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temeculaguy
ParticipantMarion, you’ll never win this argument and quite frankly you don’t want to. There are two kinds of people in the world, HOA and non HOA people. Think of it as a religion, you can’t talk people out of one and you are probably better off not talking people into one, let them find their own way. From your posts, you need an HOA, so realize it and find peace in that realization. The trouble exists when people don’t realize what group they are in and buy a home in the wrong group. Your neighbor might be considered the neighbor of the year in another place, hailed for her ingenuity in trash collection tactics, it’s all relative. Her self image was flawed and she bought where there were rules against things she considers normal. Don’t make the reverse mistake and buy where there aren’t any rules or you will be forever unhappy. If you really want to avoid getting a bad neighbor, don’t buy new, buy resale where there is a strong HOA and you can see what your new neighbors homes look like after they have lived in them a few years. Another tactic is to knock on the doors of the neighbors houses before making an offer under the guise of just wanting to know what they think of the house you are considering. Rather than make everyone behave as you would like, find the place where they already do and live there, it’s so much easier.
temeculaguy
ParticipantMarion, you’ll never win this argument and quite frankly you don’t want to. There are two kinds of people in the world, HOA and non HOA people. Think of it as a religion, you can’t talk people out of one and you are probably better off not talking people into one, let them find their own way. From your posts, you need an HOA, so realize it and find peace in that realization. The trouble exists when people don’t realize what group they are in and buy a home in the wrong group. Your neighbor might be considered the neighbor of the year in another place, hailed for her ingenuity in trash collection tactics, it’s all relative. Her self image was flawed and she bought where there were rules against things she considers normal. Don’t make the reverse mistake and buy where there aren’t any rules or you will be forever unhappy. If you really want to avoid getting a bad neighbor, don’t buy new, buy resale where there is a strong HOA and you can see what your new neighbors homes look like after they have lived in them a few years. Another tactic is to knock on the doors of the neighbors houses before making an offer under the guise of just wanting to know what they think of the house you are considering. Rather than make everyone behave as you would like, find the place where they already do and live there, it’s so much easier.
temeculaguy
ParticipantMarion, you’ll never win this argument and quite frankly you don’t want to. There are two kinds of people in the world, HOA and non HOA people. Think of it as a religion, you can’t talk people out of one and you are probably better off not talking people into one, let them find their own way. From your posts, you need an HOA, so realize it and find peace in that realization. The trouble exists when people don’t realize what group they are in and buy a home in the wrong group. Your neighbor might be considered the neighbor of the year in another place, hailed for her ingenuity in trash collection tactics, it’s all relative. Her self image was flawed and she bought where there were rules against things she considers normal. Don’t make the reverse mistake and buy where there aren’t any rules or you will be forever unhappy. If you really want to avoid getting a bad neighbor, don’t buy new, buy resale where there is a strong HOA and you can see what your new neighbors homes look like after they have lived in them a few years. Another tactic is to knock on the doors of the neighbors houses before making an offer under the guise of just wanting to know what they think of the house you are considering. Rather than make everyone behave as you would like, find the place where they already do and live there, it’s so much easier.
temeculaguy
ParticipantMarion, you’ll never win this argument and quite frankly you don’t want to. There are two kinds of people in the world, HOA and non HOA people. Think of it as a religion, you can’t talk people out of one and you are probably better off not talking people into one, let them find their own way. From your posts, you need an HOA, so realize it and find peace in that realization. The trouble exists when people don’t realize what group they are in and buy a home in the wrong group. Your neighbor might be considered the neighbor of the year in another place, hailed for her ingenuity in trash collection tactics, it’s all relative. Her self image was flawed and she bought where there were rules against things she considers normal. Don’t make the reverse mistake and buy where there aren’t any rules or you will be forever unhappy. If you really want to avoid getting a bad neighbor, don’t buy new, buy resale where there is a strong HOA and you can see what your new neighbors homes look like after they have lived in them a few years. Another tactic is to knock on the doors of the neighbors houses before making an offer under the guise of just wanting to know what they think of the house you are considering. Rather than make everyone behave as you would like, find the place where they already do and live there, it’s so much easier.
