[goblue]

Thanks again for all of the feedback. To address a few comments:

1. UCgal – Yes, this is a long term decision, which to me is 10+ years. We have no children yet, but this home easily works for a family. We have no intention of relocating anytime soon or using it as a stepping stone to a bigger and better home. Part of the problem is you never no what life will throw at you and how decisions affect your future, which is why I posted in the first place.

2. Patientrenter – If I had to sell sooner than I anticipate due to unforseen circumstances and lose 20%-30%, I certainly would not be happy (who would?). However, to answer your question, as I am only in my mid 30’s and have an ample net worth, it may slightly change but certainly not crush my retirement plans or my quality of life. I don’t think anyone makes a purchase with the intent to lose that kind of money, though. I believe most home buyers expect to make some appreciation over the long term on their homes when they sell. The difference is the metrics changed during the housing boom and incorrectly promised ridiculous returns from previous generations. All my rent vs buy models that I have run have me breaking even in 4.5 years and that is based on 1% annual appreciation. Obviously, if I am down 20% out of the gate, that 1% may not be attainable over a 10 year hold. That is the million dollar variable.

3. Flu – I grew up in NY, but I have lived in different areas of CA and have always liked SD the best. No more haggling on the house as they already accepted my offer and that was a struggle in itself. For us, due to time contraints it is either take this one by tommorow (of course I have 17 days to walk away after start of escrow) or start looking for another rental.

4. SD Realtor – No apologies necessary. Good advice and yes, I have looked at the comps and the recent sales in birdrock average around $700 psf. However, the comps are located closer to the coast by a few blocks. Even with location adjustments, this would imply that I am still getting a pretty good deal at $575 psf for a home that needs no work. What keeps bothering me though is that after all the housing crashes, the owners are still getting 30% return over a 6 year hold. That is driving me crazy. To answer your second question, my broker of course thinks this is a good time to buy in birdrock as he believes it has been a hot area in contrast to past years when birdrock was not so popular. To his credit he states as most of you do, that if this is just a 3-4 year purchase I should not do it. If I am thinking 7+, then we have hit a pocket of price reductions and low interest rates that provide a good opportunity. Additionally, of all the homes in La Jolla that we have seen at <$1.4, this house is by far the best. We saw one at listed $2 million that we liked more, but not at $700k more. 5. Flyer - You are very accurate. My line of work is analyzing financial data, which makes purchasing anything quite difficult. It is my albatross because I crunch numbers on everything and it drives my wife crazy. I am not cheap in any way, but no large decisions escape the spreadsheets. To me the prudent thing to do is to move and keep renting and see what happens whereas my heart says this home works well for us and just live life and don't worry about. We will see who wins. Although, for what it is worth it seems if everyone was in my shoes, the majority would deal with moving/renting again and wait it out. I appreciate this forum for allowing me to talk this out.

[goblue]

Thanks again for all of the feedback. To address a few comments:

1. UCgal – Yes, this is a long term decision, which to me is 10+ years. We have no children yet, but this home easily works for a family. We have no intention of relocating anytime soon or using it as a stepping stone to a bigger and better home. Part of the problem is you never no what life will throw at you and how decisions affect your future, which is why I posted in the first place.

2. Patientrenter – If I had to sell sooner than I anticipate due to unforseen circumstances and lose 20%-30%, I certainly would not be happy (who would?). However, to answer your question, as I am only in my mid 30’s and have an ample net worth, it may slightly change but certainly not crush my retirement plans or my quality of life. I don’t think anyone makes a purchase with the intent to lose that kind of money, though. I believe most home buyers expect to make some appreciation over the long term on their homes when they sell. The difference is the metrics changed during the housing boom and incorrectly promised ridiculous returns from previous generations. All my rent vs buy models that I have run have me breaking even in 4.5 years and that is based on 1% annual appreciation. Obviously, if I am down 20% out of the gate, that 1% may not be attainable over a 10 year hold. That is the million dollar variable.

3. Flu – I grew up in NY, but I have lived in different areas of CA and have always liked SD the best. No more haggling on the house as they already accepted my offer and that was a struggle in itself. For us, due to time contraints it is either take this one by tommorow (of course I have 17 days to walk away after start of escrow) or start looking for another rental.

