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ocrenter
Participantgreat price, great location. schools are San Marcos but thats ok as the school district is making real progress.
this is classic case of buying in a newer neighborhood that has a lot of excess inventory and distressed properties. A lot of folks just instinctively look away, that’s when the astute shopper come in.
Don’t know about the quality of CityVenture construction. is the construction luxury class? wall? baseboard? raingutter? insulation?
Participant[quote=CA renter]
OCR,
The house at 2343 (w/2345) is a duplex with two 3/2 units on either side. The house at 2519 Levante was effectively a 3/2 (downstairs) with a *very nice* loft upstairs, but it is a 3/2 SFH (we had made an offer on it). The duplex would have been the better deal, and I believe the buyer of 2519 overpaid and will lose money if they need to sell it within the next ten years (obviously, they outbid us by a large margin).
The bolded part of your post is very important here, IMHO. This is exactly what I was referring to in my response to sdr — when interest rates are this low for this long, savers/cash holders will be MUCH more willing to part with their money than in a higher rate environment. Everyone who is throwing money around today is making a bet that interest rates will stay low for the duration, and/or are betting on inflation. I honestly see both sides of the inflation/deflation debate, and have always been conflicted about it. Right now, our position is entirely unhedged in favor of deflation (all cash), but I’d be lying if I said it doesn’t worry me.[/quote]
CAR, if you take a recently closed home with $/sqft close to $200, you’ll see the same result if it was sold in 2000.
as for inflation, this country’s survival will depend on inflation and low interest rate. without the low interest rate, the debt will simply be so overwhelming that we would go BK.
Participant[quote=CA renter]
OCR,
The house at 2343 (w/2345) is a duplex with two 3/2 units on either side. The house at 2519 Levante was effectively a 3/2 (downstairs) with a *very nice* loft upstairs, but it is a 3/2 SFH (we had made an offer on it). The duplex would have been the better deal, and I believe the buyer of 2519 overpaid and will lose money if they need to sell it within the next ten years (obviously, they outbid us by a large margin).
The bolded part of your post is very important here, IMHO. This is exactly what I was referring to in my response to sdr — when interest rates are this low for this long, savers/cash holders will be MUCH more willing to part with their money than in a higher rate environment. Everyone who is throwing money around today is making a bet that interest rates will stay low for the duration, and/or are betting on inflation. I honestly see both sides of the inflation/deflation debate, and have always been conflicted about it. Right now, our position is entirely unhedged in favor of deflation (all cash), but I’d be lying if I said it doesn’t worry me.[/quote]
CAR, if you take a recently closed home with $/sqft close to $200, you’ll see the same result if it was sold in 2000.
as for inflation, this country’s survival will depend on inflation and low interest rate. without the low interest rate, the debt will simply be so overwhelming that we would go BK.
Participant[quote=CA renter]
OCR,
The house at 2343 (w/2345) is a duplex with two 3/2 units on either side. The house at 2519 Levante was effectively a 3/2 (downstairs) with a *very nice* loft upstairs, but it is a 3/2 SFH (we had made an offer on it). The duplex would have been the better deal, and I believe the buyer of 2519 overpaid and will lose money if they need to sell it within the next ten years (obviously, they outbid us by a large margin).
The bolded part of your post is very important here, IMHO. This is exactly what I was referring to in my response to sdr — when interest rates are this low for this long, savers/cash holders will be MUCH more willing to part with their money than in a higher rate environment. Everyone who is throwing money around today is making a bet that interest rates will stay low for the duration, and/or are betting on inflation. I honestly see both sides of the inflation/deflation debate, and have always been conflicted about it. Right now, our position is entirely unhedged in favor of deflation (all cash), but I’d be lying if I said it doesn’t worry me.[/quote]
CAR, if you take a recently closed home with $/sqft close to $200, you’ll see the same result if it was sold in 2000.
as for inflation, this country’s survival will depend on inflation and low interest rate. without the low interest rate, the debt will simply be so overwhelming that we would go BK.
Participant[quote=CA renter]
OCR,
The house at 2343 (w/2345) is a duplex with two 3/2 units on either side. The house at 2519 Levante was effectively a 3/2 (downstairs) with a *very nice* loft upstairs, but it is a 3/2 SFH (we had made an offer on it). The duplex would have been the better deal, and I believe the buyer of 2519 overpaid and will lose money if they need to sell it within the next ten years (obviously, they outbid us by a large margin).
The bolded part of your post is very important here, IMHO. This is exactly what I was referring to in my response to sdr — when interest rates are this low for this long, savers/cash holders will be MUCH more willing to part with their money than in a higher rate environment. Everyone who is throwing money around today is making a bet that interest rates will stay low for the duration, and/or are betting on inflation. I honestly see both sides of the inflation/deflation debate, and have always been conflicted about it. Right now, our position is entirely unhedged in favor of deflation (all cash), but I’d be lying if I said it doesn’t worry me.[/quote]
CAR, if you take a recently closed home with $/sqft close to $200, you’ll see the same result if it was sold in 2000.
as for inflation, this country’s survival will depend on inflation and low interest rate. without the low interest rate, the debt will simply be so overwhelming that we would go BK.
Participant[quote=CA renter]
OCR,
The house at 2343 (w/2345) is a duplex with two 3/2 units on either side. The house at 2519 Levante was effectively a 3/2 (downstairs) with a *very nice* loft upstairs, but it is a 3/2 SFH (we had made an offer on it). The duplex would have been the better deal, and I believe the buyer of 2519 overpaid and will lose money if they need to sell it within the next ten years (obviously, they outbid us by a large margin).
