[Eugene]

The FED cannot allow hyperinflation to happen, unless they do that in coordination with all major banks (Europe, Japan), because inflationary expectations will send yields on dollar securities through the roof as people get rid of dollars and move to euros and yens. They do not and they will not print money at the rate that would allow the situation to be described as “hyperinflation”.

Consider this scenario
– Interest rates are suppressed for another year or two, mortgage rates fall below 5%
– Treasury mails $1000 tax rebate checks for every person in the U.S.
– Our government convinces ECB to drop rates

If they pull this off, we’ll be out of this recession before we know it.

[Eugene]

The FED cannot allow hyperinflation to happen, unless they do that in coordination with all major banks (Europe, Japan), because inflationary expectations will send yields on dollar securities through the roof as people get rid of dollars and move to euros and yens. They do not and they will not print money at the rate that would allow the situation to be described as “hyperinflation”.

Consider this scenario
– Interest rates are suppressed for another year or two, mortgage rates fall below 5%
– Treasury mails $1000 tax rebate checks for every person in the U.S.
– Our government convinces ECB to drop rates

If they pull this off, we’ll be out of this recession before we know it.

[Eugene]

if it is a screaming deal, jump on it.

My family is too big for that place, I need at least 4 bedrooms. My point is that we’re not as out of whack with fundamendals as people think. With these ultra-low interest rates, unless there’s an economic depression in San Diego, by the summer we might see some sort of stabilization at the low end.

If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium.

It’s an apartment complex. Monarch took their second phase of condos and started leasing them. So they have a whole lot of those $2200/month condos.

[Eugene]

if it is a screaming deal, jump on it.

My family is too big for that place, I need at least 4 bedrooms. My point is that we’re not as out of whack with fundamendals as people think. With these ultra-low interest rates, unless there’s an economic depression in San Diego, by the summer we might see some sort of stabilization at the low end.

If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium.

It’s an apartment complex. Monarch took their second phase of condos and started leasing them. So they have a whole lot of those $2200/month condos.

[Eugene]

if it is a screaming deal, jump on it.

My family is too big for that place, I need at least 4 bedrooms. My point is that we’re not as out of whack with fundamendals as people think. With these ultra-low interest rates, unless there’s an economic depression in San Diego, by the summer we might see some sort of stabilization at the low end.

If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium.

It’s an apartment complex. Monarch took their second phase of condos and started leasing them. So they have a whole lot of those $2200/month condos.

[Eugene]

if it is a screaming deal, jump on it.

My family is too big for that place, I need at least 4 bedrooms. My point is that we’re not as out of whack with fundamendals as people think. With these ultra-low interest rates, unless there’s an economic depression in San Diego, by the summer we might see some sort of stabilization at the low end.

If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium.

It’s an apartment complex. Monarch took their second phase of condos and started leasing them. So they have a whole lot of those $2200/month condos.

[Eugene]

if it is a screaming deal, jump on it.

My family is too big for that place, I need at least 4 bedrooms. My point is that we’re not as out of whack with fundamendals as people think. With these ultra-low interest rates, unless there’s an economic depression in San Diego, by the summer we might see some sort of stabilization at the low end.

If I had to guess, this guy is sucker fishing. Maybe he has SS appliances and berber carpet and is trying to get a luxery premium.

It’s an apartment complex. Monarch took their second phase of condos and started leasing them. So they have a whole lot of those $2200/month condos.

[Eugene]

waiting for bottom getting into 4S for a 2500 sf home 4+ beds is going to be tough for 600k.

I don’t know about resales, but new Silhouette homes (4/3, 2700 sf) are supposedly starting at 670k and I heard that homebuilders give good incentives.

[Eugene]

waiting for bottom getting into 4S for a 2500 sf home 4+ beds is going to be tough for 600k.

I don’t know about resales, but new Silhouette homes (4/3, 2700 sf) are supposedly starting at 670k and I heard that homebuilders give good incentives.

[Eugene]

waiting for bottom getting into 4S for a 2500 sf home 4+ beds is going to be tough for 600k.

I don’t know about resales, but new Silhouette homes (4/3, 2700 sf) are supposedly starting at 670k and I heard that homebuilders give good incentives.