4. SD Realtor – No apologies necessary. Good advice and yes, I have looked at the comps and the recent sales in birdrock average around $700 psf. However, the comps are located closer to the coast by a few blocks. Even with location adjustments, this would imply that I am still getting a pretty good deal at $575 psf for a home that needs no work. What keeps bothering me though is that after all the housing crashes, the owners are still getting 30% return over a 6 year hold. That is driving me crazy. To answer your second question, my broker of course thinks this is a good time to buy in birdrock as he believes it has been a hot area in contrast to past years when birdrock was not so popular. To his credit he states as most of you do, that if this is just a 3-4 year purchase I should not do it. If I am thinking 7+, then we have hit a pocket of price reductions and low interest rates that provide a good opportunity. Additionally, of all the homes in La Jolla that we have seen at <$1.4, this house is by far the best. We saw one at listed $2 million that we liked more, but not at $700k more. 5. Flyer - You are very accurate. My line of work is analyzing financial data, which makes purchasing anything quite difficult. It is my albatross because I crunch numbers on everything and it drives my wife crazy. I am not cheap in any way, but no large decisions escape the spreadsheets. To me the prudent thing to do is to move and keep renting and see what happens whereas my heart says this home works well for us and just live life and don't worry about. We will see who wins. Although, for what it is worth it seems if everyone was in my shoes, the majority would deal with moving/renting again and wait it out. I appreciate this forum for allowing me to talk this out.

[goblue]

Thanks again for all of the feedback. To address a few comments:

1. UCgal – Yes, this is a long term decision, which to me is 10+ years. We have no children yet, but this home easily works for a family. We have no intention of relocating anytime soon or using it as a stepping stone to a bigger and better home. Part of the problem is you never no what life will throw at you and how decisions affect your future, which is why I posted in the first place.

2. Patientrenter – If I had to sell sooner than I anticipate due to unforseen circumstances and lose 20%-30%, I certainly would not be happy (who would?). However, to answer your question, as I am only in my mid 30’s and have an ample net worth, it may slightly change but certainly not crush my retirement plans or my quality of life. I don’t think anyone makes a purchase with the intent to lose that kind of money, though. I believe most home buyers expect to make some appreciation over the long term on their homes when they sell. The difference is the metrics changed during the housing boom and incorrectly promised ridiculous returns from previous generations. All my rent vs buy models that I have run have me breaking even in 4.5 years and that is based on 1% annual appreciation. Obviously, if I am down 20% out of the gate, that 1% may not be attainable over a 10 year hold. That is the million dollar variable.

3. Flu – I grew up in NY, but I have lived in different areas of CA and have always liked SD the best. No more haggling on the house as they already accepted my offer and that was a struggle in itself. For us, due to time contraints it is either take this one by tommorow (of course I have 17 days to walk away after start of escrow) or start looking for another rental.

4. SD Realtor – No apologies necessary. Good advice and yes, I have looked at the comps and the recent sales in birdrock average around $700 psf. However, the comps are located closer to the coast by a few blocks. Even with location adjustments, this would imply that I am still getting a pretty good deal at $575 psf for a home that needs no work. What keeps bothering me though is that after all the housing crashes, the owners are still getting 30% return over a 6 year hold. That is driving me crazy. To answer your second question, my broker of course thinks this is a good time to buy in birdrock as he believes it has been a hot area in contrast to past years when birdrock was not so popular. To his credit he states as most of you do, that if this is just a 3-4 year purchase I should not do it. If I am thinking 7+, then we have hit a pocket of price reductions and low interest rates that provide a good opportunity. Additionally, of all the homes in La Jolla that we have seen at <$1.4, this house is by far the best. We saw one at listed $2 million that we liked more, but not at $700k more. 5. Flyer - You are very accurate. My line of work is analyzing financial data, which makes purchasing anything quite difficult. It is my albatross because I crunch numbers on everything and it drives my wife crazy. I am not cheap in any way, but no large decisions escape the spreadsheets. To me the prudent thing to do is to move and keep renting and see what happens whereas my heart says this home works well for us and just live life and don't worry about. We will see who wins. Although, for what it is worth it seems if everyone was in my shoes, the majority would deal with moving/renting again and wait it out. I appreciate this forum for allowing me to talk this out.

[goblue]

Thanks again for all of the feedback. To address a few comments:

1. UCgal – Yes, this is a long term decision, which to me is 10+ years. We have no children yet, but this home easily works for a family. We have no intention of relocating anytime soon or using it as a stepping stone to a bigger and better home. Part of the problem is you never no what life will throw at you and how decisions affect your future, which is why I posted in the first place.

