[Coronita]

[quote=spdrun]If I were spending that much on a home, I hope to G-d it wouldn’t be in some soulless burbclave tract.[/quote]

But the point is you aren’t spending that much money on a home, so that’s a matter of your opinion, which is fine. And for whatever reasons that others have, they have their reasons for spending *that* much on a home. But the fact is, people are and aren’t exactly hurting to do so.

I think if folks look at it this way, Del Mar, LJ, Carmel Valley, Encinitas, and a lot of other high net worth known places really didn’t go down *that* much during the RE correction relative to everywhere else. And the reason is probably because people in these areas probably can hold out longer to weather a financial storm more so than you average person. And i guess for different people that means something to them too.

[Coronita]

[quote=spdrun]For $4.5 million, can’t you hire an architect and skip the scummy corporate builder?[/quote]

$4.5m is probably custom, as I stated. Seems like the tract homes these days go up to about $2m, if you consider Alta Del Mar still tract on that part that Pardee builds per their plan.

Anyway, homes out of my league (hopefully just for now)

[Coronita]

[quote=bearishgurl]Just for sh!ts and giggles, flu, can you post a listing in Derby Hills here (if there is currently one available)?

Is Derby Hills the highest-priced tract subdivision in CV?

I’m wondering what the presumed “8-figure set” is supposedly buying in CV for their principal residence when they have so many housing choices to choose from.[/quote]

Sure…
https://www.redfin.com/CA/San-Diego/5334-Foxhound-Way-92130/home/12153387

IMHO, this home is way out of wack price, even today’s standards. I’d think a “fair” price for this home in even in today’s market is around $1.55-1.6million, because I know of people that paid roughly that that are in much better locations and with much better lots. But then again, I’m not an agent and am actively looking, so maybe this home can fetch more than that. If there are able get anything close to $1.6mil, that’s pretty darn good for owner occupied home purchased in 2006 for 1.2m.

But regardless, the friends that did buy into this community with their respective net worth liked being in this area, and didn’t want to spend considerably more for a custom home in this area, and weren’t interested in spending less for a custom home not in this area. They like the convenience of being here, of the school district (the schools in particular), and their friends being here, and I guess the general community of parents that seem to more or less all want the same thing for their kids and with roughly the same background. At least, that’s my understanding of it.

[Coronita]

[quote=Essbee]Here’s one from Zillow:

http://www.zillow.com/homes/for_sale/San-Diego-CA-92130/house,condo,apartment_duplex,townhouse_type/69021441_zpid/96671_rid/days_sort/32.930629,-117.202189,32.927211,-117.20692_rect/17_zm/1_rs/?view=map

Here’s another, just a few houses away:

[/quote]

The funny part about these Plan 3 Derby Hills homes, was when I was looking at them (just for fun), the best ones on the corner lot with the largest backyard sold for $1.5m back years ago near peak prices. Now seeing a lot of these plan 3 owners trying to sell these around $1.7-$2million, even I think wow. That’s well above peak prices.

Maybe the economy really is better for a lot of people (except us enginerds that well, might have weathered the downturn ok, but well, didn’t exactly score in terms of larger compensations now that the worst is over)

Similarly, I see plenty of homes in the Saratoga community selling for $1.3-$1.5.. I’m likewise thinking wow, that’s a pretty big markup from 2006 too when they were around $950k-$1.1

I think what’s funny that it seems like homes in this area around Sage Canyon have such a bigger mark up versus the rest of Carmel Valley since before.

[Coronita]

[quote=bearishgurl]
Is the $4.5M home you posted about in Carmel Valley located in a tract subdivision?[/quote]

$4.5 million isn’t usually tracts. Alta Del Mar is partially considered non-custom. They run probably starting around $2million, some are non-custom built by pardee. Some are custom…

Anyway, not sure what you’re trying to get at. Derby Hills in Pardee is tract homes, and while I don’t go door to door asking what people’s net worth is, I would assume some of them are in the 8 digit net worth bracket that like living in Derby Hills. Those run anywhere from $1.2-$1.5/6 and Pardee never had a problem selling most of them with the exception of a blip during 2009/10

Anyway, whatever. I’m not in the 8 digit bracket, and I live in a ghetto box. So there. And my point was, if I can afford to live here, I’m sure someone in an 8 digit bracket can. So I’m not sure why folks in an 8 digit bracket would be blink about a 2600 sqft home sold in 1.1 million back in 2011 being considered expensive, especially given the location, that particular home, etc. There’s probably some correlation for why people are in the 8 digit bracket being in CA versus somewhere else. In as much as worker-bees have better salaries here then elsewhere too, so it cuts both ways.

