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SDEaves
Participant[quote=urbanrealtor][quote=SDEaves]These income-qualified units are being sold for 20 percent less than regular sale units.
No holding clause but they would only be able to resell their unit to another income-qualified person/family.
When you go to sell your regular unit, would those affordable housing comps be excluded from comparison to the regular sale?
Seems like there should be some special provision to protect regular resale but not sure?[/quote]Re resale:
Typically, the units I have dealt with, have a 40 year deed rider that ties the resale value of the property to the median county income. That means that if values spike, you sell at the income-defined price (which would be below market). Likewise, if the values tank, you sell ABOVE market (or, rather, fail to sell).In other words, you have all the risk of being a homeowner with virtually none of the rewards (except static cost of housing). Without some speculative potential reward, there really is not a huge incentive to buy.
Re appraisal:
By definition, the affordable units are not open market sales. However, not all appraisers know about this program and not all listing agents mention it in the remarks. Therefore, I have had multiple appraisals plopped on my desk when my loan officer (who has the desk next to mine) says “What the fuck is this?!!!”.In other words, it shouldn’t affect normal sales but in practice it does because the deed riders and restrictions don’t show on databases as they should.
I am a liberal and a believer in government helping the less privileged.
This is not an example of that help.
This is a terrible program and only will cause hurt to owners.
Avoid it.[/quote]ParticipantWe appreciate the multiple perspectives on this thread. We take everyone’s advice into account!
Participant[quote=bearishgurl]I just pm’d Pigg UR on your behalf to respond to this thread. There are a few newer bldgs in his stomping ground (ex: East Village) which had a few low-income units for sale when the projects were new.
Perhaps enough units have resold in these projects to be able to answer your question.[/quote]
Participant[quote=spdrun]Never bow to pressure from a broker is about right. A few months ago, I put an offer on a short in MV at ~90% of ask. Broker kept saying that I’d never get it unless I offered ask or above. Well, today I got a call that the winning bigger failed to perform, and could I please send an updated proof of funds.[/quote]
Congratulations!
Participant[quote=Jazzman][quote=SDEaves]BG,
Just as you said last month, homes in our price range are getting snatched up by cash buyers.
Since last month’s post, we have put in 2 offers in LM but to no avail. One was taken by an investor; the other we were outbid.
We are still searching. As you and other Piggs have said, inventory is extremely low in our price range. So this all should come as no surprise to you 😉 Your last post implies some sort of impatience at us taking our time with buying and asking questions in the meantime. Perhaps I read into your last post wrong? We will gladly update you once we close escrow on a home. Please send us good luck with our search- we need it![/quote]With inventory so low, and the frustration of being out-bid, why don’t you put your search on hold until things improve. Look at these numbers. Things aren’t improving. http://www.deptofnumbers.com/asking-prices/california/san-diego/
Never, ever bow to pressure from a Realtor. As far as your OP is concerned, you may be a little over-concerned in respect of values. Although some appraisers may be initially confused, it seems pretty clear cut that the two values are not interconnected, which would be made clear to any prospecting buyers, just as you yourself found out.
I personally wouldn’t hold out for any appreciation down the road anyway. The best investments in this market are not based on future potential, but on how well you managed to negotiate the seller down on price. If that is not possible due to shortage of supply, you run the risk of your investment remaining flat. A great time to borrow doth not a great time to buy maketh.[/quote]
Very sage advice. Thank you.
ParticipantBG,
Just as you said last month, homes in our price range are getting snatched up by cash buyers.
Since last month’s post, we have put in 2 offers in LM but to no avail. One was taken by an investor; the other we were outbid.
We are still searching. As you and other Piggs have said, inventory is extremely low in our price range. So this all should come as no surprise to you 😉 Your last post implies some sort of impatience at us taking our time with buying and asking questions in the meantime. Perhaps I read into your last post wrong? We will gladly update you once we close escrow on a home. Please send us good luck with our search- we need it!ParticipantThese income-qualified units are being sold for 20 percent less than regular sale units.
No holding clause but they would only be able to resell their unit to another income-qualified person/family.
When you go to sell your regular unit, would those affordable housing comps be excluded from comparison to the regular sale?
Seems like there should be some special provision to protect regular resale but not sure?ParticipantThe affordable units would be for sale only, just at a lower price to income qualified individuals/families.
The complex is brand new construction.
Bad investment? Do you think those units will affect resale value of regular units? Other potential pitfalls you may know of?Participant[quote=bearishgurl][quote=SDEaves]Thanks for your worry about the neighborhoods being too expensive for us. If this helps, we have toured many homes in our price range in all four locations (over the past year). We’ve looked at many different neighborhoods in San Diego before narrowing down the search to these favorites. Now it’s just deciding townhouse vs. SFR and your posts specifically have helped us IMMENSELY! Oh and yes, we checked out La Mesa. Certain areas we found to be right up our alley (north of the 8 and near Lake Murray) but the south-west area (near Rolando) was pretty scary.[/quote]
SDEaves, you never stated here (until now) that you had been looking for a year and have not yet purchased a property ;=]
You also didn’t state if you would be willing to do any major (or minor) work before or after moving in. If the answer to “major work” is a “yes,” I feel your options for a SFR of 1600+ sf would open up exponentially, perhaps in LM.
