirement @ age 26 than the average baby boomer.
I would think as I get older, it’ll be easier to save because since I’ll be saving enough by then that the money I make from interest would be more than I need. I don’t need to live to 200, I just need to teach my kids what my parents taught me. This will alow them to continue where I left off. It takes time to be wealthy, and I mean wealthy, not rich.
I agree with you about those advantages of owning a home. I do want to own a home, many houses to be exact. My point is just, now is not the time, and 20% drop is not low enough for me. When I buy those rental properties, I want it to cash flow positive or at least break even.

powayseller, I agree, I don’t think people should resort to personal attack and condescending remarks. I hope we can continue to have good professional debate without having to resort to personal attack and condescending remarks.

[an]

AHAHAH, it’s just getting more funny after every post. Now, the IRS is telling ME, I should pay more than what I think I should pay in mortgage compare to rent? You make absolutely no sense. Once again, a simple I was wrong would be suffice.

[an]

I said it’s worth $100-$200/month more for ME. Who are you to tell ME how much more it should be worth to ME? I don’t care if you believe that I’m in the 25-28% tax bracket or not, it doesn’t matter to me.

[an]

Alright = I miss understood you. How can I be wrong when my math prove I was right.

If I take that $12k/year i saved, invest it in a CD that yield 6% a year. In 65 years, I’ll have $10M. Tell me, will your house be worth $10M? I would much rather pass on to my kids $10M than a house. Now, if I put it in an ETF that trace the S&P500 (historical average 10%), I’ll have $83M. I’m pretty sure 65 years is long enough to smooth out all the peak and valley. Sorry, try again.

[an]

Please reread my post, then plese, a simple I was wrong would be suffice. I said to ME, it’s worth $100-$200 more. My question to you was, with 20% drop, it would still be $1k/month more. Is $1k/month worth it to you. My math proved my point.

I did say, for ME, I would take that $1k difference and put it toward my retirement. So please refrain from the personal attack. But if you do have to resort to that, please get the information correct first before attacking. It just make you look like a jacka$$ that can’t read.

[an]

Alright, that still doesn’t change anything. Tell me, is $1k/month – $1200/month worth it to you to know you don’t have to move?

[an]

I’ve been saving more than $1k/month for retirement since I was 21. Now that we got that out of the way.

You’re correct, I’m not in the 37% brack. I’m on the border between the 25% and 28% bracket. Where do you mean by around here? Obviously, you’re not talking about San Diego wide. Maybe in Rancho Santa Fe? Oh, and btw, there’s no such thing as 37% tax brack, the highest is 35%. In order to be in the 35% bracket, you have to make well over $300k/year after all the write off. So tell me again, where exactly are you talking about that most homeowners make well over $300k/year? Tell, if you make $300k/yr, would you buy a $500k house? I highly doubt it.

Let assume your variables, rent = $2500/month. In order for then to be that high in San Diego, the house has to be around 2300-2500sq-ft and be around Scripps Ranch, Carmel Mt, Rancho Bernardo area. Houses that size in these area are in the 800-900k range right now. So lets assume the lower end, around $800k. W/ 0% down, and today’s rate of 6.5%, the monthly payment would be $5k. If it drop 20%, the house would cost $640k, the monthly payment would be $4k/month. If you’re in a 35% tax bracket, after tax write off, that’s about $2600/month. Lets assume tax+HOA+MR+Insurance = 2%, that’s about $1100/month. That would bring th total back up to $3700/month. So, tax save is about = to tax+HOA+MR+Insurance. Tell me again, is $1200/month worth it for you to know you don’t have to move again?

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