temeculaguy
ParticipantAll of your assumptions are reasonable and as a 1998 buyer you are safe provided you avoided taking too much equity out. There will always be buyers for different reasons at different prices, even at 300k some units found buyers who thought that was reasonable. Your question was about the fundamentals so I laid them out using the rent multiplier and I think Fasion Valley is a safe play for a rental within the multiplier range. The mystery is how low will it go in the near term, what will the overcorrection be like? Are there investors chomping at the bit to buy rentals or is the shine off R/E for the fair weather fans? I can’t answer that but I can tell you that when nice units in centrally located above average areas start coming into the multiplier range, I give it a second look and I’m not alone. When they hit 100x rent I’ll probably buy more than I need, thinking it won’t stay that low for long and cash nuetral rentals from day one are a rare treat, not one to ignore. Now if you are trying to apply logic to the market to determine the floor price, i advise against it, there was no logic in the peak price so it is unlikely to be logic in the trough. If during the next 24 months the price falls below what you paid in 1998 or below let’s say 125k, buy a second one and become a landlord.
temeculaguy
ParticipantAll of your assumptions are reasonable and as a 1998 buyer you are safe provided you avoided taking too much equity out. There will always be buyers for different reasons at different prices, even at 300k some units found buyers who thought that was reasonable. Your question was about the fundamentals so I laid them out using the rent multiplier and I think Fasion Valley is a safe play for a rental within the multiplier range. The mystery is how low will it go in the near term, what will the overcorrection be like? Are there investors chomping at the bit to buy rentals or is the shine off R/E for the fair weather fans? I can’t answer that but I can tell you that when nice units in centrally located above average areas start coming into the multiplier range, I give it a second look and I’m not alone. When they hit 100x rent I’ll probably buy more than I need, thinking it won’t stay that low for long and cash nuetral rentals from day one are a rare treat, not one to ignore. Now if you are trying to apply logic to the market to determine the floor price, i advise against it, there was no logic in the peak price so it is unlikely to be logic in the trough. If during the next 24 months the price falls below what you paid in 1998 or below let’s say 125k, buy a second one and become a landlord.
temeculaguy
ParticipantAll of your assumptions are reasonable and as a 1998 buyer you are safe provided you avoided taking too much equity out. There will always be buyers for different reasons at different prices, even at 300k some units found buyers who thought that was reasonable. Your question was about the fundamentals so I laid them out using the rent multiplier and I think Fasion Valley is a safe play for a rental within the multiplier range. The mystery is how low will it go in the near term, what will the overcorrection be like? Are there investors chomping at the bit to buy rentals or is the shine off R/E for the fair weather fans? I can’t answer that but I can tell you that when nice units in centrally located above average areas start coming into the multiplier range, I give it a second look and I’m not alone. When they hit 100x rent I’ll probably buy more than I need, thinking it won’t stay that low for long and cash nuetral rentals from day one are a rare treat, not one to ignore. Now if you are trying to apply logic to the market to determine the floor price, i advise against it, there was no logic in the peak price so it is unlikely to be logic in the trough. If during the next 24 months the price falls below what you paid in 1998 or below let’s say 125k, buy a second one and become a landlord.
temeculaguy
ParticipantAll of your assumptions are reasonable and as a 1998 buyer you are safe provided you avoided taking too much equity out. There will always be buyers for different reasons at different prices, even at 300k some units found buyers who thought that was reasonable. Your question was about the fundamentals so I laid them out using the rent multiplier and I think Fasion Valley is a safe play for a rental within the multiplier range. The mystery is how low will it go in the near term, what will the overcorrection be like? Are there investors chomping at the bit to buy rentals or is the shine off R/E for the fair weather fans? I can’t answer that but I can tell you that when nice units in centrally located above average areas start coming into the multiplier range, I give it a second look and I’m not alone. When they hit 100x rent I’ll probably buy more than I need, thinking it won’t stay that low for long and cash nuetral rentals from day one are a rare treat, not one to ignore. Now if you are trying to apply logic to the market to determine the floor price, i advise against it, there was no logic in the peak price so it is unlikely to be logic in the trough. If during the next 24 months the price falls below what you paid in 1998 or below let’s say 125k, buy a second one and become a landlord.
