[bsrsharma]

Don't you agree that a 3.5M house is a luxury Item and people should pay cash for that?

Yes; I personally would never buy anything above conforming limit unless I bring enough cash to reduce the loan to about $500K or so. Now, there may be some special circumstances like need to shelter large income from taxation (i.e. tax writeoffs) or need for cash for working capital if you are in a business (using lower rate mortgage as a business loan). But if raptorduck is certain of his cashflow, he may be smart in borrowing at low rate and buying an attractively priced asset that is definitely going to hold its value and payback with cheap $ later. I would consider RSF/La Jolla/Beaverly Hills etc., to be in that category. You are basically shorting US $ in the long run (30 years), which is a very good bet to take knowing what we know now about the coming entitlement tsunami and how it is practically going to destroy $ as we know it.

[bsrsharma]

Don't you agree that a 3.5M house is a luxury Item and people should pay cash for that?

Yes; I personally would never buy anything above conforming limit unless I bring enough cash to reduce the loan to about $500K or so. Now, there may be some special circumstances like need to shelter large income from taxation (i.e. tax writeoffs) or need for cash for working capital if you are in a business (using lower rate mortgage as a business loan). But if raptorduck is certain of his cashflow, he may be smart in borrowing at low rate and buying an attractively priced asset that is definitely going to hold its value and payback with cheap $ later. I would consider RSF/La Jolla/Beaverly Hills etc., to be in that category. You are basically shorting US $ in the long run (30 years), which is a very good bet to take knowing what we know now about the coming entitlement tsunami and how it is practically going to destroy $ as we know it.

[bsrsharma]

Don't you agree that a 3.5M house is a luxury Item and people should pay cash for that?

Yes; I personally would never buy anything above conforming limit unless I bring enough cash to reduce the loan to about $500K or so. Now, there may be some special circumstances like need to shelter large income from taxation (i.e. tax writeoffs) or need for cash for working capital if you are in a business (using lower rate mortgage as a business loan). But if raptorduck is certain of his cashflow, he may be smart in borrowing at low rate and buying an attractively priced asset that is definitely going to hold its value and payback with cheap $ later. I would consider RSF/La Jolla/Beaverly Hills etc., to be in that category. You are basically shorting US $ in the long run (30 years), which is a very good bet to take knowing what we know now about the coming entitlement tsunami and how it is practically going to destroy $ as we know it.

[bsrsharma]

Don't you agree that a 3.5M house is a luxury Item and people should pay cash for that?

Yes; I personally would never buy anything above conforming limit unless I bring enough cash to reduce the loan to about $500K or so. Now, there may be some special circumstances like need to shelter large income from taxation (i.e. tax writeoffs) or need for cash for working capital if you are in a business (using lower rate mortgage as a business loan). But if raptorduck is certain of his cashflow, he may be smart in borrowing at low rate and buying an attractively priced asset that is definitely going to hold its value and payback with cheap $ later. I would consider RSF/La Jolla/Beaverly Hills etc., to be in that category. You are basically shorting US $ in the long run (30 years), which is a very good bet to take knowing what we know now about the coming entitlement tsunami and how it is practically going to destroy $ as we know it.

[bsrsharma]

Now I am sensitive to the tragedy, but as a buyer, if I am looking at a home that now has a black back yard and is in an area full of black common areas, its value has just gone down

Hmm, If I were the potential buyer, I will run away from that house! What guarantee that a fire next time will not take a direct hit? It is like saying my house in Baghdad or Beirut is safe because, oh, the IED or Rocket landed more than 50 feet from my bedroom!

[bsrsharma]

Now I am sensitive to the tragedy, but as a buyer, if I am looking at a home that now has a black back yard and is in an area full of black common areas, its value has just gone down

Hmm, If I were the potential buyer, I will run away from that house! What guarantee that a fire next time will not take a direct hit? It is like saying my house in Baghdad or Beirut is safe because, oh, the IED or Rocket landed more than 50 feet from my bedroom!

[bsrsharma]

Now I am sensitive to the tragedy, but as a buyer, if I am looking at a home that now has a black back yard and is in an area full of black common areas, its value has just gone down

Hmm, If I were the potential buyer, I will run away from that house! What guarantee that a fire next time will not take a direct hit? It is like saying my house in Baghdad or Beirut is safe because, oh, the IED or Rocket landed more than 50 feet from my bedroom!

