[permabear]

[quote=sdrealtor]The appraiser could not use 1028 Summer Holly as a comp as it is not within 15% of the same square footage[/quote]

I have never heard of this before. Are you saying this is a regulation or just a rule of thumb?

Seems like it would have to be broken for exceptional properties, large lots, views, horse land, etc.

[permabear]

[quote=sdrealtor]The appraiser could not use 1028 Summer Holly as a comp as it is not within 15% of the same square footage[/quote]

I have never heard of this before. Are you saying this is a regulation or just a rule of thumb?

Seems like it would have to be broken for exceptional properties, large lots, views, horse land, etc.

[permabear]

[quote=sdrealtor]The appraiser could not use 1028 Summer Holly as a comp as it is not within 15% of the same square footage[/quote]

I have never heard of this before. Are you saying this is a regulation or just a rule of thumb?

Seems like it would have to be broken for exceptional properties, large lots, views, horse land, etc.

[permabear]

LOL. If I could cut out wine… I would be significantly better off. Can’t resist a good bottle of Stag’s Leap or Jarvis!!

[permabear]

LOL. If I could cut out wine… I would be significantly better off. Can’t resist a good bottle of Stag’s Leap or Jarvis!!

[permabear]

LOL. If I could cut out wine… I would be significantly better off. Can’t resist a good bottle of Stag’s Leap or Jarvis!!

[permabear]

LOL. If I could cut out wine… I would be significantly better off. Can’t resist a good bottle of Stag’s Leap or Jarvis!!

[permabear]

LOL. If I could cut out wine… I would be significantly better off. Can’t resist a good bottle of Stag’s Leap or Jarvis!!

[permabear]

This type of behavior is well-documented in “The Millionaire Next Door”, which finds that most millionaires are coupon-clipping miserly folk that amass money by (surprise) not spending it. They have paid-off cars, worn-down shoes, and live in modest neighborhoods. Warren Buffett is the most famous example.

Think about this: If you save $100k a year, with 0% interest, in 10 years you will be a millionaire. Add a modest interest rate (say 4%) and your riches get much larger. Turn the time period into 20 or 30 years, and you’re set.

Think of your own income. How much do you and your spouse make? Many people I know make $150k+ as a family. But they squander their money on fancy cars, new TV’s, the latest clothes, etc. It takes hard work and humility to live below your means, especially when all your peers have new BMW’s.

I’m NOT claiming to have it “all figured out”, but I’m 34 and have $500k in the bank. I make > $200k a year, but we live in a $2k/month rental, have cars that are paid off, and as a result save >$8k a month.

You have two choices: increase your earnings, or decrease your expenditures.

[permabear]

This type of behavior is well-documented in “The Millionaire Next Door”, which finds that most millionaires are coupon-clipping miserly folk that amass money by (surprise) not spending it. They have paid-off cars, worn-down shoes, and live in modest neighborhoods. Warren Buffett is the most famous example.

Think about this: If you save $100k a year, with 0% interest, in 10 years you will be a millionaire. Add a modest interest rate (say 4%) and your riches get much larger. Turn the time period into 20 or 30 years, and you’re set.

Think of your own income. How much do you and your spouse make? Many people I know make $150k+ as a family. But they squander their money on fancy cars, new TV’s, the latest clothes, etc. It takes hard work and humility to live below your means, especially when all your peers have new BMW’s.

I’m NOT claiming to have it “all figured out”, but I’m 34 and have $500k in the bank. I make > $200k a year, but we live in a $2k/month rental, have cars that are paid off, and as a result save >$8k a month.

You have two choices: increase your earnings, or decrease your expenditures.

[permabear]

This type of behavior is well-documented in “The Millionaire Next Door”, which finds that most millionaires are coupon-clipping miserly folk that amass money by (surprise) not spending it. They have paid-off cars, worn-down shoes, and live in modest neighborhoods. Warren Buffett is the most famous example.

Think about this: If you save $100k a year, with 0% interest, in 10 years you will be a millionaire. Add a modest interest rate (say 4%) and your riches get much larger. Turn the time period into 20 or 30 years, and you’re set.

Think of your own income. How much do you and your spouse make? Many people I know make $150k+ as a family. But they squander their money on fancy cars, new TV’s, the latest clothes, etc. It takes hard work and humility to live below your means, especially when all your peers have new BMW’s.

I’m NOT claiming to have it “all figured out”, but I’m 34 and have $500k in the bank. I make > $200k a year, but we live in a $2k/month rental, have cars that are paid off, and as a result save >$8k a month.

You have two choices: increase your earnings, or decrease your expenditures.

