Forum Replies Created
-
AuthorPosts
-
Eugene
ParticipantThis argument has nothing at all to do with Joe Blow. He can wait for the prices in Clairemont or San Marcos or Eastlake to fall to 350 or 400k. Not a problem there. I don’t believe the average Joe Blow lives in Encinitas. I think that is why my point is being widely missed.
Brae Mar Ct is not exactly the playground for the super-rich. It is 2 miles from the beach and relatively far from areas with well-paying jobs. 4br houses in this neighborhood are only going to sell for a million if 4br houses in Eastlake and San Marcos go for 800K. And those will only sell for 800K if 4br houses in Temecula go for 500K.
And, by the way, the average Joe Blow can very well afford to buy a million dollar house in Encinitas, that’s what negative amortization option ARMs are for. You could get a 1M neg-am loan with monthly payments of less than $4000 for a few years (until it resets to fully amortizing).
ParticipantIf homes in my neighborhood (which rent very very quickly) dropped to 1998 prices they would be cash positive by more than $1000 per month based upon current rents. At 2000 prices they would be cash flow positive by more than $500 per month.
The thing is, by the time they drop to 2000 prices, rents will drop as well. They will be dragged down by local recession and massive oversupply of housing. Your lawyer/exec buddies will contribute to that by buying properties and putting them on the market.
If you wait for it to get to 650-700, then someone else will own it instead of you. If you like it at this price, get it. Chances are it won’t drop down to those levels.
Let’s put it very simply.
The only reason to get it now for 800 is if you believe that
1) Encinitas as a whole is not going to drop to 800
2) this is the last good deal before the reboundParticipantIf homes in my neighborhood (which rent very very quickly) dropped to 1998 prices they would be cash positive by more than $1000 per month based upon current rents. At 2000 prices they would be cash flow positive by more than $500 per month.
The thing is, by the time they drop to 2000 prices, rents will drop as well. They will be dragged down by local recession and massive oversupply of housing. Your lawyer/exec buddies will contribute to that by buying properties and putting them on the market.
If you wait for it to get to 650-700, then someone else will own it instead of you. If you like it at this price, get it. Chances are it won’t drop down to those levels.
Let’s put it very simply.
The only reason to get it now for 800 is if you believe that
1) Encinitas as a whole is not going to drop to 800
2) this is the last good deal before the reboundParticipantIf homes in my neighborhood (which rent very very quickly) dropped to 1998 prices they would be cash positive by more than $1000 per month based upon current rents. At 2000 prices they would be cash flow positive by more than $500 per month.
The thing is, by the time they drop to 2000 prices, rents will drop as well. They will be dragged down by local recession and massive oversupply of housing. Your lawyer/exec buddies will contribute to that by buying properties and putting them on the market.
If you wait for it to get to 650-700, then someone else will own it instead of you. If you like it at this price, get it. Chances are it won’t drop down to those levels.
Let’s put it very simply.
The only reason to get it now for 800 is if you believe that
1) Encinitas as a whole is not going to drop to 800
2) this is the last good deal before the reboundParticipantIf homes in my neighborhood (which rent very very quickly) dropped to 1998 prices they would be cash positive by more than $1000 per month based upon current rents. At 2000 prices they would be cash flow positive by more than $500 per month.
The thing is, by the time they drop to 2000 prices, rents will drop as well. They will be dragged down by local recession and massive oversupply of housing. Your lawyer/exec buddies will contribute to that by buying properties and putting them on the market.
If you wait for it to get to 650-700, then someone else will own it instead of you. If you like it at this price, get it. Chances are it won’t drop down to those levels.
Let’s put it very simply.
The only reason to get it now for 800 is if you believe that
1) Encinitas as a whole is not going to drop to 800
2) this is the last good deal before the reboundParticipantIf homes in my neighborhood (which rent very very quickly) dropped to 1998 prices they would be cash positive by more than $1000 per month based upon current rents. At 2000 prices they would be cash flow positive by more than $500 per month.
The thing is, by the time they drop to 2000 prices, rents will drop as well. They will be dragged down by local recession and massive oversupply of housing. Your lawyer/exec buddies will contribute to that by buying properties and putting them on the market.
If you wait for it to get to 650-700, then someone else will own it instead of you. If you like it at this price, get it. Chances are it won’t drop down to those levels.
Let’s put it very simply.
The only reason to get it now for 800 is if you believe that
1) Encinitas as a whole is not going to drop to 800
2) this is the last good deal before the reboundParticipantFed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet).
If foreign investors were getting rid of T-bills and Fed were absorbing all the excess bonds sold off by foreigners, we’d see some significant exchange rate movements as newly-printed dollars are dumped into forex markets. Instead, most currencies are trading sideways.
ParticipantFed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet).
If foreign investors were getting rid of T-bills and Fed were absorbing all the excess bonds sold off by foreigners, we’d see some significant exchange rate movements as newly-printed dollars are dumped into forex markets. Instead, most currencies are trading sideways.
ParticipantFed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet).
If foreign investors were getting rid of T-bills and Fed were absorbing all the excess bonds sold off by foreigners, we’d see some significant exchange rate movements as newly-printed dollars are dumped into forex markets. Instead, most currencies are trading sideways.
ParticipantFed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet).
If foreign investors were getting rid of T-bills and Fed were absorbing all the excess bonds sold off by foreigners, we’d see some significant exchange rate movements as newly-printed dollars are dumped into forex markets. Instead, most currencies are trading sideways.
ParticipantFed is buying it at even greater amount (soon enough we will see how much money Fed printed to balance the sheet).
If foreign investors were getting rid of T-bills and Fed were absorbing all the excess bonds sold off by foreigners, we’d see some significant exchange rate movements as newly-printed dollars are dumped into forex markets. Instead, most currencies are trading sideways.
Participantedit: Zillow is NOT comprehensive.
Participantedit: Zillow is NOT comprehensive.
Participantedit: Zillow is NOT comprehensive.
-
AuthorPosts
