[DWCAP]

SD R.
I thought that was you, but I wasnt really sure. Didn’t want to claim that someone said something when they didnt.
I also agree about investors not hoarding property. The banks may be VERY slow (up until now?) repricing and accepting offers, but this amounts to feet draging before the execution. It may slow it down for a few more seconds of life, but it isnt gonna stop it.
I was just trying to think what these investors buisness plan was. Certainly it isn’t buy like it is 2005. Banks don’t (or didn’t?) give discounts that can match the market falling 5% in one MONTH!, so no money there. I could kinda see them picking up properties that were trashed and unsellable at a discount that MAYBE could return something. Need alot of really cheap labor, but the theory is there. Rents are nowhere near costs, and returns would be 10+ years away, assuming costs don’t eat them before then. Sitting on perfectly good capital without any use until this is over is just stupid. So I just dont see it.
Maybe when the OptionAdj. primes start killing banks, the despiration for capital will drive a few deals like that. I just kinda think that San Diego is an affulent area and there are people who still think this is a temporary correction. They couldnt buy before, 10% drops and 5.8% interest means they can, and the rest be damned. I also dont think there are enough people like that to save this market, but it doesnt mean that they dont exist.

[DWCAP]

SD R.
I thought that was you, but I wasnt really sure. Didn’t want to claim that someone said something when they didnt.
I also agree about investors not hoarding property. The banks may be VERY slow (up until now?) repricing and accepting offers, but this amounts to feet draging before the execution. It may slow it down for a few more seconds of life, but it isnt gonna stop it.
I was just trying to think what these investors buisness plan was. Certainly it isn’t buy like it is 2005. Banks don’t (or didn’t?) give discounts that can match the market falling 5% in one MONTH!, so no money there. I could kinda see them picking up properties that were trashed and unsellable at a discount that MAYBE could return something. Need alot of really cheap labor, but the theory is there. Rents are nowhere near costs, and returns would be 10+ years away, assuming costs don’t eat them before then. Sitting on perfectly good capital without any use until this is over is just stupid. So I just dont see it.
Maybe when the OptionAdj. primes start killing banks, the despiration for capital will drive a few deals like that. I just kinda think that San Diego is an affulent area and there are people who still think this is a temporary correction. They couldnt buy before, 10% drops and 5.8% interest means they can, and the rest be damned. I also dont think there are enough people like that to save this market, but it doesnt mean that they dont exist.

[DWCAP]

SD R.
I thought that was you, but I wasnt really sure. Didn’t want to claim that someone said something when they didnt.
I also agree about investors not hoarding property. The banks may be VERY slow (up until now?) repricing and accepting offers, but this amounts to feet draging before the execution. It may slow it down for a few more seconds of life, but it isnt gonna stop it.
I was just trying to think what these investors buisness plan was. Certainly it isn’t buy like it is 2005. Banks don’t (or didn’t?) give discounts that can match the market falling 5% in one MONTH!, so no money there. I could kinda see them picking up properties that were trashed and unsellable at a discount that MAYBE could return something. Need alot of really cheap labor, but the theory is there. Rents are nowhere near costs, and returns would be 10+ years away, assuming costs don’t eat them before then. Sitting on perfectly good capital without any use until this is over is just stupid. So I just dont see it.
Maybe when the OptionAdj. primes start killing banks, the despiration for capital will drive a few deals like that. I just kinda think that San Diego is an affulent area and there are people who still think this is a temporary correction. They couldnt buy before, 10% drops and 5.8% interest means they can, and the rest be damned. I also dont think there are enough people like that to save this market, but it doesnt mean that they dont exist.

[DWCAP]

SD R.
I thought that was you, but I wasnt really sure. Didn’t want to claim that someone said something when they didnt.
I also agree about investors not hoarding property. The banks may be VERY slow (up until now?) repricing and accepting offers, but this amounts to feet draging before the execution. It may slow it down for a few more seconds of life, but it isnt gonna stop it.
I was just trying to think what these investors buisness plan was. Certainly it isn’t buy like it is 2005. Banks don’t (or didn’t?) give discounts that can match the market falling 5% in one MONTH!, so no money there. I could kinda see them picking up properties that were trashed and unsellable at a discount that MAYBE could return something. Need alot of really cheap labor, but the theory is there. Rents are nowhere near costs, and returns would be 10+ years away, assuming costs don’t eat them before then. Sitting on perfectly good capital without any use until this is over is just stupid. So I just dont see it.
Maybe when the OptionAdj. primes start killing banks, the despiration for capital will drive a few deals like that. I just kinda think that San Diego is an affulent area and there are people who still think this is a temporary correction. They couldnt buy before, 10% drops and 5.8% interest means they can, and the rest be damned. I also dont think there are enough people like that to save this market, but it doesnt mean that they dont exist.

