[peterb]

Very true. This is why most lenders dont like to lend on condo’s that arent mostly owner occupied and mostly sold. If you find a screaming deal on a condo but the complex is less than 70% sold, watch out. Someone has to pay to maintain etc….
And make sure the HOA fee’s makes sense for future expenses and maintenance. Again, someone will have to pay for these things and guess who it’s gonna be?

[peterb]

Very true. This is why most lenders dont like to lend on condo’s that arent mostly owner occupied and mostly sold. If you find a screaming deal on a condo but the complex is less than 70% sold, watch out. Someone has to pay to maintain etc….
And make sure the HOA fee’s makes sense for future expenses and maintenance. Again, someone will have to pay for these things and guess who it’s gonna be?

[peterb]

Very true. This is why most lenders dont like to lend on condo’s that arent mostly owner occupied and mostly sold. If you find a screaming deal on a condo but the complex is less than 70% sold, watch out. Someone has to pay to maintain etc….
And make sure the HOA fee’s makes sense for future expenses and maintenance. Again, someone will have to pay for these things and guess who it’s gonna be?

[peterb]

Very true. This is why most lenders dont like to lend on condo’s that arent mostly owner occupied and mostly sold. If you find a screaming deal on a condo but the complex is less than 70% sold, watch out. Someone has to pay to maintain etc….
And make sure the HOA fee’s makes sense for future expenses and maintenance. Again, someone will have to pay for these things and guess who it’s gonna be?

[peterb]

Very true. This is why most lenders dont like to lend on condo’s that arent mostly owner occupied and mostly sold. If you find a screaming deal on a condo but the complex is less than 70% sold, watch out. Someone has to pay to maintain etc….
And make sure the HOA fee’s makes sense for future expenses and maintenance. Again, someone will have to pay for these things and guess who it’s gonna be?

[peterb]

If you examine the last two RE cycles we’ve had here in SD county, the greatest factor to indicating a rise in RE prices has been declining unemployment. Even with high interest rates and other factors, when unemployment goes much below 6%, we start to prices stabilize and then rise.

Right now we have more foreclosures entering the market and liar loans (Alt A) about to join the party…couple this with rising unemployment and we’ve got more room for price declines. There’s very little, if any, evidence of this trend subsiding for the next 12 months.

Having said this, home prices have a historical average in SD County of about 5 times annual income. These are mediums, of course. But if you are considering buying a home that’s 3 times your annual income and you have stable income, then you would be paying a multiple that’s more common in KS than CA.

[peterb]

If you examine the last two RE cycles we’ve had here in SD county, the greatest factor to indicating a rise in RE prices has been declining unemployment. Even with high interest rates and other factors, when unemployment goes much below 6%, we start to prices stabilize and then rise.

Right now we have more foreclosures entering the market and liar loans (Alt A) about to join the party…couple this with rising unemployment and we’ve got more room for price declines. There’s very little, if any, evidence of this trend subsiding for the next 12 months.

Having said this, home prices have a historical average in SD County of about 5 times annual income. These are mediums, of course. But if you are considering buying a home that’s 3 times your annual income and you have stable income, then you would be paying a multiple that’s more common in KS than CA.

[peterb]

If you examine the last two RE cycles we’ve had here in SD county, the greatest factor to indicating a rise in RE prices has been declining unemployment. Even with high interest rates and other factors, when unemployment goes much below 6%, we start to prices stabilize and then rise.

Right now we have more foreclosures entering the market and liar loans (Alt A) about to join the party…couple this with rising unemployment and we’ve got more room for price declines. There’s very little, if any, evidence of this trend subsiding for the next 12 months.

Having said this, home prices have a historical average in SD County of about 5 times annual income. These are mediums, of course. But if you are considering buying a home that’s 3 times your annual income and you have stable income, then you would be paying a multiple that’s more common in KS than CA.

[peterb]

If you examine the last two RE cycles we’ve had here in SD county, the greatest factor to indicating a rise in RE prices has been declining unemployment. Even with high interest rates and other factors, when unemployment goes much below 6%, we start to prices stabilize and then rise.

Right now we have more foreclosures entering the market and liar loans (Alt A) about to join the party…couple this with rising unemployment and we’ve got more room for price declines. There’s very little, if any, evidence of this trend subsiding for the next 12 months.

Having said this, home prices have a historical average in SD County of about 5 times annual income. These are mediums, of course. But if you are considering buying a home that’s 3 times your annual income and you have stable income, then you would be paying a multiple that’s more common in KS than CA.

[peterb]

If you examine the last two RE cycles we’ve had here in SD county, the greatest factor to indicating a rise in RE prices has been declining unemployment. Even with high interest rates and other factors, when unemployment goes much below 6%, we start to prices stabilize and then rise.

Right now we have more foreclosures entering the market and liar loans (Alt A) about to join the party…couple this with rising unemployment and we’ve got more room for price declines. There’s very little, if any, evidence of this trend subsiding for the next 12 months.

Having said this, home prices have a historical average in SD County of about 5 times annual income. These are mediums, of course. But if you are considering buying a home that’s 3 times your annual income and you have stable income, then you would be paying a multiple that’s more common in KS than CA.

[peterb]

Timing is everything! Being a prophet 5 years ahead of the event is not very useful as almost everything experiences cyclical variations. If you sold in 2003 because contrarians talked you into the market bursting, you’ve had lost a lot of appreciation. Now everyone is calling for the bottom. Ok, so you buy within 15% of the bottom plus or minus….but what’s more important is when is it going to start rising again? Ask yourself what it will take to cause real estate to start appreciating again??? So we may bottom in 2009 or 1010, how long will we stay there?

[peterb]

Timing is everything! Being a prophet 5 years ahead of the event is not very useful as almost everything experiences cyclical variations. If you sold in 2003 because contrarians talked you into the market bursting, you’ve had lost a lot of appreciation. Now everyone is calling for the bottom. Ok, so you buy within 15% of the bottom plus or minus….but what’s more important is when is it going to start rising again? Ask yourself what it will take to cause real estate to start appreciating again??? So we may bottom in 2009 or 1010, how long will we stay there?

[peterb]

Timing is everything! Being a prophet 5 years ahead of the event is not very useful as almost everything experiences cyclical variations. If you sold in 2003 because contrarians talked you into the market bursting, you’ve had lost a lot of appreciation. Now everyone is calling for the bottom. Ok, so you buy within 15% of the bottom plus or minus….but what’s more important is when is it going to start rising again? Ask yourself what it will take to cause real estate to start appreciating again??? So we may bottom in 2009 or 1010, how long will we stay there?

[peterb]

Timing is everything! Being a prophet 5 years ahead of the event is not very useful as almost everything experiences cyclical variations. If you sold in 2003 because contrarians talked you into the market bursting, you’ve had lost a lot of appreciation. Now everyone is calling for the bottom. Ok, so you buy within 15% of the bottom plus or minus….but what’s more important is when is it going to start rising again? Ask yourself what it will take to cause real estate to start appreciating again??? So we may bottom in 2009 or 1010, how long will we stay there?

[peterb]

Timing is everything! Being a prophet 5 years ahead of the event is not very useful as almost everything experiences cyclical variations. If you sold in 2003 because contrarians talked you into the market bursting, you’ve had lost a lot of appreciation. Now everyone is calling for the bottom. Ok, so you buy within 15% of the bottom plus or minus….but what’s more important is when is it going to start rising again? Ask yourself what it will take to cause real estate to start appreciating again??? So we may bottom in 2009 or 1010, how long will we stay there?

[Author]

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