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no_such_reality
Participant706 1 bedrooms under $1000.
227 1 bedrooms under $800.
A quick search of Craigslist shows 706 1+ bedroom places for rent under $1000.
Is the problem your friend can’t find a place or is the real problem she can’t find a place in the small neighborhood area she wants?
Rents in general are all over the map with wishlist pricing from the owners.
2 Bedrooms show the same split
617 Under $1300.
187 Under $1000.If your friend is looking short term on top of it, it’ll be even more expensive, and finally, if she is short on time, she’ll get squeezed and need to take one of the over-priced places that is remaining empty instead of taking on the places that is turnover at a reasonable rate.
ParticipantIt’s about a 1/2 mile from downtown Fullerton, which is attempting to gentrify. But basically, it’s like Anaheim, Garden Grove, any of the North Orange county cities.
It’s also a 1/2 mile to Fullerton U. A 1/2 mile to south is the Santa Fe train tracks which are busy and it splits and wraps around a 1/2 mile to the west and goes northeast becoming a Union Pac line.
It’s also about a 1-1.5 mile to the I5, 91 and 57 freeways, west, south and east respectively.
ParticipantPure stupidity.
It’s not pure evil, it’s blatant stupidity on the part of the lenders. Yes, the crooks shouldn’t be doing it, but if you leave your car with the keys in it overnight at the beach, are you really surprised if it is gone in the morning?
ParticipantThe raw number is an increase. That’s the nice thing about statistics, they’re like a bikini. A good bikini does magic. And like a bikini, what you don’t openly see is what’s usually really important.
In this case, the raw rent number for large complexes has increased. That’s a given. But, if the increase is only 6.1%, and the large complexes have been massively supplemented by bigger, larger, resort style complexes (think The Village Link Irvine Apartment’s new flagship)
That’s all IAC has built for the last four years are places like that and they are still showing only a 6.1% increase.
ParticipantCan’t close the gap.
income and rents a chance to catch up.
Orange County’s median single family detached home is $679,000. With GRM multiplier of 13, means the median home needs $58,000 a year in rent, currently, the median housedhold income is ~$60,000 in Orange County.
That’s a tad bit of a problem to overcome, to drive equivalent rent value to a normal level of income share (30%) will require a tripling of income. At 5% a year in average income increases, it’ll take 25 years.
ParticipantO.C. rental rates push up 6.1% in third quarter
in the year ended in the third quarter, RealFacts reported last week. The typical rent at a large complex is now $1,494 – up $88 in a year.I’ll contend that statistic actually shows that rents is falling.
If you consider the fact that the only properties being built at high-end luxury executive resort type properties, with complete health club facilities a 6.1% increase means existing non-resort properties are maintaining their pricing at best.
October 21, 2006 at 7:30 AM in reply to: Bressi Ranch…16 new homes to be auctioned off 10/21/06 #38122ParticipantI was thinking of coming down, but won’t make it. Can you please report the following back to the group?
How many qualified bidders with paddles?
Starting and final bids on each house?
Whether or not the bid met minimum on each house?Also, just curious, are you pre-qualified bid? I was wondering if they’d let you in if you don’t have a bidding paddle, hence my reason not to make the trip.
As a side note, Bressi has a $205/HOA aleady and a 1.38% to 1.50+% property tax rate. That adds roughy $1500/month in HOA and taxes to the monthly mortgage at their supposed value.
October 21, 2006 at 7:05 AM in reply to: What if the glum and doomers are right, but nothng crashes #38121Participanteconomy has been stale and stagnant
The economy isn’t stale and stagnant. The labor employment market is strong but extremely finicky. Also, like falling gas prices with strong supply, prices have fallen because the corporations have discovered a 2.2 billion person reserve that is fighting like made to have the skills needed to serve in the companies.
With globalization, the era again has shifted for the American worker, first from agrarian to industrial, then industrial to white collar service, now from service to talent.
The hardest part to realize is that even though you’re a highly skilled, highly educated, accomplished professional, if you’re just a doer, you’re a commodity. Two billion people can do, much fewer can create.
ParticipantI never did get that. Why everybody crowds into the IE. I mean, once you’re in the California high-desert, why not just go to Nevada, Arizona, Utah, New Mexico, Texas? Why put up with California’s prices, crowds, tax and problems when you’re living in the desert?
ParticipantWhat’s an FB? A Property Management firm?
The key for me seems to be finding a single home or unit, with a single owner that is self managing the property. You get in, pay the rent, they leave you alone.
Complexes suck, even the “luxury” or “executive” ones are one step away from a college dorm for noise and hassle.
Private homes run by a PM firm are marginally better. They still seem to want to churn or bilk you at lease expiration. Plus, bang for the buck seems poor typically with the units on their eventual way to slum status.
In OC, the three best resources for finding individual homes are the paper individual want ads, penny-saver and craigslist. A simple discussion with the owner will clarify what their plans are. They seem more willing to talk with you if they know you’ve owned before.
October 19, 2006 at 7:17 PM in reply to: Bressi Ranch…16 new homes to be auctioned off 10/21/06 #38052ParticipantAN, it depends on the reserve and I understand the purpose, in the event the event has too little interest, the seller doesn’t let it go for 10 cents on the dollar.
However, in the current market, I suspect the reserve is really just about the buyers asking amount at this time and in sense, means the auction is a waste of time. For the small auction near me, I suspect the reserve is in actuality, 80-90% of their current asking price that they haven’t been able to get for the last several months.
Since the Bressi is larger, hopefully, their reserve since there are several properties is lower.
October 19, 2006 at 4:30 PM in reply to: Bressi Ranch…16 new homes to be auctioned off 10/21/06 #38045ParticipantWhat’s the reserve on the auction. There’s a small development in Huntington Beach, like 9 units total, 3 of the big ones remaining $1.6-1.9M that are being auctioned on Nov 4th. Two have reserves, one doesn’t.
If the auction has a reserve, IMHO, it’s not an auction.
It’s basically a ploy to make people think they’re getting a deal when really, they’re just hitting the sellers min-bid.
Participant“What the current slew of sellers conveniently forgets is that they could not afford”
Actually, that’s the key point. If you aren’t moving out of state or moving to different place for a real reason (not enough bedrooms for the kids etc.), all you’re doing is raising your tax rate.
If the non-seller didn’t leave, all he’s going to accomplish is raising his property taxes from $1000/yr. to over $5000 a year for a similar place.
ParticipantThink corporate bonds.
The multiple shifts for a variety of reasons, the main one being quality of cash flow.
The “quality” of the cash flow from highest quintile economic segment, dollar for dollar is perceived to be a higher quality (more likely to be paid, paid on time, with less unexpected expense) than the same dollar from the lowest quintile.
Basically, the same kind of thing as corporate bonds. Because of the kinds of tenants and the price range of La Jolla, a $1000 of rent get’s Aaa bond pricing (low return per $ of capital), the same $1000 of rents in say Rancho Bernardo maybe get Aa bond rating and a rough section of town gets B or Bb bond rating (higher face value of return per $ of capital).
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