[gn]

It sounds like you managed to avoid the following (which are very bad for your finances):

1. Live beyond your means.
2. Pay too much interest to credit card companies.

The next step would be:

– Keep on saving toward a 20% down payment. It only “seem” to take forever. If you are determined & patient you’ll get there.

In some ways, you are in a very good position. That is, prices will take a few years to bottom out and it takes you a few more years to save for the down payment. Home price is going down & your savings is going up. What else can you ask for ?

>> I guess the long and short is I’ve always wanted a place of my own

It’s better to be late in reaching your goal than to be in a hurry and buying before you are ready. Many folks bought before they are ready & had to use adjustable mortgages to buy. They are now facing the consequences.

[gn]

It sounds like you managed to avoid the following (which are very bad for your finances):

1. Live beyond your means.
2. Pay too much interest to credit card companies.

The next step would be:

– Keep on saving toward a 20% down payment. It only “seem” to take forever. If you are determined & patient you’ll get there.

In some ways, you are in a very good position. That is, prices will take a few years to bottom out and it takes you a few more years to save for the down payment. Home price is going down & your savings is going up. What else can you ask for ?

>> I guess the long and short is I’ve always wanted a place of my own

It’s better to be late in reaching your goal than to be in a hurry and buying before you are ready. Many folks bought before they are ready & had to use adjustable mortgages to buy. They are now facing the consequences.

[gn]

Surprise, surprise !

Once again, Alex is making himself looking like a fool 🙂

[gn]

Surprise, surprise !

Once again, Alex is making himself looking like a fool 🙂

[gn]

Surprise, surprise !

Once again, Alex is making himself looking like a fool 🙂

[gn]

Navydoc, very well said.

And this is the point that a guy named Cyphire (who has a lot of money, but decided to rent in La Jolla instead of buying) was making too.

For most people, whose assets is less than $5M. Losing a few hundred thousands dollars is going to hurt them.

[gn]

Navydoc, very well said.

And this is the point that a guy named Cyphire (who has a lot of money, but decided to rent in La Jolla instead of buying) was making too.

For most people, whose assets is less than $5M. Losing a few hundred thousands dollars is going to hurt them.

[gn]

Navydoc, very well said.

And this is the point that a guy named Cyphire (who has a lot of money, but decided to rent in La Jolla instead of buying) was making too.

For most people, whose assets is less than $5M. Losing a few hundred thousands dollars is going to hurt them.

[gn]

Yeah, they are the poor people that can't afford to live here. People with money are moving here.

Alex, why don't you put your money where your mouth is & buy. I think prices will collapse, so I'm renting. I walk the talk. You should do the same thing 🙂

Actions speak louder than words 🙂

[gn]

Yeah, they are the poor people that can't afford to live here. People with money are moving here.

Alex, why don't you put your money where your mouth is & buy. I think prices will collapse, so I'm renting. I walk the talk. You should do the same thing 🙂

Actions speak louder than words 🙂

[gn]

Yeah, they are the poor people that can't afford to live here. People with money are moving here.

Alex, why don't you put your money where your mouth is & buy. I think prices will collapse, so I'm renting. I walk the talk. You should do the same thing 🙂

Actions speak louder than words 🙂

[gn]

Anyways, my point was that there are families here, not flippers.

I think what Arty was trying to say is: most of these people probably used ARMs to buy. Sooner or later these mortgages will reset. These families may want to stay a long time, but the rise in mortgage payments may preclude that.

[gn]

Anyways, my point was that there are families here, not flippers.

I think what Arty was trying to say is: most of these people probably used ARMs to buy. Sooner or later these mortgages will reset. These families may want to stay a long time, but the rise in mortgage payments may preclude that.

[gn]

Anyways, my point was that there are families here, not flippers.

I think what Arty was trying to say is: most of these people probably used ARMs to buy. Sooner or later these mortgages will reset. These families may want to stay a long time, but the rise in mortgage payments may preclude that.

[gn]

When you said "sell out quick", I think you meant "Pardee has buyers lined up for all of the lots in the phase".

Whether these buyers will/can follow through when the homes are built is a different matter.

Now that most lenders are shying away from exotic mortgages & that jumbo loans are more difficult to qualify for, I would expect a good percentage of these buyers will not be able to close escrow 6 months from now.

By then, Pardee will have to find away to sell those houses & you'll have more negotiating power.

I am puzzled on how quickly they are selling in this down market

It's perception vs. reality.

Perception: housing look hot

Reality: many buyers will not get the loans they need. They just haven't realize it yet.

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