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July 12, 2016 at 4:37 PM in reply to: Prediction: San Diego market goes up 8%+ over the next year #799570July 12, 2016 at 3:33 PM in reply to: Prediction: San Diego market goes up 8%+ over the next year #799562
bearishgurl
Participant[quote=The-Shoveler]I am going to assume that you know California minimum wage is set to go to $15 by 2022 ($10.00 now).
This is what I think most people don’t get about raising the minimum wage is it is NOT about minimum wage earners.
It’s about people making at least $15 now, the point is to get those people to $28-$30 dollars per hour.That’s the real point of it.[/quote]Shoveler, I don’t believe the minimum wage will ever hit $28-$30 hr . . . at least not in our lifetimes. “Those people” who are earning minimum wage now will need to get education and experience (relative to their education/training) behind them if they ever hope to make that much.
Participant[quote=SK in CV][quote=bearishgurl]SK, you must know that it is tremendously hard to raise minor children on a $50-$60K salary in SD County, CA. That’s why, after re-reading the OP’s posts today, when she stated that she didn’t expect to work for at least ~20 years, I saw an opportunity to encourage her to get legal advice. Sorry if that doesn’t seem “PC” to some Piggs.
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My comment had nothing to do with political correctness, and nothing to do with you encouraging her to get legal advice. As I said, that was sound. You should have stopped there. You didn’t. You proceeded to provide legal advice that was wrong.[/quote]Where did I “provide legal advice,” here?
ParticipantSK, you must know that it is tremendously hard to raise minor children on a $50-$60K salary in SD County, CA. That’s why, after re-reading the OP’s posts today, when she stated that she didn’t expect to work for at least ~20 years, I saw an opportunity to encourage her to get legal advice. Sorry if that doesn’t seem “PC” to some Piggs.
You can’t believe how many 50-65 yo (formerly solidly middle and upper-middle class) women I’ve assisted with domestic filings previously (thru attorneys I’ve contracted with) who were truly in financial dire straights because they didn’t have any current work experience (or any work experience at all)!
One particularly heartbreaking case was a 66-yo Chula Vista native (as was her spouse) who both moved up to WA state in their late 50’s and bought an A-frame retirement house for all cash in a very woodsy, “bucolic” area with an inheritance she got from her mom. During their 7-8 years there, he couldn’t keep steady work and she had never worked so they borrowed off the house to survive. Their house subsequently went into foreclosure and they subsisted on the rest of her inheritance. When the foreclosure sale notice was posted on their door, he left and moved back to the SD area to stay with his kids, got his old job back and filed for divorce after six months residence, during which time she was evicted from their home when it was foreclosed upon. She ended up having lifelong friends from HS drive up there in two pickups and move her all the way down here, put her stuff in storage and put her up for awhile so she could answer the divorce petition she had been served.
That case is just the tip of the iceberg.
One certainly can’t eat and live under their clothing, jewelry and vacation photos for the rest of their lives!
Participant[quote=SK in CV][quote=bearishgurl]But you need to know that your “inheritance” belongs to you and only you unless you “commingle” it (i.e. deposit some or all of it in a joint account or use some or all of it as the entire downpayment on real property which is only half owned by you or owned by a marital “community”). Doing this could change the “character” of your inheritance and you may already be aware that CA is a “community-property state.”
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Probably the main reason you shouldn’t be giving legal advice is that you don’t know what you’re talking about. Separate property that is used for a down payment on a home, even if the home is purchased as community property, is reimbursable in a divorce. (See Ca Family §2640) The advice about seeing an attorney is sound.[/quote]I understand all this and have seen the reimbursement partitioned at the time of a divorce settlement WHEN there was enough equity in the “family home.” But if there is not enough equity in the property at the time of divorce filing (to “reimburse” the downpayment paid by one party), then all bets are off.
I gave jfel this advice because she stated here that she didn’t expect to have an income of her own for ~20 years. As you know, that is pretty hard to forecast for a twenty-something with soon-to-be two kids.
Participanttreehugger, if he hasn’t already, your dad needs to apply for his VA “Certificate of Eligibility” to give to a prospective lender when he applies for a VA-backed home loan:
http://www.vba.va.gov/pubs/forms/VBA-26-1880-ARE.pdf
In your dad’s case of owing ~$300K, he needs to first find out if he qualifies for a conventional refinance because that would certainly be much cheaper mortgage money to borrow, especially if his credit is good to excellent. Having a “zero down” mortgage provision won’t do him any good on a refi unless he doesn’t currently have any equity.
Because it is a refi, your dad won’t be able to ask any “seller” to help with his funding fee, and, in any case, CA homebuyers have historically never had much success with this request (of individual resale-sellers) … especially in the coastal counties.
