[SDEngineer]

[quote=jpinpb][quote=AN]jpinpb, I think right now, you should be able to get 4.5% with about 2 points. That’s about $4500 from a 80% loan w/ purchase price of $285k. That’s still $3500 less than than the $8k the government is giving you to buy. Your example doesn’t work, I agree with that. [/quote]

AN – Thanks for the explanation. I appreciate you taking the time. I still am a little confused. You said 80%. So that means putting 20% down? Not to be dense.

I have a question for anyone out there. Are those intending to eventually buy planning to put 20% down?

I originally intended to put 20% down, but w/each day hearing about the unemployment rising and the economy doing so poorly and the inventory rising and potential future decline in r.e. prices, if I bought today, I would only be comfortable putting down the minimum.[/quote]

We are going FHA with 3.5% down ourselves. We’re not in a position to put 20% down (we could do 10%), and in this economy, we view keeping our reserves high (they’ll still be in excess of 30K after the transaction is completed) as a reasonable trade-off to being stuck with a $180/mo mortgage insurance payment.

Truthfully, it’s not that bad – the reserves will be sitting earning interest in CD’s, which by themselves will bring in nearly half of what the MI payment is annually. If we had the full 20%, the 16.5% saved by not putting it in the down payment would pay for the entire thing (and that’s just figuring a 3% rate of return on the CD’s).

[SDEngineer]

[quote=jpinpb]I’m sorry. I did forget to add insurance into the monthly payment. I am not sure what that is. Let’s be conservative there also. What should we say? $50 a month? The HOA only covers the exterior.

So I’m looking at close to 2700 (not counting PMI) a month to own versus 1800 to rent. I’m not sure what the tax write-off would be, but I don’t think it’ll be 900 a month. I read somewhere in this thread 300 a month.

So that means I’ll only be overpaying 600+ a month, not counting PMI and whatever special assessment may be in store for me if I buy. Not taking into consideration the stealth of two units w/NODs that may end up on the market as a short sale in the future (unless they get bought in bulk or loan modified) Their loan amounts are more than 380k (closer to 450k) and not taking into consideration the unit that is already attempting a short sale at 350k.

[/quote]

For 380K, you’re probably looking at over 400 a month in tax deductions (considering both state and fed) – depends, of course, on the interest rate.

But yes, you’re right. I don’t think Clairemont pencils out yet.

[SDEngineer]

[quote=jpinpb]I’m sorry. I did forget to add insurance into the monthly payment. I am not sure what that is. Let’s be conservative there also. What should we say? $50 a month? The HOA only covers the exterior.

So I’m looking at close to 2700 (not counting PMI) a month to own versus 1800 to rent. I’m not sure what the tax write-off would be, but I don’t think it’ll be 900 a month. I read somewhere in this thread 300 a month.

So that means I’ll only be overpaying 600+ a month, not counting PMI and whatever special assessment may be in store for me if I buy. Not taking into consideration the stealth of two units w/NODs that may end up on the market as a short sale in the future (unless they get bought in bulk or loan modified) Their loan amounts are more than 380k (closer to 450k) and not taking into consideration the unit that is already attempting a short sale at 350k.

[/quote]

For 380K, you’re probably looking at over 400 a month in tax deductions (considering both state and fed) – depends, of course, on the interest rate.

But yes, you’re right. I don’t think Clairemont pencils out yet.

[SDEngineer]

[quote=jpinpb]I’m sorry. I did forget to add insurance into the monthly payment. I am not sure what that is. Let’s be conservative there also. What should we say? $50 a month? The HOA only covers the exterior.

So I’m looking at close to 2700 (not counting PMI) a month to own versus 1800 to rent. I’m not sure what the tax write-off would be, but I don’t think it’ll be 900 a month. I read somewhere in this thread 300 a month.

So that means I’ll only be overpaying 600+ a month, not counting PMI and whatever special assessment may be in store for me if I buy. Not taking into consideration the stealth of two units w/NODs that may end up on the market as a short sale in the future (unless they get bought in bulk or loan modified) Their loan amounts are more than 380k (closer to 450k) and not taking into consideration the unit that is already attempting a short sale at 350k.

[/quote]

For 380K, you’re probably looking at over 400 a month in tax deductions (considering both state and fed) – depends, of course, on the interest rate.