Have you made any offers on properties which were not accepted?
During this past year (while you have been looking at properties) have you noticed an uptick and firming of prices in any of your areas of choice? Have you noticed if properties you’re seeing have already been snapped up by cash buyers?
North of the 8 and near Lake Murray is actually San Carlos (SD 92119).
I didn’t look at any properties online on your behalf so don’t have any idea of the inventory in your areas of choice right now.
The price you stated you could qualify for ($360K) just so happens to be within the range cash investors are willing to spend for a rental property or “flipper.”
The above reasons are why I felt some of the areas mentioned on this thread were “too expensive” for you.[/quote]
Our dear friend is a realtor who felt it best for us to look at homes in our price range this year before purchasing a property. Was that not a good idea? We have learned a lot in looking around. We are now in a position to put in offers (have ample savings to do the deal as of now). Our realtor friend, we feel, did us a great service in showing us around. Didn’t feel we would need to state that in our post/justify our price range/etc. since our post question is pretty specific- townhouse or SFR in the areas mentioned.
Participant[quote=bearishgurl][quote=SDEaves]We found it very interesting that out of our four location choices presented in our original post, Mira Mesa was never recommended even once! Thank you all for your honesty.[/quote]
I didn’t recommend MM because I thought a (3 bdrm) SFR would be too expensive for you there. MM has recently been driven up in price by cash investors and flippers.
AN, are there any suitable SFR’s around ~$365K available for this family in MM?
Tierrasanta is also likely too expensive for you … for ANY size home.
I am fundamentally against a family of 5 with 3 very young children cramming themselves and all of their life activities into a condo … with its “all-encompassing” HOA board members undoubtedly “lurking.” That reason (and the extra cost) is why I suggested areas where you could buy a SFR with a bigger-than-standard lot with no HOA/MR.
SDEaves, have you had a chance to look around in LM yet??[/quote]
Thanks for your worry about the neighborhoods being too expensive for us. If this helps, we have toured many homes in our price range in all four locations (over the past year). We’ve looked at many different neighborhoods in San Diego before narrowing down the search to these favorites. Now it’s just deciding townhouse vs. SFR and your posts specifically have helped us IMMENSELY! Oh and yes, we checked out La Mesa. Certain areas we found to be right up our alley (north of the 8 and near Lake Murray) but the south-west area (near Rolando) was pretty scary.
ParticipantWe found it very interesting that out of our four location choices presented in our original post, Mira Mesa was never recommended even once! Thank you all for your honesty.
Participant[quote=Ren]We only had one at the time, and that was from age 0 to 1, but considering we only had a small concrete patio, we felt he would soon be missing out. With two working grownups, weekend time is priceless for chores/projects around the house, and taking kids to the park or pool is not always practical. A grassy backyard is cheap and easy entertainment that we can use at the drop of a hat, not just when we plan a 3-hour chunk for it. They occupy themselves for hours while I work on the laptop, Guinness at hand, and we don’t have to watch every move they make. They also get plenty of playground time at school, so I don’t feel guilty for not taking them to a park every weekend.
Yeah I know this will all change with sports…
I would rather rent a house than buy a condo, if that’s what it comes down to for us, and it likely will. The plan is to rent in a neighborhood we would like to eventually buy in, even if that’s 10 years from now.[/quote]
You have some really great points. A yard would be ideal- rented or owned!
Participant[quote=Ren]Think of a condo HOA as a “new roof savings account”. It’s also deductible if you ever turn it into a rental. Some are unacceptably and unnecessarily high, though.
Being a family that has done both (1,200sf condo/20-minute commute and 2,100sf sfr/1-hour commute) I can say that we will next be aiming for a small house, about 1,500sf, with a 20-30 minute commute. The neighborhood is more important to us than price – if we can’t afford to buy where we want to live, we’ll rent and invest in a rental elsewhere. Not considering a condo again unless it’s a screamin’ deal and a park-like setting, like say a golf course view. I’ve never personally had a bad experience in a condo – they can be perfectly acceptable, quiet places to live. Just gotta find the right one, which can be difficult depending on the area.[/quote]
Thank you. It’s nice to hear from someone who has experienced both situations. You’re very much dead-on with your observation that neighborhood is more important than price. Did you feel your children were really missing out on a good childhood when they lived in a townhouse/condo? Or were they perfectly happy?
Participant[quote=craptcha]Depends where in San Marcos and how much time you spend on surface streets before you get to 78. 30 minutes should be doable from CSUSM or Civic Center.[/quote]
Thank you! -
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