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November 14, 2012 at 1:56 PM in reply to: FHA loans going to “Rebound Buyers” just ~3 years out of foreclosure/BK #754698
bearishgurl
Participant[quote=The-Shoveler]Guy’s your way off,
I have never seen Any Ghost towns in the IE…
Even in the most remote locations.
Some parts of “Moreno Valley” are fairly close to industrial centers of L.A. (city of industry etc..)
No further out than and probably a lot closer than say Carlsbad is QCOM.
Maybe 10-15 miles down the 60 at most.
Also there are quite a few Industries and warehouses distribution centers in this corridor so there are a lot of blue collar and white collar Jobs that do pay enough to easily afford this.
Not everyone has to commute to San Diego.There have been a lot of start-up IT firms in some of the better parts of the IE as well,
(HOW IS THAT POSSIBLE!!!) trust me it’s possible.[/quote]Thank you for you input, shoveler.
Every time I have driven to/from Mammoth and South Tahoe thru the back way in recent years, I saw places like Adelanto and the Victor Valley mushrooming bigger and bigger with new (small lot) construction. Off SR-395, there are tile roofs as far as the eye can see on both sides of the hwy … prior to entering the backside of the sierras.
WHERE do all these people work and how far do they have to commute one way? They can’t ALL be “retired.” It’s not a very “desirable” retirement destination.
Or, are all these tracts “relatively empty” now??
I’m referring to the SB County high desert here.
November 14, 2012 at 1:13 PM in reply to: FHA loans going to “Rebound Buyers” just ~3 years out of foreclosure/BK #754695Participant[quote=spdrun]So he’ll have a park with some haunted houses surrounding him :)-[/quote]
I guess if today’s scattered “pioneer-buyers” in these “CA ghost towns” want to throw a few cars up on blocks to work on and flip, hang out a clothesline or have a big party and tell their guests not to worry about blocking driveways, they won’t get any complaints from the “neighbors” or run afoul of HOA regs. Its likely most of all of the resident-members of the HOA “Board of Directors” have walked away from the development long ago, lol …
November 14, 2012 at 1:05 PM in reply to: FHA loans going to “Rebound Buyers” just ~3 years out of foreclosure/BK #754693Participant[quote=spdrun]TSOR says that Moreno Valley has a few plastics plants. He may work locally….[/quote]
Agreed for this buyer. But “a few plastics plants” can’t possibly provide enough “living-wage” jobs for the residents of 80-100K living units which were built in and around Moreno Valley in the last ~15 years.
November 14, 2012 at 12:43 PM in reply to: FHA loans going to “Rebound Buyers” just ~3 years out of foreclosure/BK #754691Participant[quote=spdrun]Insurance is about $1200/yr(?). Mortgage (principal + interest) say 6%. Taxes 1.125%. Comes to about $1100/mo. Unless PMI premiums are sky-high, I’ guess he’d be paying less than the $1500-1800 (SWAG) required to rent such a place. Defs not 50% of rent, but still an ok deal.[/quote]
Since an 1100 sf 2/1 up to a 1500 sf 3/1.5 SFR in Chula Vista (10 mi from dtn SD and ~1 mi from SD Bay) rents for $1600 to $1800 … and in other parts of SD County, SFR rents are even less than that, what’s the “draw” for a SD County worker to rent (or buy) in the “remote IE” (85+ miles away)?
Were there ever really enough jobs in the “remote IE” (or in “nearby” East LA, East OC) to justify the building of all the tract developments out there which rose up just before and during the millenium boom??
I didn’t think so then and I don’t think so now. It’s just excess overbuilding now (predictably) turning into ghost towns. Given the choice, few workers really want to commute that far on a daily basis. The only entity that benefited from this travesty on CA’s environment is Big Development. They were aided and abetted all along thru the “development process” by our (greedy) elected officials, NONE of whom likely live within even 20 miles of the “shantytowns” and “gridlock” caused by the massive overbuilding they voted in 🙁
November 14, 2012 at 12:25 PM in reply to: As predicted, Fannie is beginning to sell blocks of assets in bulk to REITs #754690ParticipantI meant to say, if Fannie had eventually sold them all on the open market …
November 14, 2012 at 12:20 PM in reply to: As predicted, Fannie is beginning to sell blocks of assets in bulk to REITs #754689Participant[quote=no_such_reality]No it should not be BG. You, the taxpayer, are being ripped off. You the taxpayer is assuming all the risk.