But yes, you’re right. I don’t think Clairemont pencils out yet.

[SDEngineer]

[quote=jpinpb]I’m sorry. I did forget to add insurance into the monthly payment. I am not sure what that is. Let’s be conservative there also. What should we say? $50 a month? The HOA only covers the exterior.

So I’m looking at close to 2700 (not counting PMI) a month to own versus 1800 to rent. I’m not sure what the tax write-off would be, but I don’t think it’ll be 900 a month. I read somewhere in this thread 300 a month.

So that means I’ll only be overpaying 600+ a month, not counting PMI and whatever special assessment may be in store for me if I buy. Not taking into consideration the stealth of two units w/NODs that may end up on the market as a short sale in the future (unless they get bought in bulk or loan modified) Their loan amounts are more than 380k (closer to 450k) and not taking into consideration the unit that is already attempting a short sale at 350k.

[/quote]

For 380K, you’re probably looking at over 400 a month in tax deductions (considering both state and fed) – depends, of course, on the interest rate.

But yes, you’re right. I don’t think Clairemont pencils out yet.

[SDEngineer]

[quote=jpinpb]I’m sorry. I did forget to add insurance into the monthly payment. I am not sure what that is. Let’s be conservative there also. What should we say? $50 a month? The HOA only covers the exterior.

So I’m looking at close to 2700 (not counting PMI) a month to own versus 1800 to rent. I’m not sure what the tax write-off would be, but I don’t think it’ll be 900 a month. I read somewhere in this thread 300 a month.

So that means I’ll only be overpaying 600+ a month, not counting PMI and whatever special assessment may be in store for me if I buy. Not taking into consideration the stealth of two units w/NODs that may end up on the market as a short sale in the future (unless they get bought in bulk or loan modified) Their loan amounts are more than 380k (closer to 450k) and not taking into consideration the unit that is already attempting a short sale at 350k.

[/quote]

For 380K, you’re probably looking at over 400 a month in tax deductions (considering both state and fed) – depends, of course, on the interest rate.

But yes, you’re right. I don’t think Clairemont pencils out yet.

[SDEngineer]

[quote=jpinpb]

I forgot the most important factor. My rent is $1,800 per month.

Now, I certainly can qualify for 380k. I can qualify for more than that. I like the complex I’m renting in. I like the area.

Should I buy? Should I buy a house I can afford elsewhere that has seen a greater decline b/c I should buy and live somewhere not necessarily where I would like to live just for the sake of buying and taking advantage of low rates and low prices? I already own free and clear some investment properties.

[/quote]

Clairemont, middle class though it is (having lived in both places, I’d say it compares very closely demographically (at least economically) to Mira Mesa), is too close to the coast. It hasn’t taken enough depreciation yet to make sense rent vs. buy.

If you’re set on living at or near the coast, I’d say you’re best bet is to continue to wait on the sidelines for awhile longer. I’ve noticed that the only people buying who seem to have thought this reasonably through are those people buying in the inland or north county areas that have seen massive drops over the past year or two.

Edited:

Just to put into perspective – the townhome me and the wife are purchasing is roughly the same price as the one you’re considering (390K), but is 4br/3.5ba 2200 square feet that would rent for about $2200-2300/mo – and the HOA on it is only $118/mo (with no mello-roos). That’s above what an investor would look for, but is clearly balanced well with rents in the area (actually, a bit cheaper than renting once you do the math)…and the builder’s paying 24K towards closing costs and interest rate buydowns.

If yours rents for 1800/mo, I’d think that seeing it at about 310-320K would a similar ratio to what we’re looking at in the inland valleys right now.

[SDEngineer]

[quote=jpinpb]

I forgot the most important factor. My rent is $1,800 per month.

Now, I certainly can qualify for 380k. I can qualify for more than that. I like the complex I’m renting in. I like the area.

Should I buy? Should I buy a house I can afford elsewhere that has seen a greater decline b/c I should buy and live somewhere not necessarily where I would like to live just for the sake of buying and taking advantage of low rates and low prices? I already own free and clear some investment properties.

[/quote]

Clairemont, middle class though it is (having lived in both places, I’d say it compares very closely demographically (at least economically) to Mira Mesa), is too close to the coast. It hasn’t taken enough depreciation yet to make sense rent vs. buy.

