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I too am addicted to the blog and heading for the poorhouse!

AN – you mentioned something that was a factor I considered when I decided to put the most $$$ down I could when buying my new house (about 40%). I was thinking long term, and wanted the option of keeping the house as an investment even if I no longer wished to use it as my primary residence. By keeping the monthly obligation low, you are much more likely to be able to rent the property out and cover your entire PITI payment – in other words, have your tenants pay for your house. I consider this type of real estate investment safe and profitable over the long term…unlike the speculative, short term flipping we’ve seen so much of over the past couple of years.

[taz]

I too am addicted to the blog and heading for the poorhouse!

AN – you mentioned something that was a factor I considered when I decided to put the most $$$ down I could when buying my new house (about 40%). I was thinking long term, and wanted the option of keeping the house as an investment even if I no longer wished to use it as my primary residence. By keeping the monthly obligation low, you are much more likely to be able to rent the property out and cover your entire PITI payment – in other words, have your tenants pay for your house. I consider this type of real estate investment safe and profitable over the long term…unlike the speculative, short term flipping we’ve seen so much of over the past couple of years.

[taz]

If you look at the true cost of something as the amount of debt you take on to acquire it, this seems like a good move. He traded the potential earnings of the money he used for the down payment for a smaller mortgage loan and the definite reduction of interest paid on that loan over the years. I actually did something similar after selling (in 2005) the house I bought in 1997.

[taz]

If you look at the true cost of something as the amount of debt you take on to acquire it, this seems like a good move. He traded the potential earnings of the money he used for the down payment for a smaller mortgage loan and the definite reduction of interest paid on that loan over the years. I actually did something similar after selling (in 2005) the house I bought in 1997.

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I found a great Mission Hills rental a few years back using The Reader – it has pretty extensive listings.

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I found a great Mission Hills rental a few years back using The Reader – it has pretty extensive listings.

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Another possibility: if your neighbors have lived in their modest house for 30+ years, it’s quite possible they have paid off their mortgage, and have a VERY low tax rate thanks to Prop. 13. Since he has about the most secure job possible (govt.), maybe they’re just indulging themselves with some new toys using money that previously went to the mortgage company.

[taz]

Another possibility: if your neighbors have lived in their modest house for 30+ years, it’s quite possible they have paid off their mortgage, and have a VERY low tax rate thanks to Prop. 13. Since he has about the most secure job possible (govt.), maybe they’re just indulging themselves with some new toys using money that previously went to the mortgage company.

[taz]

well said, asianautica…

as a long time lurker here, I appreciate the analysis but get tired of hearing people’s homes/neighborhoods referred to as, for example, a “POS.”

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Actually, the Turf Club isn’t in North Park.

But, Heaven Sent Desserts, Morley Field, Hawthorne’s and Tazablanca restaurants and the Burlingame neighborhood all are.

jeez, alex, where have you been spending your time?! lighten up, don’t be such snob.

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North Park has a lot of great old craftsman homes, and a ten minute commute to downtown. Not everyone wants to live in a white-bread, cookie cutter, suburban tract home. I personally prefer the older urban neighborhoods.

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I believe the older homes are better constructed, and also have features you generally don’t get in new homes like individuality, charm, stained glass windows, batchelder tile fireplaces, etc.

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I believe Mountain View is in Southeast San Diego, near Crestview and Barrio Logan…

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