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CoronitaParticipant[quote=flyer]Actually, dz, we, and many people we know have, for many years, had both investment and vacation properties (most purchased during the last downturn at “bargain” prices) in several locations–all above board–some purchased all cash, others, not, so you’d really have to look at this on a case by case basis.[/quote]
You see, dz, rich people don’t get hurt in a recession or pull back. These just buy a lot of assets that are unobtainable for people that still count on a paycheck. And they never need to sell, because they can take advantage of every single tax law governing inheritance, estates, and living trusts, life insurance, etc to avoid estate taxes…
Rich people also don’t concentrate all their money in the stock market. In fact, because they are rich, there’s no reason to take higher risk stock investments to go for double digit growth yoy. They can camp out in a 4% bond or fixed income and still live well if they have 8 or 9 figure net worth.
CoronitaParticipant[quote=utcsox][quote=sdrealtor]Ok lets put this one to the test. Lets pick 4 zip codes and I’ll do research on what cash buyers look like in each. I get to pick one, DZ picks one, FLU picks one and I’ll throw out one wildcard to the piggs at large. If more than one other is submitted I’ll pick the one I think is least like the others. Heading up to LA for a couple days so no rush but submit your choices.
My Pick will be 92009.[/quote]
I pick 92122.[/quote]
92126 (mira mesa)
92130 (carmel valley)ideally also split between attached an detached market.
92126 and 92130 I suspect have much more activity as investment and foreign buyers, but we will see to what extend. I don’t think it’s the majority.
CoronitaParticipant[quote=deadzone]Call it what you want, but I would consider most cases of people purchasing vacation homes etc. as investors.
And on to money laundering, what I am really referring to is all the cash purchases made by foreign buyers, (Chinese primarily, a lot of Mexican too in this area) who are investing in US assets to hide their money from their own governments, whether due to tax or other reasons. This is very common but impossible to quantify.[/quote]
Yes, pulling shit out of your ass is often “impossible to quantify”….
Also, once again, you are selectively discarding part of things that don’t fit into your ass pulling bullshit. See, now that you are saying vacation homes are investments, but you are not saying anything about retirees downsizing and relocations. See what I mean by you are extremely biased and have an axe to grind?
Why don’t you put the data together in the last 90 days close, how many of those were purchased by foreign investors… Instead of that “impossible to quantify” bullshit coming out of your ass..
I know you can’t do it, because you don’t even know what the basics of “cash purchase” means. I seriously doubt you could do anything slightly more complicated like scraping public records to actually get data to back your “impossible to quantify” claim.
And before you get all defensive, like you always do, it’s not a personal attack. It’s just telling you that what you said has no merit and no basis and continues to add questions to your credibility , along with all the other ill-informed statements you made such as what “in-the-money” means or simply basic retirement planning apparently you are oblivious to.
Just admit it,your posts are a reflection of your axe grinding you have for missing out on real estate and stock market for the past 20+ years, and less so about your financial prowess or fact basis. You’re a bitter dude that slept at the financial planning wheel for the past 20 years and seeing things get ahead of you. And you’re hoping somehow miraculously a correction can bring people who did a lot more financial building than you have 20+years can some how be brought back down to your current predicament for not doing much the past 20 years…. which is highly unrealistic, given how much effort people put into those 20 years building their financial fortress that you neglected… you have 20+ years of catchup you need to makeup for and would need to take on considerable more risk than others that’s already taken much smaller incremental risks over a 20 year period. and since you are so negative about everything, those are the larger risks you’ll never take in order to catch up for the small steps you should have been taking the past 20+years that you also didn’t do…
Sorry to be so blunt… Saw this magnet at a store in downtown. I’ll send you one…
[img_assist|nid=27663|title=the truth, bro|desc=|link=node|align=left|width=400]
CoronitaParticipant[quote=gzz]Flu, the 2/2 for 550k would yield about 28k a year after HOA, ins and property tax, 5.1% yield on purchase price. That beats treasuries and CDs.
The condo’s rent will also go up with inflation. If you want that feature in a treasury, you’ll get a lower TIPS rate.
So not a bad deal for an investor IMO.[/quote]
So people might be buying even with the possiblity that housing will depreciate, simply because they are diversifying away from higher risk speculation and trying to lock in some gains into something more tangible and predictable.
For instance (and I don’t have data for this), quite possible folks that did do well gambling in bitcoin and crypto sold partly to get out and bought something in the physical world that is more tangible.
I think sdrealtor mentioned he ran into someone that moved out of his hood into a $3million+ house from his cypto trades he cashed in on. Probably laughing all the way to the crypto bank now.
