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SD Realtor
ParticipantThose guidelines are a good start but to be honest they are still pretty loose (by my personal standards)…
No matter who has been recommending the guidelines, the fact is that they are not law. The reason that the guidelines are finally being put in place is due to the credit crunch that Bugs has mentioned many times over. As the secondary market continues to wallow, loan originators MUST do everything they can to restore confidence to continue to sell loans. That begins with stringent guidelines and a restoration of an underwriting process with teeth.
SD Realtor
ParticipantGuys I am not an appraiser nor am I an assessor. However I believe if the RPA said 1M then your tax will be based on a 1M purchase price. The best way to get the answer is to call the assessor. How was the purchase agreement written?
SD Realtor
ParticipantGuys I am not an appraiser nor am I an assessor. However I believe if the RPA said 1M then your tax will be based on a 1M purchase price. The best way to get the answer is to call the assessor. How was the purchase agreement written?
SD Realtor
Participantcovered_10 see my post on Caravan information… yep some of them are still putting out eats. I don’t see any problem with you going to visit them.
SD Realtor
Participantcovered_10 see my post on Caravan information… yep some of them are still putting out eats. I don’t see any problem with you going to visit them.
SD Realtor
ParticipantPR I don’t think I said that rates are going up. My main concern is the uncertainty with the risk premiums that will be built in by the lenders. Your post makes good sense except that I am pretty sure a very high percentage of loans are sold on the secondary market. Even those in the class 2 example. Even so called direct lenders must resell loans otherwise they could not continue to do business. So basically I agree with your posts and my point is that Extra 1, Extra 2, and Extra 3 will be totally driven by the secondary market. It will be interesting. I think your numbers make good sense for now. Let’s see how they hold up.
SD Realtor
ParticipantPR I don’t think I said that rates are going up. My main concern is the uncertainty with the risk premiums that will be built in by the lenders. Your post makes good sense except that I am pretty sure a very high percentage of loans are sold on the secondary market. Even those in the class 2 example. Even so called direct lenders must resell loans otherwise they could not continue to do business. So basically I agree with your posts and my point is that Extra 1, Extra 2, and Extra 3 will be totally driven by the secondary market. It will be interesting. I think your numbers make good sense for now. Let’s see how they hold up.
SD Realtor
ParticipantHi bow_legs –
I have a client who I worked with about 18 months ago. Sold her condo down in the south bay and she did very well and wanted to buy into one of the conversions in Clairemont. I discouraged her and she has been renting ever since. I would absolutely agree that you will be better off renting for another few years, (if you can put up with it) especially for a condo in this area. About 2 months ago I sold off my 1/1 in Mission Valley to my tenant. While I gave her a very nice deal below market I do believe that the condo market will continue to lead the charge in the market depreciation cycle. So unless you can build in a relo package that buffers you sufficiently for the depreciation potential, I think it would be wise to pass.
One thing though… as always, run the numbers and see. Alot of people have discussed and posted about rent verses buy calculators, (and it is pretty easy to just put together an excel sheet) See if it works out for you.
Another big reason for the hesitancy is that this would not be a final or long term purchase by any means. It would be most likely the first in a ladder of purchases as you move ahead. So the likelihood that this will pencil out as a rental, (when you do move out) is low at that price. Similarly I think you will most likely be ready to move prior to the market going down and getting back up to where the home would provide at least a break even.
SD Realtor
ParticipantHi bow_legs –
I have a client who I worked with about 18 months ago. Sold her condo down in the south bay and she did very well and wanted to buy into one of the conversions in Clairemont. I discouraged her and she has been renting ever since. I would absolutely agree that you will be better off renting for another few years, (if you can put up with it) especially for a condo in this area. About 2 months ago I sold off my 1/1 in Mission Valley to my tenant. While I gave her a very nice deal below market I do believe that the condo market will continue to lead the charge in the market depreciation cycle. So unless you can build in a relo package that buffers you sufficiently for the depreciation potential, I think it would be wise to pass.
One thing though… as always, run the numbers and see. Alot of people have discussed and posted about rent verses buy calculators, (and it is pretty easy to just put together an excel sheet) See if it works out for you.
Another big reason for the hesitancy is that this would not be a final or long term purchase by any means. It would be most likely the first in a ladder of purchases as you move ahead. So the likelihood that this will pencil out as a rental, (when you do move out) is low at that price. Similarly I think you will most likely be ready to move prior to the market going down and getting back up to where the home would provide at least a break even.
SD Realtor
ParticipantPoint well taken Enorah… We will see if the big shift yields tangible results in a month or two, or over the next few years.
SD Realtor
ParticipantPoint well taken Enorah… We will see if the big shift yields tangible results in a month or two, or over the next few years.
SD Realtor
ParticipantNo hard stats and this is totally my own speculation but I bet well less then 50% of licensees who pass the test even sign on with a broker.
Example – In my engineering office 3 of us have licenses and I am the only one who practices. 7 friends of my wife obtained licenses in the past 2 years. None of them practice. I know numerous people who used to work for larger brokerages in more of a part time sense (working open houses, being kind of lackeys for high power agents) who have bailed out…
I think the numbers are very hard to assess. Definitely the exodus will continue.
BTW – I do encourage people to take the class and just for their own knowledge. It is all quite basic stuff and I have learned more in the field then in the class but it is still cool to take. Don’t do the on line stuff. It is alot more interesting going to the class and talking to the instructor afterwards.
SD Realtor
ParticipantNo hard stats and this is totally my own speculation but I bet well less then 50% of licensees who pass the test even sign on with a broker.
Example – In my engineering office 3 of us have licenses and I am the only one who practices. 7 friends of my wife obtained licenses in the past 2 years. None of them practice. I know numerous people who used to work for larger brokerages in more of a part time sense (working open houses, being kind of lackeys for high power agents) who have bailed out…
I think the numbers are very hard to assess. Definitely the exodus will continue.
BTW – I do encourage people to take the class and just for their own knowledge. It is all quite basic stuff and I have learned more in the field then in the class but it is still cool to take. Don’t do the on line stuff. It is alot more interesting going to the class and talking to the instructor afterwards.
SD Realtor
ParticipantI was not trying to be flippant in my post… though that is most likely how it came out. I just think that statements are made with so much emotion… Once more I will point out posts made by people who do want to buy… Once more there are pretty decent active/pending ratios in several zip codes. I completely agree with sdr, I don’t feel there is some point frozen in time where all of the sudden the market stops or plummets altogether. I am not saying the market will not drop as I totally agree it will do that… However these posts where people say, I can just feel it… Oh man… Then that gets everyone all frothed up… to me that makes the board here seem a bit less…well you can choose your own adjective.
Of course there are rampant defaults, and lots of signs that indicate the market should do this or that… yet that is not how it works, nor has it ever worked that way.
Why is it so hard to accept that the market will move at given pace?
SD Realtor
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