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(former)FormerSanDiegan
Participant[quote=outtamojo]I never could understand this fascination with underwater owners as potential sellers without at the same time attempting to quantify potential buyers who held back/ or are still holding back buying to avoid bubble prices.Seems like they came out to be somewhat of a wash, no?
[/quote]Agreed, pent-up demand is also very important.
I don;t know if it’s a wash.
My gut tells me that there is probably way more pent-up demand than pent-up inventory.One (albeit somewhat weak and indirect) way to get a read on potential demand is by looking at household formation.
ParticipantPeople who are underwater are not likely to elect to sell their property.
This can (and IMO does) impact on inventory.
There have been periodic publish numbers regarding underwater owners, so there IS data out there that can be used to assess this.
Participant[quote=all][quote=bearishgurl]desmond, I don’t think paramount needs to worry about whether the property he’s selling is his “official residence,” or not. Any Pigg tax people correct me if I’m wrong, but he would have to make a least a $250K profit upon sale over the price he paid for each house in order to need an “official residence.”
[/quote]
You are wrong.[/quote]I second that. Completely wrong.
If you sell a property that is not your primary residence you will owe taxes on any gain.
If you sell a property that is your current residence, but previously was a rental you will owe some taxes as well, based on a prorated percentage of how much time it was not your primary residence (as of 2009, when the law changed).
The best summary of the tax laws involved that I have found are here:
http://firstexchange.com/March2012Newsletter
Beware other sources of info that were written before the 2009 law took place.
April 8, 2013 at 2:12 PM in reply to: Buying the home I’m renting-Section 1 clearance and repair questions #761094ParticipantTermite section 1 clearance is a racket.
Anyway, you have some leverage as the buyer, but here are my thoughts.
1. Negotiate whatever amount you can get from the seller.
2. The actual eventual cost of the bathroom repairs is not as important as what another buyer would pay for the same house in the same condition.
If the house were on the open market, would somebody pay more than you are paying for the house ?
Is it in a high-demand area ?
If you are getting a sweet deal, then use this damage as leverage, but don’t lose out on a sweet deal over $10k. You may not get what it takes to repair the bathroom, but if your overall price you paid minus whatever seller concessions you can get is worth making the deal…. then make the deal.
April 8, 2013 at 2:07 PM in reply to: Buying the home I’m renting-Section 1 clearance and repair questions #761093ParticipantThis reminds me …
When we sold our house in 2005, we received a quote from termite company that included a line item of $1200 to repair damage on our deck. This was in addition to treatment (tenting ) and couple of minor repairs on the house fascia boards.They ended up replacing a single board on the deck.
I was pissed, but they had me over a barrel since I needed to close and was not going to fret over $1200 when the house was over $800K… It was Spring 2005 and I didn’t want to delay and lose the buyer… But I’m still pissed.
April 5, 2013 at 12:19 PM in reply to: Tons of inventory in San Diego, none in Orange County #761043Participant“Why the huge difference ?”
Simple: OC is more expensive than SD county.
Sometimes, the simplest explanation is the best.
The median price for SD County is ~ 400k
The Median price for OC is ~ 530kSO, it’s no surprise really that if you restrict your sites to under $400 k there is less desirable inventory in OC compared to SD.
ParticipantMy first vacancy was the longest … took about 5 weeks to fill (that was in the early 2000’s).
After that we’ve always priced on the low side, advertised before it was vacant, usually 3 or 4 weeks ahead and have always had a rental agreement before it was empty. Of course in most of those cases the place was vacant for 1-3 weeks due to post-move-out/pre-move-in painting, etc and/or timing of the desired move-in.
Again, it will depend on many things you cannot really control and some things you can.
You can’t control the size of unit, location, or it’s overall condition (OK, you can control that somewhat, but probably not cost effective to gut-remodel, etc)Your only real levers are price and terms
Terms might include pets and lease flexibility (e.g. allow 6-12 month).I’ve found that if I allow pets I often lease it quickly at a good rate. Of course, if my property were pristine I wouldn’t allow pets, but its condition is suitable for pets.
March 22, 2013 at 8:12 AM in reply to: OT: No Surprise. . .A Retirement Crisis is Coming to a Country Near You. . . #760827ParticipantBG –
I consider myself neither an X-er or a Baby boomer (I was born in a year that has been ascribed to both generations, depending on who is defining it.) SO, I am not taking any side here.
I am just rebutting your revisionist view of history that Baby Boomers were frugal folks who lived within their means and wore one pair of Levi’s jeans for 10 years and drove their crappy chevy with roll-up windows for 20 years.
They were a selfish, entitled generation relative to their predecessors, just like virtually every generation has been in this country since it was founded.