If you’re set on living at or near the coast, I’d say you’re best bet is to continue to wait on the sidelines for awhile longer. I’ve noticed that the only people buying who seem to have thought this reasonably through are those people buying in the inland or north county areas that have seen massive drops over the past year or two.

Edited:

Just to put into perspective – the townhome me and the wife are purchasing is roughly the same price as the one you’re considering (390K), but is 4br/3.5ba 2200 square feet that would rent for about $2200-2300/mo – and the HOA on it is only $118/mo (with no mello-roos). That’s above what an investor would look for, but is clearly balanced well with rents in the area (actually, a bit cheaper than renting once you do the math)…and the builder’s paying 24K towards closing costs and interest rate buydowns.

If yours rents for 1800/mo, I’d think that seeing it at about 310-320K would a similar ratio to what we’re looking at in the inland valleys right now.

[SDEngineer]

[quote=jpinpb]

I forgot the most important factor. My rent is $1,800 per month.

Now, I certainly can qualify for 380k. I can qualify for more than that. I like the complex I’m renting in. I like the area.

Should I buy? Should I buy a house I can afford elsewhere that has seen a greater decline b/c I should buy and live somewhere not necessarily where I would like to live just for the sake of buying and taking advantage of low rates and low prices? I already own free and clear some investment properties.

[/quote]

Clairemont, middle class though it is (having lived in both places, I’d say it compares very closely demographically (at least economically) to Mira Mesa), is too close to the coast. It hasn’t taken enough depreciation yet to make sense rent vs. buy.

If you’re set on living at or near the coast, I’d say you’re best bet is to continue to wait on the sidelines for awhile longer. I’ve noticed that the only people buying who seem to have thought this reasonably through are those people buying in the inland or north county areas that have seen massive drops over the past year or two.

Edited:

Just to put into perspective – the townhome me and the wife are purchasing is roughly the same price as the one you’re considering (390K), but is 4br/3.5ba 2200 square feet that would rent for about $2200-2300/mo – and the HOA on it is only $118/mo (with no mello-roos). That’s above what an investor would look for, but is clearly balanced well with rents in the area (actually, a bit cheaper than renting once you do the math)…and the builder’s paying 24K towards closing costs and interest rate buydowns.

If yours rents for 1800/mo, I’d think that seeing it at about 310-320K would a similar ratio to what we’re looking at in the inland valleys right now.

[SDEngineer]

[quote=jpinpb]

I forgot the most important factor. My rent is $1,800 per month.

Now, I certainly can qualify for 380k. I can qualify for more than that. I like the complex I’m renting in. I like the area.

Should I buy? Should I buy a house I can afford elsewhere that has seen a greater decline b/c I should buy and live somewhere not necessarily where I would like to live just for the sake of buying and taking advantage of low rates and low prices? I already own free and clear some investment properties.

[/quote]

Clairemont, middle class though it is (having lived in both places, I’d say it compares very closely demographically (at least economically) to Mira Mesa), is too close to the coast. It hasn’t taken enough depreciation yet to make sense rent vs. buy.

If you’re set on living at or near the coast, I’d say you’re best bet is to continue to wait on the sidelines for awhile longer. I’ve noticed that the only people buying who seem to have thought this reasonably through are those people buying in the inland or north county areas that have seen massive drops over the past year or two.

Edited:

Just to put into perspective – the townhome me and the wife are purchasing is roughly the same price as the one you’re considering (390K), but is 4br/3.5ba 2200 square feet that would rent for about $2200-2300/mo – and the HOA on it is only $118/mo (with no mello-roos). That’s above what an investor would look for, but is clearly balanced well with rents in the area (actually, a bit cheaper than renting once you do the math)…and the builder’s paying 24K towards closing costs and interest rate buydowns.

If yours rents for 1800/mo, I’d think that seeing it at about 310-320K would a similar ratio to what we’re looking at in the inland valleys right now.

[SDEngineer]

[quote=jpinpb]

I forgot the most important factor. My rent is $1,800 per month.

Now, I certainly can qualify for 380k. I can qualify for more than that. I like the complex I’m renting in. I like the area.

Should I buy? Should I buy a house I can afford elsewhere that has seen a greater decline b/c I should buy and live somewhere not necessarily where I would like to live just for the sake of buying and taking advantage of low rates and low prices? I already own free and clear some investment properties.