[DWCAP]

SD R.
I thought that was you, but I wasnt really sure. Didn’t want to claim that someone said something when they didnt.
I also agree about investors not hoarding property. The banks may be VERY slow (up until now?) repricing and accepting offers, but this amounts to feet draging before the execution. It may slow it down for a few more seconds of life, but it isnt gonna stop it.
I was just trying to think what these investors buisness plan was. Certainly it isn’t buy like it is 2005. Banks don’t (or didn’t?) give discounts that can match the market falling 5% in one MONTH!, so no money there. I could kinda see them picking up properties that were trashed and unsellable at a discount that MAYBE could return something. Need alot of really cheap labor, but the theory is there. Rents are nowhere near costs, and returns would be 10+ years away, assuming costs don’t eat them before then. Sitting on perfectly good capital without any use until this is over is just stupid. So I just dont see it.
Maybe when the OptionAdj. primes start killing banks, the despiration for capital will drive a few deals like that. I just kinda think that San Diego is an affulent area and there are people who still think this is a temporary correction. They couldnt buy before, 10% drops and 5.8% interest means they can, and the rest be damned. I also dont think there are enough people like that to save this market, but it doesnt mean that they dont exist.

[DWCAP]

Waiting kinda hinted at a speculation that deep pocketed investors may be hording real estate. I remember someone posted that they were contacted about giving advice on a bulk purchase of 100 REO’s by an investment group. How are they trying to make money? A big discount from the bank and then flip them individually? Hold and rent and then sell? Artifically increase demand pricing by a reduction in supply? (DeBeers style)? I dont really think this is happening, but their is a lot of speculation about it floating around.
I guess what I am asking is what is the big investor’s play. If we knew that, we could examine the numbers and see if this hoarding waitingtobuy mentions is real or not. (IE, 100 former REO’s hit the market the same week in spring.)

[DWCAP]

Waiting kinda hinted at a speculation that deep pocketed investors may be hording real estate. I remember someone posted that they were contacted about giving advice on a bulk purchase of 100 REO’s by an investment group. How are they trying to make money? A big discount from the bank and then flip them individually? Hold and rent and then sell? Artifically increase demand pricing by a reduction in supply? (DeBeers style)? I dont really think this is happening, but their is a lot of speculation about it floating around.
I guess what I am asking is what is the big investor’s play. If we knew that, we could examine the numbers and see if this hoarding waitingtobuy mentions is real or not. (IE, 100 former REO’s hit the market the same week in spring.)

[DWCAP]

Waiting kinda hinted at a speculation that deep pocketed investors may be hording real estate. I remember someone posted that they were contacted about giving advice on a bulk purchase of 100 REO’s by an investment group. How are they trying to make money? A big discount from the bank and then flip them individually? Hold and rent and then sell? Artifically increase demand pricing by a reduction in supply? (DeBeers style)? I dont really think this is happening, but their is a lot of speculation about it floating around.
I guess what I am asking is what is the big investor’s play. If we knew that, we could examine the numbers and see if this hoarding waitingtobuy mentions is real or not. (IE, 100 former REO’s hit the market the same week in spring.)

[DWCAP]

Waiting kinda hinted at a speculation that deep pocketed investors may be hording real estate. I remember someone posted that they were contacted about giving advice on a bulk purchase of 100 REO’s by an investment group. How are they trying to make money? A big discount from the bank and then flip them individually? Hold and rent and then sell? Artifically increase demand pricing by a reduction in supply? (DeBeers style)? I dont really think this is happening, but their is a lot of speculation about it floating around.
I guess what I am asking is what is the big investor’s play. If we knew that, we could examine the numbers and see if this hoarding waitingtobuy mentions is real or not. (IE, 100 former REO’s hit the market the same week in spring.)

