[PerryChase]

Milton Friedman also said that the Federal Reserve should be abolished. He also supported the legalization of drugs and prostitution as well as free immigration. He was a brilliant and a great man in my view. A true hero. The “heros” you hear about on TV these days don’t even compare.

[PerryChase]

LBC, also remember if you buy that house for 800k instead of 600k to save the comps for the neighbors, you’re paying property taxes on $800 not $600k. At 1.2% that’s $2400 extra per year forever, plus that extra $200k basis will increase at an annual compounded rate of 2%.

What is the NPV of saving the neighbors comps? Are the neighbors going to help you pay your taxes? F— the neighbors!

[PerryChase]

I don’t see why cash back would be illegal. But mortgage fraud is. If you do it with the intend of defrauding the lender then it’s criminal.

If it’s done outside of closing, then there certainly is an element of concealment on your part and a prosecutor maybe able to prove fraud. If everything is on the up and up, then why not go through escrow? Remember, if it’s not documented in the sales agreement, then the seller is not obligated to pay you the cashback. Then what’re you gonna do?

[PerryChase]

InCarmelValley, are you Chinese American retiring in China or a non-ethnic Chinese retiring in China? I was just curious if China is attracting non ethnic Chinese retirees.

I’m not Chinese but I love exploring China. It’s a fascinating country full of diversity and history and not at all how we perceive it in the West. One of my Chinese friend’s parents sold their house in LA and moved to Beijing where their son is working.

[PerryChase]

The only way for those sorts of schemes to work is for the buyer to overpay for house, then the seller rebates part of the proceeds to the buyer. The buyer then walks leaving the lender holding the bag.

The sum needs to be big enough to motivate the buyer to commit mortgage fraud. It’s mostly the buyer and the appraiser since the seller can more easily plead ignorance.

You have to look at this in terms of motivation. The most the seller can loose is his 200k equity. He could just lower the price by $100k or even $200k for a quick sale. The reason he’s facing foreclosure is because he trying to get out whole. In the seller’s mind, he needs that 200k back to start over somewhere else.

I’m afraid that your cash back proposal won’t go anywhere unless to offer to over-pay for the house.

[PerryChase]

Big question. Where is the seller going to get the $200k cash back to rebate to you? If the seller is going to loose his 200k downpayment anyway, why would he sell and give it to you?

In order for this to work, there needs to be something in it for the seller.

The seller might go with a 100k cashback. But then you might be overpaying for the house even with the cashback.

Don’t think it’ll work.

[PerryChase]

I too love energy efficiency. Here are some tips.
1. insulate the whole house. Insulation is the key. Old houses are not well insulated.
2. replace windows with dual-pane windows.
3. front load clothe washer
4. energy efficient appliances
5. Tankless water heater.

It’s true that new houses are more energy efficient. I’d love to buy a tear-down in Bay Park or Point Loma then build a new house.

[PerryChase]

I concur with Bugs.

One reason I can think of that sales are picking up a little is that people who where dying to get into a house at the peak are now doing it. I was reading cnn.com and I saw an ad by lowermybills.com advertising $510k loan for $1600/mo. Until those non-sense loans disappear, then the market will see downturns then periodic upticks.

A lot of folks still think that housing has nowhere but up to go. My sense is that psychology on Main Street is still on the positive but it’s tempered by some realism. The market won’t find its bottom until psychology turns decidedly bearish.

[PerryChase]

Interesting that the Philippines was an American colony and is modeled on American democracy. It’s a country incredibly rich in natural resources but corruption has taken it down the tube. After WWII it was the richest and best educated country in Asia. In the mean time, Japan, Taiwan, South Korea, Hong Kong, and Singapore have become rich countries while the PI stagnated. Even Thailand, Malaysia, Communist China and Communist Vietnam are surpasing the PI in terms of growth and development.

The PI has incredible natural beauty and warm weather. I can see the attraction to move there, if you know how to deal with the downside.

