Forum Replies Created
-
AuthorPosts
-
CoronitaParticipant.
CoronitaParticipant[quote]
And regardless of immigration status, minimum wage workers cannot afford to buy real estate in Socal so this will have little effect on housing prices.
[/quote]It will push up rent prices on the low end and spill over up the economic ladder. Possibly good news for landlords.
CoronitaParticipant[quote=deadzone] And at least in Socal, a good portion of minimum wage workers are illegal immigrants. Much of their money is going home in remittances, not all going to our economy. [/quote]
Source?
CoronitaParticipantHmmm. Now that you got me thinking about this AN…
Maybe the solution is somewhere in the middle.
1 SFH CV rental at $4k/month and 8 1/1’s in MMPut my current home up as a rental in CV, buy another home with a mortgage while rates are low. And wait try to buy 1 condo each year in MM….I just have 1 tiny problem though…Called “money”….
CoronitaParticipant[quote=AN][quote=flu][quote=AN][quote=flu]When you get old like me, if you had to choose between managing 15 1/1’s or 3 SFH for slightly less returns, I’d takethe 3 SFH’s….[/quote]When I’m old like you, I’d hire a property manager for $100/property to manage it for me. So, my $19500/month rent would go down to $18k/month rent. Still higher than $12k/month rent of SFH and I don’t have to mange it myself.[/quote]
So each condo will then produce about $900/month ($100 for property management and $300 for hoa) So that would be about $13500/month. Not too much different. Plus, more tenants = more exposure to turnover and liability.
Not that this would be my problem in the short term. I don’t think I’ll be getting 3 SFH in CV or 15 MM condos right now….lol…
Then again, any turnover in a SFH in CV wouldn’t be negligible….[/quote]That’s 12.5% higher rent. $1500/month = $18k/year. That would be enough for you to go to a track day every month and pay for maintenance cost ;-P[/quote]
dealing with 15 renters doesn’t end up being a “passive investment”. It ends up being an almost full time/part time job, even if you use a property manager. I mean, you wouldn’t want to be completely hands off either, since then your costs would get totally out of wack….Also, the likelihood of getting near 100% occupancy in at 15 condos for an extended period of time is less likely than I think renting 3 houses to 3 families. Then again, I’ve haven’t been in the situation of dealing with 15 tenants yet, so I wouldn’t know if the PITA factor would really be an issue….
CoronitaParticipant[quote=AN][quote=flu]When will I see $1400/month for a 1/1 in MM?
When will I see $4500/month for 1800sqft in Santa Clara?
:)[/quote]
Today:
http://sandiego.craigslist.org/nsd/apa/5029976437.html:-D[/quote]
hahaha… That guy/girl/company is smoking some good crack.
CoronitaParticipant[quote=AN][quote=flu]When you get old like me, if you had to choose between managing 15 1/1’s or 3 SFH for slightly less returns, I’d takethe 3 SFH’s….[/quote]When I’m old like you, I’d hire a property manager for $100/property to manage it for me. So, my $19500/month rent would go down to $18k/month rent. Still higher than $12k/month rent of SFH and I don’t have to mange it myself.[/quote]
So each condo will then produce about $900/month ($100 for property management and $300 for hoa) So that would be about $13500/month. Not too much different. Plus, more tenants = more exposure to turnover and liability.
Not that this would be my problem in the short term. I don’t think I’ll be getting 3 SFH in CV or 15 MM condos right now….lol…
Then again, any turnover in a SFH in CV wouldn’t be negligible….
CoronitaParticipant[quote=AN][quote=flu]It would have been nice if by this time, I had 3 SFH in CarmelV free and clear and pulling in $4000/month each.
I’d hang up my engineering hat for salaried work.[/quote]
Assuming $4k/month rent places are selling for $1M today, that’s $3M RE portfolio. If you take that $3M and buy 15 1/1 in MM today for $200k each, so you’d have it all free and clear as well, they’re renting for $1300 today. Which mean for the same $3M, you’d have $19,500/month in rental income instead of just $12k/month.hmmm… not sure if I should have said that, maybe you’d buy up all the 1/1, leaving nothing left for me :-/[/quote]
When you get old like me, if you had to choose between managing 15 1/1’s or 3 SFH for slightly less returns, I’d takethe 3 SFH’s…. Also, for each 1/1, there’s about $300 in HOA that doesn’t exist for SFH. Property taxes are about the same because although there would be MR in Carmel Valley, carmel valley homes don’t pay for the add on tax bonds to fund things like the community college,etc that condos in MM do…
CoronitaParticipantIt would have been nice if by this time, I had 3 SFH in CarmelV free and clear and pulling in $4000/month each.
I’d hang up my engineering hat for salaried work.
CoronitaParticipantWhen will I see $1400/month for a 1/1 in MM?
When will I see $4500/month for 1800sqft in Santa Clara?