CoronitaParticipant[quote=deadzone][quote=Coronita]
For example, if I take my $600k cash out refi on one property to buy another property, that is recorded as a “cash purchase” at escrow since there’s no loan on the property in question.[/quote]
That sure sounds like an investment purchase to me.[/quote]
DZ, And here you go again. You you take only half of what someone writes out of context and completely ignore the other part in the same sentence, and redirect attention away from your gross ignorance of the things you don’t understand that you comment.
I was specially addressing your absurd accusation that most purchases are either investments or money laundering transactions, specifically the “or money laundering” part.
[quote=deadzone]
Most cash deals are either investor, or to launder money.
[/quote]Where do you make this shit up? Post data instead of pulling it out of your ass all the time. You don’t own a house, you don’t work in real estate, you don’t have access to purchase sales history and probably wouldn’t even know how to get it, even if it was in public records. It’s getting pretty ridiculous because even the basic concept of “cash purchase”.. your post seems to suggest you literally thought it meant “bring cold cash to escrow”…which demonstrates just how grossly ignorant you are to things…Where the hell can you possibly be getting this data to back your ridiculous statements?
I’ll post the full text of what I said…again…
[quote]
The source of that cash could be from all sorts of sources. Even another loan secured by another property. For example, if I take my $600k cash out refi on one property to buy another property, that is recorded as a “cash purchase” at escrow since there’s no loan on the property in question. There’s plenty of real world reasons why a transaction would show up as a cash purchase. In the case of moving from a high cost area such as Bay Area down here, selling a $3million home up there and buying something comparable for $2million for a primary residence, that would be an example of a cash purchase. Or a parent could be buying a kid a home to live. You don’t know…And sdrealtor commented again and said it was owner occupied…
[/quote]Even when someone’s complete text is right above your post, you still blatantly attempt to selectively misquote part of things out of context to support your ridiculously factless statements you make, IE “the money laundering” part that calls into question the entirety of what you said.
You won’t admit it now, but you probably did think “cash purchase” literally meant bring cold cash to escrow…because that’s where your “money laundering” statement came from. It probably was based on a business or industry you are familiar with that isn’t as regulated where money laundering is widespread, maybe the jewelry trade business, i dont know…..but otherwise irrelevant to RE purchases, which undergoes much more scrutiny, which you most likely aren’t aware of, because never bought a house and gone through escrow, and the plethora stack of documentation that goes back and forth in escrow..especially in present day CA…Yes, even when it is a loan-less (IE “cash” purchase) where cash funds can be easy traced back to their sources…Can’t even imagine, what sort of hoops one would need to jump through if someone actually brought cold cash to escrow, lolol. You should try it one day, if you can…let us know how it goes…
….
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…Back to examples of legitimate owner occupied home purchases….lot’s old people that are relative’s friends have downsized post retirement and bought their homes with cash, equity from the previous sold house used to fund the new home purchase, and carry their property tax basis over to the new home under Prop 60/90 in CA.
Also, given that San Diego is in a really nice part of CA, away from LA and SF, some people buy a 2nd vacation home down here. A friend bought a condo for their kid that goes to UCSD and another one for themselves so they can visit down here, they did a cash our refinance on one of their other homes to fund both. These aren’t rentals, because they don’t want to deal with tenants. It’s strictly for their kid and themselves when they are here.
CoronitaParticipant[quote=deadzone]Most cash deals are either investor, or to launder money.[/quote]
Again, here you go again, making ASSumptions.
But in just this simple sentence, it also highlights, yet again, your gross ignorance on the things you comment about here.In this particular case, probably because you never purchased a home before, you don’t understand what “cash purchase” really means when used in the context of buying a home….
“Cash purchase” doesnt mean cold hard cash that one brings in a suitcase, “cash purchase” just means you are buying a house without a mortgage tied to that house.
The source of that cash could be from all sorts of sources. Even another loan secured by another property. For example, if I take my $600k cash out refi on one property to buy another property, that is recorded as a “cash purchase” at escrow since there’s no loan on the property in question. There’s plenty of real world reasons why a transaction would show up as a cash purchase. In the case of moving from a high cost area such as Bay Area down here, selling a $3million home up there and buying something comparable for $2million for a primary residence, that would be an example of a cash purchase. Or a parent could be buying a kid a home to live. You don’t know
…And sdrealtor commented again and said it was owner occupied…
There’s no funny business going on here.