[permabear]

This type of behavior is well-documented in “The Millionaire Next Door”, which finds that most millionaires are coupon-clipping miserly folk that amass money by (surprise) not spending it. They have paid-off cars, worn-down shoes, and live in modest neighborhoods. Warren Buffett is the most famous example.

Think about this: If you save $100k a year, with 0% interest, in 10 years you will be a millionaire. Add a modest interest rate (say 4%) and your riches get much larger. Turn the time period into 20 or 30 years, and you’re set.

Think of your own income. How much do you and your spouse make? Many people I know make $150k+ as a family. But they squander their money on fancy cars, new TV’s, the latest clothes, etc. It takes hard work and humility to live below your means, especially when all your peers have new BMW’s.

I’m NOT claiming to have it “all figured out”, but I’m 34 and have $500k in the bank. I make > $200k a year, but we live in a $2k/month rental, have cars that are paid off, and as a result save >$8k a month.

You have two choices: increase your earnings, or decrease your expenditures.

[permabear]

This type of behavior is well-documented in “The Millionaire Next Door”, which finds that most millionaires are coupon-clipping miserly folk that amass money by (surprise) not spending it. They have paid-off cars, worn-down shoes, and live in modest neighborhoods. Warren Buffett is the most famous example.

Think about this: If you save $100k a year, with 0% interest, in 10 years you will be a millionaire. Add a modest interest rate (say 4%) and your riches get much larger. Turn the time period into 20 or 30 years, and you’re set.

Think of your own income. How much do you and your spouse make? Many people I know make $150k+ as a family. But they squander their money on fancy cars, new TV’s, the latest clothes, etc. It takes hard work and humility to live below your means, especially when all your peers have new BMW’s.

I’m NOT claiming to have it “all figured out”, but I’m 34 and have $500k in the bank. I make > $200k a year, but we live in a $2k/month rental, have cars that are paid off, and as a result save >$8k a month.

You have two choices: increase your earnings, or decrease your expenditures.

[permabear]

Thanks for the extensive replies, bearishgurl

[quote=bearishgurl]To do it you will need to come up with a lot with a teardown on it (to have utils at the ready and avoid the “new construction premium” of $27K to $35K), the total of the bureaucrats’ “nickel and diming which amounts to the “ultimate white paper fee.” Your lender will most likely want you to put down 30-50% on the teardown lot because the dwelling on it may or may not be immediately habitable. Just the acquisition of the lot may take all the $$ you were going to use for a downpayment on a resale house.[/quote]

This is where I have gotten stuck so far. When looking all across San Diego, the only places with low-priced teardowns are neighborhoods that would not support a full rebuild. If you try to get a teardown in some place like Del Mar or North Poway or Scripps, you end up getting a completely decrepit house for 10% off what a completely remodeled “move-in ready” home goes for.

Case in point, this Del Mar home is an absolute gut job (been in it twice):

http://www.redfin.com/CA/Del-Mar/15030-Rancho-Real-92014/home/4444174

Whereas this one across the street was nicely maintained (not my style, but still):

http://www.redfin.com/CA/Del-Mar/15029-Rancho-Real-92014/home/4444027

So, < $150k difference, which doesn't even cover the architect/permit fees. If you're aware of a nice area with reasonable teardowns, I'm all ears. The only place I've remotely found is Green Valley in Poway, and even then it's more expensive than building from scratch (even with the "fresh build premium").

[permabear]

Thanks for the extensive replies, bearishgurl

[quote=bearishgurl]To do it you will need to come up with a lot with a teardown on it (to have utils at the ready and avoid the “new construction premium” of $27K to $35K), the total of the bureaucrats’ “nickel and diming which amounts to the “ultimate white paper fee.” Your lender will most likely want you to put down 30-50% on the teardown lot because the dwelling on it may or may not be immediately habitable. Just the acquisition of the lot may take all the $$ you were going to use for a downpayment on a resale house.[/quote]

This is where I have gotten stuck so far. When looking all across San Diego, the only places with low-priced teardowns are neighborhoods that would not support a full rebuild. If you try to get a teardown in some place like Del Mar or North Poway or Scripps, you end up getting a completely decrepit house for 10% off what a completely remodeled “move-in ready” home goes for.

Case in point, this Del Mar home is an absolute gut job (been in it twice):

http://www.redfin.com/CA/Del-Mar/15030-Rancho-Real-92014/home/4444174

Whereas this one across the street was nicely maintained (not my style, but still):

http://www.redfin.com/CA/Del-Mar/15029-Rancho-Real-92014/home/4444027

So, < $150k difference, which doesn't even cover the architect/permit fees. If you're aware of a nice area with reasonable teardowns, I'm all ears. The only place I've remotely found is Green Valley in Poway, and even then it's more expensive than building from scratch (even with the "fresh build premium").

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