I’m not sure if conventional mortgage rates currently match the prevailing 30-yr VA fixed rate but even if they don’t but come close, a $6K up-front payment will pay for a LOT of years’ payments at slightly above the rate the VA guaranteed loan programs are offering.
I’ve known many vets who have never used their VA mortgage loan benefits here in CA for the reasons above … as well as the fact that the VA-backed mortgage loan ceiling used to be quite a bit lower than the FF conventional conforming loan ceiling. However, this is not the case today.
ParticipantSorry for late reply. I had peeps in from out of town.
jfel, if your rental home sits on a “busy corner,” it suffers from “economic obsolescence” no matter what is going on in the immediate vicinity. Therefore, it is not a good buy unless purchased solely as an investment with a very deep discount. Your owner/heirs will most certainly find this out when they try to list it but this is not your problem.
Based upon your description of your current neighborhood “problems,” I’m going to take an educated guess that if you still reside east of the 805, your “spillover riff-raff” is coming under/over the fwy from the Castle Park area. Therefore, you must live in or around the Deerpark subdivision off of E Naples or along Oleander, which is a fairly “busy” street. Hilltop Drive east to the 805 fwy from south of L St all the way to Main St has the (scattered) “problem” you described, which is most pronounced along Hilltop Drive from Naples to Orange Ave (front of CPHS).
The rest of western Chula Vista doesn’t have this particular problem.
I agree with gzz about considering buying in Lakeside, especially since your spouse will have no commute from there. You can find a larger lot size with a decent-sized family home on it in Lakeside and there is certainly more inventory out there to choose from (mainly due to heat and distance from SD). But overall, it is a good place for a SD County lower/moderate income family to raise their families in.
Before you shop for houses, however, I’m going to advise you to get legal advice from a qualified CA family law attorney as well as a probate attorney. I’m a paralegal (not a lawyer, but I’ve seen many different thorny “situations” people get themselves into) so I can’t give you any legal advice. In any case, a lawyer wouldn’t be able to advise you without knowing all the details of your situation.
[quote=jfel]Our situation: my husband makes about 50-60k (before taxes), we have a 1 1/2 year old and a baby on the way. Recently I lost my parents and have inherited a small goose-egg.[/quote]
jfel, you are very young to have lost both your parents and for that, you have my condolences. But you need to know that your “inheritance” belongs to you and only you unless you “commingle” it (i.e. deposit some or all of it in a joint account or use some or all of it as the entire downpayment on real property which is only half owned by you or owned by a marital “community”). Doing this could change the “character” of your inheritance and you may already be aware that CA is a “community-property state.”
[quote=jfel]As far as my income potential, I will remain at home and be the primary one homeschooling.[/quote]jfel, I don’t know if you have graduated from college or occupational school, but if not, you should consider using some of your inheritance (or the income from it) to get a college degree or occupational certificate while your kids are young (and FT daycare is expensive). In your late 20’s, you are essentially saying here that you plan on remaining at home for the next 18-19 years so you can homeschool, assuming your kids don’t end up deciding they want to attend public school from grades 7-12 or 9-12 (to obtain a permanent record of A-G and other requirements for entry into the UC/CSU). Since you say you’re only having two kids, by the time your youngest kid graduates from HS, you will be 45-50 years old and without any work experience in decades (or no work experience at all) you will likely not be hired anywhere. I don’t feel that it’s a good plan for a young person to put all their eggs in one basket (so to speak), because “life DOES happen” along the way … and even moreso when one has minor children to raise.
If it was your spouse posting here (employed or not), or any married male “heir,” for that matter, I would tell them the exact same thing I’m telling you … and that is to seek legal advice … and the sooner, the better.
jfel, you’ve got a l-o-o-ong road ahead of you but you are very fortunate that, in your twenties, you are financially secure enough to develop Plan A, B and C for your life … however it goes …. BEFORE you make BIG financial decisions! The vast majority of your millenial counterparts do not have these choices so I urge you not to blow the ONE chance in life you may have to get it right and get your financial house in order.
Participant[quote=The-Shoveler]From the described “current job leaves us alone for 24-48 hours at a time”
Does not sound like he would be doing a daily commute
(most likely off hours as well).
