[temeculaguy]

But I think the ones I linked fit your criteria that you posted on another thread, about you wanting a 10 year mortgage. While it’s a lofty goal and not likely to be commonplace, the median income in the zip of those condos is 68k, with 20% down on a 100k, an 80k mortgage for 10 years at 6% is $888 P&I. You could pull off your formula with those examples, sure it isn’t big and it’s not on the beach, but if your melancholy mood these days has you thinking that La Jolla mansions will be 100k, then the eventual reality will depress you even more. I’m just trying to help, math can be fun.

[temeculaguy]

But I think the ones I linked fit your criteria that you posted on another thread, about you wanting a 10 year mortgage. While it’s a lofty goal and not likely to be commonplace, the median income in the zip of those condos is 68k, with 20% down on a 100k, an 80k mortgage for 10 years at 6% is $888 P&I. You could pull off your formula with those examples, sure it isn’t big and it’s not on the beach, but if your melancholy mood these days has you thinking that La Jolla mansions will be 100k, then the eventual reality will depress you even more. I’m just trying to help, math can be fun.

[temeculaguy]

But I think the ones I linked fit your criteria that you posted on another thread, about you wanting a 10 year mortgage. While it’s a lofty goal and not likely to be commonplace, the median income in the zip of those condos is 68k, with 20% down on a 100k, an 80k mortgage for 10 years at 6% is $888 P&I. You could pull off your formula with those examples, sure it isn’t big and it’s not on the beach, but if your melancholy mood these days has you thinking that La Jolla mansions will be 100k, then the eventual reality will depress you even more. I’m just trying to help, math can be fun.

[temeculaguy]

But I think the ones I linked fit your criteria that you posted on another thread, about you wanting a 10 year mortgage. While it’s a lofty goal and not likely to be commonplace, the median income in the zip of those condos is 68k, with 20% down on a 100k, an 80k mortgage for 10 years at 6% is $888 P&I. You could pull off your formula with those examples, sure it isn’t big and it’s not on the beach, but if your melancholy mood these days has you thinking that La Jolla mansions will be 100k, then the eventual reality will depress you even more. I’m just trying to help, math can be fun.

[temeculaguy]

[quote=carlsbadworker][quote=Rt.66]6 to 2? Holy crap, thats huge![/quote]

Welcome to Temecula Valley. To be fair, TG didn’t mean it is $200K. It just starts with 2. So the ratio is less dramatic than it looks, but 50%+ off is not hard to find in TV, 66% off is where I like to invest my money with but I don’t think I will ever be able to get it.
[/quote]

You can find it, 280k to 99k and it’s not a short sale.

http://www.redfin.com/CA/Temecula/31385-Taylor-Ln-92592/home/6679992

look at the similar listings and closings at the bottom of the link, this isn’t a bidding war price, it’s the going rate. This short is pending at 109k, original new price was 310k. This complex was terribly overpriced and bubble built in 2006, but 30-40 cents on the dollar is the norm, they rent for well over a grand, the multiplier is 100x or lower.

http://www.redfin.com/CA/Temecula/31217-Taylor-Ln-92592/home/6684589

This 1br from 230k to 83k

http://www.redfin.com/CA/Temecula/31345-Taylor-Ln-92592/home/6679984

Rt.66, this is why you and I have disagreements on occasion, because we see two different worlds, the air is out of my balloon already. I paid about 40 cents on the dollar for my primary, would like to pay 35 cents on the dollar for a rental. As prices fell, rents didn’t fall at the same percentages, when the news was all good, these were a terrible investment at 300k, with all the bad news, I see 100k as an opportunity. Also, the ppsf for condos has flattend out at about $100 for the last three months and the same $100 for sfr’s for the last 6 months. I don’t think things will shoot up anytime soon, but the level we will kick around at is pretty much here.