[Coronita]

[quote=bearishgurl]
flu, I looked at the link and that is obviously NOT a tract home. Additionally, it appears to be located on the far northern edge of your zip code (outside of any subdivision?)

The question I asked you is if you knew of anyone worth $10M or more who chose to purchase and live in a tract home in Carmel Valley, given all the housing choices they had/have.

https://www.redfin.com/CA/San-Diego/5131-Rancho-Del-Mar-Trl-92130/home/12152106

11,650 sqft… Now that’s a McMansion!

The garage alone is probably bigger than my entire house. I do like his/her/their taste in cars (picture 20-21 of 25).[/quote][/quote]

There probably are…. Does this count as tract?

http://altadelmar.com

Also, there were a few Qualcomm VP’s that lived in on of the Pardee tract communities that were then considered high end at the time, if I recall. One family friend that is the CTO of a large tech company also lives in one of the other tract homes. I never ask people what there net worth is in person, but I would guess considering he was a bigwig at Qualcomm for many years and also currently a CTO elsewhere at a very big company in asia, that is net worth is probably more 8 digits or higher. Too bad they don’t have expansion plans out here.

[Coronita]

[quote=bearishgurl]

Thanks for your comments, flu. I frankly have never looked at any listings in CV unless someone posted them here. I had no idea that there were listings up to $4.5M in Carmel Valley! Based upon the links of listings I’ve viewed here, CV seems way too dense to have “luxury” listings in the multimillion-dollar range!

[/quote]

Sorry, I was way off. The upper limit isn’t 4.5 million. There’s a home selling for 14.950 million. Heck, let’s just round it up and call it $15m for the day.

The property tax alone on that thing each year is worth more than some of my purchase prices for 1/1 condos…lol….I guess also with that sort of property tax each year, the additional MR is a moot point, as well as the $600/month HOA, almost the payments of 1 mortgage of a 1/1 rental.

Personally, $15million, I that would be more than enough for me to retire and live in my ghetto box. But if someone is that wealthy, sure…Why not?

https://www.redfin.com/CA/San-Diego/5131-Rancho-Del-Mar-Trl-92130/home/12152106

11,650 sqft… Now that’s a McMansion!

The garage alone is probably bigger than my entire house. I do like his/her/their taste in cars (picture 20-21 of 25).

[Coronita]

[quote=spdrun]

I don’t think people buy these places to cash flow them.

Yeah, but what kind of crack did you have to be smoking to buy a non-cash-flowing place in 2011?[/quote]

Future appreciation. Looks like they were correct.

And like I said. Some of these homes they probably bought for their kids while they attend UCsd. For them $1million is equivalent to folks throwing around $100k

[Coronita]

[quote=spdrun]Taxes are about 1.1-1.2% of value at sale, and can increase at 2% per annum to account for increased valuation.

1.2% tax per annum on $1,092,000 is almost $1100/mo ($1092). $42 for HOA. $50 for insurance. Call it $1200 total.

$4000/mo – $1200 = $2800/mo or $33,600/yr.

$33,600 is about 3% of the purchase price of $1,092,000. Not a great rental return for a property, especially since other expenses are neglected in this calculation.[/quote]

I don’t think people buy these places to cash flow them.
Either this was a owner occupied home/kid occupied home while they attended a college here for whatever reason turned into some other purpose, or someone was counting on a future appreciation.

[Coronita]

[quote=bearishgurl]
[quote]
Well, 1.1-1.3 is around 12% of one’s net worth if one’s net worth is 8 figures at least. So I don’t see relatively speaking why this would be such a big issue, considering many others, that would be roughly 25-30% of one’s net worth and for them they still consider that affordable. Just saying 🙂
[/quote]

flu, do you know if there is a high percentage of homeowners worth 8 figures ($10M or more) residing in tract subdivisions in Carmel Valley? If you know any, do you know why they chose Carmel Valley (when they could obviously afford to buy in CA’s finest well-established communities)?