TV may not be a bad option in such a case.[/quote]I’ve lived alone (or with part-time kids) for the last 15+ years. I do NOT live in a gated community and do NOT have bars on my windows. I’ve gone on up to 3 mile (RT) walks by myself in my neighborhood and taken hundreds of shorter walks with my dog (she can’t walk that far). My kid(s) have rode their bikes all over around here as do other neighborhood kids. Senior citizens up to 90 years old actually take walks to the bus stop and a few blocks around their residence … some with a walker. Some of them are regulars and meet their friends at regular street corners to walk daily. Young military wives who rent around here stay home with babies and toddlers up to 8 months by themselves while their sponsor-spouse is deployed. Most of them walk several times per week, often with an infant in a front-pack, an older baby in a stroller and a ~3 yr old following on his/her tricycle. Even with all 3 at once! That’s why I wanted the OP to clarify if she actually “feels” safe to walk in her current neighborhood.
The safety issue, along with being too overly concerned about the number of PC 290 registrants (registered “sex offenders”) residing in a particular neighborhood is wa-a-a-ay overblown by many over-protective helicopter parents of today (the PC 290 group actually resides in nearly every zip code in the state). The “perception of safety” is in the eye of the beholder. Frequently, the people who feel the most safe in their neighborhoods are the ones who grew up there or have lived there the longest. Outsiders considering moving into a particular area often “perceive” it not to be “safe” based upon superficial physical attributes such as older homes, older streets, overhead lines, and non-tile roofs. Also due to the existence of mom-and-pop stores and small local businesses instead of big-box stores and large supermarkets which need a vehicle to get to. The perception of a particular area not being “safe” to live in or walk in is a crock of BS conjured up by ignorant “outsiders” who know nothing of the particular area, its “culture” or its people. In short, it is utter nonsense which causes prospective homebuyers to reject perfectly decent homes in established, very convenient areas which they can actually afford in a market which has had a dearth of resale listings for years in favor of moving far, far away from their jobs or “settling” for an overpriced newer condo with thin walls, multiple monthly fees and no yard for their kids.
ParticipantA family of four can still buy a 3/2/2 or 3/2/1 SFR in SD County (within 15 miles of dtn SD) for $425 – $500K. Yes, it will typically have been built in the ’50’s thru the ’80’s and the vast majority of listings on the market at any time have had some remodeling done. It will typically be 1300 to 1900 sf. Millenial family homebuyers are flocking to the far-flung southeastern IE as well as buying small condos and PUDS in SD County (almost all encumbered with heavy MR) because the housing stock I mentioned above is not “appealing” to them.
They’re essentially commuting over 3 hours per day to/from work and/or paying $200 – $700 month in HOA dues PLUS MR because they choose to. Very often, those choices are made during the buying process when the buyer(s) don’t yet have a full picture of what their actual monthly budget is going to look like as a homeowner with minor kids (unpredictable expenses) and a possibly lo-o-o-ong daily commute. In essence, this important decision is made blindly and on emotion of how the “newer” place makes them “feel” with its 10-13′ “soaring ceilings” which cost much more to heat and cool than a better-located, older (std 8′ ceiling) home. They don’t realize that if they just lived on a hill 3-5 miles from the coast/bay in SD County that their utility bills would have been cut in half (or even less than that!) over the far-flung lizardland “newer” home. And you can’t tell them otherwise because they already know everything :=0
Participant[quote=The-Shoveler][quote=La Jolla Renter]Affluent family in San Fran and NYC live in pretty small apartments with kids. 900 – 1,000 sqft for a family of 4.
BG, I don’t think we are pushing our values. Just our opinions for all readers to take it or leave it. But point taken.
Anyone have an idea of what the max mortgage a family in this situation could qualify for? The current guidelines seem pretty conservative.
What does 50-75 miles a day extra commute cost? A home right next to your office is probably worth $50k more in home price.[/quote]
Probably closer 500K more.[/quote]Yes, shoveler … true if the prospective homebuyer works in tech or biotech in SD. NOT true for service workers, retail/whse and restaurant mgmt and those professionals working in the FIRE industry.
And Temecula isn’t 50-75 miles per day EXTRA commute to dtn SD and surrounds. You’re forgetting that its a round trip daily. That is effectively 100-150 miles per day extra commute as opposed to buying a (typically) smaller, older home in the core of SD or South County …. or even North City (north of I-8 but still in metro SD) or SD East County.
Living in Temecula might be worth it for a SD North County inland worker (working in Esco, Poway or RB and surrounds). But I don’t feel it’s worth it for worker who works anywhere else in SD. There is a TON of daily traffic on I-15 and I-215 and the SR-71 (originating further up in Corona) is a constant stop and go h@llhole.
In short, the sacrifices with their time and lives made every work day by homeowners in the southeastern IE JUST to get a bigger, newer home for the same money aren’t worth it. They’re not worth it for a SD County worker nor are they worth it for an OC/LA County worker.
Participant[quote=FlyerInHi]I would go for 1) commute of less than 30 min. 2) best schools possible.
