[Disgruntled Patriot]

Half million anywhere, even SD, sounds crazy to me but it is what it is in Vacaville. Commute to the Bay, but only 4 times per month and I drive a CNG car (38 mpg at $2 per gallon).

You make a great point though. I have many neighbors near the home I rent that slug it out 5 days a week on 80. Imagine that must help tip the scales toward walking away as prices continue to slide. I’m comfortable locking into a 30yr commitment because it would make a break even rental at this point. We want to keep our options open so when higher end homes in the Bay area become reasonable we can make the jump.

My concern is that as the market begins its Keynesian death spiral, rent prices may also collapse. I was born with a terrible disorder that deprives me of sleep when I fail to meet contracted obligations. So our fear going into this is the possibility of having to cover a significant rent spread down the road, long term.

I know it is going to get ugly, it’s just how ugly I can’t get a fix on. There are immense downward price pressures in this area that I’m seeing real time. The home I rent was purchased by my landlord, a 20 something 5-year immigrant from down south, on a no-doc neg-am a few years ago. She has been in default for 5 months (banks are backlogged up here) on this and the other 4 mcmansions she bought. During the run up, some creative refis and HELOC’s built her a nice little nest egg she used to buy a couple gated homes south of the border, along with 2 blinged out SUV’s and more Ethan Allen than you can stuff into a 4,000sf box.

Scary thing is there are many like her. Not just in central CA but in numerous burbs across the nation. Even scarier, the balance sheets of our nations largest banks have these investors on the plus side of their balance sheets. If the scenario runs a natural course, we’re likely facing an economic collapse. The question is, will the gubmint save us. If helicopter and his cronies stoke the furnace high enough, we could miss the boat.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Thanks for all the great feedback.

Temeculaguy, money down – no (VA loan), fixed rate – yes (30y @ 6%), stretching – no (actually settling for much less, CA RE makes me very nervous), stay – probably not but maybe (price to rent ratio was critical factor).

Navydoc, you’ve waited a year already for a primary residence? How long does the Navy let you squiddies hang around? Up here the AF moves their folks in 3 years, even the physicians. Undoubtedly you will be far luckier than I by next year.

Meadandale (great screen name), psychological effect of negative equity my greatest concern. I’m the guy who gets an RE license just to save 3% on his house. When I listen to Mortgageguy talk about 4.5 years of inventory I want to rent forever and put all my money in TIPS and gold, but I would be filing single on next year’s taxes.

Nancy, Austin a great place but hard to compare. There has to be a sun, surf and jobs factor.

Itokuda, could breakeven now except for hard-to-estimate vacancy (repairs covered by home warranty factored into expenses). Risk is still there as a poor enough economy could even drive down rent, despite booming demand by all those foreclosed speculators.

[Disgruntled Patriot]

Before getting too carried away in demonizing the oil industry, consider the following:

– Crude oil alone makes up 54 percent of pump prices. Refining for 20 percent. Retailing another 11 percent. Taxes for 15 percent.

– The latest published data for the third quarter 2007 show the oil and natural gas industry earned 7.6 cents for every dollar of sales compared to 5.8 cents for all U.S. manufacturing and 9.2 cents for U.S. manufacturing, excluding the financially challenged auto industry.

– Earnings within the oil industry rank well below Beverage and Tobacco, Pharma, Electronics, Computer, Chemical, Aero, Apparel, and Machinery.

– The oil industry has spent $98 billion in emerging energy technologies since 2000—almost 73 percent of the total $138 billion spent by U.S. companies and the federal government combined.

– Company stock in the oil industry is owned by virtually all americans: 29.5% mutual funds, 27% pension funds, 23% individual investors, 14% IRA’s, 5% institutional, 1.5% corporate insiders.

– The average effective tax rate (current taxes) of the top 27 energy companies was 37.1 percent in 2006 ($81.5 billion). The effective tax rate for the market as a whole is 32.3 percent, or 3.3 percent less than the top energy companies.

– Petrochemicals are used not only for liquid and gas fuels, but also lubricants, plastics, and fertilizers.

The relationship of Big Oil to our society at large might be considered through the words of the great philosopher Ayn Rand “I don’t build in order to have clients. I have clients in order to build.” If you don’t like a product or service then it is the law of our wonderful land that you have a right to utilize your God-given talents to develop a better product or service. Complaining about the success of your industrious countrymen (be they corrupt or not) serves no useful purpose and fails to improve the circumstance of you or your community.

Disgruntled Patriot

[Disgruntled Patriot]

Before getting too carried away in demonizing the oil industry, consider the following:

– Crude oil alone makes up 54 percent of pump prices. Refining for 20 percent. Retailing another 11 percent. Taxes for 15 percent.

– The latest published data for the third quarter 2007 show the oil and natural gas industry earned 7.6 cents for every dollar of sales compared to 5.8 cents for all U.S. manufacturing and 9.2 cents for U.S. manufacturing, excluding the financially challenged auto industry.

– Earnings within the oil industry rank well below Beverage and Tobacco, Pharma, Electronics, Computer, Chemical, Aero, Apparel, and Machinery.

– The oil industry has spent $98 billion in emerging energy technologies since 2000—almost 73 percent of the total $138 billion spent by U.S. companies and the federal government combined.

– Company stock in the oil industry is owned by virtually all americans: 29.5% mutual funds, 27% pension funds, 23% individual investors, 14% IRA’s, 5% institutional, 1.5% corporate insiders.

– The average effective tax rate (current taxes) of the top 27 energy companies was 37.1 percent in 2006 ($81.5 billion). The effective tax rate for the market as a whole is 32.3 percent, or 3.3 percent less than the top energy companies.

