[recordsclerk]

“starter home” is a marketing ploy. It makes you feel better in your purchase, because it leads you to believe that someday you can buy something more. It’s sad because I think it actually makes you feel worse. Starter homes in San Diego go for the same price as “move up” homes in other regions. Since “starter homes” refers to being young, stay young forever and forget about it. Only you can make yourself angry, so stay on the bright side. I’m in my 30’s and still have a “starter income/job” but I’m not letting that keep me down. I live in a starter home and someday will move into a “move up McMansion”.

[recordsclerk]

I got a flyer offering your choice of $2K shopping spree or a 1 year pass for the new 125 Southbay Expressway. That must be an expensive pass. From those homes you can cut through Bonita and catch the 54 for free. It would only take an extra couple minutes. It’s the people who live deep in East Lake that would want a free pass.

[recordsclerk]

I got a flyer offering your choice of $2K shopping spree or a 1 year pass for the new 125 Southbay Expressway. That must be an expensive pass. From those homes you can cut through Bonita and catch the 54 for free. It would only take an extra couple minutes. It’s the people who live deep in East Lake that would want a free pass.

[recordsclerk]

There are some home loans floating out there from 2003-2004 that are at Lower rates then current CDs. I have two such loans. I have a fully amortized 15yr loan fixed at 4.75%, so I don’t make any extra payment into principle. I also have a 3.75% IO loan that will reset in a couple of years. Both of these loans are First loans (no seconds). I’m the type that likes to make extra principle payments, so for now I just put money into my high yield checking @4.75% min. balance 20K. I also have a couple of CD’s @5-5.25%. Then when the loan resets I will make a large payment to pay down the loan. This also works for car loans. If you can get a HELOC for the same rate as a car loan, it would be better to use the HELOC because you get a tax break.

[recordsclerk]

There are some home loans floating out there from 2003-2004 that are at Lower rates then current CDs. I have two such loans. I have a fully amortized 15yr loan fixed at 4.75%, so I don’t make any extra payment into principle. I also have a 3.75% IO loan that will reset in a couple of years. Both of these loans are First loans (no seconds). I’m the type that likes to make extra principle payments, so for now I just put money into my high yield checking @4.75% min. balance 20K. I also have a couple of CD’s @5-5.25%. Then when the loan resets I will make a large payment to pay down the loan. This also works for car loans. If you can get a HELOC for the same rate as a car loan, it would be better to use the HELOC because you get a tax break.

[recordsclerk]

So if I can find a heloc for 7% and elect to put that money in a CD for 5% I would be making a profit. There seems to be something wrong with this. Can anyone explain this in more detail. Or did I just misunderstand the post.

[recordsclerk]

So if I can find a heloc for 7% and elect to put that money in a CD for 5% I would be making a profit. There seems to be something wrong with this. Can anyone explain this in more detail. Or did I just misunderstand the post.

[recordsclerk]

It’s like what another poster said, “it’s personal taste”. It will always be of less value then the same size traditional SFR. It does limit you on how much parking you have because most of the alley set-up garages allows only cars to be parked in the garage. You will not have extra parking like a driveway would provide. Although I’m not familiar with Maybeck, you may want to check the accessibility of the garage for some builds are very tight and hard to navigate in and out. Also if a neighbor is parked in front of their garage it may make it impossible for you to pull your car in and out. This may not be an issue with Maybeck, but is in some of these alley set-ups.

[recordsclerk]

Great info guys, thanks. Until the banks get more serious about selling, the outcomes for these auctions are going to remain the same. I doubt that half of these properties will show up as recorded sales. I’m sure that they will go back to the banks. Eventually if the market continues to spiral downward these banks will have to lower their expectations. Even though this auction looks like a failure to most of us, I think this was a lesson for the banks. In the future these auction houses (the auctioneer) may require fees from the banks even if there are no sales recorded. The auction houses are going to get frustrated with the banks for not selling.
I love these auctions, can’t wait for the next one.

[recordsclerk]

Chaparral Ridge by Shea has recently released models and are selling phase 3 ready to live in by December 2008. These homes are nicer then the Steppe’s and there is no mello roos. There is an HOA of $114 and a city imposed assessment of $370 annually. The lots average 14,000sq feet. The homes are 2600-3600sq feet. The prices are high 500s to high 600s. There is a 3500sq foot home available at 635K in the December release.

[recordsclerk]

I’m pretty sure this auction will have the same results as the Bressi auction held a few months back. There will be bids on each property, but the bids will not meet the reserve. In the Bressi aution there were bids that went as high as 10% below MLS listings and the investors (owners) did not sell.
I believe that there may be a slight discount, but not more then a couple %. Im sure that there have been lowball offers on many of these homes and the REO’s did not sell them then. This is just another way to get buyers to look at these homes. If you bid 450K on a home listed on MLS for 500k, you will only save 25K after the 5% auction commission. I think eventually as REO inventory goes up, you will see more reasonable prices(desperation). This auction may help in future price reductions, but at this point prices will remain firm and near MLS listed price.

[recordsclerk]

Most of the new homes today come with stainless steel appliances and granite counter tops. A couple of years ago, it was an upgrade item. That’s why in a lot of the re-sale homes from 2005 and before have white tile counter tops and white/black appliances. Also in some of the more high end homes (1 million plus) you get 60K in high end appliances/granite included. These options, lender incentives, closing cost, landscaping, 3% broker comission are all hidden in the sale price. Prices are down 10%, but add these hidden cost to the builder and prices are actually down more then 10%. Just 2 years ago all you would get is a dirt lot, cement driveway, some tile (nothing fancy), tile counters, carpet, 2 1/2in baseboards, no fridge, no incentives, no broker co-op, white paint.

[recordsclerk]

You can also have your home re-assessed if you believe your current value is less then what you paid. You can to go the assessor’s website at http://www.sdarcc.com (sorry don’t know how to attach link or info) to get information. Anyone want to attach the News Release: Property Tax Relief.
http://www.sdarcc.com/arcc/docs/Prop8-2007-01.pdf

[recordsclerk]

The loan is for $336K, the home was puchased for $420K. Some of the other information like closing cost may be incorrect. It’s hard to remember all the details. I am sure about the 3.75% and the buy down of a .25%. I also know that buying down the rate saved me a couple thousand dollars during the 5 year period if I pay interest only. The down payment came from a heloc from primary residence, but has since been paid off.

[recordsclerk]

I can’t remember all the details of the loan, but I do know that I bought down the loan by a .25%, which saved me $2K in the five year period. I think the closing cost was $7K. My uncle is a broker and waived his fee to help with the rate. The Loan Company I send my payment to is Aurora. I also know that the rate dropped .25% two days before closing and went up again the next day. I got real lucky with the timing on my loan, because if I’m correct March 2004 was the best time to get a loan. The Escrow closed on April 1st. I also got lucky the year before when I refied another loan on my primary residence in June 2003 (I think) and got a 15yr fixed rate of 4.75%.

[Author]

Posts