[kev374]

If you have a mortgage, the lender will probably require you to have homeowners insurance. The coverage amount only covers the cost to replace or rebuild the actual structure. They don’t insure the value of the land since it doesn’t burn.

Nothing ignorant about the post. The original speculation was that someone was seeking vengence because they were foreclosed upon or they are at the state where they are about to get foreclosed.

It is commonly known that many people in foreclosure destroy and deface their property before giving it to the bank. So speculating that some guy was so pissed that he said “f**k this whole neighborhood” and did something isn’t that hard to believe.

[kev374]

If you have a mortgage, the lender will probably require you to have homeowners insurance. The coverage amount only covers the cost to replace or rebuild the actual structure. They don’t insure the value of the land since it doesn’t burn.

Nothing ignorant about the post. The original speculation was that someone was seeking vengence because they were foreclosed upon or they are at the state where they are about to get foreclosed.

It is commonly known that many people in foreclosure destroy and deface their property before giving it to the bank. So speculating that some guy was so pissed that he said “f**k this whole neighborhood” and did something isn’t that hard to believe.

[kev374]

OMG, brilliant! That was hilarious, thanks for the laughs!! 😀

[kev374]

OMG, brilliant! That was hilarious, thanks for the laughs!! 😀

[kev374]

Few observations –

The stats are often repeated: The median Irvine household income is $83k/yr etc. etc. Does this equate to the median first time home buyer household income being $83k/yr? Of course not! I’m guessing a lot of these households are homeowners already and have more experienced workforce making more money.

What we should be concentrating is the first time buyer because he/she is what makes or breaks the market. A trade up buyer is chained to the first time buyer.

With the marriage age for high earning professionals these days being very late (mid 30s), i’m guessing our potential first time homeowner in his/her late 20s is more likely than not SINGLE and makes in the $50-75k/yr range. A late 20s/early 30s buyer is also most likely going ZERO DOWN, and interest only or possibly even NegAm. With those creative schemes now out the door and interest rates higher those buyers are all but gone!

The late 20s/early 30s folks these days are spending more than the previous generations did, they should have EVEN LESS to spend on a mortgage meaning lower affordability than historic norms. It also means higher delinquency for those who stretch, as is evidenced by the carnage happening right now. Increased job volatility in this past decade does not help the situation either.

Case in point: A friend of mine is a Business Analyst for a Fortune 500 company, she is a grad from UCI. Her starting salary was $42,000/yr and she is now, 2.5 yrs later at $47,500/yr. People DON’T make as much money as you think!!! We often infer income by looking at spending patterns which is obviously not the right way to guage it.

[kev374]

Few observations –

The stats are often repeated: The median Irvine household income is $83k/yr etc. etc. Does this equate to the median first time home buyer household income being $83k/yr? Of course not! I’m guessing a lot of these households are homeowners already and have more experienced workforce making more money.

What we should be concentrating is the first time buyer because he/she is what makes or breaks the market. A trade up buyer is chained to the first time buyer.

With the marriage age for high earning professionals these days being very late (mid 30s), i’m guessing our potential first time homeowner in his/her late 20s is more likely than not SINGLE and makes in the $50-75k/yr range. A late 20s/early 30s buyer is also most likely going ZERO DOWN, and interest only or possibly even NegAm. With those creative schemes now out the door and interest rates higher those buyers are all but gone!

The late 20s/early 30s folks these days are spending more than the previous generations did, they should have EVEN LESS to spend on a mortgage meaning lower affordability than historic norms. It also means higher delinquency for those who stretch, as is evidenced by the carnage happening right now. Increased job volatility in this past decade does not help the situation either.

Case in point: A friend of mine is a Business Analyst for a Fortune 500 company, she is a grad from UCI. Her starting salary was $42,000/yr and she is now, 2.5 yrs later at $47,500/yr. People DON’T make as much money as you think!!! We often infer income by looking at spending patterns which is obviously not the right way to guage it.

[kev374]

There is no need to wait for the absolute bottom because Real Estate is cyclical…as long as the price points make sense and you need to buy then go for it. Even if prices are 10% higher than the bottom I will buy, but since I believe prices are currently 100% overvalued I’m looking at least a 40% nominal correction before I even consider buying.

[kev374]

There is no need to wait for the absolute bottom because Real Estate is cyclical…as long as the price points make sense and you need to buy then go for it. Even if prices are 10% higher than the bottom I will buy, but since I believe prices are currently 100% overvalued I’m looking at least a 40% nominal correction before I even consider buying.

[kev374]

well, I’ve heard time and again how there are so many Asian entrepreneurs lapping up all these houses with cash payments… 😀

[kev374]

well, I’ve heard time and again how there are so many Asian entrepreneurs lapping up all these houses with cash payments… 😀

[kev374]

so what do you categorize as low, median and high income in Orange County? Not in terms of stats but in terms of your own personal experience with the people you’ve dealt with.

In terms of Real Estate I know a $100k/yr income will not buy you even the cheapest SFR at a 30yr fixed using a 10% down, conventional debt/income ratios and the current interest rate for jumbos.

[kev374]

so what do you categorize as low, median and high income in Orange County? Not in terms of stats but in terms of your own personal experience with the people you’ve dealt with.

In terms of Real Estate I know a $100k/yr income will not buy you even the cheapest SFR at a 30yr fixed using a 10% down, conventional debt/income ratios and the current interest rate for jumbos.

[kev374]

agreed, foresakencraft was one of the good blogs out there!!!

[kev374]

agreed, foresakencraft was one of the good blogs out there!!!

[kev374]

hasn’t everyone and his dog pretty much refied at least once? If so most have recourse debt.

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