🙂
May 21, 2015 at 10:08 AM in reply to: OT: Contracting position available in SD Java Backend + Mobile #786499CoronitaParticipantDamn. I guess I need to replace one of my 2 suits with a clown outfit. In san diego, it seems like you are more likely to get hired if you wear a clown outfit versus a suit….
CoronitaParticipant[quote=andymajumder][quote=AN][quote=spdrun]Japan had a higher percentage of comparatively well-off people than China or India does today. Japan was a much wealthier country on average by the 80s than China or India are today.
(Actually, parts of NJ are heavily Indian — around Edison. But fortunately, that hasn’t helped prices recover very well so far.)[/quote]
We don’t care about average. We care about total number of rich people. Japanese total population is 127M today. 30-40 years ago, their population is much smaller. So, combining China and India, you have almost 3B people. If you’re counting just 0.1%, that’s 30M people. So there are more people in the top 0.5% of China & India than all of Japan. Also, you’re more likely to see 0.1% of the population in China & India leaving for greener pasture than 25% of Japanese leaving Japan. My bet is, 0.1% of Chinese and Indian are A LOT richer than the top 25% of Japanese.[/quote]I am from India and trust me there are lots of really wealthy folks in India. I would say 0.1% of Indians are really wealthy, with net worth at least 10M+, that would be around 1.2M people. After that there would be another 5-7% (60-84M) of the population, urban upper middle class which probably is worth somewhere between 400K – 2M & a lot of their wealth is tied to owning real estate in places in Bombay, Delhi, Bangalore etc. Also these upper middle class folks are willing to spend on their kids education and even help them with their home purchases etc. I have members of extended family in India who downgraded to a smaller house in Mumbai so that they could send their son to a top grad school in US. All in all India would probably have close 80M people who are quite wealthy of which 3-4M would be very wealthy even by global standards. Yes, that’s a small % of India’s overall population but that’s still a lot of wealthy people.[/quote]
I think the point is, basically regardless of the nationality or country of origin people are from, these wealthy and/or highly educated families all want the same thing.
As screwed up as people here think the U.S. might be, people still want to come here, because things are much more screwed up elsewhere.
The folks from asia/india we see here are the top 1%ers+ from their respective backgrounds. They have the means to come here, either (1) because of their education status or (2) their wealth status or (3) both. And being in that category, they will end up wanting the same thing, more or less. And considering how large and how many people there are there, even a top 0.1% of that population is huge.
2013-2014 foreign purchase stats
Transaction volume leaders: Canadian
Total transaction amount leader: ChineseCoronitaParticipanthttp://www.latimes.com/business/la-fi-chinese-homebuyers-20140324-story.html
[quote]
Chinese buyers bought 12% of all U.S. homes purchased by foreign citizens last year, up from 5% in 2007, according to the National Assn. of Realtors. More than half their home purchases were in California. And more than two-thirds of them paid cash, the trade group said.The trend appears unlikely to unwind soon. More than 60% of China’s wealthy have left or plan to leave the country, at least part time, and their No. 1 destination is the United States, according to the Hurun Report, a Shanghai publishing firm focused on recently minted millionaires and billionaires.
[/quote]And here’s what I meant about Arcadia.. It’s not just above peak, it’s well above peak… And that was last year
[quote]
But it’s getting more expensive quickly. Heavy demand pushed the median home sales price past $1.32 million last quarter in Arcadia’s 91007 ZIP Code — 30.5% above its peak in 2007, during the housing bubble, according to researcher DataQuick.Next door in the 91006 ZIP Code, prices are up 23.7%. Other areas with prices exceeding their peaks include Walnut, Temple City, San Marino and parts of San Gabriel and East San Gabriel, all hubs for Chinese investment.
Others want the prestige of a San Marino or Pasadena mansion, even if paying for it means working in China and rarely visiting. One of Ng’s neighbors bought a Pasadena estate, then lived there for just two days out of the two years that followed.
“He was not renting it out,” Ng said. “People have so much money, they just say, ‘What the heck. It’s a nice neighborhood. I might as well just buy one.'”
It’s a story echoed by Patti Hahn of Arcadia, gesturing to the house next door, which sold for $2.45 million last year, up from $1.55 million in 2006, the last time it changed hands.
“No one lives there,” Hahn said.
The buyers pay for twice-weekly maintenance work, she said. They live overseas but plan to start splitting time between the U.S. and China this year, said Johnny Lam, the buyers’ agent.
[/quote]
May 19, 2015 at 11:54 AM in reply to: China Hunting Fugitives Accused of Corruption – Many Are Living in US #786455CoronitaParticipant[quote=AN][quote=flu]In unrelated news. I don’t understand why netflix is popping on the hope of getting into the markets in China.
Do people here actually think people over there will pay to see a movie at home, when bootlegged movies are everywhere?[/quote]
That’s where not understanding the difference in culture can hurt you.[/quote]There’s also Xiaomi media player that runs their their infrastructure that pretty much gives you access to all the bootleg content people want.
-
AuthorPosts