If OP tells the general area her husband works then people could post better recommendations.[/quote]
Agree with the commute time, FIH. But “best schools possible” in the ~$400K (or less) price range for a 3/2/2 (and a ~$1200 mo PITI payment) might actually be in an attendance area of a school rated a 7 or 8 (if you’re lucky). And that’s actually okay!
Since you have never been a parent, you have never had to face reality in this manner.
ParticipantI think the Piggs shouldn’t “push their values” upon a new poster who has not indicated that they are “demanding” any particular public school rating.
One can’t possibly know what it’s like to live on $50-$60K year income for a family of four in SD Co, CA unless they themselves have personally tried it.
I’m on the rent/buy fence with the OP’s situation here, as posted. As a single mom, I’ve personally spent nearly $5K on pest control alone over 15 years of ownership (sole ownership). And my income was never over $55K annually. I think home repairs/maintenance on an older home (or HOA and possible MR on a newer home/condo) could really eat into their savings for college/retirement. If I were the OP, I would try mightily to get my landlord (and her heirs, if necessary) to give me a 5 year lease OR do an owner carryback first TD and note for no more than $250K and no more than 1 pt over the current 30-yr fixed prevailing rate. If they insist on a straight note with a balloon payment, I would insist upon a 10 year note, which would give the OP time to go to work FT after her kids are in school FT and help her spouse qualify for a conventional refinance.
Participant[quote=La Jolla Renter]For me, I would do a condo or townhouse to get a top school for my kid and or a short commute. And would live in a less safe neighborhood to attend the best schools. If that scenario existed.
There are some 10’s in San Diego county. Or at least by this scale.
http://www.school-ratings.com/counties/San_Diego.html
If you have the home improvement skills, you could get a fixer and put some of your cash toward repairs. Done right, you could gain some sweat equity out of the gate.[/quote]Thanks for posting that (SD County) chart, LJR. I glanced over it quickly and I just have one question for you, here. Can a condo (big enough for a family of 4 – one an infant) be purchased for =<$400K in those attendance areas in SD County which have public schools rated a "10"? I noticed a couple of "10" elementary schools in C-Bad, one in SR and 8 in Poway Unified (the cheapest? areas on the list with "10" schools). Also one in Otay Ranch, Chula Vista. This is all assuming the OP does NOT want a lot big enough for a toolshed/outbuilding and will decide to pay HOA dues and possibly MR to "settle" for a condo. The OP also stated that they needed a PITI of no more than $1200 month and that didn't include HOA dues. In sum, is buying a home in a "10" school attendance area actually feasible for these low to moderate income parents?
Participant[quote=La Jolla Renter]We really need more data. How old are you and your husband? Will his income go up or is he at the top of his earning potential? How long do you plan to be a stay at home mom? Will you earn an income down the road? Any home improvement skills or DIYers? How important are the schools your kids go to? Do you demand 9 or 10 out of 10 on the rating scale? What are some of your top choice neighborhoods?
I’m probably of the camp that leans toward putting minimal down and invest the rest.
Great ideas to “work” the little old lady on a deal to buy or stay. But if that angle doesn’t work, you need to compare rent vs buy with your new market rent. I think the buy camp wins out.[/quote]All good questions, LJR. Especially asking about the OP’s own income potential down the road. I would add that a buyer looking for a ~$400K (or less) SFR in SD County (and doesn’t want MR) would be hard pressed to be able to buy in the attendance area of a public school rated a “9.” And not sure if SD County has any public schools rated a “10.” Please correct me if you know of any. If the OP was willing to buy a condo (w/HOA dues & even MR) perhaps they could find something in the attendance area of a public school rated a “9.” I’m thinking in Otay Ranch (CV 91914/91915).
Buyers in the OP’s price range really can’t make those kinds of “demands” in SD County (or even those in LA/Orange Counties) unless they’re willing to buy a condo. The good news is, elementary schools rated an “8” are still very good schools. And even those which are rated a “7” if enough of the parents are involved and it has been “improving” over the last few years.
Participant[quote=carlsbadworker]. . . Second, I actually think $250K down for a $400K house is a bad idea…no matter how low you want the payment to be. The real risk for home purchasing is liquidity that many people drained out their savings with the down payment that makes them less well prepared for the future uncertainty. I wouldn’t invest bulk of your saving on an investment vehicle that only carries less than 3.5% return (not counting mortgage interest deduction). I would take conventional 80% loan and save the money for emergency fund and future investment opportunity (although there are depressingly few such opportunities right now) . . . [/quote]I agree with this, carlsbad worker. But with just $50-$60K annual income for a family of soon-to-be 4, the OP and her spouse are not going to be able to qualify for an 80% LTV conventional loan. At least not one which would allow them to buy a single family residence in SD Co, CA.
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