2. Patientrenter – If I had to sell sooner than I anticipate due to unforseen circumstances and lose 20%-30%, I certainly would not be happy (who would?). However, to answer your question, as I am only in my mid 30’s and have an ample net worth, it may slightly change but certainly not crush my retirement plans or my quality of life. I don’t think anyone makes a purchase with the intent to lose that kind of money, though. I believe most home buyers expect to make some appreciation over the long term on their homes when they sell. The difference is the metrics changed during the housing boom and incorrectly promised ridiculous returns from previous generations. All my rent vs buy models that I have run have me breaking even in 4.5 years and that is based on 1% annual appreciation. Obviously, if I am down 20% out of the gate, that 1% may not be attainable over a 10 year hold. That is the million dollar variable.

3. Flu – I grew up in NY, but I have lived in different areas of CA and have always liked SD the best. No more haggling on the house as they already accepted my offer and that was a struggle in itself. For us, due to time contraints it is either take this one by tommorow (of course I have 17 days to walk away after start of escrow) or start looking for another rental.

4. SD Realtor – No apologies necessary. Good advice and yes, I have looked at the comps and the recent sales in birdrock average around $700 psf. However, the comps are located closer to the coast by a few blocks. Even with location adjustments, this would imply that I am still getting a pretty good deal at $575 psf for a home that needs no work. What keeps bothering me though is that after all the housing crashes, the owners are still getting 30% return over a 6 year hold. That is driving me crazy. To answer your second question, my broker of course thinks this is a good time to buy in birdrock as he believes it has been a hot area in contrast to past years when birdrock was not so popular. To his credit he states as most of you do, that if this is just a 3-4 year purchase I should not do it. If I am thinking 7+, then we have hit a pocket of price reductions and low interest rates that provide a good opportunity. Additionally, of all the homes in La Jolla that we have seen at <$1.4, this house is by far the best. We saw one at listed $2 million that we liked more, but not at $700k more. 5. Flyer - You are very accurate. My line of work is analyzing financial data, which makes purchasing anything quite difficult. It is my albatross because I crunch numbers on everything and it drives my wife crazy. I am not cheap in any way, but no large decisions escape the spreadsheets. To me the prudent thing to do is to move and keep renting and see what happens whereas my heart says this home works well for us and just live life and don't worry about. We will see who wins. Although, for what it is worth it seems if everyone was in my shoes, the majority would deal with moving/renting again and wait it out. I appreciate this forum for allowing me to talk this out.

[goblue]

Thanks again for all of the feedback. To address a few comments:

1. UCgal – Yes, this is a long term decision, which to me is 10+ years. We have no children yet, but this home easily works for a family. We have no intention of relocating anytime soon or using it as a stepping stone to a bigger and better home. Part of the problem is you never no what life will throw at you and how decisions affect your future, which is why I posted in the first place.

2. Patientrenter – If I had to sell sooner than I anticipate due to unforseen circumstances and lose 20%-30%, I certainly would not be happy (who would?). However, to answer your question, as I am only in my mid 30’s and have an ample net worth, it may slightly change but certainly not crush my retirement plans or my quality of life. I don’t think anyone makes a purchase with the intent to lose that kind of money, though. I believe most home buyers expect to make some appreciation over the long term on their homes when they sell. The difference is the metrics changed during the housing boom and incorrectly promised ridiculous returns from previous generations. All my rent vs buy models that I have run have me breaking even in 4.5 years and that is based on 1% annual appreciation. Obviously, if I am down 20% out of the gate, that 1% may not be attainable over a 10 year hold. That is the million dollar variable.

3. Flu – I grew up in NY, but I have lived in different areas of CA and have always liked SD the best. No more haggling on the house as they already accepted my offer and that was a struggle in itself. For us, due to time contraints it is either take this one by tommorow (of course I have 17 days to walk away after start of escrow) or start looking for another rental.