[DWCAP]

Waiting kinda hinted at a speculation that deep pocketed investors may be hording real estate. I remember someone posted that they were contacted about giving advice on a bulk purchase of 100 REO’s by an investment group. How are they trying to make money? A big discount from the bank and then flip them individually? Hold and rent and then sell? Artifically increase demand pricing by a reduction in supply? (DeBeers style)? I dont really think this is happening, but their is a lot of speculation about it floating around.
I guess what I am asking is what is the big investor’s play. If we knew that, we could examine the numbers and see if this hoarding waitingtobuy mentions is real or not. (IE, 100 former REO’s hit the market the same week in spring.)

[DWCAP]

When factoring in increased costs of living, where are people in their late 20’s to early 30’s with good incomes but short (ie less then 10 year) credit histories and the resulting higher interest rates gonna get that increased buying power? Using the 5.1 income/cost ratio, median prices should be $300000. This is a roughly 10%-20% premium to rents, and low and behold down payments are usually in that range.
As for down payments, ofcourse people use to do it. They always have, always will. I have been saving money since I was 14. I have my down payment. Could have put 20% back in 2005 at the peak. I got lucky, most are not as lucky as I am. What I ment by that is it will affect demand. I dont care how much you want a house, if the bank wont lend and you make too much for some of these questionable government sponsored down payment programs, you cant buy. Prices will have to reflect this.

Sorry, post cut off half way.

[DWCAP]

When factoring in increased costs of living, where are people in their late 20’s to early 30’s with good incomes but short (ie less then 10 year) credit histories and the resulting higher interest rates gonna get that increased buying power? Using the 5.1 income/cost ratio, median prices should be $300000. This is a roughly 10%-20% premium to rents, and low and behold down payments are usually in that range.
As for down payments, ofcourse people use to do it. They always have, always will. I have been saving money since I was 14. I have my down payment. Could have put 20% back in 2005 at the peak. I got lucky, most are not as lucky as I am. What I ment by that is it will affect demand. I dont care how much you want a house, if the bank wont lend and you make too much for some of these questionable government sponsored down payment programs, you cant buy. Prices will have to reflect this.

Sorry, post cut off half way.

[DWCAP]

When factoring in increased costs of living, where are people in their late 20’s to early 30’s with good incomes but short (ie less then 10 year) credit histories and the resulting higher interest rates gonna get that increased buying power? Using the 5.1 income/cost ratio, median prices should be $300000. This is a roughly 10%-20% premium to rents, and low and behold down payments are usually in that range.
As for down payments, ofcourse people use to do it. They always have, always will. I have been saving money since I was 14. I have my down payment. Could have put 20% back in 2005 at the peak. I got lucky, most are not as lucky as I am. What I ment by that is it will affect demand. I dont care how much you want a house, if the bank wont lend and you make too much for some of these questionable government sponsored down payment programs, you cant buy. Prices will have to reflect this.

Sorry, post cut off half way.

[DWCAP]

When factoring in increased costs of living, where are people in their late 20’s to early 30’s with good incomes but short (ie less then 10 year) credit histories and the resulting higher interest rates gonna get that increased buying power? Using the 5.1 income/cost ratio, median prices should be $300000. This is a roughly 10%-20% premium to rents, and low and behold down payments are usually in that range.
As for down payments, ofcourse people use to do it. They always have, always will. I have been saving money since I was 14. I have my down payment. Could have put 20% back in 2005 at the peak. I got lucky, most are not as lucky as I am. What I ment by that is it will affect demand. I dont care how much you want a house, if the bank wont lend and you make too much for some of these questionable government sponsored down payment programs, you cant buy. Prices will have to reflect this.

Sorry, post cut off half way.

[DWCAP]

When factoring in increased costs of living, where are people in their late 20’s to early 30’s with good incomes but short (ie less then 10 year) credit histories and the resulting higher interest rates gonna get that increased buying power? Using the 5.1 income/cost ratio, median prices should be $300000. This is a roughly 10%-20% premium to rents, and low and behold down payments are usually in that range.
As for down payments, ofcourse people use to do it. They always have, always will. I have been saving money since I was 14. I have my down payment. Could have put 20% back in 2005 at the peak. I got lucky, most are not as lucky as I am. What I ment by that is it will affect demand. I dont care how much you want a house, if the bank wont lend and you make too much for some of these questionable government sponsored down payment programs, you cant buy. Prices will have to reflect this.

Sorry, post cut off half way.

[Author]

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