Reading comprehension issue much?So it’s just asinine to assume most “cash purchase” is either investor or money laundered.. Makes no logical sense.. Where’s your data again? Answer: it doesn’t exist because like everything else, you just pulled that out of your ass…
CoronitaParticipant[quote=an][quote=Coronita][quote=an][quote=deadzone][quote=an][quote=deadzone]I don’t represent the younger generation who has no shot at ever owning a house in the present situation.[/quote]
Two Sr. Software Engineers with 3-5 years of experience can probably make $130-150k. That’s a combine income of $260-300k/year. They can easily qualify for $1m house. So, I don’t know what you’re talking about.[/quote]So you have to be software engineer, and be married to another software engineer, to afford a house? Okay got it. Sounds like the younger generation has nothing to worry about.[/quote]if you want to live in a million dollar house, of course! Not a house, a million dollar house. There are plenty of houses in this vast country that’s well less than a million dollar.[/quote]
Well of course not… You don’t have to be a software engineer couple to live in a million dollar house. You can also be a successful doctor, lawyer, dentist, realtor, or BYOB… You just need to be able to have a combined income of $200k or higher and have 20% down and sufficient cash reserve for the unexpected.
And if you don’t, there’s lot of non-$1million condos and lots of non-$1million houses close to San Diego. Lots of beautiful houses in Riverside County, Temecula that aren’t (yet) $1million.
Still waiting on a reply to my question about the 401k/IRA/retirement accounts that you keep dodging….[/quote]
You forgot nurses, various business owners, HVAC tech, plumbers, electricians, a few other trades, etc.[/quote]Yes, how could i forget. Nurses make a shitload of money these days. I did say BYOB. I forget about the HVAC plumbers, electricians that rake most people over the coals with the labor rates they charge…..
CoronitaParticipant[quote=deadzone][quote=sdrealtor]Condo market up by me significantly stronger than sfr market at the moment. Virtually nothing under 800k. Just closed one 10% above asking, owner occupant, all cash. Yet again you don’t understand what’s going on[/quote]
All cash? Obviously an investor, someone has to be the bag holder when the market crashes.[/quote]
Where do you get your ASSumptions from? Someone buying at this level is most likely not an investor, because it won’t pencil out as a rental. This is owner occupied mostly likely.
The astonishing baseless ASSumptions is just hysterical, because sorry to say this, it sort of demonstrates lack of financial common sense.
And theoretically, there is no bagholding if the person holds on to the property indefinitely…
Yes, some people have $800k cash. I know that’s hard to understand, but there’s plenty of people who do. Probably from the sale of a previous house or stocks or both. In that case, it’s also not bagholding. Because whatever equity paper loss on this property was probably offset by the equity gain in the previous one, which you also don’t understand.CoronitaParticipant[quote=an][quote=deadzone][quote=an][quote=deadzone]I don’t represent the younger generation who has no shot at ever owning a house in the present situation.[/quote]
Two Sr. Software Engineers with 3-5 years of experience can probably make $130-150k. That’s a combine income of $260-300k/year. They can easily qualify for $1m house. So, I don’t know what you’re talking about.[/quote]So you have to be software engineer, and be married to another software engineer, to afford a house? Okay got it. Sounds like the younger generation has nothing to worry about.[/quote]if you want to live in a million dollar house, of course! Not a house, a million dollar house. There are plenty of houses in this vast country that’s well less than a million dollar.[/quote]
Well of course not… You don’t have to be a software engineer couple to live in a million dollar house. You can also be a successful doctor, lawyer, dentist, realtor, or BYOB… You just need to be able to have a combined income of $200k or higher and have 20% down and sufficient cash reserve for the unexpected. Yes, that’s right. Lots of realtors make a shitload of money who can afford it… There’s this guy named Richard Stone in Carmel Valley. He is ridiculously successful in CV and his kids now work for him too.
And if you don’t, there’s lot of non-$1million condos and lots of non-$1million houses close to San Diego. Lots of beautiful houses in Riverside County, Temecula that aren’t (yet) $1million.
Still waiting on a reply to my question about the 401k/IRA/retirement accounts that you keep dodging….
CoronitaParticipant[quote=an][quote=flyer]We here are all very fortunate that our kids have, or will have, great careers and help from their families wrt their desired (desired being the key word, as most would probably not want to live in the less expensive alternate options) housing, but this article highlights the affordability issue facing many in America. As expected, San Diego is on one of the charts.
https://nypost.com/2022/03/17/61-of-renters-in-the-us-cant-afford-to-buy-a-home-in-their-city/%5B/quote%5D
I have the desire to get one of those lots over looking the Pacific in La Jolla Farms. Unfortunately, like most people, I have to settle for a place I can afford.[/quote]You can’t land your helicopter there, dude…
CoronitaParticipantMeanwhile. Teslaman, backpeddles.
https://www.cnn.com/2022/06/06/economy/elon-musk-tesla-job-cuts/index.html
[quote]
That’s according to a tweet from its ever-mercurial CEO Elon Musk — an apparent contradiction to two emails he sent staff last week about planned job cuts and a hiring freeze, which pushed Tesla shares lower.
