[DWCAP]

I dont think everything they are going is attempting to slow the reversion to the mean. I think half of what they are doing is that. I think the other half is just nonsense to attempt to be seen as if they are doing something. If nobody saw it coming, and no one could stop it, no one is to blaim. If they had seen it coming, and knew how to stop it, then they would be held responsible and tossed from office.

[DWCAP]

I dont think everything they are going is attempting to slow the reversion to the mean. I think half of what they are doing is that. I think the other half is just nonsense to attempt to be seen as if they are doing something. If nobody saw it coming, and no one could stop it, no one is to blaim. If they had seen it coming, and knew how to stop it, then they would be held responsible and tossed from office.

[DWCAP]

[quote=rent4now]A better question would be why does she have only 10K saved when she has no rent or debt?
[/quote]

That was my first thought. How has someone who is making $2500/month only managed to save 10k if they have neither a rent/morgage payment, nor a car payment? Unless she has only been in this job for a year or two, she needs to question her spending habits.

Here is what I would do.

1)Find a place she would buy. Be honest, a place she could live in for more than a “year or two”.

2)Figure out how much that monthly morgage payment would be. Include taxes/HOA’s/Mello Roo’s/interior maintaince/ Insurance etc etc.

3) Force herself to save that payment every month for the next 6 months. I say 6 months for two reasons:
A) because itll be better to buy in the fall after some of this buyer crazyness has died down. Prices are still going down, so it isn’t gonna hurt her in the price tag.

B) because it is a long enough time frame that some of those ‘special’ charges that we so often never account for will show up. (You know; so and so’s wedding, or that trip to cancoon, or that new must have pair of shoes or what ever it is she spends her money on. She obviously isnt a huge saver assuming she has been doing this for more than two years)

IF she can live that way, she could start looking. She would have prob nearly doubled her cash position, and wont have to change her lifestyle too much.

IF she can’t live that way, she should thank her lucky stars she has the job she does and just keep living her life as a renter.

IF she fails to live that way but buys anyways, watch out for IF/WHEN? that GF becomes something more. One of the biggest reasons marriages fail is money and so far I have not heard anything that telling me she is very conservative with money.

(sorry for the relationship advice, everyone can hate on me if they want. I just dont want a good pigg to go down.)

[DWCAP]

[quote=rent4now]A better question would be why does she have only 10K saved when she has no rent or debt?
[/quote]

That was my first thought. How has someone who is making $2500/month only managed to save 10k if they have neither a rent/morgage payment, nor a car payment? Unless she has only been in this job for a year or two, she needs to question her spending habits.

Here is what I would do.

1)Find a place she would buy. Be honest, a place she could live in for more than a “year or two”.

2)Figure out how much that monthly morgage payment would be. Include taxes/HOA’s/Mello Roo’s/interior maintaince/ Insurance etc etc.

3) Force herself to save that payment every month for the next 6 months. I say 6 months for two reasons:
A) because itll be better to buy in the fall after some of this buyer crazyness has died down. Prices are still going down, so it isn’t gonna hurt her in the price tag.

B) because it is a long enough time frame that some of those ‘special’ charges that we so often never account for will show up. (You know; so and so’s wedding, or that trip to cancoon, or that new must have pair of shoes or what ever it is she spends her money on. She obviously isnt a huge saver assuming she has been doing this for more than two years)

IF she can live that way, she could start looking. She would have prob nearly doubled her cash position, and wont have to change her lifestyle too much.

IF she can’t live that way, she should thank her lucky stars she has the job she does and just keep living her life as a renter.

IF she fails to live that way but buys anyways, watch out for IF/WHEN? that GF becomes something more. One of the biggest reasons marriages fail is money and so far I have not heard anything that telling me she is very conservative with money.

(sorry for the relationship advice, everyone can hate on me if they want. I just dont want a good pigg to go down.)

[DWCAP]

[quote=rent4now]A better question would be why does she have only 10K saved when she has no rent or debt?
[/quote]

That was my first thought. How has someone who is making $2500/month only managed to save 10k if they have neither a rent/morgage payment, nor a car payment? Unless she has only been in this job for a year or two, she needs to question her spending habits.

Here is what I would do.

1)Find a place she would buy. Be honest, a place she could live in for more than a “year or two”.