[temeculaguy]

[quote=carlsbadworker][quote=Rt.66]6 to 2? Holy crap, thats huge![/quote]

Welcome to Temecula Valley. To be fair, TG didn’t mean it is $200K. It just starts with 2. So the ratio is less dramatic than it looks, but 50%+ off is not hard to find in TV, 66% off is where I like to invest my money with but I don’t think I will ever be able to get it.
[/quote]

You can find it, 280k to 99k and it’s not a short sale.

http://www.redfin.com/CA/Temecula/31385-Taylor-Ln-92592/home/6679992

look at the similar listings and closings at the bottom of the link, this isn’t a bidding war price, it’s the going rate. This short is pending at 109k, original new price was 310k. This complex was terribly overpriced and bubble built in 2006, but 30-40 cents on the dollar is the norm, they rent for well over a grand, the multiplier is 100x or lower.

http://www.redfin.com/CA/Temecula/31217-Taylor-Ln-92592/home/6684589

This 1br from 230k to 83k

http://www.redfin.com/CA/Temecula/31345-Taylor-Ln-92592/home/6679984

Rt.66, this is why you and I have disagreements on occasion, because we see two different worlds, the air is out of my balloon already. I paid about 40 cents on the dollar for my primary, would like to pay 35 cents on the dollar for a rental. As prices fell, rents didn’t fall at the same percentages, when the news was all good, these were a terrible investment at 300k, with all the bad news, I see 100k as an opportunity. Also, the ppsf for condos has flattend out at about $100 for the last three months and the same $100 for sfr’s for the last 6 months. I don’t think things will shoot up anytime soon, but the level we will kick around at is pretty much here.

[temeculaguy]

[quote=carlsbadworker][quote=Rt.66]6 to 2? Holy crap, thats huge![/quote]

Welcome to Temecula Valley. To be fair, TG didn’t mean it is $200K. It just starts with 2. So the ratio is less dramatic than it looks, but 50%+ off is not hard to find in TV, 66% off is where I like to invest my money with but I don’t think I will ever be able to get it.
[/quote]

You can find it, 280k to 99k and it’s not a short sale.

http://www.redfin.com/CA/Temecula/31385-Taylor-Ln-92592/home/6679992

look at the similar listings and closings at the bottom of the link, this isn’t a bidding war price, it’s the going rate. This short is pending at 109k, original new price was 310k. This complex was terribly overpriced and bubble built in 2006, but 30-40 cents on the dollar is the norm, they rent for well over a grand, the multiplier is 100x or lower.

http://www.redfin.com/CA/Temecula/31217-Taylor-Ln-92592/home/6684589

This 1br from 230k to 83k

http://www.redfin.com/CA/Temecula/31345-Taylor-Ln-92592/home/6679984

Rt.66, this is why you and I have disagreements on occasion, because we see two different worlds, the air is out of my balloon already. I paid about 40 cents on the dollar for my primary, would like to pay 35 cents on the dollar for a rental. As prices fell, rents didn’t fall at the same percentages, when the news was all good, these were a terrible investment at 300k, with all the bad news, I see 100k as an opportunity. Also, the ppsf for condos has flattend out at about $100 for the last three months and the same $100 for sfr’s for the last 6 months. I don’t think things will shoot up anytime soon, but the level we will kick around at is pretty much here.

[temeculaguy]

[quote=carlsbadworker][quote=Rt.66]6 to 2? Holy crap, thats huge![/quote]

Welcome to Temecula Valley. To be fair, TG didn’t mean it is $200K. It just starts with 2. So the ratio is less dramatic than it looks, but 50%+ off is not hard to find in TV, 66% off is where I like to invest my money with but I don’t think I will ever be able to get it.
[/quote]

You can find it, 280k to 99k and it’s not a short sale.

http://www.redfin.com/CA/Temecula/31385-Taylor-Ln-92592/home/6679992

look at the similar listings and closings at the bottom of the link, this isn’t a bidding war price, it’s the going rate. This short is pending at 109k, original new price was 310k. This complex was terribly overpriced and bubble built in 2006, but 30-40 cents on the dollar is the norm, they rent for well over a grand, the multiplier is 100x or lower.