temeculaguy
ParticipantAll of your assumptions are reasonable and as a 1998 buyer you are safe provided you avoided taking too much equity out. There will always be buyers for different reasons at different prices, even at 300k some units found buyers who thought that was reasonable. Your question was about the fundamentals so I laid them out using the rent multiplier and I think Fasion Valley is a safe play for a rental within the multiplier range. The mystery is how low will it go in the near term, what will the overcorrection be like? Are there investors chomping at the bit to buy rentals or is the shine off R/E for the fair weather fans? I can’t answer that but I can tell you that when nice units in centrally located above average areas start coming into the multiplier range, I give it a second look and I’m not alone. When they hit 100x rent I’ll probably buy more than I need, thinking it won’t stay that low for long and cash nuetral rentals from day one are a rare treat, not one to ignore. Now if you are trying to apply logic to the market to determine the floor price, i advise against it, there was no logic in the peak price so it is unlikely to be logic in the trough. If during the next 24 months the price falls below what you paid in 1998 or below let’s say 125k, buy a second one and become a landlord.
temeculaguy
ParticipantThose are fairly good numbers. 1 br units are the least marketable and easiest to outgrow, what does a comparable 2br go for? The rent multiplier top price is 165k (1100×150) and the low number is 137.5k (1100×125), so I would say that the price is getting close to the fundamental range. Is that unit the worst one in the worst condition? When the units are selling between 137.5 and 165, it is a sound investment provided that rent is an accurate one, not just what one is advertised for but what the average rent would be and a price that would make it last no more than two weeks when advertised. If there are units advertised for 900 that get snapped up and an 1100 that sits there, you need to re-evaluate the rent number used.
All in all, the numbers sound good without knowing the specifics or the complex I’d say it’s close. Factor in the overcorrection that the media is fueling and I’d guess that the 125x multiplier may also be a reality.
The last part of your question is the hardest to answer. There will not be any appreciation for the next two years and doubtful there would be any rent increases either. It is not common for someone to find a 1br acceptable long term housing, so that person that you think would buy for th long haul rarely buys a 1br. They buy one to benefit from appreciation while living in a transitional property for them, they may become a landlord when their lifestyle changes or they may sell for a profit. Right now, people are looking at this kind of property as a noose or an anchor rather than a springboard, so it will overcorrect more than sfr’s, it always does.
temeculaguy
ParticipantThose are fairly good numbers. 1 br units are the least marketable and easiest to outgrow, what does a comparable 2br go for? The rent multiplier top price is 165k (1100×150) and the low number is 137.5k (1100×125), so I would say that the price is getting close to the fundamental range. Is that unit the worst one in the worst condition? When the units are selling between 137.5 and 165, it is a sound investment provided that rent is an accurate one, not just what one is advertised for but what the average rent would be and a price that would make it last no more than two weeks when advertised. If there are units advertised for 900 that get snapped up and an 1100 that sits there, you need to re-evaluate the rent number used.
All in all, the numbers sound good without knowing the specifics or the complex I’d say it’s close. Factor in the overcorrection that the media is fueling and I’d guess that the 125x multiplier may also be a reality.
