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CA renter
ParticipantWhy can’t the MM house go to $250K?
If local incomes were high enough to afford higher monthly payments, the rents would be higher, no?
I think “price anchoring” has affected everyone — even the bears. Prices in 2005 were nowhere near normal. We need to look at numbers BEFORE the credit bubble (2001 and before) to really understand where prices should be.
Also, “inflation” numbers that focus on costs should not be considered WRT housing appreciation. As costs for other goods go up (especially food, energy, healthcare & other necessities), there is LESS money for housing. All that matters is **income** inflation, and that is not appreciating as fast a cost inflation…that is deflationary for housing.
ParticipantWhy can’t the MM house go to $250K?
If local incomes were high enough to afford higher monthly payments, the rents would be higher, no?
I think “price anchoring” has affected everyone — even the bears. Prices in 2005 were nowhere near normal. We need to look at numbers BEFORE the credit bubble (2001 and before) to really understand where prices should be.
Also, “inflation” numbers that focus on costs should not be considered WRT housing appreciation. As costs for other goods go up (especially food, energy, healthcare & other necessities), there is LESS money for housing. All that matters is **income** inflation, and that is not appreciating as fast a cost inflation…that is deflationary for housing.
ParticipantWhy can’t the MM house go to $250K?
If local incomes were high enough to afford higher monthly payments, the rents would be higher, no?
I think “price anchoring” has affected everyone — even the bears. Prices in 2005 were nowhere near normal. We need to look at numbers BEFORE the credit bubble (2001 and before) to really understand where prices should be.
Also, “inflation” numbers that focus on costs should not be considered WRT housing appreciation. As costs for other goods go up (especially food, energy, healthcare & other necessities), there is LESS money for housing. All that matters is **income** inflation, and that is not appreciating as fast a cost inflation…that is deflationary for housing.
ParticipantWhy can’t the MM house go to $250K?
If local incomes were high enough to afford higher monthly payments, the rents would be higher, no?
I think “price anchoring” has affected everyone — even the bears. Prices in 2005 were nowhere near normal. We need to look at numbers BEFORE the credit bubble (2001 and before) to really understand where prices should be.
Also, “inflation” numbers that focus on costs should not be considered WRT housing appreciation. As costs for other goods go up (especially food, energy, healthcare & other necessities), there is LESS money for housing. All that matters is **income** inflation, and that is not appreciating as fast a cost inflation…that is deflationary for housing.
ParticipantWhy can’t the MM house go to $250K?
If local incomes were high enough to afford higher monthly payments, the rents would be higher, no?
I think “price anchoring” has affected everyone — even the bears. Prices in 2005 were nowhere near normal. We need to look at numbers BEFORE the credit bubble (2001 and before) to really understand where prices should be.
Also, “inflation” numbers that focus on costs should not be considered WRT housing appreciation. As costs for other goods go up (especially food, energy, healthcare & other necessities), there is LESS money for housing. All that matters is **income** inflation, and that is not appreciating as fast a cost inflation…that is deflationary for housing.
ParticipantMy very conservative father (Great Depression baby), who never had any debt except small mortgage loans, was foreclosed on during the last downturn in LA precisely because of these special assessments.
He refused to go along with the HOA because he didn’t think the work was needed (new asphalt, new roofs, etc.). They fought so hard he got death threats, and lawyers were fighting back-and-forth. Real ugly.
He gave up and let it foreclose. He had put 30% down when he bought, and lost all of it.
The problem is very few homes are being built without HOAs. This should definitely be changed, IMO, even if buyers had to pay extra up-front to help pay for infrastructure costs. No Mello-Roos! It should be factored into the cost of the house…therefore, the developers should pay LESS for the land.
Then, there’s this story out today:
Jim Greenwood is parking his 2007 Ford F-150 in the garage, but he’s not through battling the Frisco homeowners’ association. He says the association has declared the iconic Texas truck not upscale enough to leave in his driveway.
ParticipantMy very conservative father (Great Depression baby), who never had any debt except small mortgage loans, was foreclosed on during the last downturn in LA precisely because of these special assessments.
He refused to go along with the HOA because he didn’t think the work was needed (new asphalt, new roofs, etc.). They fought so hard he got death threats, and lawyers were fighting back-and-forth. Real ugly.
He gave up and let it foreclose. He had put 30% down when he bought, and lost all of it.
The problem is very few homes are being built without HOAs. This should definitely be changed, IMO, even if buyers had to pay extra up-front to help pay for infrastructure costs. No Mello-Roos! It should be factored into the cost of the house…therefore, the developers should pay LESS for the land.
Then, there’s this story out today:
Jim Greenwood is parking his 2007 Ford F-150 in the garage, but he’s not through battling the Frisco homeowners’ association. He says the association has declared the iconic Texas truck not upscale enough to leave in his driveway.
