[temeculaguy]

Jan, what town did you buy in?

I just looked at some models today from another builder and they seemed to have matched lennar’s strategy of building everything with granite, stainless steel, outlets everywhere, etc. and not having many options other than flooring. I wonder if that is a marketing shift (like cars used to charge for air conditioning and power locks, now they come in all but the low end). From what the salesperson told me today, standing inventory (finished homes with no buyer) is an increasing reality and it gets harder to sell houses that are stripped when the cost to make them more marketable is not that much higher at the time of construction. I’ve never built homes but I would think that ordering a hundred granite counters of exactly the same size is cheaper than ordering one and not that much more than tile for the builder. I think that 90k in upgrades probably cost the builder less than half that and is probably more effective marketing than lowering the price of a stripped home by 40k.

[temeculaguy]

Cypher, just read all your posts, love em, your balanced analysis is great and you aren’t listing a link to another site or selling anything, keep posting.

I agree with Bugs about both realtors bringing some valuable info to the boards but not being in lockstep with them at all times. But then again, I always agree with Bugs and am the current president of the BUGS fan club.

Rustico, your fan club is now forming, you are the man with the plan. You paid cash with your equity for a 20 acre spread with a view and zoning for additional buildings for the relatives or income, you are a god. Who cares where prices go, you win. Sure, kids will probably always have to go to school on your birthday, but you will be sitting pretty in the future.

[temeculaguy]

Cypher, just read all your posts, love em, your balanced analysis is great and you aren’t listing a link to another site or selling anything, keep posting.

I agree with Bugs about both realtors bringing some valuable info to the boards but not being in lockstep with them at all times. But then again, I always agree with Bugs and am the current president of the BUGS fan club.

Rustico, your fan club is now forming, you are the man with the plan. You paid cash with your equity for a 20 acre spread with a view and zoning for additional buildings for the relatives or income, you are a god. Who cares where prices go, you win. Sure, kids will probably always have to go to school on your birthday, but you will be sitting pretty in the future.

[temeculaguy]

Matt, not to defend 23109 but to clarify, his cheap rental days were numbered and his landlord would not renew his lease. His rationale included that he didn’t want to move and couldn’t find a comparable rental for what he was paying so he was comparing his purchase to higher rents that he was finding out there.

I share some of his frustrations with the lack of price declines in Temecula proper and the better locations within the city because until new guy reported his deal you had to leave the city to see significant declines. While I don’t think 23109 is drinking full strength Kool-aid, he take take a swig of the diet Kool-aid. He initially posted about his current house being too small and not having enough rooms but when new guy got a McMansion in Harveston for what he thought his place would sell for three months ago, then it was all about location. He did good, not great, better than his neighbors, not as good as his future neighbors, I give 23109 a C- and Newguy gets a B+ (23109 would have gotten a C+ if he was going 20% down, fixed).

They both paid 20-30% below peak and there is too much support for it to go below 50% peak across the board for very long (we will find examples and hawk will get free beer, but it won’t be across the board for a protracted amount of time). So they will suffer declines in the near term but won’t get killed like the 04-06 buyers will. Neither will go down more than 100k from their strike price but there will be a time at the bottom where 23109’s is in the 200’s and new guys is in the 300’s, but that will be as bad as it gets and it wont stay there forever. The main difference between the two transactions is the down payment and financing, newguy’s debt is the same as the doomsday price, making his bet safer. I agree that 23109 is not going to be paying the same as rent and unless he had been saving $500-$1000 a month while renting he may find himself in trouble after purchasing. Income tax deduction is overated, maintenance, repair, hoa, etc. almost cancels it out. You should buy for a price that you have proven you can rent for. If you rent for $1600 and can live but not can’t save much at that level, then that should be your target mortgage.

[temeculaguy]

Matt, not to defend 23109 but to clarify, his cheap rental days were numbered and his landlord would not renew his lease. His rationale included that he didn’t want to move and couldn’t find a comparable rental for what he was paying so he was comparing his purchase to higher rents that he was finding out there.

I share some of his frustrations with the lack of price declines in Temecula proper and the better locations within the city because until new guy reported his deal you had to leave the city to see significant declines. While I don’t think 23109 is drinking full strength Kool-aid, he take take a swig of the diet Kool-aid. He initially posted about his current house being too small and not having enough rooms but when new guy got a McMansion in Harveston for what he thought his place would sell for three months ago, then it was all about location. He did good, not great, better than his neighbors, not as good as his future neighbors, I give 23109 a C- and Newguy gets a B+ (23109 would have gotten a C+ if he was going 20% down, fixed).