The last part of your question is the hardest to answer. There will not be any appreciation for the next two years and doubtful there would be any rent increases either. It is not common for someone to find a 1br acceptable long term housing, so that person that you think would buy for th long haul rarely buys a 1br. They buy one to benefit from appreciation while living in a transitional property for them, they may become a landlord when their lifestyle changes or they may sell for a profit. Right now, people are looking at this kind of property as a noose or an anchor rather than a springboard, so it will overcorrect more than sfr’s, it always does.
temeculaguy
ParticipantThose are fairly good numbers. 1 br units are the least marketable and easiest to outgrow, what does a comparable 2br go for? The rent multiplier top price is 165k (1100×150) and the low number is 137.5k (1100×125), so I would say that the price is getting close to the fundamental range. Is that unit the worst one in the worst condition? When the units are selling between 137.5 and 165, it is a sound investment provided that rent is an accurate one, not just what one is advertised for but what the average rent would be and a price that would make it last no more than two weeks when advertised. If there are units advertised for 900 that get snapped up and an 1100 that sits there, you need to re-evaluate the rent number used.
All in all, the numbers sound good without knowing the specifics or the complex I’d say it’s close. Factor in the overcorrection that the media is fueling and I’d guess that the 125x multiplier may also be a reality.
The last part of your question is the hardest to answer. There will not be any appreciation for the next two years and doubtful there would be any rent increases either. It is not common for someone to find a 1br acceptable long term housing, so that person that you think would buy for th long haul rarely buys a 1br. They buy one to benefit from appreciation while living in a transitional property for them, they may become a landlord when their lifestyle changes or they may sell for a profit. Right now, people are looking at this kind of property as a noose or an anchor rather than a springboard, so it will overcorrect more than sfr’s, it always does.
temeculaguy
ParticipantThose are fairly good numbers. 1 br units are the least marketable and easiest to outgrow, what does a comparable 2br go for? The rent multiplier top price is 165k (1100×150) and the low number is 137.5k (1100×125), so I would say that the price is getting close to the fundamental range. Is that unit the worst one in the worst condition? When the units are selling between 137.5 and 165, it is a sound investment provided that rent is an accurate one, not just what one is advertised for but what the average rent would be and a price that would make it last no more than two weeks when advertised. If there are units advertised for 900 that get snapped up and an 1100 that sits there, you need to re-evaluate the rent number used.
All in all, the numbers sound good without knowing the specifics or the complex I’d say it’s close. Factor in the overcorrection that the media is fueling and I’d guess that the 125x multiplier may also be a reality.
The last part of your question is the hardest to answer. There will not be any appreciation for the next two years and doubtful there would be any rent increases either. It is not common for someone to find a 1br acceptable long term housing, so that person that you think would buy for th long haul rarely buys a 1br. They buy one to benefit from appreciation while living in a transitional property for them, they may become a landlord when their lifestyle changes or they may sell for a profit. Right now, people are looking at this kind of property as a noose or an anchor rather than a springboard, so it will overcorrect more than sfr’s, it always does.
temeculaguy
ParticipantThose are fairly good numbers. 1 br units are the least marketable and easiest to outgrow, what does a comparable 2br go for? The rent multiplier top price is 165k (1100×150) and the low number is 137.5k (1100×125), so I would say that the price is getting close to the fundamental range. Is that unit the worst one in the worst condition? When the units are selling between 137.5 and 165, it is a sound investment provided that rent is an accurate one, not just what one is advertised for but what the average rent would be and a price that would make it last no more than two weeks when advertised. If there are units advertised for 900 that get snapped up and an 1100 that sits there, you need to re-evaluate the rent number used.
All in all, the numbers sound good without knowing the specifics or the complex I’d say it’s close. Factor in the overcorrection that the media is fueling and I’d guess that the 125x multiplier may also be a reality.
The last part of your question is the hardest to answer. There will not be any appreciation for the next two years and doubtful there would be any rent increases either. It is not common for someone to find a 1br acceptable long term housing, so that person that you think would buy for th long haul rarely buys a 1br. They buy one to benefit from appreciation while living in a transitional property for them, they may become a landlord when their lifestyle changes or they may sell for a profit. Right now, people are looking at this kind of property as a noose or an anchor rather than a springboard, so it will overcorrect more than sfr’s, it always does.
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