[/quote]

That wasn’t the point of what I said. I’m sure it will go over most people’s head. But some might get it…Figuring out is left as an exercise for the reader

[quote]
And what would you approximate to be the percentage of homebuyers in Carmel Valley who pay ALL CASH for their purchases in tract subdivisions there?
[/quote]

Don’t know, but enough from what I’ve seen.

[quote]
Because Carmel Valley is the closest community to most of the well-paying tech jobs in SD, I was under the impression that the “worker-bee” homeowner is the prevalent type there (Carmel Valley subdivisions attract primarily the “worker bee” buyer.) Because of this, I never really considered it as a “high-equity” area (area with a high % of paid-off homes), but assumed the majority of homeowners there are saddled with huge mortgages.
[/quote]

CarmelValley ranges from slum homes like mine to 4.5million+ homes, and everything in between.

[quote]
I mean, how many “worker bees” 20 – 45 years old have the funds to pay all-cash for an $850K ++ property? Especially those with families to support.
[/quote]

Plenty, the ones that financially can do it and or make decisions in their lifestyle to be able to afford it, whether as a single income household or as a dual income household. Lawyers, doctors, businessmen/women, enginerds, etc. No different from anywhere else like Encinitas… I think one of my neighbors are a generation Y couple that owns a tattoo shop… So I don’t know what the demographics are for people that have high or low equity. I’m sure with stringent loan standards these days and with super-jumbo loans still tight, I would assume it’s still pretty difficult to qualify for a loan and so most people that are buying at prices these days still have the financial means too.

No different from Poway, which is also expensive, or Scripps Ranch, which is also expensive, 4S which is also expensive, Del Sur, and every other expensive North County area.

[quote]
Most of the demographic which typically DOES have the cash (boomers and older) are “retired” or about to retire and thus don’t have to commute anymore so they can live anywhere they damn well please (with no regard to commute times). If the older set sells their longtime homes elsewhere in SD County and CA, a newish econobox on a 6K sf lot in a very dense area is probably the last thing this group would want to drop a cool $1M on, IMO.
[/quote]

You would be wrong. There are plenty of boomers that lost their Carmel Valley home after HELOCing it to death. My neighbor was one. Thank goodness. I hated them.

[quote]
I realize that there are many very wealthy Gen X and Y “worker bees” in Silicon Valley who might pay all cash for a “million-dollar home” on the peninsula. But a million-plus won’t buy much more than a 1200 – 1600 sf, 60 – 85 year-old ranch home there … a far cry from a SD econobox pretending to be “pretentious,” lol.
[/quote]

Maybe there are some people can actually afford homes here, even at current prices. That said, I don’t know why you have an ax to grind with the (un)affordability and prices in parts of SD. Maybe people actually want to live in some of the lizard land places, and maybe some people dont’ mind paying more and even can stretch to afford it. And looking at it, you and many others were just plain wrong about expecting a 40-50+% correction around here. It never happened, to your disappointment. Maybe 20-25% at worst, but it’s close to peak and in many cases above peak. Anyone that held out all this time did just fine, and in some cases even better once they refi’d. Not that I’m particularly happy about it because it’s just one more dis-incentive to move to a bigger place…

[quote]
Even though Gen X and Y tech workers in SD don’t make as much money (on avg) as SV workers do, their housing expectations are through the roof (after approaching or exceeding $100K annual salaries)!
[/quote]

Again, you would be wrong. There are plenty of Gen X and Y doing just fine. The buyer of the neighbor’s home is a single Gen X that I think paid close to cash for it. Biz owner.. I’m not sure why she wanted to live here, since she’s single, no kids, and I don’t even think has a boyfriend/girlfriend. But when I did ask her why she moved her, she said she liked the convenience and it was a short commute to her office. Whatever floats her boat. And no BrianSD and spdrun, you can’t have her contact info.

[quote]
SV workers are “trained” to accept what housing is available there for the price it is commanding or commute such long distances to work and back that their lives very quickly become intolerable. They have no other choice.[/quote]

Again you would be wrong. Let’s put this in perspective.