http://www.redfin.com/CA/Temecula/31217-Taylor-Ln-92592/home/6684589

This 1br from 230k to 83k

http://www.redfin.com/CA/Temecula/31345-Taylor-Ln-92592/home/6679984

Rt.66, this is why you and I have disagreements on occasion, because we see two different worlds, the air is out of my balloon already. I paid about 40 cents on the dollar for my primary, would like to pay 35 cents on the dollar for a rental. As prices fell, rents didn’t fall at the same percentages, when the news was all good, these were a terrible investment at 300k, with all the bad news, I see 100k as an opportunity. Also, the ppsf for condos has flattend out at about $100 for the last three months and the same $100 for sfr’s for the last 6 months. I don’t think things will shoot up anytime soon, but the level we will kick around at is pretty much here.

[temeculaguy]

[quote=carlsbadworker][quote=Rt.66]6 to 2? Holy crap, thats huge![/quote]

Welcome to Temecula Valley. To be fair, TG didn’t mean it is $200K. It just starts with 2. So the ratio is less dramatic than it looks, but 50%+ off is not hard to find in TV, 66% off is where I like to invest my money with but I don’t think I will ever be able to get it.
[/quote]

You can find it, 280k to 99k and it’s not a short sale.

http://www.redfin.com/CA/Temecula/31385-Taylor-Ln-92592/home/6679992

look at the similar listings and closings at the bottom of the link, this isn’t a bidding war price, it’s the going rate. This short is pending at 109k, original new price was 310k. This complex was terribly overpriced and bubble built in 2006, but 30-40 cents on the dollar is the norm, they rent for well over a grand, the multiplier is 100x or lower.

http://www.redfin.com/CA/Temecula/31217-Taylor-Ln-92592/home/6684589

This 1br from 230k to 83k

http://www.redfin.com/CA/Temecula/31345-Taylor-Ln-92592/home/6679984

Rt.66, this is why you and I have disagreements on occasion, because we see two different worlds, the air is out of my balloon already. I paid about 40 cents on the dollar for my primary, would like to pay 35 cents on the dollar for a rental. As prices fell, rents didn’t fall at the same percentages, when the news was all good, these were a terrible investment at 300k, with all the bad news, I see 100k as an opportunity. Also, the ppsf for condos has flattend out at about $100 for the last three months and the same $100 for sfr’s for the last 6 months. I don’t think things will shoot up anytime soon, but the level we will kick around at is pretty much here.

[temeculaguy]

I’ll answer both questions at the same time:

It doesn’t matter.

Pendulums always swing, they swing back when forces push them back. In R/E, those forces are not us economics geeks, they are the unwashed masses. The masses look at their paycheck, their bank account and their house. They are hesitant to sacrifice too much of that paycheck for too little house and at some point, they are willing to sacrifice a reasonable portion for a nice place. Affordability matters more than macroeconomics.

Anectdotaly, on my street, every house was purchased a few years ago and had a “6” as the first digit in the price, times were good macroeconomically and they sold at a slow and measured pace. In the last six months, half of those houses were “recycled” one way or another (shorts, repos, auctions, etc.) and every one of them had a “2” as the first number of the price. But times are horrible, people are losing jobs and those houses sold in seconds, with frenzied buyers competing like fans at a rock concert. Why, because of affordability, because the difference beetween that 6 and that 2 to the masses means more than anything on any blog or in any newspaper.

[temeculaguy]

I’ll answer both questions at the same time:

It doesn’t matter.

Pendulums always swing, they swing back when forces push them back. In R/E, those forces are not us economics geeks, they are the unwashed masses. The masses look at their paycheck, their bank account and their house. They are hesitant to sacrifice too much of that paycheck for too little house and at some point, they are willing to sacrifice a reasonable portion for a nice place. Affordability matters more than macroeconomics.