March 21, 2013 at 9:25 AM in reply to: OT: No Surprise. . .A Retirement Crisis is Coming to a Country Near You. . . #760792ParticipantArticle on Gen Y
“So is this the Laziest Generation? There are signs that its members benefit from lower standards. Technology has certainly made life easier. But there may also be a generation gap; the way young adults work is simply different.
It’s worth remembering that to some extent, these accusations of laziness and narcissism in “kids these days” are nothing new — they’ve been levied against Generation X, Baby Boomers and many generations before them. Even Aristotle and Plato were said to have expressed similar feelings about the slacker youth of their times.”
March 21, 2013 at 9:23 AM in reply to: OT: No Surprise. . .A Retirement Crisis is Coming to a Country Near You. . . #760791ParticipantOther historical views on Boomers …
“Frankly and unapologetically materialistic”
– – – –
“As the recession of the early 1980s gave way to economic boom times, success American style began to occupy the pedestal baby boomers had once reserved for social justice. Raised during the great period of American prosperity and influenced by the turning inward of the “Me Decade” of the 1970s, many baby boomers responded enthusiastically in the 1980s to Republican calls for reinvigorating the U.S. economy.
Gary Hart’s presidential campaign in 1984 labeled these baby boomers “yuppies” (young urban professionals), and the name stuck. Frankly and unapologetically materialistic, they focused on careers and the good life promised by the American Dream. Defined by one research group as people between the ages of twenty-five and thirty-nine, with incomes of at least $40,000 from a professional or management job, yuppies were estimated in 1984 to be 4 million strong—and three times more likely than other Americans to have an American Express card. ”
March 21, 2013 at 9:14 AM in reply to: OT: No Surprise. . .A Retirement Crisis is Coming to a Country Near You. . . #760790ParticipantMarch 21, 2013 at 9:07 AM in reply to: OT: No Surprise. . .A Retirement Crisis is Coming to a Country Near You. . . #760789Participant[quote=bearishgurl]
FSD, that “me” generation of the ’70’s wore the same 2-3 pairs of levis for 8-10 years (with the worn places patched up and even fabric bottoms sewn on). They didn’t have access to a plethora of “designer jeans”
[/quote]
What about Jordache Jeans ?
The designer jean craze was powered by boomer consumers in the late 70’s and early 80’s.
I think you hold a very narrow view of history, heavily influenced by your personal experiences. I don’t think your personal experience reflects the entire generation, and in some ways is counter to the mainstream boomers.
The Car comparison is interesting..
What do you think previous generations thought about the boomers all driving around in their fancy automobiles, as teenagers, no less. Those greatest generation people had to walk to school uphill in the snow both ways. They didn’t have a car at all.And as for electronics… Those spoiled boomers have color TV for chrissakes. If you are going to make these comparisons between Gen Y and boomers, you should consider the same comparison between boomers and and the generation or two before them.
I am pretty sure if there were such thing as a blog site like this one 30 years ago, there would be some person from the Greatest Generation claiming how the kid’s of the 60s and 70s are rotten, self-absorbed narcissistic spoiled brats, with their cars, color TVs, disco pants, Jordache Jeans, blah blah blah
March 20, 2013 at 11:44 AM in reply to: OT: No Surprise. . .A Retirement Crisis is Coming to a Country Near You. . . #760747Participant[quote=bearishgurl]
I don’t see a terrible catastrophe on the horizon with boomers being able to retire. Like myself, most lived below their means (during some periods of their life FAR below their “means”) in order to amass savings.
[/quote]I think you might be projecting your own habits and frugality onto the boomer generation.
I seem to remember boomers as the “me” generation in the 70’s and the “greed is good” generation in the 80’s.
“Baby boomers — those born between 1946 and 1964 — have been described as “the pig in the python” and the “sandwich generation.”
They lived well, grew up in relative abundance and, some say, expected their Social Security, health care and government support to be there as they grew old.
Baby boomers grew up during relative prosperity, from the economic boom of the post-World War II ’50s to the “Me” generation of the ’60s through the lucrative uptick in the Reagan ’80s. And then there were the budget surpluses they enjoyed during the Clinton ’90s.
As a result, many were able to buy second homes, take out loans at low interest rates, buy cheap gas and pump money back into the economy.
Participant[quote=spdrun]All I can say is that I’d rather cut off my sack with a rusty Cossack dagger than be subjected to HOA board rules in a detached house (different story for a condo in an apartment building, of course).[/quote]
I have to agree 100%.
Also, the suggestions by the OP sound pretty naive. It’s as if the author assumes that construction time lines are predictable, on-time, and controlled by the owner. That’s hilarious.
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