2)Figure out how much that monthly morgage payment would be. Include taxes/HOA’s/Mello Roo’s/interior maintaince/ Insurance etc etc.

3) Force herself to save that payment every month for the next 6 months. I say 6 months for two reasons:
A) because itll be better to buy in the fall after some of this buyer crazyness has died down. Prices are still going down, so it isn’t gonna hurt her in the price tag.

B) because it is a long enough time frame that some of those ‘special’ charges that we so often never account for will show up. (You know; so and so’s wedding, or that trip to cancoon, or that new must have pair of shoes or what ever it is she spends her money on. She obviously isnt a huge saver assuming she has been doing this for more than two years)

IF she can live that way, she could start looking. She would have prob nearly doubled her cash position, and wont have to change her lifestyle too much.

IF she can’t live that way, she should thank her lucky stars she has the job she does and just keep living her life as a renter.

IF she fails to live that way but buys anyways, watch out for IF/WHEN? that GF becomes something more. One of the biggest reasons marriages fail is money and so far I have not heard anything that telling me she is very conservative with money.

(sorry for the relationship advice, everyone can hate on me if they want. I just dont want a good pigg to go down.)

[DWCAP]

[quote=rent4now]A better question would be why does she have only 10K saved when she has no rent or debt?
[/quote]

That was my first thought. How has someone who is making $2500/month only managed to save 10k if they have neither a rent/morgage payment, nor a car payment? Unless she has only been in this job for a year or two, she needs to question her spending habits.

Here is what I would do.

1)Find a place she would buy. Be honest, a place she could live in for more than a “year or two”.

2)Figure out how much that monthly morgage payment would be. Include taxes/HOA’s/Mello Roo’s/interior maintaince/ Insurance etc etc.

3) Force herself to save that payment every month for the next 6 months. I say 6 months for two reasons:
A) because itll be better to buy in the fall after some of this buyer crazyness has died down. Prices are still going down, so it isn’t gonna hurt her in the price tag.

B) because it is a long enough time frame that some of those ‘special’ charges that we so often never account for will show up. (You know; so and so’s wedding, or that trip to cancoon, or that new must have pair of shoes or what ever it is she spends her money on. She obviously isnt a huge saver assuming she has been doing this for more than two years)

IF she can live that way, she could start looking. She would have prob nearly doubled her cash position, and wont have to change her lifestyle too much.

IF she can’t live that way, she should thank her lucky stars she has the job she does and just keep living her life as a renter.

IF she fails to live that way but buys anyways, watch out for IF/WHEN? that GF becomes something more. One of the biggest reasons marriages fail is money and so far I have not heard anything that telling me she is very conservative with money.

(sorry for the relationship advice, everyone can hate on me if they want. I just dont want a good pigg to go down.)

[DWCAP]

[quote=rent4now]A better question would be why does she have only 10K saved when she has no rent or debt?
[/quote]

That was my first thought. How has someone who is making $2500/month only managed to save 10k if they have neither a rent/morgage payment, nor a car payment? Unless she has only been in this job for a year or two, she needs to question her spending habits.

Here is what I would do.

1)Find a place she would buy. Be honest, a place she could live in for more than a “year or two”.

2)Figure out how much that monthly morgage payment would be. Include taxes/HOA’s/Mello Roo’s/interior maintaince/ Insurance etc etc.

3) Force herself to save that payment every month for the next 6 months. I say 6 months for two reasons:
A) because itll be better to buy in the fall after some of this buyer crazyness has died down. Prices are still going down, so it isn’t gonna hurt her in the price tag.

B) because it is a long enough time frame that some of those ‘special’ charges that we so often never account for will show up. (You know; so and so’s wedding, or that trip to cancoon, or that new must have pair of shoes or what ever it is she spends her money on. She obviously isnt a huge saver assuming she has been doing this for more than two years)

IF she can live that way, she could start looking. She would have prob nearly doubled her cash position, and wont have to change her lifestyle too much.

IF she can’t live that way, she should thank her lucky stars she has the job she does and just keep living her life as a renter.

IF she fails to live that way but buys anyways, watch out for IF/WHEN? that GF becomes something more. One of the biggest reasons marriages fail is money and so far I have not heard anything that telling me she is very conservative with money.

