Forum Replies Created
-
AuthorPosts
-
no_such_reality
ParticipantThe San Diego Recorder hasn’t gotten it yet. A lot of money for a little 3/1. At least it’s an SFR.
Hmm, 45XX Vista St. (the next block over in the neighborhood) is same configuration and slightly larger, listed as sold 3/7/07 for $584K.
double Hmm, go the next block west and you get to Biona Ave.
46XX Biona Ave is a 3/1 and a little larger, listed as sold twice on zillow, once on 1/19/2007 for $509K and then one week later 1/25/07 for $629K. (Maybe that’s a foreclosure and REO flip).ParticipantAll you need can be found here…
Well, I wouldn’t have posted a link, but in general SDAppraiser is right.
If you need to get over someone, get over someone else. 😉
And as others said, stop the let’s be friends junk.
ParticipantAren’t buyers foolish to go along with large credits? They will have to pay higher RE taxes for years to come
1% of $50,000 is $500.
Hmm, I get $50,000 today. And pay an extra $500 on the taxes at the end of year. And next year, and year after that…
Care to calculate the NPV on that cash flow base on inflation? Hint, assuming they spend $30,000 of it and the rest just earns enough to pace inflation, breakeven on the NPV is just short of 55 years out. If they don’t do anything with it, the $20,000 pays the taxes for 30 years.
ParticipantSounds like the new American dream, $300 to live in a house for year.
Okay, okay, make it fun, make the first mortage payment and then stop. Then when they call tell’em you got laid off but are scrapping the money together, then drag it out 90 days, then answer their letter saying you got a new job and can start making payments again but can’t afford the back payments and need to push them out, drag out the negotiations, don’t make a payment, when they finally get to something that requires a payment, tell’em you got fired again. Then wait.
Eventually they’ll kick you out, but I’m guessing you can live there a year or more for less than $100/month. What are they going to do? Screw up your credit rating?
ParticipantWhen I bought it, it would have been slightly cashflow positive from a rental standpoint, after a 20% down payment and including HOA, taxes, etc.
That’s the basis of cashflow investing. If the cashflow isn’t covering your expenses, there isn’t any 12% return.
If it isn’t a rental, there isn’t any 12% return unless you happen into a bubble market.
The key, whether you refi or not, is that someone else actually covers all the expenses of the leverage.
Since you said freakishly overvalued, I suspect you realize just how far most ‘homes’ need to fall to be cashflow positive on their induced expenses.
I suspect it will go there again, I’m not sure how quickly, nor am sure just how much psychological and economic carnage is going to result from that kind of landing.
ParticipantIt used to be that the rule of thumb was $1000/month carrying cost (including taxes & maintenance) for each $100,000 borrowed. Exotic loans and teaser rates changed that.
PC I think you’re confusing the 1% rule. When the monthly rent collected get’s to 1% of the purchase price of the home(SFR), you can expect to get cash flow positive. Anything less and you are cashflow negative draining money from yourself.
For condos, high mello-roos and HOA areas that is slightly higher due to the extra fees. (Some argue that it cancels in slightly less maintenance).
ParticipantThis was covered a couple weeks ago when the original smartmoney article came out.
The real benefit of renting is it keeps you from over-consuming housing. You don’t get a three bedroom until you need a three bedroom. People are content renting a one bedroom but typically want to buy a 3/2.
You change jobs, you change rentals and still have a 7 minute commute. Big house filled with stuff? Nope. A small kitchen set, living set and bedroom set. No dining room collecting dust. No need for four TVs in the living room, family room, kitchen counter and bedroom. etc. & so on.
Transaction costs in buying RE makes it like signing a 3 or 4 year lease. ( how many people willingly sell multi-year leases without significant discounts?). Unless you need a 3/2, 4/2+ with yard, there’s little reason to get one everything else, is simply more available as a rental.
ParticipantOf course, not working where fraud is being openingly committed apparently never crossed her mind.
May 6, 2007 at 1:34 PM in reply to: “Those who say the prices are going to go down 50 percent are just yahoos who are not looking at the whole picture,” #51944ParticipantGov is going to try to address this housing loan issue and going to try a bailout. It’s not going to help everyone, but just a small percentage enough so that politicians can say “they did something for the average joe”….
I’m opposed, but if they attempt to bail out it won’t really be that much skin off my back, ( just more of the skin I’ve lost on the corruption on Katrina aid, Halliburton funding for the war, and the S&L debacle). We can debate whether should or shouldn’t, how much they will, etc, but in the end, it’s all going to be lip-service and have no affect on the market.
The percentage that they can help is so small that’s it’s basically immaterial to the overall affect on the market. You can’t take the strawberry pickers in NorCal with $70/80K of combined income and keep them in a loan worth $720,000, plus property taxes, etc.
In the end, everybody they “help” will merely be saddled with a loan they can barely afford that is worth 30% more than they can sell their home for. They’ll be endentured servants servicing the loan.
In the end, what they’ll really scream for is to have foreclosure removed from the credit record sooner.
ParticipantYeah, I suspect what we’ll see is a loan reform like we just saw credit card and bankruptcy reform.
In the end, they’ll doa bail out, it’ll be a spit in bucket that helps a few out that were not really over extended, just in a stupid option ARM because that’s what made the broker money and can afford the real fixed 30 year rate.
The rest simple, cannot be helped. It isn’t a matter of wanting to or not, it’s a matter of you just can’t make it work. Many are so over-extended that they can’t cover long term market interest charges. There’s no extending around that.
May 4, 2007 at 9:03 AM in reply to: Outstanding housing market analysis at National City bank #51833ParticipantSo looking at 1985 to 2006, basically, ten years of up bubble pricing and 5 years of down pricing, and calling that “normal” they still conclude that prices are over-valued.
ParticipantBleech, a circa 1975 fixer for $485K, egads. I’m claustrophobic looking at the photos, what are those ceilings, 7 foot?
It’s worth half that and then you still need to back out the upgrade costs you’ll have to do.
ParticipantGot to disagree. Her “Jump the Shark” post was Did This Really Happen
The lack of logical analysis is painfully obvious.
May 3, 2007 at 1:03 PM in reply to: “Those who say the prices are going to go down 50 percent are just yahoos who are not looking at the whole picture,” #51737ParticipantSchool teachers and firefighters being able to afford entry-level housing? And, god forbid, HAVE ENOUGH MONEY LEFT OVER TO RAISE A FAMILY?
Wow, you’re under estimating what teachers and firefighters make, they can afford homes NOW.
-
AuthorPosts