An equivalent job for someone in Bay Area would probably be 20-25% in total comp than here. An equivalent home in Mira Mesa for about $600k would run about 1.2-1.3 million for an equivalent home in Santa Clara County right now. That’s why most people in there still rent.

Fact is a dual income family enginerd family that earns close to $285k-$300k/year at least won’t really have a problem with 20-30% down on a $1million home at 4% 30 years. That’s about $4000/month which is roughly what rental prices in Carmel Valley is going for these days (exclude prop tax, MR, insurance,etc). And plenty of people do that too. They might have to make lifestyle adjustments, and spend less on other things, and it might be a personal decision whether one wants to or not. I’m guessing that most of the dual income families that can manage to purchase a $1million home probably aren’t just putting down 20% either. That’s with a household of two enginerds. I’m sure there are folks that are wealthier that can do this on a single income, since last time I checked, enginerds weren’t exactly “wealthy” people by themselves.

[Coronita]

[quote=SK in CV]

But ultimately, under the circumstances, your question is nothing more than a grotesque diversion. You seek justice for looters. The collective spines of the black community in Baltimore have been busted up for decades by brutal police tactics. I can’t condone, dismiss or defend the mayhem on the streets of Baltimore this week. The vast majority of peaceful protestors on those city streets would probably agree. But absent the looters, the thugs, the actions that created an environment that demanded non-stop focus, would any charges have been brought? Would peaceful protest have yielded similar results? Which crime is worse, a broken window or a broken spine?[/quote]

I didn’t say the police were innocent in this one either did I? But I fail to see where all the merchants that had nothing to do with it had anything to do with this mess. No different than during the L.A. Riots. And I don’t find this a grotesque diversion because unlike you that probably had no relatives or friends that were ever impacted by riots that you had nothing to do with, I did in L.A.. The only thing stupid that these merchants did was I guess setup shop in said areas probably…So the obvious reaction to police excessive use of force is to let a town burn by people who probably don’t even live in that area???

And yes, I think peaceful protests would have brought the same results. We live in a world of social media in which the slightest injustice is publicized near instantaneously. Just take one example of that CFO that went to chick-fil-a that went ballistic on a worker about how horrible she was working for terrible company that was against gay rights,etc. While championing for gay rights is one thing, it was completely out of line to take out out on some worker that has nothing to do with it…. With the social media uproar, that CFO is now unemployed and on foodstamps because no one will hire him (I feel sorry for his family but I can’t seem to feel that sorry for him).

Or to a lesser extent, let’s take the example of two tech workers at a conference that were making crude jokes among themselves, and a women heard it, took a picture of it, blogged about it….Eventually, the two workers got fired, and the woman was fired as well.

http://www.forbes.com/sites/kashmirhill/2013/03/21/sexism-public-shaming-via-twitter-leads-to-two-people-getting-fired-including-the-shamer/

So… Yes, I think social media and public shaming is effective at deterring most stupid behavior…And to a lesser extent, ends up probably blowing things completely out of proportion in other cases…No rioting is necessary. 21st century is completely different in which everyone is connected, and we’re all eying each other to make sure we’ll all “nice”.

[Coronita]

Well, 1.1-1.3 is around 12% of one’s net worth if one’s net worth is 8 figures at least. So I don’t see relatively speaking why this would be such a big issue, considering many others, that would be roughly 25-30% of one’s net worth and for them they still consider that affordable. Just saying 🙂

Also, I believe the person did not try to rent this home out at $3000/month but considerably more…. This home was also the model home for Bridge Ridge I think, so that probably also explains the markup back then.

[Coronita]

3 of the 6 cops are black. So why is this a racism thing? Explain.

[Coronita]

Same shit done by shitty people to people who had nothing to do with it. No different than the LA Riots.

At least the Koreans in L.A. had the right thinking. They had guns.

Of course there won’t be any prosecution from the looting or rioting…

http://www.npr.org/2015/04/30/403231749/baltimore-unrest-reveals-tensions-between-african-americans-and-asian-owned-busi

“Baltimore Unrest Reveals Tensions Between African-Americans And Asians”

Wow…Racism…

[Coronita]

what about all that looting? Where’s the prosecution for all those that burned down businesses and looted?

[Author]

Posts