The bolded part of your post is very important here, IMHO. This is exactly what I was referring to in my response to sdr — when interest rates are this low for this long, savers/cash holders will be MUCH more willing to part with their money than in a higher rate environment. Everyone who is throwing money around today is making a bet that interest rates will stay low for the duration, and/or are betting on inflation. I honestly see both sides of the inflation/deflation debate, and have always been conflicted about it. Right now, our position is entirely unhedged in favor of deflation (all cash), but I’d be lying if I said it doesn’t worry me.[/quote]
CAR, if you take a recently closed home with $/sqft close to $200, you’ll see the same result if it was sold in 2000.
as for inflation, this country’s survival will depend on inflation and low interest rate. without the low interest rate, the debt will simply be so overwhelming that we would go BK.
Participant[quote=sdrealtor]ocr,
Good example on Levante. I’ll bet by now you are probably even agreeing me on my commnets back when you bought that you grabbed a great deal that would be difficult to replicate. Of course some folks may have paid similarly good prices but have you seen a single property that made you say WOW I wish I bought that one instead of the one I got? Probably not. Congrats and as I said when you got it, you are a BIG winner![/quote]thanks for the compliment.
Yes, my deal was difficult to replicate en mass, but was not mission impossible. as long as one has the income, the credit, the “house money,” willingness to be open minded to newer communities, willingness to not be so “coastal-bound,” and be realistic with pricing, there have been some very decent deals I’ve seen in various newer premium areas over the last couple of years.
Participant[quote=sdrealtor]ocr,
Good example on Levante. I’ll bet by now you are probably even agreeing me on my commnets back when you bought that you grabbed a great deal that would be difficult to replicate. Of course some folks may have paid similarly good prices but have you seen a single property that made you say WOW I wish I bought that one instead of the one I got? Probably not. Congrats and as I said when you got it, you are a BIG winner![/quote]thanks for the compliment.
Yes, my deal was difficult to replicate en mass, but was not mission impossible. as long as one has the income, the credit, the “house money,” willingness to be open minded to newer communities, willingness to not be so “coastal-bound,” and be realistic with pricing, there have been some very decent deals I’ve seen in various newer premium areas over the last couple of years.
Participant[quote=sdrealtor]ocr,
Good example on Levante. I’ll bet by now you are probably even agreeing me on my commnets back when you bought that you grabbed a great deal that would be difficult to replicate. Of course some folks may have paid similarly good prices but have you seen a single property that made you say WOW I wish I bought that one instead of the one I got? Probably not. Congrats and as I said when you got it, you are a BIG winner![/quote]thanks for the compliment.
Yes, my deal was difficult to replicate en mass, but was not mission impossible. as long as one has the income, the credit, the “house money,” willingness to be open minded to newer communities, willingness to not be so “coastal-bound,” and be realistic with pricing, there have been some very decent deals I’ve seen in various newer premium areas over the last couple of years.
Participant[quote=sdrealtor]ocr,
Good example on Levante. I’ll bet by now you are probably even agreeing me on my commnets back when you bought that you grabbed a great deal that would be difficult to replicate. Of course some folks may have paid similarly good prices but have you seen a single property that made you say WOW I wish I bought that one instead of the one I got? Probably not. Congrats and as I said when you got it, you are a BIG winner![/quote]thanks for the compliment.
Yes, my deal was difficult to replicate en mass, but was not mission impossible. as long as one has the income, the credit, the “house money,” willingness to be open minded to newer communities, willingness to not be so “coastal-bound,” and be realistic with pricing, there have been some very decent deals I’ve seen in various newer premium areas over the last couple of years.
Participant[quote=sdrealtor]ocr,
Good example on Levante. I’ll bet by now you are probably even agreeing me on my commnets back when you bought that you grabbed a great deal that would be difficult to replicate. Of course some folks may have paid similarly good prices but have you seen a single property that made you say WOW I wish I bought that one instead of the one I got? Probably not. Congrats and as I said when you got it, you are a BIG winner![/quote]thanks for the compliment.
Yes, my deal was difficult to replicate en mass, but was not mission impossible. as long as one has the income, the credit, the “house money,” willingness to be open minded to newer communities, willingness to not be so “coastal-bound,” and be realistic with pricing, there have been some very decent deals I’ve seen in various newer premium areas over the last couple of years.
Participant2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.
Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.
Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.
In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.
essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.
Participant2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.
Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.
Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.
In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.
essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.
Participant2519 Levante in Carlsbad is 4110 sqft and just closed for $800,000. Assuming 20% down of $160k, the mortgage on the $640k at the current 4.5% would be $3200/month.
Back in 2000, its neighbor on 2343 Levante at 4400 sqft sold for $495,000. assuming 20% down, the mortgage would have been $396,000 at 8%, or $2900/month.
Now what about the opportunity cost of the respective down payments? Currently, the CD Index rate is 0.28%, by dropping $160k as the downpayment, the buyer is forgoing $448 in lost interest rate.
In 2000, the CD Index rate was 5.5%, so by dropping that $99k for the downpayment, the buyer was giving up $450 in interest payment per month.
essentially, the cost of buying now and back in 2000 are the same. and this is not even adjusting for inflation.
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