[PerryChase]

Taxes. Getting a tax break is oft cited as the reason to buy.

But many homebuyers aren’t able to fully realize the tax savings. For example if one in unemployed for a while and has to pay the mortgage out of savings, the tax savings are gone. In that case, losing employment will cause the homeowner to pay even more, while he’s cash-strapped, since the tax subsidy is gone.

Lower income homeowners who over over-stretch their purchasing power by using toxic mortgages don’t have the income to fully take advantage of tax savings. Remember, a family with 3 kids already has the standard deduction and personal exemptions.

Real estate boosters often cite that foreigners will come in droves to US “glamour” cities thanks to the weak dollar. Foreigners who are not Green-Card holders and taxpayers don’t get a tax break for owning in America. Why would they want to own a condo in San Diego and pay all the associated costs? If they want to vacation in San Diego, they can stay at any number of nice hotels. Getting a Green Card means paying US income tax.

Likewise for rich American folks. Why would they want to own a home in San Diego just to stay there for a few weeks. Might as well stay at the hotel. Want a place to stay after the ball game? Book a limo to take you to a nearby hotel room.

Therefore I posit that buyers bought mostly because of the protential appreciation (as well as the enjoyment). Take away the appreciation and buyers will dry up.

[PerryChase]

Good guess cyphire. I’m thinking the same thing.

[PerryChase]

Good guess cyphire. I’m thinking the same thing.

[PerryChase]

Rich will never write such article. He’s not a maverick out to change the status quo. He’s now a talking-head who needs to mince his words. He’s not about rail against the Real Estate industry and call San Diego home buyers the “dumbest in the nation.” I don’t know Rich, just my view.

http://kpbs.org/tv/full_focus;id=9112

Wow, he lost some weight! Much more telegenic.

[PerryChase]

Rich will never write such article. He’s not a maverick out to change the status quo. He’s now a talking-head who needs to mince his words. He’s not about rail against the Real Estate industry and call San Diego home buyers the “dumbest in the nation.” I don’t know Rich, just my view.

http://kpbs.org/tv/full_focus;id=9112

Wow, he lost some weight! Much more telegenic.

[PerryChase]

KIBU, what is your experience Downtown? I want to hear the downsides of Downtown from people who actually live there. Not interested in hearing why Downtown is great — I know already.

A friend who lives there says he has to sleep with earplug in his million dollar condo because of the train. He’s absolutely sick of it.

[PerryChase]

KIBU, what is your experience Downtown? I want to hear the downsides of Downtown from people who actually live there. Not interested in hearing why Downtown is great — I know already.

A friend who lives there says he has to sleep with earplug in his million dollar condo because of the train. He’s absolutely sick of it.

[PerryChase]

I do believe that citizens are generally not well-educated in terms financial matters and income equity. They have elected to privatize many services which are equivalent to huge tax increases. They don’t care because they haven’t experienced the results yet.

Think of all the mini-governments (HOAs) out there sucking-up 25% of homeowners’ money.

I shouldn’t have said that citizens are stupid but they are certainly ignorant.

I’m still young enough to sit back and watch the condo/gated community madness unfold. Let’s see when the 1970s complexes hit 50 years old, and 20 years later when the 1990s communities hit 50 years old.

I think there’s a huge amount of unfunded reserves that will result in special assessments as the condo complexed get older. After-all, buildings only have a limited useful life.

A $10,000 property tax assessment would normally result in a mini revolution (see Prop 13). The future will bring us a lot of $10,000 – $50,000 special HOA assesments for property, road and private infrastructure repairs. Property owners will just have to take Zantac and pay up.

[PerryChase]

I do believe that citizens are generally not well-educated in terms financial matters and income equity. They have elected to privatize many services which are equivalent to huge tax increases. They don’t care because they haven’t experienced the results yet.

Think of all the mini-governments (HOAs) out there sucking-up 25% of homeowners’ money.

I shouldn’t have said that citizens are stupid but they are certainly ignorant.

I’m still young enough to sit back and watch the condo/gated community madness unfold. Let’s see when the 1970s complexes hit 50 years old, and 20 years later when the 1990s communities hit 50 years old.

I think there’s a huge amount of unfunded reserves that will result in special assessments as the condo complexed get older. After-all, buildings only have a limited useful life.

A $10,000 property tax assessment would normally result in a mini revolution (see Prop 13). The future will bring us a lot of $10,000 – $50,000 special HOA assesments for property, road and private infrastructure repairs. Property owners will just have to take Zantac and pay up.

[PerryChase]

Foreclosed properties are non-performing assets. There are banking regulations on how long banks can keep them on their balance sheets without taking write-downs.

We’ll se more foreclosure inventory when it comes closer to financial reporting time later this year.

[PerryChase]

Foreclosed properties are non-performing assets. There are banking regulations on how long banks can keep them on their balance sheets without taking write-downs.

We’ll se more foreclosure inventory when it comes closer to financial reporting time later this year.

[PerryChase]

I agree with some of your statements davelj.

But, as much as I love San Diego, I hate to burst your bubble. On the list of glamour cities in the world, San Diego ranks pretty low — lower than Auckland, New Zealand, in my opinion.

About the rich people you’re talking about, they are the most fickle and they will bail out way sooner than permanent residents.

Let’s agree to disagree. We’ll let time give us the answers. I’m willing to sit back and see how this real estate downturn unfolds.

[PerryChase]

I agree with some of your statements davelj.

But, as much as I love San Diego, I hate to burst your bubble. On the list of glamour cities in the world, San Diego ranks pretty low — lower than Auckland, New Zealand, in my opinion.

About the rich people you’re talking about, they are the most fickle and they will bail out way sooner than permanent residents.

Let’s agree to disagree. We’ll let time give us the answers. I’m willing to sit back and see how this real estate downturn unfolds.

[PerryChase]

Don’t need hindsight glasses. Recessions are a fact of life

When the media and everyone is crying “recession, recession” and when the average job feels the job losses, that’s the time to buy. You might not catch the absolute bottom but you can’t really go wrong.

The key is to have money in the bank and the credit worthiness to buy when everyone is cutting back.

[PerryChase]

Don’t need hindsight glasses. Recessions are a fact of life

When the media and everyone is crying “recession, recession” and when the average job feels the job losses, that’s the time to buy. You might not catch the absolute bottom but you can’t really go wrong.

The key is to have money in the bank and the credit worthiness to buy when everyone is cutting back.

[Author]

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