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It is not a McMansion either. McMansions are defined as >3000 sqft and/or oversized for the neighborhood. This place looks exactly like a standard CV house. I would love to live in this area. Great Schools, convenient for my job and newer houses.

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I think Rich still states that house prices are not in a bubble for San Diego. Prices may be slightly overvalued, but not by a large amount. Also, rent is really high in San Diego at the moment. If you are planning a long term stay then just buy.

Use this tool to help your decision:

http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0

I also have some saved money and I am not sure what investment to make. Schiller says both the stock market and bonds are over valued.

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“VA loans have no mortg ins. Veterans deserve a break.”

I heard that VA loans are the worse type as the fees and rates are horrible. Maybe things have changed.

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[quote=AN]I actually don’t see anything wrong with planning for extreme “what ifs”. As long as you also attribute the probability of it coming true in your planning as well You should also plan for “what ifs” at both end of the spectrum too. Not only should to plan for the Fed completely failing and you’ll get major deflation, but you should also plan for the Fed completely failing to control inflation and we’ll see a repeat of the 70s/80s. Obviously, either of those scenario are very unlikely to happen, but it’s not impossible. If you plan for it, then you won’t be blind sided and follow the heard off the cliff.[/quote]

Fair point. But you also have to plan for “what ifs” like things continuing as they are for the next 30 years. 2-3% house appreciation/year, 2-3% rent increase per year. The economy plods along.

In this case if you are intending to stay in the same place for at least 5 years then buy.

I suspect people do not consider unrealized gains (from not investing in stock market or buying a house) as losses. This attitude is very human, and very short sighted.

Myself, I failed to follow my own rules and did not put my ROTHIRA contribution in the SP index fund last january because I thought the market was overvalued. Instead I put it in a money market acount. I LOST 20% because of that dumb decision.

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[quote=Jazzman]I believe there is fair to good chance a convergence of factors will happen to bring about a correction in prices and when that happens you might expect the excessive 2013/14 gains to be wiped out. Those gains did not come about as a result of wage growth or a post bubble over-correction, so it is entirely reasonable to assume they are unsustainable.

[/quote]

I think Rich believes that the 2013 gains were not unreasonable in relation to rents, or income. Just a return to a normal market because few short sales/foreclosures. At least that is my reading of this blog.

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[quote=deadzone]If you have to put 20% down then it is not an apples to apples comparison (rent vs. mortgage) in terms of affordability. I would say Mira Mesa is borderline undesirable.[/quote]

Mira Mesa is undesirable to single folks, but very desirable to families. Schools are great and easy to get around. Newer as well, so not as many ghetto houses as North Park, South Park, Clairemont etc.

As mentioned above, use the New York times rent vs. buy calculator. And remember when markets work everyone can spot a bargain. I doubt their are great deals to be had in this market.

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[quote=Ricechex]Hello All,
1) Any recommendations for a good house inspector?

2) I have an approved 30 year fixed loan, San Diego County Credit Union for 4%, no points. My credit score is above 740. Anyone know of anything better for 30 year fixed?

3) I believe the appraisal will come in higher than the purchase price. Would it be in my best interest to get the inspection first, negotiate any repairs and then order the appraisal?
[/quote]

2) Try some online lenders through Zillow, they beat 4% for our recent refinance. But, depends on your information…

3) Your appraisal will not come in higher. They appraise by market value. If you are offering amount “X” and it is accepted then that is the market value.

Comment
by u/HarryWaters from discussion I am a Real Estate Appraiser, AMAA.
in RealEstate