– Petrochemicals are used not only for liquid and gas fuels, but also lubricants, plastics, and fertilizers.

The relationship of Big Oil to our society at large might be considered through the words of the great philosopher Ayn Rand “I don’t build in order to have clients. I have clients in order to build.” If you don’t like a product or service then it is the law of our wonderful land that you have a right to utilize your God-given talents to develop a better product or service. Complaining about the success of your industrious countrymen (be they corrupt or not) serves no useful purpose and fails to improve the circumstance of you or your community.

Disgruntled Patriot

[Disgruntled Patriot]

Before getting too carried away in demonizing the oil industry, consider the following:

– Crude oil alone makes up 54 percent of pump prices. Refining for 20 percent. Retailing another 11 percent. Taxes for 15 percent.

– The latest published data for the third quarter 2007 show the oil and natural gas industry earned 7.6 cents for every dollar of sales compared to 5.8 cents for all U.S. manufacturing and 9.2 cents for U.S. manufacturing, excluding the financially challenged auto industry.

– Earnings within the oil industry rank well below Beverage and Tobacco, Pharma, Electronics, Computer, Chemical, Aero, Apparel, and Machinery.

– The oil industry has spent $98 billion in emerging energy technologies since 2000—almost 73 percent of the total $138 billion spent by U.S. companies and the federal government combined.

– Company stock in the oil industry is owned by virtually all americans: 29.5% mutual funds, 27% pension funds, 23% individual investors, 14% IRA’s, 5% institutional, 1.5% corporate insiders.

– The average effective tax rate (current taxes) of the top 27 energy companies was 37.1 percent in 2006 ($81.5 billion). The effective tax rate for the market as a whole is 32.3 percent, or 3.3 percent less than the top energy companies.

– Petrochemicals are used not only for liquid and gas fuels, but also lubricants, plastics, and fertilizers.

The relationship of Big Oil to our society at large might be considered through the words of the great philosopher Ayn Rand “I don’t build in order to have clients. I have clients in order to build.” If you don’t like a product or service then it is the law of our wonderful land that you have a right to utilize your God-given talents to develop a better product or service. Complaining about the success of your industrious countrymen (be they corrupt or not) serves no useful purpose and fails to improve the circumstance of you or your community.

Disgruntled Patriot

[Disgruntled Patriot]

Before getting too carried away in demonizing the oil industry, consider the following:

– Crude oil alone makes up 54 percent of pump prices. Refining for 20 percent. Retailing another 11 percent. Taxes for 15 percent.

– The latest published data for the third quarter 2007 show the oil and natural gas industry earned 7.6 cents for every dollar of sales compared to 5.8 cents for all U.S. manufacturing and 9.2 cents for U.S. manufacturing, excluding the financially challenged auto industry.

– Earnings within the oil industry rank well below Beverage and Tobacco, Pharma, Electronics, Computer, Chemical, Aero, Apparel, and Machinery.

– The oil industry has spent $98 billion in emerging energy technologies since 2000—almost 73 percent of the total $138 billion spent by U.S. companies and the federal government combined.

– Company stock in the oil industry is owned by virtually all americans: 29.5% mutual funds, 27% pension funds, 23% individual investors, 14% IRA’s, 5% institutional, 1.5% corporate insiders.

– The average effective tax rate (current taxes) of the top 27 energy companies was 37.1 percent in 2006 ($81.5 billion). The effective tax rate for the market as a whole is 32.3 percent, or 3.3 percent less than the top energy companies.

– Petrochemicals are used not only for liquid and gas fuels, but also lubricants, plastics, and fertilizers.

The relationship of Big Oil to our society at large might be considered through the words of the great philosopher Ayn Rand “I don’t build in order to have clients. I have clients in order to build.” If you don’t like a product or service then it is the law of our wonderful land that you have a right to utilize your God-given talents to develop a better product or service. Complaining about the success of your industrious countrymen (be they corrupt or not) serves no useful purpose and fails to improve the circumstance of you or your community.

Disgruntled Patriot

[Disgruntled Patriot]

Before getting too carried away in demonizing the oil industry, consider the following:

– Crude oil alone makes up 54 percent of pump prices. Refining for 20 percent. Retailing another 11 percent. Taxes for 15 percent.

– The latest published data for the third quarter 2007 show the oil and natural gas industry earned 7.6 cents for every dollar of sales compared to 5.8 cents for all U.S. manufacturing and 9.2 cents for U.S. manufacturing, excluding the financially challenged auto industry.

– Earnings within the oil industry rank well below Beverage and Tobacco, Pharma, Electronics, Computer, Chemical, Aero, Apparel, and Machinery.

– The oil industry has spent $98 billion in emerging energy technologies since 2000—almost 73 percent of the total $138 billion spent by U.S. companies and the federal government combined.

– Company stock in the oil industry is owned by virtually all americans: 29.5% mutual funds, 27% pension funds, 23% individual investors, 14% IRA’s, 5% institutional, 1.5% corporate insiders.

– The average effective tax rate (current taxes) of the top 27 energy companies was 37.1 percent in 2006 ($81.5 billion). The effective tax rate for the market as a whole is 32.3 percent, or 3.3 percent less than the top energy companies.

– Petrochemicals are used not only for liquid and gas fuels, but also lubricants, plastics, and fertilizers.

The relationship of Big Oil to our society at large might be considered through the words of the great philosopher Ayn Rand “I don’t build in order to have clients. I have clients in order to build.” If you don’t like a product or service then it is the law of our wonderful land that you have a right to utilize your God-given talents to develop a better product or service. Complaining about the success of your industrious countrymen (be they corrupt or not) serves no useful purpose and fails to improve the circumstance of you or your community.

Disgruntled Patriot

[Author]

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