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ParticipantThere is a lot of money out here and the lifestyle is desirable. A lot of income in San Diego does not show up in the statistics because there are a lot of small business ownere who make plenty of money and it is not being reported. Additionally there are enough old timers who have set up trust funds due to the fact that the did buy many eons ago who and going to help there kids out.
Yawn. Is all this hidden income a new phenomenon? Because affordability numbers like we’ve seen in San Diego the last few years certainly are new.
It’s really very simple. INCOMES DON’T SUPPORT PRICES.
And these “old timers” will only leave their kids a lot if they sell or sold at the right time, which means now to a couple years ago. Even so, there aren’t enough trust funds to affect the market. At a macro level, new buyers can’t (because most don’t have trust funds) pay the bubble prices.
Sure, some people can afford to buy now. But the smart ones won’t.
ParticipantThere is a lot of money out here and the lifestyle is desirable. A lot of income in San Diego does not show up in the statistics because there are a lot of small business ownere who make plenty of money and it is not being reported. Additionally there are enough old timers who have set up trust funds due to the fact that the did buy many eons ago who and going to help there kids out.
Yawn. Is all this hidden income a new phenomenon? Because affordability numbers like we’ve seen in San Diego the last few years certainly are new.
It’s really very simple. INCOMES DON’T SUPPORT PRICES.
And these “old timers” will only leave their kids a lot if they sell or sold at the right time, which means now to a couple years ago. Even so, there aren’t enough trust funds to affect the market. At a macro level, new buyers can’t (because most don’t have trust funds) pay the bubble prices.
Sure, some people can afford to buy now. But the smart ones won’t.
ParticipantThere is a lot of money out here and the lifestyle is desirable. A lot of income in San Diego does not show up in the statistics because there are a lot of small business ownere who make plenty of money and it is not being reported. Additionally there are enough old timers who have set up trust funds due to the fact that the did buy many eons ago who and going to help there kids out.
Yawn. Is all this hidden income a new phenomenon? Because affordability numbers like we’ve seen in San Diego the last few years certainly are new.
It’s really very simple. INCOMES DON’T SUPPORT PRICES.
And these “old timers” will only leave their kids a lot if they sell or sold at the right time, which means now to a couple years ago. Even so, there aren’t enough trust funds to affect the market. At a macro level, new buyers can’t (because most don’t have trust funds) pay the bubble prices.
Sure, some people can afford to buy now. But the smart ones won’t.
Participant“When people were buying in 2004-2005 did people call them dumb at the time?”
I did. They were.
People buying today, same thing.
Participant“When people were buying in 2004-2005 did people call them dumb at the time?”
I did. They were.
People buying today, same thing.
Participant“When people were buying in 2004-2005 did people call them dumb at the time?”
I did. They were.
People buying today, same thing.
Participanthe’s staring into the teeth of a very, very ugly market, though and is going to have trouble rationalizing that the house he had on the market for 600K 2 years ago can only sell at 450K (which incidentally is what I offered him 6 months ago to buy it).
Next time offer him a lot less and snicker while doing so.
Participanthe’s staring into the teeth of a very, very ugly market, though and is going to have trouble rationalizing that the house he had on the market for 600K 2 years ago can only sell at 450K (which incidentally is what I offered him 6 months ago to buy it).
Next time offer him a lot less and snicker while doing so.
ParticipantNice post JES. Sounds great. But I already have a job here in San Diego, and am NOT willing to move without something lined up. And I think it’s probably very difficult to line up a job out of state.
I’ve been unemployed, on the outside looking in, and NEVER want to go there again.
ParticipantNice post JES. Sounds great. But I already have a job here in San Diego, and am NOT willing to move without something lined up. And I think it’s probably very difficult to line up a job out of state.
I’ve been unemployed, on the outside looking in, and NEVER want to go there again.
ParticipantSubmitted by DaCounselor on July 25, 2007 – 2:12pm.
Good thread. Just a couple of random thoughts regarding afforability:
I often see posts on this site regarding affordability issues that seem to focus (implicitly) only on folks who are first-time buyers with no $$ down. I think it’s important to take into account the number of move-up buyers with alot of equity to roll into the new purchase when considering affordability. I think SDR or sdr posted some North County stats many months ago that highlighted this fact. I’m not saying that there aren’t affordability issues, but I do think a fuller perspective is in order on this topic.
First-time buyers are what drive the whole thing. Where do you think move-up buyers get the equity? From some chump, I mean first-time buyer, buying their house.
ParticipantSubmitted by DaCounselor on July 25, 2007 – 2:12pm.
Good thread. Just a couple of random thoughts regarding afforability:
I often see posts on this site regarding affordability issues that seem to focus (implicitly) only on folks who are first-time buyers with no $$ down. I think it’s important to take into account the number of move-up buyers with alot of equity to roll into the new purchase when considering affordability. I think SDR or sdr posted some North County stats many months ago that highlighted this fact. I’m not saying that there aren’t affordability issues, but I do think a fuller perspective is in order on this topic.
First-time buyers are what drive the whole thing. Where do you think move-up buyers get the equity? From some chump, I mean first-time buyer, buying their house.
ParticipantHmm…
Say you had 20% down payment. In 2004-2005, you can get 30yr fixed for ~5%. That’s $1481 per month which $300 goes to your principle. Even with property taxes and HOA you are probably under $2000. If you then count tax deduction and the principle you are paying off (>$500), aren’t you financially better off than paying $1500 for rent? I guess you can argue that the house has lost in value but that was paper gain anyways. Also, since you held the house for less than 2yrs and with fees you probably netted less than 30K, right?
Hmm…
So where’s the the lost interest on the 20% down payment in your calculation?
Why not just pay cash for the house. Then the monthly nut will be REALLY low. LOL.
Paper gain? Until the place was sold. Turned into real gain.
ParticipantHmm…
Say you had 20% down payment. In 2004-2005, you can get 30yr fixed for ~5%. That’s $1481 per month which $300 goes to your principle. Even with property taxes and HOA you are probably under $2000. If you then count tax deduction and the principle you are paying off (>$500), aren’t you financially better off than paying $1500 for rent? I guess you can argue that the house has lost in value but that was paper gain anyways. Also, since you held the house for less than 2yrs and with fees you probably netted less than 30K, right?
Hmm…
So where’s the the lost interest on the 20% down payment in your calculation?
Why not just pay cash for the house. Then the monthly nut will be REALLY low. LOL.
Paper gain? Until the place was sold. Turned into real gain.
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