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[quote=flu][quote=poorgradstudent][quote=flu]Looks like the going price for a 1/1 condo in MM is around $1300/month now for something < 600 sqft west of Camino Ruiz. Interesting.. My tenants are month to month for some time... Meh.. I'm too lazy to raise rents...[/quote] Well just change the word lazy to "nice" and pat yourself on the back. Of course there is a cost to you to find new tenants and a risk if the property is vacant for a while or you end up with bad tenants.[/quote] Truthfully, and extra $50-100/month is not worth the time of getting my tenants pissed off and argue over something regularly and having them nit picking at every little thing... I do send them a notice that what the current rent prices are, with a gentle reminder about don't give me crap over small frivolous things, and I won't give you crap about how I haven't raised rent... Bay area rents, on the other hand, I had no choice...Because we were talking about and $600/month difference between what I was charging and what I should have been charging, and it was still a few hundred/month lower than the average rent prices... At first the tenant complained, but then I indicated that my price even after the adjustment is about Section 8 rent prices, and they aren't even close to being Section 8....Didn't hear another complaint thereafter.[/quote] What are section 8 values for the Bay area and San diego? I googled but could not see numbers. I did notice that SF no longer takes applications, while San diego has a 8-10 year wait. Presumably the section 8 value is a good proxy for rent costs in a area. It would be a nightmare for rents to rise by $600/month - that would destroy a lot of budget. Especially if lower cost rentals are not available in your area. it leaves you stuck. I am mystified how anyone can want to rent long term.

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[quote=flu]Looks like the going price for a 1/1 condo in MM is around $1300/month now for something < 600 sqft west of Camino Ruiz. Interesting.. My tenants are month to month for some time... Meh.. I'm too lazy to raise rents...[/quote] $1300/month for a one bedroom in Mira Mesa? That seems an awful lot for a one person household in an area that is more for families than single people. To be a 1/3 of their take home pay they would need to be earning $70,000. I guess Sorrento Valley Tech people.

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The problem is the complex has all the information. You have no idea about demand for the apartments. Also, you are usually time constrained when looking for an apartment. Together this makes your negotiating position very weak.

I have also noticed that apartment complexes will raise their rates every year. They are counting on you not being willing to move because of the hassle. I did not have this annual raise of rent in single apartments.

For example, my friend rented a studio in UTC initially for $980/month back in 2004, while i rented a one bedroom in PB for $950/month. 5 years later he was paying $1200 while I was still paying $950. The flip side of a steady rent is that I felt i could not move because my rent rate was good – I was as stuck as a home owner.

It really, really sucks to be a renter. You are at the mercy of idiots.

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Off topic but Service animal = no charge to fly. $150 each way otherwise. Wish I could certify my dog as a service animal.

I inherited a dog through my wife, and they do create a mess. It was a real pain to find a rental that accepted dogs. But i perfectly understand why they are not accepted.

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[quote=scaredyclassic]

I grew up in a very small apt. It was fine. But when we got older all I wanted was out!!!![/quote]

I grew up on farm 30 minutes by car from the city. As a kid all I wanted was anything in the city so I could hang out with my pals, not have an hour bus commute to school each way and be able to stay out later than the last bus. Nowadays I cannot step foot on a bus without feeling annoyed.

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[quote=livinincali]
In the old days you could count of appreciation to accelerate equity building but I’m not sure that’s a safe bet right now. We’re at the high end of affordability right now and the two relief valves for that are higher incomes or lower interest rates. Neither of which seem real likely.[/quote]

This is very true. My decision to buy a house in Clairemont was based on rent costs (and lack of availability decent rentals). The house appreciating in value did not factor into my decision, although future rents rising might have influenced the thinking a little bit.

I hesitate to predict the future BUT I think it is UNlikely Clairemont homes will appreciate in value at all. The limit on prices is due to financing. Conforming lending limits of $540,000 (10% down) and the FHA has tightened up their standards.

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[quote=bearishgurl][quote=bewildering]The most village feel place I know in San Diego is Bird Rock. But Bird Rock is not near the freeways, and you would not get a large lot. However, the schools are excellent, you are also right by the ocean.

Good luck. It will be exciting for your kids to be near the beach.[/quote]

Agree and I thought of this also, but what is available there for $1.25 – 1.75M? Square footage??[/quote]

I wondered and had a look.

2500 sq foot for 1.5 million. But the lot size is not an acre.

http://www.redfin.com/CA/La-Jolla/5549-Waverly-Ave-92037/home/4937172

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The most village feel place I know in San Diego is Bird Rock. But Bird Rock is not near the freeways, and you would not get a large lot. However, the schools are excellent, you are also right by the ocean.

Good luck. It will be exciting for your kids to be near the beach.

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