Forum Replies Created
-
AuthorPosts
-
sdrealtor
ParticipantWho said anything about cash buyers? Just did a run through recent sales in MM in the 1.2 to 1.5 range. Pretty much all of em put down 20 to 30%. Why would they put down more? A quick cross reference with LinkedIn shows lots of techy couples at QCOM, Apple, Amazon etc. Figure it costs about $5K/month to borrow $1M with rates above 4% which is not a stretch for folks with $20 to 35K monthly HH incomes. Well within ratios and most of these folks are pretty frugal otherwise. There are tons of folks like that
ParticipantNot worried in the least. I just met with a builder to add a 2BR/2BA unit on that will have a 5 to 6 year payback with an insane cap rate.
You do not understand how this all works which is why you missed out on the GOOAL! Its not that interest rates dont matter its that there are still lots of tools out there like hybrid adjustable rate mortgages as well as massive amounts of cash and buyers. Tightest market in the country! GOOAL!
ParticipantWho cares! My house is already worth double what my wildest dreams were and its still going. You dont understand how real estate works. Wait for the adjustable loan products to deal with those rising rates. Bookmark it!
And demand is 10X or more supply. Less demand not as big an issue as you beleive. This is probably the tightest market in the country! opportunity of a lifetime missed!
ParticipantOddly enough my house keeps going up around here just like the everyone else’s. Supply and Demand
ParticipantI agree that more will but as they say life gets in the way for a lot of us
ParticipantIm below 2.75% so I guess I beat it again:)
Again people keep missing the point Ive been trying to make. When rates were that low the lenders didnt offer anything but 30 yr and if hybrid adjustable (10/1, 7/1. 5/1) the rate was not all that different. We have all gotten used to only 30 yr rates.
Youve all forgotten about those hybrid products. When I bought my home in 1999 it was with a 5/1 ARM at 7.125%. Virtually no one keeps a loan for 30 years and few are still in place 10 years later. We are going to see the 10/1 and 7/1 come roaring back into favor very quickly. Its what the market always does when rates are no longer falling. Mark my words this market has more legs than you think. Im not saying more 20%+ years but we arent done going up and we are not falling appreciably anytime in the next few years. Feel free to bookmark this post. This will be yet another prediction I’ll be proven right on
Participant[quote=The-Shoveler]One more coincidence or similarity to current times is the boomers were just hitting their 30’s. but come 89-early 90’s in LA at least when the cold war was winding down things went south fairly quickly. Took almost to 97-99 before the next bubble got really going and housing (in LA) to really recover.[/quote]
I remember how rough things were in early 90s around here. I went back to grad school and then moved back east for a couple years to finish those degrees. Very fortunate to have come back in 97 ready to buy my first home. I’ve made many very smart decisions along the way but they were all made possible by the luck of that game changing timing that created the opportunity of a lifetime for me that I recognized and jumped at
ParticipantYou cannot win if you do not play! OOAL
ParticipantApparently somebody here does not understand how this all works. No wonder why he keeps missing out on the opportunity of a lifetime!
ParticipantJust sold my semiconductor ETF for just under a 30% gain in a little over a week. Thanks dead zone
Participant[quote=flyer]Hope we all can![/quote]
You can do it!
Participant[quote=flyer]Not to worry–we’re all set–not a problem. And, yes, when death comes–as it will to all–the step up in basis will become one of their best friends. Of course, as mentioned, they might also continue to take advantage of other higher yielding opportunities other than SD real estate, as we all have.
My point, per this thread, was that many people are keeping properties for many reasons, rather than selling, again limiting the number of homes on the market–and, especially, if the escalation in prices continues, imo–this trend will only increase as time goes on–having, possibly, an even greater impact than whether people work at home or in an office.[/quote]
Live your best life!
ParticipantOf course they’ll find a way to make it work. When death comes they will get a step up in basis so they can sell tax free properties that lost decades old assessed real estate tax values. They’ll take the money and invest it in higher yielding opportunities than SD real estate as they should but again not our problem
ParticipantYou are locked in by high capital gain taxes and low property taxes. Death and prop 19 changes that but it’s gonna take a while. Someday the future Silver Spooners in your family will sell them maybe sooner than you think. But it’s not gonna happen en masse for at least a decade or two. Not our problem
-
AuthorPosts