[Eugene]

waiting for bottom getting into 4S for a 2500 sf home 4+ beds is going to be tough for 600k.

I don’t know about resales, but new Silhouette homes (4/3, 2700 sf) are supposedly starting at 670k and I heard that homebuilders give good incentives.

[Eugene]

waiting for bottom getting into 4S for a 2500 sf home 4+ beds is going to be tough for 600k.

I don’t know about resales, but new Silhouette homes (4/3, 2700 sf) are supposedly starting at 670k and I heard that homebuilders give good incentives.

[Eugene]

So, about those fundamentals …

Case in point: Monarch at Scripps Ranch (east end of Mira Mesa Blvd)

Last November, some guy got himself a 2br/2ba 1300 sf condo in Monarch for 380K

http://www.zillow.com/HomeDetails.htm?zprop=71328118

And you can get a comparable condo across the street for 330-350K.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1283984
http://www.redfin.com/stingray/do/printable-listing?listing-id=1390379

For simplicity let’s assume 5% down and 5.5% rate.
Down payment – $16.5K
Mortgage – $1777
Property tax – $275
HOA – $325
Tax deduction – $427 (assuming 25% bracket and maxed-out itemized deductions)
Monthly cost – $1950

What will a condo like that rent for?

http://www.forrent.com/apartment-community-profile/999903912.php

Starting at $2200/month, apparently.

In other words, you can buy a condo in Scripps Ranch TODAY and it will be cheaper than to rent an identical condo.

This does not address a more interesting question, why would anyone pay $2200/month to rent a 2-bedroom condo in Scripps Ranch when you can get a 3-bedroom house in Mira Mesa for $1800, because apparently there are enough suckers or else they wouldn’t be charging those rates…

[Eugene]

So, about those fundamentals …

Case in point: Monarch at Scripps Ranch (east end of Mira Mesa Blvd)

Last November, some guy got himself a 2br/2ba 1300 sf condo in Monarch for 380K

http://www.zillow.com/HomeDetails.htm?zprop=71328118

And you can get a comparable condo across the street for 330-350K.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1283984
http://www.redfin.com/stingray/do/printable-listing?listing-id=1390379

For simplicity let’s assume 5% down and 5.5% rate.
Down payment – $16.5K
Mortgage – $1777
Property tax – $275
HOA – $325
Tax deduction – $427 (assuming 25% bracket and maxed-out itemized deductions)
Monthly cost – $1950

What will a condo like that rent for?

http://www.forrent.com/apartment-community-profile/999903912.php

Starting at $2200/month, apparently.

In other words, you can buy a condo in Scripps Ranch TODAY and it will be cheaper than to rent an identical condo.

This does not address a more interesting question, why would anyone pay $2200/month to rent a 2-bedroom condo in Scripps Ranch when you can get a 3-bedroom house in Mira Mesa for $1800, because apparently there are enough suckers or else they wouldn’t be charging those rates…

[Eugene]

So, about those fundamentals …

Case in point: Monarch at Scripps Ranch (east end of Mira Mesa Blvd)

Last November, some guy got himself a 2br/2ba 1300 sf condo in Monarch for 380K

http://www.zillow.com/HomeDetails.htm?zprop=71328118

And you can get a comparable condo across the street for 330-350K.

http://www.redfin.com/stingray/do/printable-listing?listing-id=1283984
http://www.redfin.com/stingray/do/printable-listing?listing-id=1390379

For simplicity let’s assume 5% down and 5.5% rate.
Down payment – $16.5K
Mortgage – $1777
Property tax – $275
HOA – $325
Tax deduction – $427 (assuming 25% bracket and maxed-out itemized deductions)
Monthly cost – $1950

What will a condo like that rent for?

http://www.forrent.com/apartment-community-profile/999903912.php

Starting at $2200/month, apparently.

In other words, you can buy a condo in Scripps Ranch TODAY and it will be cheaper than to rent an identical condo.

This does not address a more interesting question, why would anyone pay $2200/month to rent a 2-bedroom condo in Scripps Ranch when you can get a 3-bedroom house in Mira Mesa for $1800, because apparently there are enough suckers or else they wouldn’t be charging those rates…

[Author]

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