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bsrsharma
Participantyou never own your house in China
Interesting; Do you have any information on this?
That said, are there any statistics on unencumbered (no mortgage/HELOC etc.,) homes owned in US?
ParticipantProblem 1 is a geological/engineering issue that can be guarded against but almost never guaranteed unless pretty high end construction is used – not likely for production homes. Best guarantee is test of time – I use 5 years as my criterion. More for unusually steep slopes/hillsides (but I am never interested in those anyway at any price) and less for flat lands.
Problem 2 may be resolved if you know someone very familiar with builders. Some real estate professionals on the board may have some knowledge of various builder’s labor practices.
But because of problem 1, why bother with problem 2?
ParticipantProblem 1 is a geological/engineering issue that can be guarded against but almost never guaranteed unless pretty high end construction is used – not likely for production homes. Best guarantee is test of time – I use 5 years as my criterion. More for unusually steep slopes/hillsides (but I am never interested in those anyway at any price) and less for flat lands.
Problem 2 may be resolved if you know someone very familiar with builders. Some real estate professionals on the board may have some knowledge of various builder’s labor practices.
But because of problem 1, why bother with problem 2?
Participantbuying a new house has less risk
One thing that worries me is the ground compaction problem Many newly graded lands in hilly areas like SD take a few years to settle. Since the new homes are built before that, you may end up having large settlements & cracks (mini version of La Jolla problem). If you buy after 5 years or so, the settlements have mostly finished and you can see if there is any damage.
Second issue is: in the recent run up, last 5 years or so, a lot of builders used illegal and unskilled labor both for profit and due to worker shortages. I have seen videos of building construction (including some larger buildings) on TV that shocked me – poor skills even in estimating & measuring steel and wood – they would order beams & columns too long or short and then fix in the field by cutting or joining/welding. I don't have any construction experience, but their stupidity was too obvious! They just couldn't read a drawing properly and get the right materials. I would be very concerned about buying anything built in the last 5 years or so.
Participantbuying a new house has less risk
One thing that worries me is the ground compaction problem Many newly graded lands in hilly areas like SD take a few years to settle. Since the new homes are built before that, you may end up having large settlements & cracks (mini version of La Jolla problem). If you buy after 5 years or so, the settlements have mostly finished and you can see if there is any damage.
Second issue is: in the recent run up, last 5 years or so, a lot of builders used illegal and unskilled labor both for profit and due to worker shortages. I have seen videos of building construction (including some larger buildings) on TV that shocked me – poor skills even in estimating & measuring steel and wood – they would order beams & columns too long or short and then fix in the field by cutting or joining/welding. I don't have any construction experience, but their stupidity was too obvious! They just couldn't read a drawing properly and get the right materials. I would be very concerned about buying anything built in the last 5 years or so.
ParticipantMira Mesa is probably having its “Come to Jesus” moment; like Temecula/Murietta before. A couple are probably must sell scenarios {the more recently bought } and others are “sell before I lose my shirt” folks who are afraid of sliding down their equity cliffs. The prices should glide down to $521K or below since Mira Mesa is not Jumbo material.
ParticipantMira Mesa is probably having its “Come to Jesus” moment; like Temecula/Murietta before. A couple are probably must sell scenarios {the more recently bought } and others are “sell before I lose my shirt” folks who are afraid of sliding down their equity cliffs. The prices should glide down to $521K or below since Mira Mesa is not Jumbo material.
ParticipantAre there lenders still giving 95% LTV Jumbos even now? That sounds so risky in this environment (unless they have good mortgage insurance). Do you know if mortgage insurance is pretty much required for these?
ParticipantAre there lenders still giving 95% LTV Jumbos even now? That sounds so risky in this environment (unless they have good mortgage insurance). Do you know if mortgage insurance is pretty much required for these?
October 8, 2007 at 9:53 AM in reply to: Biggest percentage loss in San Diego, purchased price vs. list or sold price #87319ParticipantWow! The poor guy probably took a Jumbo or Second for this humble abode. { The pictures of Jesus and Guadalupe/Mary add symbolism to his desperation }. Most likely, it was a zero down; so mercifully it is the lenders who will be taken to the cleaners.
Even if the lender agrees, hard to imagine anyone offering more than $300K for this.
October 8, 2007 at 9:53 AM in reply to: Biggest percentage loss in San Diego, purchased price vs. list or sold price #87326ParticipantWow! The poor guy probably took a Jumbo or Second for this humble abode. { The pictures of Jesus and Guadalupe/Mary add symbolism to his desperation }. Most likely, it was a zero down; so mercifully it is the lenders who will be taken to the cleaners.
Even if the lender agrees, hard to imagine anyone offering more than $300K for this.
ParticipantThis Ad (from another blog) is better than all those documentaries. It makes a fine wall paper design!
http://bp3.blogger.com/_QMoXJ8fOgo4/Rwj-lq5v2ZI/AAAAAAAABV4/uI8v8GofBXg/s1600-h/why+not.JPG
ParticipantI think the 417K “Brick Wall” effect might also be influencing the price drops. There is probably a strong attractor at the 521K price point for many homes in RB.
ParticipantPer Zillow, this was last sold in June 2004 for $610K. So, the seller is taking a haircut of 35K-85K + selling costs. Not a tragedy, but there is probably some interesting story.
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