Last Thursday, according to a Reuters report, Elon Musk sent an email to staff saying the company would freeze hiring as part of a move to cut staff by 10% — explaining that he has a “super bad feeling” about the economy.
He sent a follow-up email, according to Musk-centered site Tesmanian, elaborating that the company would increase hourly headcount but reduce “salaried headcount by 10%, as we have become overstaffed in many areas,” adding that :this does not apply to anyone actually building cars, battery packs or installing solar.”
Then, on Saturday, Musk tweeted that the company’s “total headcount will increase, but salaried should be fairly flat.” Yet hours later, Musk said on Twitter that the Tesmanian story was “accurate.”
It’s not clear whether Musk equates a 10% salaried headcount cut with “fairly flat”: As has long been the case at Tesla, it did not respond to a request for formal comment on the reported emails.
Reuters’ report about the email last week sent Tesla (TSLA) shares down 9% on Friday, but on Monday, they were up 2.8% in early trading on Musk’s sort-of walk-back. Another factor affecting the stock: Musk also threatened Monday to walk away from his proposed purchase of Twitter. Tesla shares have been hurt by Musk’s interest in Twitter (TWTR) as some investors have worried it would distract him from running the electric automaker, or force him to sell more Tesla shares to raise cash.
[/quote]CoronitaParticipant[quote=sdrealtor]Here you go. This house is not far from where i grew up. It’s basically demographically Carlsbad or Carmel Valley in another part of the country. Incredible schools, easy commute to job centers, great healthcare (neighborhood is full of doctors that teach at some of the best med schools in the country), Plenty of parks and open space. Farm stands everywhere and it’sa nice 45 minute drive to some of the nicest parts of the Jersey Shore (think La Jolla and Del Mar not where MTV Jersey Shore was filmed). Median HH income in the zip code is about $130k but quite a bit higher in this neighborhood. Many children buy in this neighborhood they grew up in if they stay in the area. There are plenty of nice affordable places
That’s a beautiful house. That begs the question.
If you’re a tech worker, would you rather live in that house and work remotely…OR…
Live in this, and have to report to work.
https://www.redfin.com/CA/San-Diego/11187-Kelowna-Rd-92126/unit-75/home/6397715
I think if I was young, and didn’t have my roots here in CA, I’d get the f out of here….
CoronitaParticipanthmm. Would you mind sharing details about the property. If there’s a good property priced right, I might be interested…cash…
I wish I could say the same thing is true for 92126
https://www.redfin.com/zipcode/92126The only thing on the market in the condo market is shit.
$450k for this 1/1: https://www.redfin.com/CA/San-Diego/11187-Kelowna-Rd-92126/unit-75/home/6397715
$420k for this 1/1: https://www.redfin.com/CA/San-Diego/8656-New-Salem-St-92126/unit-52/home/4577039
$550k for this 2/2: https://www.redfin.com/CA/San-Diego/8460-New-Salem-St-92126/unit-38/home/4574165
$638k for this 2/2: https://www.redfin.com/CA/San-Diego/10805-Camino-Ruiz-92126/unit-40/home/4571731
And that’s the better part of town. There’s also these shittier listings.
$425k for this 1/1: https://www.redfin.com/CA/San-Diego/10278-Black-Mountain-Rd-92126/unit-180/home/4855467
$425k for this 1/1: https://www.redfin.com/CA/San-Diego/10278-Black-Mountain-Rd-92126/unit-180/home/4855467
$420k for this 1/1 https://www.redfin.com/CA/San-Diego/10278-Black-Mountain-Rd-92126/unit-171/home/4855458
$474k for this 1/1 https://www.redfin.com/CA/San-Diego/10026-Maya-Linda-Rd-92126/unit-6203/home/12158510
That’s it
I wish prices would come down so I could buy more.
CoronitaParticipant[quote=an][quote=deadzone]I don’t represent the younger generation who has no shot at ever owning a house in the present situation.[/quote]
Two Sr. Software Engineers with 3-5 years of experience can probably make $130-150k. That’s a combine income of $260-300k/year. They can easily qualify for $1m house. So, I don’t know what you’re talking about.[/quote]That was me when I was 30ies. Been there done that…And back then, the stock market wasn’t that great, unlike the gains that happened over the past few years….lol.
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