4. SD Realtor – No apologies necessary. Good advice and yes, I have looked at the comps and the recent sales in birdrock average around $700 psf. However, the comps are located closer to the coast by a few blocks. Even with location adjustments, this would imply that I am still getting a pretty good deal at $575 psf for a home that needs no work. What keeps bothering me though is that after all the housing crashes, the owners are still getting 30% return over a 6 year hold. That is driving me crazy. To answer your second question, my broker of course thinks this is a good time to buy in birdrock as he believes it has been a hot area in contrast to past years when birdrock was not so popular. To his credit he states as most of you do, that if this is just a 3-4 year purchase I should not do it. If I am thinking 7+, then we have hit a pocket of price reductions and low interest rates that provide a good opportunity. Additionally, of all the homes in La Jolla that we have seen at <$1.4, this house is by far the best. We saw one at listed $2 million that we liked more, but not at $700k more. 5. Flyer - You are very accurate. My line of work is analyzing financial data, which makes purchasing anything quite difficult. It is my albatross because I crunch numbers on everything and it drives my wife crazy. I am not cheap in any way, but no large decisions escape the spreadsheets. To me the prudent thing to do is to move and keep renting and see what happens whereas my heart says this home works well for us and just live life and don't worry about. We will see who wins. Although, for what it is worth it seems if everyone was in my shoes, the majority would deal with moving/renting again and wait it out. I appreciate this forum for allowing me to talk this out.

[goblue]

Thanks everyone for the feedback. There were a bunch of questions, that I thought I would address.

1. No, I do not work for a firm that received TARP funds. That is a nasty stigma these days, but you must remember 99% of the people in those firms are innocent bystanders who got hurt as well.

2. We currently live on a hill overlooking Birdrock now and really like the area. I work from home, so no commuting issues.

3. After 15 years in NYC, SD is a breath of fresh air. I actually love the small town feel and have no intentions of going back. I do miss my NY Giants games though.

4. I don’t know what your definition is of insanely wealthy is, but while I certaintly have no issues affording the home I don’t consider myself wealthy enough to blindy throw money away. This is a big decision for us and the difficult part is that it is a financial decision and a lifestyle decision. I am not approaching the home purchase as a personal ATM, which is partly what got the country into this mess in the first place. I would be more than happy with an average annual return of 1-2% over 10 years.

5. My wife wants the home because she believes we will happy there and after seeing 40 plus homes this was one of the only ones we liked. It also happened to be the least expensive. I on the other hand have a hard time in purchasing a depreciating asset, which is the reason for the original post. To be honest this whole dilemma is due to us having to vacate our current rental and our lack of interest in renting again.

6. SD Realtor – you stated that you believe I am overpaying. Is this belief on the current purchase price for a home in that area ($575 psf)or the speculation values will continue to decline? Because if you believe I am overpaying today and will have the furthur hit of a market decline that is a double whammy that will be tough to overcome.

Thanks again as I do value the insight.

[goblue]

Thanks everyone for the feedback. There were a bunch of questions, that I thought I would address.

1. No, I do not work for a firm that received TARP funds. That is a nasty stigma these days, but you must remember 99% of the people in those firms are innocent bystanders who got hurt as well.

2. We currently live on a hill overlooking Birdrock now and really like the area. I work from home, so no commuting issues.

3. After 15 years in NYC, SD is a breath of fresh air. I actually love the small town feel and have no intentions of going back. I do miss my NY Giants games though.

4. I don’t know what your definition is of insanely wealthy is, but while I certaintly have no issues affording the home I don’t consider myself wealthy enough to blindy throw money away. This is a big decision for us and the difficult part is that it is a financial decision and a lifestyle decision. I am not approaching the home purchase as a personal ATM, which is partly what got the country into this mess in the first place. I would be more than happy with an average annual return of 1-2% over 10 years.

5. My wife wants the home because she believes we will happy there and after seeing 40 plus homes this was one of the only ones we liked. It also happened to be the least expensive. I on the other hand have a hard time in purchasing a depreciating asset, which is the reason for the original post. To be honest this whole dilemma is due to us having to vacate our current rental and our lack of interest in renting again.

6. SD Realtor – you stated that you believe I am overpaying. Is this belief on the current purchase price for a home in that area ($575 psf)or the speculation values will continue to decline? Because if you believe I am overpaying today and will have the furthur hit of a market decline that is a double whammy that will be tough to overcome.

Thanks again as I do value the insight.

[goblue]

Thanks everyone for the feedback. There were a bunch of questions, that I thought I would address.

1. No, I do not work for a firm that received TARP funds. That is a nasty stigma these days, but you must remember 99% of the people in those firms are innocent bystanders who got hurt as well.