[/quote]

Clairemont, middle class though it is (having lived in both places, I’d say it compares very closely demographically (at least economically) to Mira Mesa), is too close to the coast. It hasn’t taken enough depreciation yet to make sense rent vs. buy.

If you’re set on living at or near the coast, I’d say you’re best bet is to continue to wait on the sidelines for awhile longer. I’ve noticed that the only people buying who seem to have thought this reasonably through are those people buying in the inland or north county areas that have seen massive drops over the past year or two.

Edited:

Just to put into perspective – the townhome me and the wife are purchasing is roughly the same price as the one you’re considering (390K), but is 4br/3.5ba 2200 square feet that would rent for about $2200-2300/mo – and the HOA on it is only $118/mo (with no mello-roos). That’s above what an investor would look for, but is clearly balanced well with rents in the area (actually, a bit cheaper than renting once you do the math)…and the builder’s paying 24K towards closing costs and interest rate buydowns.

If yours rents for 1800/mo, I’d think that seeing it at about 310-320K would a similar ratio to what we’re looking at in the inland valleys right now.

[SDEngineer]

[quote=jpinpb]Thanks, Huckleberry. It didn’t make sense and I had a very time believing any of it. But since nothing is making sense to me lately, well, I just didn’t know what to think. [/quote]

Don’t know about hedge funds and the like, but there have been reports in a number of media sites that I’ve seen reporting that “vulture” groups have been forming and are buying these blocks of inventory.

Probably not possible to know how large a slice of the market it is yet, but this would be the time that vulture groups would deem ripe – banks have so much inventory on their books with more on the way that they would be likely to consider that dumping them en masse to an investor group at a steep markdown may be cheaper to them than attempting to market and sell them all (at what is still a steep markdown, although a lesser one) on a market already saturated with foreclosures, while picking up the monthly carrying costs and performing all the needed repairs on their own dime.

[SDEngineer]

[quote=jpinpb]Thanks, Huckleberry. It didn’t make sense and I had a very time believing any of it. But since nothing is making sense to me lately, well, I just didn’t know what to think. [/quote]

Don’t know about hedge funds and the like, but there have been reports in a number of media sites that I’ve seen reporting that “vulture” groups have been forming and are buying these blocks of inventory.

Probably not possible to know how large a slice of the market it is yet, but this would be the time that vulture groups would deem ripe – banks have so much inventory on their books with more on the way that they would be likely to consider that dumping them en masse to an investor group at a steep markdown may be cheaper to them than attempting to market and sell them all (at what is still a steep markdown, although a lesser one) on a market already saturated with foreclosures, while picking up the monthly carrying costs and performing all the needed repairs on their own dime.

[SDEngineer]

[quote=jpinpb]Thanks, Huckleberry. It didn’t make sense and I had a very time believing any of it. But since nothing is making sense to me lately, well, I just didn’t know what to think. [/quote]

Don’t know about hedge funds and the like, but there have been reports in a number of media sites that I’ve seen reporting that “vulture” groups have been forming and are buying these blocks of inventory.

Probably not possible to know how large a slice of the market it is yet, but this would be the time that vulture groups would deem ripe – banks have so much inventory on their books with more on the way that they would be likely to consider that dumping them en masse to an investor group at a steep markdown may be cheaper to them than attempting to market and sell them all (at what is still a steep markdown, although a lesser one) on a market already saturated with foreclosures, while picking up the monthly carrying costs and performing all the needed repairs on their own dime.

[SDEngineer]

[quote=jpinpb]Thanks, Huckleberry. It didn’t make sense and I had a very time believing any of it. But since nothing is making sense to me lately, well, I just didn’t know what to think. [/quote]

Don’t know about hedge funds and the like, but there have been reports in a number of media sites that I’ve seen reporting that “vulture” groups have been forming and are buying these blocks of inventory.

Probably not possible to know how large a slice of the market it is yet, but this would be the time that vulture groups would deem ripe – banks have so much inventory on their books with more on the way that they would be likely to consider that dumping them en masse to an investor group at a steep markdown may be cheaper to them than attempting to market and sell them all (at what is still a steep markdown, although a lesser one) on a market already saturated with foreclosures, while picking up the monthly carrying costs and performing all the needed repairs on their own dime.

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