Colony get’s the reward, if it goes bad, you get the bill.
Sound familiar? Make sense now why the companies are bidding over market right.[/quote]
I Fannie had eventually sold them all for an avg of, say, $110K per unit (appraised value), who do you think would have been left holding the bag for the excess deficiency on them (debt overhang)?
In other words, do we want the whole bill now or perhaps part of it later??
November 14, 2012 at 11:24 AM in reply to: FHA loans going to “Rebound Buyers” just ~3 years out of foreclosure/BK #754685Participant[quote=bearishgurl][quote=spdrun]Insurance is about $1200/yr(?). Mortgage (principal + interest) say 6%. Taxes 1.125%. Comes to about $1100/mo. Unless PMI premiums are sky-high, I’ guess he’d be paying less than the $1500-1800 (SWAG) required to rent such a place. Defs not 50% of rent, but still an ok deal.[/quote]
As of April of this year, FHA MIP’s are “sky high.”
http://themortgagereports.com/7948/fha-mortgage-insurance-premium-april-2012
[/quote]edit: spdrun, you forgot to add in Mello-Roos. 85%+ of Moreno Valley has MR . . . and do any Piggs know how many of these tracts have HOA dues, as well?
November 14, 2012 at 11:19 AM in reply to: FHA loans going to “Rebound Buyers” just ~3 years out of foreclosure/BK #754684Participant[quote=spdrun]Insurance is about $1200/yr(?). Mortgage (principal + interest) say 6%. Taxes 1.125%. Comes to about $1100/mo. Unless PMI premiums are sky-high, I’ guess he’d be paying less than the $1500-1800 (SWAG) required to rent such a place. Defs not 50% of rent, but still an ok deal.[/quote]
As of April of this year, FHA MIP’s are “sky high.”
http://themortgagereports.com/7948/fha-mortgage-insurance-premium-april-2012
November 14, 2012 at 11:14 AM in reply to: As predicted, Fannie is beginning to sell blocks of assets in bulk to REITs #754682Participant[quote=no_such_reality][quote=spdrun]112%? So basically they’re selling off unknown assets with likely a lot of bad apples mixed in at market or above. Hope Mr. Barrack (No-BUM-a?) got a sweetheart interest rate and an enema of Bernanke Bucks as a kiss goodnight.[/quote]
Sigh, it’s actually a sweet heart deal. Basically a NINJA loan with give back provisions.[/quote]
As it should be, NSR. Santa Monica-based REIT Colony Capital paid an average of $181,443 each for these properties. I can’t even imagine the majority of the REO’s they “acquired” in CA are worth that, much less the ones in AZ and NV. And, hopefully, the vast majority (or all) of them are SFR’s, NOT condos.
I would venture that upon closer inspection of this transaction, we would find that the vast majority of CA properties in this deal were located in highly-distressed ~newer tracts in . . . where else but “Armpit, CA.”
There had to have been some “provision(s)” in there to “sweeten the pot” to cause Colony to bid an avg of $181K+ each on these properties.
November 14, 2012 at 10:55 AM in reply to: FHA loans going to “Rebound Buyers” just ~3 years out of foreclosure/BK #754679Participant[quote=no_such_reality] . . . With a down payment as low as a security deposit on an apartment and a monthly payment at half of what it costs to rent, it’s a no brainer.[/quote]
When you add in 1/12 property taxes, 1/12 insurance premiums and HUGE monthly MIP premiums to the P&I, I doubt seriously it is cheaper to buy than rent every month, particularly in this part of the (gridlocked?) IE. And I don’t see this subset of buyers qualifying for the lowest mortgage rates, either.