2. We currently live on a hill overlooking Birdrock now and really like the area. I work from home, so no commuting issues.

3. After 15 years in NYC, SD is a breath of fresh air. I actually love the small town feel and have no intentions of going back. I do miss my NY Giants games though.

4. I don’t know what your definition is of insanely wealthy is, but while I certaintly have no issues affording the home I don’t consider myself wealthy enough to blindy throw money away. This is a big decision for us and the difficult part is that it is a financial decision and a lifestyle decision. I am not approaching the home purchase as a personal ATM, which is partly what got the country into this mess in the first place. I would be more than happy with an average annual return of 1-2% over 10 years.

5. My wife wants the home because she believes we will happy there and after seeing 40 plus homes this was one of the only ones we liked. It also happened to be the least expensive. I on the other hand have a hard time in purchasing a depreciating asset, which is the reason for the original post. To be honest this whole dilemma is due to us having to vacate our current rental and our lack of interest in renting again.

6. SD Realtor – you stated that you believe I am overpaying. Is this belief on the current purchase price for a home in that area ($575 psf)or the speculation values will continue to decline? Because if you believe I am overpaying today and will have the furthur hit of a market decline that is a double whammy that will be tough to overcome.

Thanks again as I do value the insight.

[goblue]

Thanks everyone for the feedback. There were a bunch of questions, that I thought I would address.

1. No, I do not work for a firm that received TARP funds. That is a nasty stigma these days, but you must remember 99% of the people in those firms are innocent bystanders who got hurt as well.

2. We currently live on a hill overlooking Birdrock now and really like the area. I work from home, so no commuting issues.

3. After 15 years in NYC, SD is a breath of fresh air. I actually love the small town feel and have no intentions of going back. I do miss my NY Giants games though.

4. I don’t know what your definition is of insanely wealthy is, but while I certaintly have no issues affording the home I don’t consider myself wealthy enough to blindy throw money away. This is a big decision for us and the difficult part is that it is a financial decision and a lifestyle decision. I am not approaching the home purchase as a personal ATM, which is partly what got the country into this mess in the first place. I would be more than happy with an average annual return of 1-2% over 10 years.

5. My wife wants the home because she believes we will happy there and after seeing 40 plus homes this was one of the only ones we liked. It also happened to be the least expensive. I on the other hand have a hard time in purchasing a depreciating asset, which is the reason for the original post. To be honest this whole dilemma is due to us having to vacate our current rental and our lack of interest in renting again.

6. SD Realtor – you stated that you believe I am overpaying. Is this belief on the current purchase price for a home in that area ($575 psf)or the speculation values will continue to decline? Because if you believe I am overpaying today and will have the furthur hit of a market decline that is a double whammy that will be tough to overcome.

Thanks again as I do value the insight.

[goblue]

Thanks everyone for the feedback. There were a bunch of questions, that I thought I would address.

1. No, I do not work for a firm that received TARP funds. That is a nasty stigma these days, but you must remember 99% of the people in those firms are innocent bystanders who got hurt as well.

2. We currently live on a hill overlooking Birdrock now and really like the area. I work from home, so no commuting issues.

3. After 15 years in NYC, SD is a breath of fresh air. I actually love the small town feel and have no intentions of going back. I do miss my NY Giants games though.

4. I don’t know what your definition is of insanely wealthy is, but while I certaintly have no issues affording the home I don’t consider myself wealthy enough to blindy throw money away. This is a big decision for us and the difficult part is that it is a financial decision and a lifestyle decision. I am not approaching the home purchase as a personal ATM, which is partly what got the country into this mess in the first place. I would be more than happy with an average annual return of 1-2% over 10 years.

5. My wife wants the home because she believes we will happy there and after seeing 40 plus homes this was one of the only ones we liked. It also happened to be the least expensive. I on the other hand have a hard time in purchasing a depreciating asset, which is the reason for the original post. To be honest this whole dilemma is due to us having to vacate our current rental and our lack of interest in renting again.

6. SD Realtor – you stated that you believe I am overpaying. Is this belief on the current purchase price for a home in that area ($575 psf)or the speculation values will continue to decline? Because if you believe I am overpaying today and will have the furthur hit of a market decline that is a double whammy that will be tough to overcome.

Thanks again as I do value the insight.

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