[bsrsharma]

Now I am sensitive to the tragedy, but as a buyer, if I am looking at a home that now has a black back yard and is in an area full of black common areas, its value has just gone down

Hmm, If I were the potential buyer, I will run away from that house! What guarantee that a fire next time will not take a direct hit? It is like saying my house in Baghdad or Beirut is safe because, oh, the IED or Rocket landed more than 50 feet from my bedroom!

[bsrsharma]

patientlywaiting:

These are two independent decisions. I agree prices will come down significantly. My comment on the other thread was recoginizing that loan as a very good loan. No principal payment for 10 years, 6.1% APR FIXED for 40 years, no PMI -is basically free money. I hope he uses that money to buy a home that has already fallen enough to make it worth buying. Many good Temecula homes are now going for $100-$150 per SQFT. Combine that price and a really cheap very long term Fixed mortgage without PMI/HOA/Mello-Roos burden is a guaranteed winning combination. 40 years from now, in 2047, the boomer entitlement tsunami would have passed. $ would be worth less than todays dime – more like a nickel – in purchasing power. For him to payback loan with that funny money will be trivial. His grandkids will be getting more for allowance!

[bsrsharma]

patientlywaiting:

These are two independent decisions. I agree prices will come down significantly. My comment on the other thread was recoginizing that loan as a very good loan. No principal payment for 10 years, 6.1% APR FIXED for 40 years, no PMI -is basically free money. I hope he uses that money to buy a home that has already fallen enough to make it worth buying. Many good Temecula homes are now going for $100-$150 per SQFT. Combine that price and a really cheap very long term Fixed mortgage without PMI/HOA/Mello-Roos burden is a guaranteed winning combination. 40 years from now, in 2047, the boomer entitlement tsunami would have passed. $ would be worth less than todays dime – more like a nickel – in purchasing power. For him to payback loan with that funny money will be trivial. His grandkids will be getting more for allowance!

[bsrsharma]

patientlywaiting:

These are two independent decisions. I agree prices will come down significantly. My comment on the other thread was recoginizing that loan as a very good loan. No principal payment for 10 years, 6.1% APR FIXED for 40 years, no PMI -is basically free money. I hope he uses that money to buy a home that has already fallen enough to make it worth buying. Many good Temecula homes are now going for $100-$150 per SQFT. Combine that price and a really cheap very long term Fixed mortgage without PMI/HOA/Mello-Roos burden is a guaranteed winning combination. 40 years from now, in 2047, the boomer entitlement tsunami would have passed. $ would be worth less than todays dime – more like a nickel – in purchasing power. For him to payback loan with that funny money will be trivial. His grandkids will be getting more for allowance!

[bsrsharma]

patientlywaiting:

These are two independent decisions. I agree prices will come down significantly. My comment on the other thread was recoginizing that loan as a very good loan. No principal payment for 10 years, 6.1% APR FIXED for 40 years, no PMI -is basically free money. I hope he uses that money to buy a home that has already fallen enough to make it worth buying. Many good Temecula homes are now going for $100-$150 per SQFT. Combine that price and a really cheap very long term Fixed mortgage without PMI/HOA/Mello-Roos burden is a guaranteed winning combination. 40 years from now, in 2047, the boomer entitlement tsunami would have passed. $ would be worth less than todays dime – more like a nickel – in purchasing power. For him to payback loan with that funny money will be trivial. His grandkids will be getting more for allowance!

[bsrsharma]

None of them are worth even $200K. Why buy a Condo in Temecula when you can get pretty nice SFRs at affordable prices soon? These are only fit for rentals and for that, the prices should start approaching $150K at most.

[bsrsharma]

None of them are worth even $200K. Why buy a Condo in Temecula when you can get pretty nice SFRs at affordable prices soon? These are only fit for rentals and for that, the prices should start approaching $150K at most.

[bsrsharma]

None of them are worth even $200K. Why buy a Condo in Temecula when you can get pretty nice SFRs at affordable prices soon? These are only fit for rentals and for that, the prices should start approaching $150K at most.

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