ParticipantMy very conservative father (Great Depression baby), who never had any debt except small mortgage loans, was foreclosed on during the last downturn in LA precisely because of these special assessments.
He refused to go along with the HOA because he didn’t think the work was needed (new asphalt, new roofs, etc.). They fought so hard he got death threats, and lawyers were fighting back-and-forth. Real ugly.
He gave up and let it foreclose. He had put 30% down when he bought, and lost all of it.
The problem is very few homes are being built without HOAs. This should definitely be changed, IMO, even if buyers had to pay extra up-front to help pay for infrastructure costs. No Mello-Roos! It should be factored into the cost of the house…therefore, the developers should pay LESS for the land.
Then, there’s this story out today:
Jim Greenwood is parking his 2007 Ford F-150 in the garage, but he’s not through battling the Frisco homeowners’ association. He says the association has declared the iconic Texas truck not upscale enough to leave in his driveway.
ParticipantMy very conservative father (Great Depression baby), who never had any debt except small mortgage loans, was foreclosed on during the last downturn in LA precisely because of these special assessments.
He refused to go along with the HOA because he didn’t think the work was needed (new asphalt, new roofs, etc.). They fought so hard he got death threats, and lawyers were fighting back-and-forth. Real ugly.
He gave up and let it foreclose. He had put 30% down when he bought, and lost all of it.
The problem is very few homes are being built without HOAs. This should definitely be changed, IMO, even if buyers had to pay extra up-front to help pay for infrastructure costs. No Mello-Roos! It should be factored into the cost of the house…therefore, the developers should pay LESS for the land.
Then, there’s this story out today:
Jim Greenwood is parking his 2007 Ford F-150 in the garage, but he’s not through battling the Frisco homeowners’ association. He says the association has declared the iconic Texas truck not upscale enough to leave in his driveway.
ParticipantMy very conservative father (Great Depression baby), who never had any debt except small mortgage loans, was foreclosed on during the last downturn in LA precisely because of these special assessments.
He refused to go along with the HOA because he didn’t think the work was needed (new asphalt, new roofs, etc.). They fought so hard he got death threats, and lawyers were fighting back-and-forth. Real ugly.
He gave up and let it foreclose. He had put 30% down when he bought, and lost all of it.
The problem is very few homes are being built without HOAs. This should definitely be changed, IMO, even if buyers had to pay extra up-front to help pay for infrastructure costs. No Mello-Roos! It should be factored into the cost of the house…therefore, the developers should pay LESS for the land.
Then, there’s this story out today:
Jim Greenwood is parking his 2007 Ford F-150 in the garage, but he’s not through battling the Frisco homeowners’ association. He says the association has declared the iconic Texas truck not upscale enough to leave in his driveway.
ParticipantAgree with TG.
If you are in a comfortable position to buy, and find a wonderful house that you can live in for the rest of your life, have at it!
However…consider that rents might go down, neighborhoods might deteriorate further, the economy could collapse, etc.
If you are looking at 2X annual income, and have a nice cash cushion (minimum 6-12 months, AFTER all purchasing costs), and you have a relatively safe job or highly-desired job skills, you could certainly consider buying when buying is cheaper than reasonable rents, IMHO.
Good luck with whatever you choose to do! 🙂
ParticipantAgree with TG.
If you are in a comfortable position to buy, and find a wonderful house that you can live in for the rest of your life, have at it!
However…consider that rents might go down, neighborhoods might deteriorate further, the economy could collapse, etc.
If you are looking at 2X annual income, and have a nice cash cushion (minimum 6-12 months, AFTER all purchasing costs), and you have a relatively safe job or highly-desired job skills, you could certainly consider buying when buying is cheaper than reasonable rents, IMHO.
Good luck with whatever you choose to do! 🙂
ParticipantAgree with TG.
If you are in a comfortable position to buy, and find a wonderful house that you can live in for the rest of your life, have at it!
However…consider that rents might go down, neighborhoods might deteriorate further, the economy could collapse, etc.
If you are looking at 2X annual income, and have a nice cash cushion (minimum 6-12 months, AFTER all purchasing costs), and you have a relatively safe job or highly-desired job skills, you could certainly consider buying when buying is cheaper than reasonable rents, IMHO.
Good luck with whatever you choose to do! 🙂
ParticipantAgree with TG.
If you are in a comfortable position to buy, and find a wonderful house that you can live in for the rest of your life, have at it!
However…consider that rents might go down, neighborhoods might deteriorate further, the economy could collapse, etc.
If you are looking at 2X annual income, and have a nice cash cushion (minimum 6-12 months, AFTER all purchasing costs), and you have a relatively safe job or highly-desired job skills, you could certainly consider buying when buying is cheaper than reasonable rents, IMHO.
Good luck with whatever you choose to do! 🙂
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