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PerryChase
ParticipantI visited that development just this week. And yes, it’s a listing by the developer, Standard Pacific Homes. The price is still too high. I think that at this point they’ll take an offer of $480,000. $500,000 is the psychological barrier they don’t really want to cross because that will get previous buyers very angry.
ParticipantFormerSanDiegan, I think you meant to say prejudicial statement not prejudiced statement. But never mind me, I have dry humor also.
I have a former colleague who bought a house in Yuma. I think that she paid $300000 for it. Poor woman.
Participantsdrealtor, i too feel that good still photos are best. I never watch the video because they are a waste of time. If you like the house, drive by it. If you really want to buy schedule a showing. There’s nothing like an on site visit.
You’d be surprised how many people don’t do their own research. They just ask an agent so show them around then buy whatever is in their monthly payment budget. I’m not in the RE business but it’s seems that way to me from what I hear.
ParticipantWhat’s so great about the Poway school district? I hear a lot about that district. Are there variation within that district?
I guess one would have to look at the API score of the individual school within one’s own neighborhood.
ParticipantA bear real estate column? That would never happen because the papers depend too much on ads from the real-estate industry.
Maybe an advise column like a Dear Abby for homeowners and “investors” in trouble, or people needing real-estate type problem resolved?
ParticipantThe cost of remodeling is worth mentioning as rseiser points out. Bathrooms and kitchens last about 15-20 years. Other major maintenance include roofing, termite, private roads, etc… $200 HOA will definitely not cover these. Additional assessments will come into play as the property gets older.
My dad had a water slab leak and that cost $10,000 to re-route the pipes through walls. Insurance pays for the damage but not the re-route repairs.
My friend lives in a high-rise condo in Chicago and they had $15,000 per window special assessment!! He has 7 or 8 windows. I wonder about all the private communities built in the last 20 years. As properties get to 30-50 years old, those owners will face major repairs.
If you talk about the long run, you have to consider these costs. A renter can just walk away from the headaches and rent the newest most comfortable homes.
Some other things cannot be quantified. Bad neighbors can be a nightmare. If your employer moves your commute could suddenly become hell. If there’s no appreciation, you can’t sell thus can’t get away from an unpleasant situation.
July 24, 2006 at 2:11 PM in reply to: Differences Between The Tech Bubble and the Real Estate Bubble #29477ParticipantDacounselor, please stay with us…. otherwise the conversation will be quite boring.
My feeling is that market psychology will play into this a lot in the years to come.
Economically there’s no reason for houses to be so expensive. I remember reading a book a while ago predicting that in the future housing will be owned by large equity firms and that people could treat housing like a commodity. Workers could easily move and take the best job anywhere that’s best suited for them. This would drastically improve productivity. Obviously RE is still a highly inefficient market with lots of barriers.
ParticipantHS, I would second your comment.
I’ve been to about 30 countries also (not just tourist destinations). I’m happy that I had a family that encouraged me to see the world. Traveling and meeting people from all over changed me and I see the world differently from my peers who’ve never been anywhere. I feel privileged.
Financial gain doesn’t mean much if happiness is not factored into the equation.
July 24, 2006 at 12:54 PM in reply to: People are STILL investing in property as an investment #29469ParticipantIt’s greed not investment. Let them learn their lesson the hard way. Tough love is best love.
Notice that the investor in the story is a financial planner.
ParticipantWell said asianautica.
Plus as was mentioned earlier, there are other factors that would cause buying to cost even more. $700 overpayment per month is just the base.Craigslist prices are all over the place. Take whatever they ask, cut 25% and negotiate from there. I’ve noticed that emotions plays a lot into online postings. Some people price it right, others are testing the market for ludicrous prices, yet others price below to get a deal done and out of their hair.
I’ve bought many things online and I’ve learned to never regret a deal because something else will always be ahead. Something like no matter how hard one works at it, there’ll always be someone better looking, smarter, thiner, richer.
ParticipantI didn’t fully answer your question earlier.
Like PS said, if your friend is savvy she can make her own decisions.
But ask your friend to consider the following:
She’s 82 now and loves traveling. How many more years can she travel and enjoy herself? Can she enjoy her $2 million house while she’s away or will it sit empty collecting dust? Costing her gardening and maintenance?
When she’s 90+ will she care to live in such a big house?
I’m 38 and I’ve been humbled and learned a lot being around elderly people. They appreciate living life and being with friends and family. They enjoy sharing wisdom. Most old people I know have no interest in supporting a large home that they have to maintain and be prisoners of.
In my auntie’s example she has no interest in consumption like young career-minded people. She hates restaurants but she appreciates good healthy home cooked food such as chicken vegetable aloe vera soup, or salad with blueberries and pine nuts. I’m happy that she can now travel and meet relatives, old friends from school, and make new friends and expand her horizons.
ParticipantMy auntie, is 84 years old. He sold last year and lived with my dad for a few months. She’s now traveling and plans to travel 6 months out of the year and doesn’t have a care in the world.
She’ll probably rent when she returns; or continue to live with my dad (if they get along). My dad has a 4-bedroom house so I think that it’s big enough for two. I also think it’s good for 2 seniors to watch out for each other.
I told my auntie that with the money she’d spend on buying, she could travel and enjoy herself without touching her savings. She had an eventful life so now is her time to relax and see the world.
In the end, who cares about real-estate. It’s quality-of-life and state-of-mind that counts. Remember the “pursuit of happiness?”
ParticipantRich Toscano, maybe somewhere on this site, you should have a “sticky” that will summarize all the items to consider in buy/rent decision.
Or perhaps a Voice of San Diego article in plain English for people who are considering buying now? I’m not suggesting telling people not to buy but simply to give them things to consider when buying such as liquidity, maintenance, taxes, etc…
ParticipantTax savings is overstated because the mortgage interest deduction should be not the total amount of interest but the delta between the standard deduction ($10,000 for married) and itemnized deduction. Interest the first year on that $480,000 loan is about $32,250 + $7500 tax = $39,750. Your “extra” tax deduction is therefore $29,750 for a tax savings of $10,115/year at 34% or $843 per month.
The buy/rent analyses I’ve seen tend to overstate the potential tax savings, especially for people in the lower and middle income tiers with few itemized deductions other than interest and property taxes.
Most buyers don’t understand any of this and take for granted whatever the loan officer (working in concert with the RE agent) tells them.
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