Anectdotaly, on my street, every house was purchased a few years ago and had a “6” as the first digit in the price, times were good macroeconomically and they sold at a slow and measured pace. In the last six months, half of those houses were “recycled” one way or another (shorts, repos, auctions, etc.) and every one of them had a “2” as the first number of the price. But times are horrible, people are losing jobs and those houses sold in seconds, with frenzied buyers competing like fans at a rock concert. Why, because of affordability, because the difference beetween that 6 and that 2 to the masses means more than anything on any blog or in any newspaper.

[temeculaguy]

I’ll answer both questions at the same time:

It doesn’t matter.

Pendulums always swing, they swing back when forces push them back. In R/E, those forces are not us economics geeks, they are the unwashed masses. The masses look at their paycheck, their bank account and their house. They are hesitant to sacrifice too much of that paycheck for too little house and at some point, they are willing to sacrifice a reasonable portion for a nice place. Affordability matters more than macroeconomics.

Anectdotaly, on my street, every house was purchased a few years ago and had a “6” as the first digit in the price, times were good macroeconomically and they sold at a slow and measured pace. In the last six months, half of those houses were “recycled” one way or another (shorts, repos, auctions, etc.) and every one of them had a “2” as the first number of the price. But times are horrible, people are losing jobs and those houses sold in seconds, with frenzied buyers competing like fans at a rock concert. Why, because of affordability, because the difference beetween that 6 and that 2 to the masses means more than anything on any blog or in any newspaper.

[temeculaguy]

I’ll answer both questions at the same time:

It doesn’t matter.

Pendulums always swing, they swing back when forces push them back. In R/E, those forces are not us economics geeks, they are the unwashed masses. The masses look at their paycheck, their bank account and their house. They are hesitant to sacrifice too much of that paycheck for too little house and at some point, they are willing to sacrifice a reasonable portion for a nice place. Affordability matters more than macroeconomics.

Anectdotaly, on my street, every house was purchased a few years ago and had a “6” as the first digit in the price, times were good macroeconomically and they sold at a slow and measured pace. In the last six months, half of those houses were “recycled” one way or another (shorts, repos, auctions, etc.) and every one of them had a “2” as the first number of the price. But times are horrible, people are losing jobs and those houses sold in seconds, with frenzied buyers competing like fans at a rock concert. Why, because of affordability, because the difference beetween that 6 and that 2 to the masses means more than anything on any blog or in any newspaper.

[temeculaguy]

I’ll answer both questions at the same time:

It doesn’t matter.

Pendulums always swing, they swing back when forces push them back. In R/E, those forces are not us economics geeks, they are the unwashed masses. The masses look at their paycheck, their bank account and their house. They are hesitant to sacrifice too much of that paycheck for too little house and at some point, they are willing to sacrifice a reasonable portion for a nice place. Affordability matters more than macroeconomics.

Anectdotaly, on my street, every house was purchased a few years ago and had a “6” as the first digit in the price, times were good macroeconomically and they sold at a slow and measured pace. In the last six months, half of those houses were “recycled” one way or another (shorts, repos, auctions, etc.) and every one of them had a “2” as the first number of the price. But times are horrible, people are losing jobs and those houses sold in seconds, with frenzied buyers competing like fans at a rock concert. Why, because of affordability, because the difference beetween that 6 and that 2 to the masses means more than anything on any blog or in any newspaper.

[temeculaguy]

I just like the general theme of the latest buyers’ overall plan. None of them are calculating an increase in value into their plan. Things like “the same as my rent,” “able to afford on one income if neccesary” and “a year of reserves” are catch phrases that warm the heart. None of them say “real estate will go up in value” or “I’ll just refi later when it adjusts.”

It’s also nice to see affordability for my brothers and sisters in S.D., six months ago, my hood was the only place it was happening, at the time I postulated that this trend would move into the other areas and markets and we all know how much I enjoy being right.

[Author]

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