(sorry for the relationship advice, everyone can hate on me if they want. I just dont want a good pigg to go down.)

[DWCAP]

92126,

Arnt you the guy who bought a place on a canyon after fleeing Mesa Village? How do you like living on the canyon? Are you on the western side or the eastern? Southern or Northern? Do you actually enjoy the view? Do you think it is worth the canyon view premium?

Am I totally full of crap?

[DWCAP]

92126,

Arnt you the guy who bought a place on a canyon after fleeing Mesa Village? How do you like living on the canyon? Are you on the western side or the eastern? Southern or Northern? Do you actually enjoy the view? Do you think it is worth the canyon view premium?

Am I totally full of crap?

[DWCAP]

92126,

Arnt you the guy who bought a place on a canyon after fleeing Mesa Village? How do you like living on the canyon? Are you on the western side or the eastern? Southern or Northern? Do you actually enjoy the view? Do you think it is worth the canyon view premium?

Am I totally full of crap?

[DWCAP]

92126,

Arnt you the guy who bought a place on a canyon after fleeing Mesa Village? How do you like living on the canyon? Are you on the western side or the eastern? Southern or Northern? Do you actually enjoy the view? Do you think it is worth the canyon view premium?

Am I totally full of crap?

[DWCAP]

92126,

Arnt you the guy who bought a place on a canyon after fleeing Mesa Village? How do you like living on the canyon? Are you on the western side or the eastern? Southern or Northern? Do you actually enjoy the view? Do you think it is worth the canyon view premium?

Am I totally full of crap?

[DWCAP]

There are so many variables to rents that just looking at one or two will not give you the whole picture.

-People are loosing jobs, and as such are moving in with family or friends, moving home to parents bedroom, moving to where employment is higher (ie outa CA) or down sizing. How much do you really need that second bedroom to be an office if you have no job? Wouldnt a 1 bedroom do?

-Beyond this, there is more happening. You mention the fact that people are loosing houses and have to rent, and as such rents should go up. Cept that people have been loosing houses for a long time now, and those houses they lost last year are hitting the market now as rentals. Sure enough, if you go back and look, there likly was a rent surge in your area (there was in 92126) last spring. Now as investors pick up the slack of buying the bottom, rents will suffer as supply is reintroduced to the markets. This is especially true for the best renters. If most of the people applying to rent a property have lousy credit, no job, or lousy credit AND no job, and you have good credit and a good job, you are still in the drivers seat with rentals as GOOD (notice: not all LL’s fall here) landlords will value good tenants more than a small rental change.

-Notice that the higher ends are finally being effected too. However these owners have more resources, so many are trying to rent out rather than foreclose, further adding to supply.

-Plus, some LL’s will tell you that they have to increase rents yearly as their costs go up yearly. While true often, right now many many deals can be had at prices much lower than a year ago. Contractors and supplies cost alot less, so it is hard to justify yearly rental increases when your costs fell over the past year. (please note: not all costs have gone down, only some have. I am not interested in arguing every little point about this. Some are up, some are down.)

-It also depends on the area. I have said for a while that MM rents are set by students and Qcomm. I dont know much about Qcomm, but students are taking a beating right now economically. “Fees” are up, jobs are scarce and low paying, parents equity is tapped out drying up the fund transfers, loans are harder to get, etc. Plus when they graduate students no longer have careers just waiting for them, so they must conserve cash now, and that usually means doubling up, trading down, or moving to cheaper areas. Neither is good for rents locally.

Personally the places that I have seen hurting the most are those that offer the least for the money. The places that want top rent cause the complex has a “BBQ area” or a pool from 30 years ago that no one cleans. They are the places that charge median rents but have too little parking or are near a freeway (loud) or are “luxery” cause they have ‘egg shell white’ walls AND granite counter tops vs normal white walls and tile counter tops. Most people are not willing to shell out for those in this economy.

[DWCAP]

There are so many variables to rents that just looking at one or two will not give you the whole picture.

-People are loosing jobs, and as such are moving in with family or friends, moving home to parents bedroom, moving to where employment is higher (ie outa CA) or down sizing. How much do you really need that second bedroom to be an office if you have no job? Wouldnt a 1 bedroom do?

