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(former)FormerSanDiegan
ParticipantI’m no climate expert, but it ;ooks to me like it’s about 0.4 degrees Celsius (about 0.7 degrees Fahrenheit) over this period.
[img_assist|nid=25435|title=Temp trends|desc=|link=node|align=left|width=800|height600]
[quote=livinincali]Still buying into that global warming garbage. Notice how they’ve changed the marketing approach from global warming to climate change because the dire warming they were predicting doesn’t seem to be coming to fruition. I don’t see a whole lot of warming in these temperatures. Maybe you could make a case for a couples tenths of degree C in the past 30 years.
[/quote]August 5, 2015 at 11:30 AM in reply to: My Investment property not selling: List for rent/for sale at the same time? #788492Participant[quote=paramount]After reducing the price substantially, I’m still seeing very little traffic.
I’m not convinced my market is a sellers market at all.
Pool of buyers is shrinking at this time of the year IMO, and the few buyers are looking for the deal of a lifetime.[/quote]
Based on this thread, you listed around mid July, reduced the price after about 2-2.5 weeks and about a week later are worried that traffic didn’t increase.
If an offer comes within the next 2-3 weeks, it’s still a reasonably a pretty fast sale.
Remember, a lot of folks are on vacation in August. Also, the window for moving in before school starts has also passed.
To sell in the peak part of the season, you’d need to list in March or early April.
July 30, 2015 at 11:40 AM in reply to: My Investment property not selling: List for rent/for sale at the same time? #788403Participant[quote=paramount][quote=FormerSanDiegan]What was your original reason for selling ?
What were you going to do with the proceeds.
The rent to price ratio seems to be pretty good for San Diego these days (assuming you can actually get 1750).
As far as “rental season”… while it’s true that you get more traffic in the spring/early summer, my experience in filling my rental house is that it doesn’t matter that much when you market it for rent, with the exception of November/December …
If your reasons for selling it are not valid with a lower price, and you are price-sensitive for your reason for selling, then I would continue to market it.[/quote]
I’m selling it for a couple of reasons:
1. I’ve had enough of being a landlord.
2. For the last 6 months I’ve been losing close to $200/month on the rental due to tax/escrow increases over the years. I had long term tenants and did not increase the rent.
My current/primary house needs work. I bought it fairly cheap during the housing crisis years.
My plan was to sell both properties and buy a house that doesn’t need improvements. I’m also considering buying a house closer to work.
I do have enough equity to lower the price – and yet I’m not desperate to sell (yet).
A house very close to mine but 300+ sq ft smaller just sold in 5 days for 330k. It was a single story though.[/quote]
OK, it seems to me those reasons are still valid… wait it out, keep marketing and maybe consider dropping the price a bit after it’s on the market a couple more weeks.
We sold a house near the peak in 2005 in a fairly strong seller’s market. Had interest, but no offers in the first few weeks, then all of the sudden boom it sold at asking about a month after list. Never changed the price.
July 30, 2015 at 9:00 AM in reply to: My Investment property not selling: List for rent/for sale at the same time? #788397ParticipantWhat was your original reason for selling ?
What were you going to do with the proceeds.
The rent to price ratio seems to be pretty good for San Diego these days (assuming you can actually get 1750).
As far as “rental season”… while it’s true that you get more traffic in the spring/early summer, my experience in filling my rental house is that it doesn’t matter that much when you market it for rent, with the exception of November/December …
If your reasons for selling it are not valid with a lower price, and you are price-sensitive for your reason for selling, then I would continue to market it.
ParticipantHaving lived in both places, LA traffic is universally more oppressive than San Diego’s.
It permeates well beyond the famed 405. Surface streets on the Westside for example are just as clogged.
It can take 20-40 minutes to travel 3-5 miles in some areas on surface streets.That said, LA is not one monolithic block of concrete as it used to appear to me as a San Diegan when my experiences were driving through to Santa Barbara or spending a weekend here or there doing LA stuff. It is really an amalgamation of unique neighborhoods … some of which have a lot of character and even a small-town feel and other areas that are shady, glitzy, ethnic, etc.
Many parts of LA are indeed hellholes. But for every 5 or 6 hellhole neighborhoods there is a gem. And like any precious gem, they are expensive.Participant[quote=spdrun]In a normal market, it’s cheaper to buy than to rent (not at parity). Tenants are paying for flexibility and maintenance.