[PerryChase]

And the people that paid $800K – $1.4 mil for tract homes in North County? They are paying $8800/yr – $15,400/yr for the privilege of commuting in traffic hell on I-5 and I-15. That's $733-1283/mo for just taxes and then, as you point out, they get to fork over $300-600/month for Mello-Roos. Some of them also have HOA fees to cover common areas of their development.

Add to that car a payment on an SUV and gas, and you're at $2000/mo just in taxes and transportation.  

 

[PerryChase]

I have the perception that many people in San Diego buy real estate without including the cost of property taxes in their budget.

I have that same perception. Taxes along with bubble prices are the reason that I’m not moving–yet

However, I don't think that Prop 13 lowers turnover that much since buyers think in terms of monthly payments and are willing to take on exotic loans. I'd be interested to see if Prop 13 in CA lowered turnover as compared to other states. I doubt it. If anything, California is more mobile than other states for reasons other than taxes.

I know that my much older cousin who just retired in NY is thinking about selling her house because of taxes. She’ll probably move to North Carolina where she can buy a much cheaper house.

I think that Prop 13 was unsuccessfully challenged in the past because it discriminates against newcomers.

As a long time homeowner, I'm happy about Prop 13. But I think it's unfair since I believe that everyone should be treated the same. Personally, I think that we should get rid of all the incentives to homeownership because I don't believe that they work — they simply cause prices to go higher. Homeownership should not be a measure of success (especially if everyone is in debt to their eyeballs). Quality of shelter for the general population is, in my view, a better measure of well-being.

 

[PerryChase]

Big loss in Carmel Valley.
I now see the losses on high -end properties starting to pop up. This property’s yard is not even finished yet and at 5500sf, you need a maid to clean it — not a low maintenance house.

6473 MESA NORTE DRIVE, SD – Carmel Valley, CA 92130**
List Price: $1,900,000 – $1,900,000

Bedrooms: 5
Full Baths: 5
Partial Baths: 1
Square Feet: 5,500
Lot Size: 3.7 Acres
Year Built: 2005
Listing Date: 01/26/07
On Market: 5 days
Type: SFR

Status: ACTIVE
MLS #: 076007878

http://sdlookup.com/PropertyDetails/tabid/53/forumid/206/postid/393/view/topic/pid/DA714F22/Default.aspx
http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=076007878&mls=mls_sandiego&cKey=fx24rksq&source=SANDICOR

[PerryChase]

I too like Panama better than Costa Rica. Panama City is right on the water and definitely better than San Jose de Costa Rica that’s stuck in the middle of the country. Most American bypass San Jose for the beaches.

The density of development makes Panama more fun that Costa Rica. And the Canal makes the country a wordly destination.

South of France would be a great place to retire but it’s not cheap. Had you bought in the 1990s you would have made 50% gains on currency appreciation alone, not counting the RE bubble. It used to be 80+ cents to a Euro, now it’s $1.30 per Euro! Europeans who get their pensions in Euros and live in America are extremely happy.

http://www.seaview.fr/

[PerryChase]

Nancy, sounds like you got it made 😉

My friend relocated to Dallas due to an unwanted but mandatory job transfer. Now he loves it. He has a townhouse with attached garage for less than he paid for his Mission Valley apartment. Plus he got a big incentive bonus and salary increase for moving to Dallas. Although he never wanted to move away, he now says that San Diego is overated.

However, I still don’t believe him. I want nothing to do with Texas, the humid weather, bugs, rain, and guns.

[PerryChase]

Talking about living with the kids, I know some immigrant families who live 8 to 10 people in a house. They are happy that way because there's always someone to help out. So there's something to be said about living with kids. I also read that the elderly live longer healthier lives with family around. It would never work for me because I'm used to have my own space. Even having a housemate would be a big problem.

 

I've already informed my husband that if his mother decides to move in with us, the kids and I are moving out. She's the architect of her own distaster of a life and she can live in it.

haha, I think a lot of people feel that very same way.  

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