-Beyond this, there is more happening. You mention the fact that people are loosing houses and have to rent, and as such rents should go up. Cept that people have been loosing houses for a long time now, and those houses they lost last year are hitting the market now as rentals. Sure enough, if you go back and look, there likly was a rent surge in your area (there was in 92126) last spring. Now as investors pick up the slack of buying the bottom, rents will suffer as supply is reintroduced to the markets. This is especially true for the best renters. If most of the people applying to rent a property have lousy credit, no job, or lousy credit AND no job, and you have good credit and a good job, you are still in the drivers seat with rentals as GOOD (notice: not all LL’s fall here) landlords will value good tenants more than a small rental change.

-Notice that the higher ends are finally being effected too. However these owners have more resources, so many are trying to rent out rather than foreclose, further adding to supply.

-Plus, some LL’s will tell you that they have to increase rents yearly as their costs go up yearly. While true often, right now many many deals can be had at prices much lower than a year ago. Contractors and supplies cost alot less, so it is hard to justify yearly rental increases when your costs fell over the past year. (please note: not all costs have gone down, only some have. I am not interested in arguing every little point about this. Some are up, some are down.)

-It also depends on the area. I have said for a while that MM rents are set by students and Qcomm. I dont know much about Qcomm, but students are taking a beating right now economically. “Fees” are up, jobs are scarce and low paying, parents equity is tapped out drying up the fund transfers, loans are harder to get, etc. Plus when they graduate students no longer have careers just waiting for them, so they must conserve cash now, and that usually means doubling up, trading down, or moving to cheaper areas. Neither is good for rents locally.

Personally the places that I have seen hurting the most are those that offer the least for the money. The places that want top rent cause the complex has a “BBQ area” or a pool from 30 years ago that no one cleans. They are the places that charge median rents but have too little parking or are near a freeway (loud) or are “luxery” cause they have ‘egg shell white’ walls AND granite counter tops vs normal white walls and tile counter tops. Most people are not willing to shell out for those in this economy.

[DWCAP]

There are so many variables to rents that just looking at one or two will not give you the whole picture.

-People are loosing jobs, and as such are moving in with family or friends, moving home to parents bedroom, moving to where employment is higher (ie outa CA) or down sizing. How much do you really need that second bedroom to be an office if you have no job? Wouldnt a 1 bedroom do?

-Beyond this, there is more happening. You mention the fact that people are loosing houses and have to rent, and as such rents should go up. Cept that people have been loosing houses for a long time now, and those houses they lost last year are hitting the market now as rentals. Sure enough, if you go back and look, there likly was a rent surge in your area (there was in 92126) last spring. Now as investors pick up the slack of buying the bottom, rents will suffer as supply is reintroduced to the markets. This is especially true for the best renters. If most of the people applying to rent a property have lousy credit, no job, or lousy credit AND no job, and you have good credit and a good job, you are still in the drivers seat with rentals as GOOD (notice: not all LL’s fall here) landlords will value good tenants more than a small rental change.

-Notice that the higher ends are finally being effected too. However these owners have more resources, so many are trying to rent out rather than foreclose, further adding to supply.

-Plus, some LL’s will tell you that they have to increase rents yearly as their costs go up yearly. While true often, right now many many deals can be had at prices much lower than a year ago. Contractors and supplies cost alot less, so it is hard to justify yearly rental increases when your costs fell over the past year. (please note: not all costs have gone down, only some have. I am not interested in arguing every little point about this. Some are up, some are down.)

-It also depends on the area. I have said for a while that MM rents are set by students and Qcomm. I dont know much about Qcomm, but students are taking a beating right now economically. “Fees” are up, jobs are scarce and low paying, parents equity is tapped out drying up the fund transfers, loans are harder to get, etc. Plus when they graduate students no longer have careers just waiting for them, so they must conserve cash now, and that usually means doubling up, trading down, or moving to cheaper areas. Neither is good for rents locally.

Personally the places that I have seen hurting the most are those that offer the least for the money. The places that want top rent cause the complex has a “BBQ area” or a pool from 30 years ago that no one cleans. They are the places that charge median rents but have too little parking or are near a freeway (loud) or are “luxery” cause they have ‘egg shell white’ walls AND granite counter tops vs normal white walls and tile counter tops. Most people are not willing to shell out for those in this economy.

[Author]

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