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PerryChase
ParticipantLiquidity is also a big factor. If you have to move and you can’t unload the home, it’ll turn into a huge albatross that will suck money for years.
Realtors always say well… get that teaser rate because you can always sell and move-up in a couple of years. If you can’t sell and loose the mortgage tax deduction, then you’re in deep doo-doo.
What about a risk premium for owning? Right now, there’s no risk in renting.
ParticipantAlso HOA is usually more than $200. I know of very few condo complexes that charge such low HOA. $300-400 is more like it.
Please let me us know what neighborhood you’re talking about. My dad owns a 4-BR, 3BT SFR in a neighorhood that sell for right about $600,000. Rents there are $2100. Sounds like the rents you’re using are high.
A friend is renting a 1600 sf condo at the Grande downtown for $3,000 and the HOA there are $750/month and the facilities are first rate. Seems to owner is upside down on this “investment.” One unit sold earlier this year for $865,000 but I think the owner paid more (incomplete info on Zillow) That building is a ghost town.
If condo owners can rent out their properties for $2500 in complexes that charge only $200 in HOA they are getting great rents! $200 HOA means that property has zero amenities.
Insurance should also be included in your analysis. Renters insurance is much lower than homeowners insurance.
One poster here said that he’s renting a million ++ house in La Jolla for a great deal vs. buy (please tell us again if you’re here). The more expensive the house, the greater the delta between rent and own.
As I’ve said before, I’ve looked (mostly UTC and Carmel Valley) for my elderly auntie and it’s much cheaper to rent.
I’d love to see a specific property / condo complex where it’s better to own. Please let me know so I can tell my auntie to buy there.
Also consider that many such as students and the elderly don’t benefit from the mortgage interest rate deduction.
ParticipantWaiting Hawk, this is unrelated to real estate. But how do you make .wav files from NPR audio? I listen online and sometime I would like to save in .wav or .mp3 format. Thanks.
ParticipantRefis will delay the day of reckoning for some years. So it seems to me. From the article, it sounds to me like homeowners who are having loan resets, can refi at yet another teaser rate and delay making higher mortgage payments for a while — another 2-3 years (since values can still arguably be considered up). In 3 year however, when statistics clearly point to a down market, they won’t be able to kick the can any further.
So my guess it that we won’t see the bottom of the market for another few years, 2010-2011?
ParticipantSanyo whose USA headquarters is in South Bay is moving to guess where? Dallas Texas.
ParticipantNotice the story of Mr. Perry (not me) I wonder what kind of financial planning he’s in.
Quote from NYT Article:
With his new loan, his third adjustable-rate mortgage, Mr. Perry, a former technology project manager, cashed about $200,000 out of his home’s equity and is investing it into his four-year-old financial planning business. “I could have sold my house and made my family move,” said Mr. Perry, 42, who lives with his wife and a 3-year-old son in Danville, about 20 miles east of Oakland. “But I didn’t do that. I said, ‘Look, I want to start a new business,’ and this product allowed me to do that.”ParticipantMr. Young, please let us know when you sell 21 Sandhills and for how much. We’d love to know. After you sell that home, my confidence in your advice would be increased, and I might, just might buy a house from you.
ParticipantI e-mailed her and politely told her to get real. I emailed the editor also.
Did sellers give buyers a break on the upside? No. Why should anyone care now?
ParticipantMerlin, I also think price per square foot. I’m with you. Anything double contruction cost is questionable.
July 21, 2006 at 11:31 PM in reply to: Why I predict a 55% nominal price drop in North County #29249ParticipantHow about price per sq ft in a certain zip code to calculate up or down %? We could look at price per sq ft for SFR and condos.
If people buy bigger houses then the median price may not reflect price movements accordingly.
July 21, 2006 at 11:07 PM in reply to: Why I predict a 55% nominal price drop in North County #29242ParticipantI’m with you Rankandfile. The 50% drop prediction sounds most reasonable to me.
ParticipantNot if you’re a Fill-in-Blank-American princess. Then you just play tennis, go shopping get your nails done and perhaps pick up the kids at school. Until your husband gets sick of you and finds a younger prettier woman who can please him. He then divorces you and you have to move to a condo in UTC/La Jolla/Del Mar/Carmel Valley. You grow bitter and your children don’t want to visit you anymore. Then you spend the rest of your life playing bridge in the ex-wife’s club, with some trips to the Carribean for rest and relaxation.
*** Just Joking ***
PS, Good thing you don’t have a mc mansion to clean (i assume).
ParticipantThe IRS rule is that if you pay a contract laborer more than $600 per year, you need to file a 1099. There is an exception for private household but I don’t remember what it is.
My feeling is that wages in the construction and related service (ie cleaning) industries have been rising because of the housing boom. More workers are needed to build and service all those new homes. Those wages will be depressed with the coming crash, but there’ll be a lag time. If everyone is busy, it’ll cost your more if you want the services now…. Remember, there are plenty of homes on which finishing touches need to be applied. When people move and sell they need to have their homes serviced.
I don’t think it’s too much for a cleaning person to charge $18/hour. Remember that cleaning person does not have a full schedule and needs to market himself like a business. A technician might make $18 working at a job full time. But if you want that technician on a private contract to come fix your computer at home, it’ll cost you about $125/hour. If you want him at night, it’ll cost you $200+/hour. You cannot compare an independent contractor to an employee. You have to think about the net income each worker gets. A contractor is like a business with revenue, minus expenses equals net income. If a business is busy, they’ll charge more to fit-in a client to make up for when they charge less when it’s slow.
My brother who is in the service business says that when he’s busy, he charges more when someone wants something immediately… He has different prices: the regular price, the nice-person price, the right-now price, and the pain-in-the-ass price.
ParticipantDoctors and hospitals bill about 3 times more to patients who don’t have insurance (private, medicare, etc..) Insurance cos have negotiated lower rates. Sometimes providers get paid, sometimes they don’t. If they don’t get paid, then they have to increase rates to other patients to make up for the loss.
Correct, emergency rooms cannot turn away patients, so people show up there when they are so sick that they cannot take it anymore.
But doctors’ offices do turn away patients all the time. That’s why there’s no preventive care and something that might have been a small matter turns into an emergency costing thousands of dollars at the emergency room (i.e. the tuberculosis case in the article you mentioned).
If we had universal preventive care, it would cost us a lot less in the long run. Diseases would not be left unchecked and spreading from people to people. Remember, human beings interact, cook food, they have sex, etc…
Also, call any pharmacy, if you have insurance you may pay $10 co-pay for a $100 prescription. But if you don’t have insurance you’ll have to pay $300 for the same prescription. Of course, pharmacies don’t have to give medicine to people who can’t pay.
Once a patient is out of the emergency room, if he is uninsured, he can’t get ongoing treatment. Consider a contagious disease for a minute. He’ll be spreading the disease until he needs to to go the emergency room again. Of course, he can’t pay so the cycle continues. In the mean-time, how many people did he infect? He might be cooking your food at the restaurant, or cleaning your hotel room.
Diseases don’t care if a person is a citizen or not. If we have disease amongst us, we are all worse off.
I might also add that most of the 40 million uninsured are citizens, not illegals.
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