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(former)FormerSanDiegan
ParticipantAN – My experience was similar. We purchased a Clairemont house for 160K in spring 1996. Rent for equivalent properties was 1000-1100 per month. Our mortgage rate was 8.25%.
SFH rents were about mortgage rates + 0 to 1% at the bottom of the last cycle.
P.S. – If rates go back up to the 8% range as I expect, I would expect prices in the same area would drop to somewhere in the 320K range. (I’m assuming real rent growth rates of negative 4 %, i.e. flat rents and 4% inflation).
August 19, 2008 at 5:36 PM in reply to: Buying next year, what to do with down payment money? #258865Participant[quote=jimmyle]Since taking my money out of mutual funds and stocks and put it in a CD I have avoided losing an additional 5%.[/quote]
That’s about 15 months of interest on your CD.
Safe move. But for your own sanity don’t keep tracking this. Just write down the amount you will have when you are ready to pull it out for a down payment.August 19, 2008 at 5:36 PM in reply to: Buying next year, what to do with down payment money? #259056Participant[quote=jimmyle]Since taking my money out of mutual funds and stocks and put it in a CD I have avoided losing an additional 5%.[/quote]
That’s about 15 months of interest on your CD.
Safe move. But for your own sanity don’t keep tracking this. Just write down the amount you will have when you are ready to pull it out for a down payment.August 19, 2008 at 5:36 PM in reply to: Buying next year, what to do with down payment money? #259069Participant[quote=jimmyle]Since taking my money out of mutual funds and stocks and put it in a CD I have avoided losing an additional 5%.[/quote]
That’s about 15 months of interest on your CD.
Safe move. But for your own sanity don’t keep tracking this. Just write down the amount you will have when you are ready to pull it out for a down payment.August 19, 2008 at 5:36 PM in reply to: Buying next year, what to do with down payment money? #259117Participant[quote=jimmyle]Since taking my money out of mutual funds and stocks and put it in a CD I have avoided losing an additional 5%.[/quote]
That’s about 15 months of interest on your CD.
Safe move. But for your own sanity don’t keep tracking this. Just write down the amount you will have when you are ready to pull it out for a down payment.August 19, 2008 at 5:36 PM in reply to: Buying next year, what to do with down payment money? #259158Participant[quote=jimmyle]Since taking my money out of mutual funds and stocks and put it in a CD I have avoided losing an additional 5%.[/quote]
That’s about 15 months of interest on your CD.
Safe move. But for your own sanity don’t keep tracking this. Just write down the amount you will have when you are ready to pull it out for a down payment.Participant[quote=patientlywaiting]Remember that is a large underground economy in San Diego.
Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?
I think it’s pointless to even try to consider the underground economy as a factor here.
Participant[quote=patientlywaiting]Remember that is a large underground economy in San Diego.
Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?
I think it’s pointless to even try to consider the underground economy as a factor here.
Participant[quote=patientlywaiting]Remember that is a large underground economy in San Diego.
Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?
I think it’s pointless to even try to consider the underground economy as a factor here.
Participant[quote=patientlywaiting]Remember that is a large underground economy in San Diego.
Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?
I think it’s pointless to even try to consider the underground economy as a factor here.
Participant[quote=patientlywaiting]Remember that is a large underground economy in San Diego.
Many do not pay taxes or find ways to avoid taxes altogether. For those people, buying makes absolutely no sense.
[/quote]This concept seems perfectly plausible. And I have seen anecdotal information supporting this.
It is pointless to consider this factor.How can we factor in something we cannot quantify ?
Also, depending on the magnitude of this underground economy, the typical data we use for income (which impact price-to-income) may understate reality.If the underground economy is large enough, does that mean that there is that much more “cash on the sidelines” ? ow does this counter the fact that those who already cheat the system don’t want to save money on taxes ?
I think it’s pointless to even try to consider the underground economy as a factor here.
August 18, 2008 at 5:40 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #258547ParticipantCA renter – You certainly timed it well.
The vast majority of your gain is attributable to holding between 2001 and 2004, demonstrating DaCounselor’s point.August 18, 2008 at 5:40 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #258736ParticipantCA renter – You certainly timed it well.
The vast majority of your gain is attributable to holding between 2001 and 2004, demonstrating DaCounselor’s point.August 18, 2008 at 5:40 PM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #258748ParticipantCA renter – You certainly timed it well.
The vast majority of your gain is attributable to holding between 2001 and 2004, demonstrating DaCounselor’s point. -
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