[/quote]Nice theory… for somewhere else.
San Diego and Southern California are not “normal” markets. Rarely in the past 30 years (maybe 3 or 4 years out of that period) has buying been equal to or less expensive than renting.Participant[quote=AN]So, 2 people so far with net worth in the 7 figures and it seems like both are biz owners. Any 7 figures net worth out there as a W2-er?[/quote]
In our case not a business owner, primarily W-2 super-saver and RE investor, but stock options helped put us over the top.
But I agree with the that $10 Mil is the new million.
ParticipantI remember the following financial milestones that felt pretty good:
1. Reaching $0 net worth ( about 2 years after finishing college).
2. Buying our first home.
3. Writing my first check over $10,000
4. Depositing my first 5-figure check (after a home sale)
5. Hitting 7 figures net worth.
Milestones that sucked.
1. hitting 7 figures net worth … again, 6 years later
(hey, recessions suck).2. Paying more in taxes in a year than I made in W-2 income (OK, that was both good and bad).
ParticipantIf you are considering selling now, in April and the 2 years are up in June, chances are that it sells after June and this is a moot point.
Just put it on the market 30-45 days before the date where you hit the 2 year mark and if you are lucky enough to get a quick sell make sure that the buyer agrees to close after that date.
ParticipantYou are missing a key piece of information:
What are you current paying in rent.
If the math works that you can buy now for roughly equivalent to rent, or within a delta that makes sense, then I would consider buying now.
But if buying is significantly more expensive than your current rent, you probably want to build up a cushion while you are able.
Either way, do the math on whatever you buy as if you were going to rent it out in a year or two. If it makes sense from that perspective, then I wouldn’t wait two years.
March 24, 2015 at 10:36 AM in reply to: State of the economy and affect on housing in S California #784126Participant[quote=rockingtime]Since you have lot of money for cash down, I’d say invest in some good relatively safe place to get you 4-5% return.
In couple of years, when and if the interest rates hit high, I am sure the prices would come down
Real estate prices in CA are cyclical in general and if anyone says otherwise, please look at the history.
Of course no one knows the future..[/quote]
If you look at the history of housing prices and interest rates you will note that the periods of interest rates increasing (notably mid 1960s to 1980, for example) coincided with home price increases.
SO, higher rates does not necessarily equate to lower prices. In fact, historically it has been the other way around. Higher interest rates generally track over the long run with higher inflation.
Participant[quote=CA renter]
This fully planned economic event (the Great Recession, and even the stock market bubble, IMO) …
[/quote]
This is the sentence where I stopped reading. Anyone else read beyond this ?
Participant1. perspective: $1200 a year is about 0.4% of the current value of the property.
2. Your rent will track market rents in the long term, but you don’t have to raise it continuously. When this tenant leaves you will raise to market rent. In the long run rents will track higher in discrete steps where those steps up are between tenants. Raising rent increases the probability of turnover. All you are giving up for lower turnover is the difference between a curve with steps and a continuous curve.
3. Look at the big picture. What is your alternative if you sell ?
Case 1: you sell.
You might clear $75-80K after selling costs.
If you invest that 75-80K and somehow get 5% in something just as risky as real estate, such as a REIT, that amounts to about $4000 a year.Case 2: you keep.
You’re probably paying down $300 + in principal with each payment. So your tenant pays down $3600 per year of your principal. This is a direct increase to your net worth. Your costs went up by $1200, so figure a $2400 per year economic net.So, to match the $4000 in case 1, you need the property to appreciate by $1600 this year. That’s a 0.5% appreciation. Add in another 0.5% to cover maintenance costs.
So by my guesstimate, if the property increases by 1% a year or more you come out ahead of case #1 where you sold and invested for a 5% return.4. Think long term.
If you think long term, $100 a month is in the noise. In a couple years the tenant will leave and you’ll raise the rent by $100-200. Your principal portion will steadily increase. At some point in your loan term (around year 12 or so, depending on the rate), the principal is about half the monthly payment. Five years from now, you’ll be cash flow positive, with a loan balance also dropping by $6 k or more a year.April 9, 2014 at 1:02 PM in reply to: Advice sought on renting out old house versus selling and taking the money #772677Participant[quote=bibsoconner]
So if prices went down a lot, we could ride it out. Of course if house prices dropped 25%, I’d expect to see rents drop too! [/quote]When prices dropped 25% + in the last downturn, rents barely declined.
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