How much does is cost to rent an 1800-2000 sf 4/2 there? And are they really “worth” ~$180K today??
November 14, 2012 at 9:05 AM in reply to: As predicted, Fannie is beginning to sell blocks of assets in bulk to REITs #754675Participant[quote=CA renter]BG,
What we’re seeing with interest rates and inventories is an anomaly that is specifically designed to artificially inflate prices and work in favor of sellers. It will not last forever, even though it could last for longer than most of us think wise.
If I were in your shoes, I’d be thinking very seriously about whether it’s best to sell and then buy or rent the retirement home, or rent your primary house out while renting the retirement home.
This is the time to SELL. The market is on fire with so little inventory and incredibly low interest rates. The bubble was not allowed to fully deflate, but that doesn’t mean they’ll be able to artificially prop up prices indefinitely. If you ever intend to sell, don’t let unrealistic pricing expectations get in your way. Sell sooner rather than later…[/quote]
I understand what you’re saying here, CAR. But my PITI is “affordable” and we NEED someplace to live until kid goes to college. It is neither easy nor cheap to find a rental for pets close to where I need to live right now (here) and I don’t want to move twice. And I need to complete more repairs/replacements before selling, PREFERABLY within one year of putting my property on the market … to offset any possible capital gains tax I might have to pay for the tax year of the sale.
I really don’t care if I can’t get the price I want within a few weeks of marketing my residence. I really don’t have any problem with renting it out as it would have a substantial monthly positive cash flow. This would also give me the option of moving back into it in the future if I wished to come back to the area to live as I wouldn’t likely be able to qualify for a mortgage on my own. I will likely have to pay cash for any future properties I purchase.
I’ll have to take my chances on values increasing in the months/years to come … or not. So far, they have stabilized but I don’t see them (appreciably) increasing around here … yet.
November 14, 2012 at 8:46 AM in reply to: As predicted, Fannie is beginning to sell blocks of assets in bulk to REITs #754670ParticipantCloser to “home,” another REIT just bought up 970 foreclosed homes for $176M in CA, AZ and NV.
see: http://www.latimes.com/business/money/la-fi-mo-foreclosure-auction-20121102,0,1900684.story
November 12, 2012 at 4:34 PM in reply to: Big government and absurdly strong unions destroyed Greece and Spain. Expect no less for California. #754555Participant[quote=AN] . . . You never going to find anyone that would say, although I can afford a 5/5 apartment in NYC, my living standard would be better in a 3/1 in NYC.[/quote]
Actually, you will. No matter how much money a person has, often a 3/1 (or 3/2 or 2/2) is all they need. A one or two-person household often doesn’t need a lot of space and likely won’t use it. ESPECIALLY a retired person/couple. A person who has had four bathrooms, 35′ long LR’s and pools in the past is TIRED of cleaning and landscaping chores.
LOTS of people have been there, done that and wrote the manual. After one has all the space they can possibly use, more space doesn’t equal any more happiness.
November 12, 2012 at 4:24 PM in reply to: Big government and absurdly strong unions destroyed Greece and Spain. Expect no less for California. #754552Participant[quote=spdrun]AN: You’re ass-u-ming that the average residence for a family with 2 kids is the same in both cities, and thus are attempting to compare apples to apples. Again: floor space and number of thrones isn’t the be-all-and-end-all of housing quality…[/quote]
Good point, spdrun. In fact, the average sf of the housing stock in SM county is smaller than SD County but I don’t know by how much (400 sf is my “educated guess”). This is due to age of the stock. SM county has been under a “low or no growth” moratorium for quite a number of years. In addition, only about 40-45% of the county’s land space was even buildable. The rest is public lands.
SM County is obviously not the place for buyers who feel they need ~2000 sf (in “move-in condition,” lol) within their ~$400K price range to raise their family of four in. It’s a free country and there are many other alternatives. There are plenty of other buyers back in SV (yes, even with families), who will eventually pick up all the slack.
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