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PerryChase
Participantsd realtor, no i didn’t buy a home (are you kiddin’ me, pal? :)).
I bought a piece of furniture for my backyard off of Craigslist and I had to go pick it up at a Mission Valley condo. Of course, I did an sdlookup on the condo to see how deep in debt the owner is. Turns out that she bought is at the peak in 2005. I kind of feel sorry for her because she’s selling her furniture and moving. I don’t think she can afford the place anymore. I see a big loss on the horizon.
little lady, one my friends sold his old crappy house for $535k recently. I thought that he would never sell and chase the market down. Well, he proved me wrong. Price your house very competitively but don’t leave any money on the table. Best of luck to you.
Participantlittle lady, don’t worry…. you’ll sell if you house is realistically priced. There are plenty of suckers out there.
I bought something off of craigslist today. The seller lives in a crappy 1970s 2bd condo that she paid $335k in 1995. She’s trying to unload and break even.
Your house sounds like a real bargain compared to what’s out there. Of course the bargain is relative to the market today.
ParticipantWouldn’t depend what the rental rate for a similarly desirable home is?
ParticipantNo it’s not loose/loose, the builder gets a commitment for planning purposes.
Think about it in terms of a contract. If you rent your house and the tenant breaks the lease. You’re only entitled to compensation to the extent of your losses. If you rent the house back out immediately at a higher rent then you have no loss thus the tenant who breaks the lease is not liable for anything.
If the builder is able to turn around and find another buyer, then there’s no loss to him.
ParticipantAny good-faith deposit money is generally refundable. Builders generally refund that money to avoid litigation. If they sell the house to someone else, they haven’t incurred any “loss” so they’d have no valid reason to keep your deposit.
ParticipantBuilding/rehabing your own house is not for the faint-hearted. It’s a lot of work.
Now is not the time to build anything. Better to buy a ready-to-move-in house if you absolutely have to buy. You want to build at the bottom of the market when architects and contractors are begging for work. They will appreciate your business a lot more and give you better service.
This Old House on PBS is a good show on how to build/rehab a house. I think it’s pretty realistic. The difference is that on TV, everything goes smothly. Build only if you feel ready for it otherwise, buy. Prices on old houses are now such that rehabing doesn’t pay.
cristalight, I truely believe that if you wait for a few years, you can buy in a better location than Del Cerro.
ParticipantAbout telecommuting, if I could earn my American income and choose to live anywhere in the world, I definitely wouldn’t live in San Diego.
I’d have a beach house on Phi Phi Island,
Thailand as my base, then I’d rent for 3 to 6 months in different areas of the world — Paris, London, Hong Kong, Sydney, Buenos Aires, Rio, etc…As a matter of fact, Phuket, Thailand has plans to ring the island with fiber optic cables just to attract the tech telecommuters.
ParticipantInstead they will only serve to scare some people away from buying a house and living the miserable life of a renter.
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What's so miserable about renting in Del Mar when you can only afford to buy in Rancho Bernado? Or renting in La Costa when you can only afford to by in Clairemont? Or renting a nice single family house when you can only afford a condo? You can do that and still have money left over to put into savings!
ParticipantI’m a big believer in keeping business and personal matters separate.
It’s best to have a steady a source of income to pay down your house loan and meet your daily expenses and save for your future needs. Eventually you want to pay-off your house. Keep a slush fund for emergencies.
In the mean time, you can invest all you want with the extra cash but don’t gamble with your personal residence or your family’s well-being.
Business deals have inherent risks — that’s why it’s business. I’ve seen people ruin their lives, relationships and marriage because they mixed the two.
Think of the people who “invested” in California real estate recently. If you’re 50 years old and put everything into flipping properties in Carmel Valley, a big crash may cause a divorce, soured relationships with friends and family and potentially an early lonely death from stress — some people may say a well-deserved one.
ParticipantAlso, let’s not forget that a flat market will be very painful to sellers who bought using Interest-Only and ARM loans. They have little or no equity so the transaction costs will cause them to bring money to escrow — a psychologically depressing situation.
The typical churn in the market will cause people to sell for personal reasons.
A flat market will eventually cause a declining market once people realize that they can rent for a lot less thus they are loosing money living in their houses.
If you look back at history, you can expect to see the following type of price movements in the next 10 to 15 years. It was very typical of the last downturn.
http://sdlookup.com/PropertyDetails/tabid/53/pid/45ED6586/Default.aspx
http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=066094200&page=1&property_type=CONDO&mls=mls_sandiego&cKey=8g35z9fb&source=SANDICOR3525 Lebon Dr #206, San Diego, CA 92122
This place is currently for sale at $390k with no takers.Sales History
Date Price
12/11/1998 $148,000
07/30/1996 $142,000
06/30/1987 $135,000
MLS #: 066094200ParticipantI too am looking for a house with a view in the City.
cristalight, I’m not sure what your time frame is. But I’m waiting until the market is VERY depressed to buy a lot to build on, a teardown, or a fixer-upper.
If your budget is $800k, start budgeting the carrying cost for that amount and rent. Save the difference and I believe that if your timing it right, you will do better than Del Cerro. You might be able to get something in Bay Park, Point Loma or South La Jolla, or Kensington, or Normal Height (North of Adams), or Mission Hills.
ParticipantThe one thing to remember about gays, metrosexuals, young professionals, and “style” conscious buyers, it that they are generally very fickle (Of course, I’m generalizing so please don’t take offense).
One day they are are in love with Downtown, the next day with Uptown, and the next day they want a house with a picket fence. When the income is there, they’ll buy but as soon as the income dries up, they need to dump the properties. That doesn’t prop up anything but cause the cycles of booms and busts.
Think of the new towers in Downtown San Diego. They are selling a “lifestyle.” What about in 15 years when those towers are ageing and when the now “stylish” lobbies and apartments are dated?
Relationship changes also cause owners to sell and take losses thus negatively affecting the market.
ParticipantLet’s not forget.
1) Interest only mortgages = Repayment period = Infinity.
2) Teaser rate mortgages + Option ARM = Repayment period = infinity = you owe more than you borrowed
How can the repayment period of Interest Only Option ARMs be extended?
ParticipantMost recent borrowers were speculating on price appreciation. Our host, Rich Toscano, wrote a good article on this subject a while ago.
If anyone finds the article, please post the link.
DesperateBuyer, you’re entitled to believe what you want. Just promise to come back here again in 3 years and give us your take of the market at that time. It’ll be an interesting discussion.
———–Certain people, especially those in the REIC can’t believe that they worked hard to “build” can collapse. It turns out that one of my friends’ sister-in-law works for Standard Pacific. They bought a house last year because they got an employee discount plus allowances. Well, now she’s getting a little worried because houses aren’t moving.
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