They both paid 20-30% below peak and there is too much support for it to go below 50% peak across the board for very long (we will find examples and hawk will get free beer, but it won’t be across the board for a protracted amount of time). So they will suffer declines in the near term but won’t get killed like the 04-06 buyers will. Neither will go down more than 100k from their strike price but there will be a time at the bottom where 23109’s is in the 200’s and new guys is in the 300’s, but that will be as bad as it gets and it wont stay there forever. The main difference between the two transactions is the down payment and financing, newguy’s debt is the same as the doomsday price, making his bet safer. I agree that 23109 is not going to be paying the same as rent and unless he had been saving $500-$1000 a month while renting he may find himself in trouble after purchasing. Income tax deduction is overated, maintenance, repair, hoa, etc. almost cancels it out. You should buy for a price that you have proven you can rent for. If you rent for $1600 and can live but not can’t save much at that level, then that should be your target mortgage.

[temeculaguy]

OK, who did it?

Hawk, was this you? I’m checking craig’s and in the real estate for sale I see this one. If it wasn’t one of us then KB has a new advertising strategy.

http://inlandempire.craigslist.org/rfs/339582199.html

[temeculaguy]

OK, who did it?

Hawk, was this you? I’m checking craig’s and in the real estate for sale I see this one. If it wasn’t one of us then KB has a new advertising strategy.

http://inlandempire.craigslist.org/rfs/339582199.html

[temeculaguy]

Actually there is something that can be referred to as a detached condo/townhome and they are becoming more prevelent. The lots are too small for SFR setback rules, the front yards are owned and sometimes maintained by the association, but they are not attached. A lot of alley homes/shared driveway homes are technically a condo or hybrid. If the lot is smaller than 4k sq. ft. the odds are it is a detached condo.

[temeculaguy]

Actually there is something that can be referred to as a detached condo/townhome and they are becoming more prevelent. The lots are too small for SFR setback rules, the front yards are owned and sometimes maintained by the association, but they are not attached. A lot of alley homes/shared driveway homes are technically a condo or hybrid. If the lot is smaller than 4k sq. ft. the odds are it is a detached condo.

[temeculaguy]

Perry, I watched the video and it is quite impressive. I was kinda excited because I am anxiously waiting for that to happen in Temecula and I am in a financial position to act on it. The only problem is that it isn’t in Temecula and it’s barely in Murrieta. That area is off Scott Road is more a part of Perris than Temecula. Seriously it is more than 17 miles, two towns and two school districts from where I live in Temecula. I mapquested it from Redhawk Parkway and it is 17.2 miles and a 22 minute drive without traffic. To put it into perspective on mapquest it is almost the same distance and drive as Carlsbad is to Escondido.

Hopefully that will begin to spread south, but as of yet it is still confined to the outskirts of neighboring towns where I am not willing to live, and based on the video, I’m not alone.

I did like the video that followed it with the belly dancers at the party, now that looked like it worth the drive.

[temeculaguy]

Perry, I watched the video and it is quite impressive. I was kinda excited because I am anxiously waiting for that to happen in Temecula and I am in a financial position to act on it. The only problem is that it isn’t in Temecula and it’s barely in Murrieta. That area is off Scott Road is more a part of Perris than Temecula. Seriously it is more than 17 miles, two towns and two school districts from where I live in Temecula. I mapquested it from Redhawk Parkway and it is 17.2 miles and a 22 minute drive without traffic. To put it into perspective on mapquest it is almost the same distance and drive as Carlsbad is to Escondido.

Hopefully that will begin to spread south, but as of yet it is still confined to the outskirts of neighboring towns where I am not willing to live, and based on the video, I’m not alone.

I did like the video that followed it with the belly dancers at the party, now that looked like it worth the drive.

[temeculaguy]

Matt, I was thinking the exact same thing as i scrolled down until read your post, I hope 23109 doesn’t see this. I know he will and he’s been a good sport but at some point he’s going to realize that the house he rents will sell in the high 200’s before too long, it just will, granite or not, nobody will pay 350-400 for a 1900 sq ft when the big ones are heading towards $100 a ft.

New guy, you’ll be fine and you are brave man for throwing up your numbers, come back and visit us sometime. I suppose over time we will be saying goodbye to a lot of good people. I paid $100 a ft in 1992 and $80 a ft in 1998, but gas was a dollar in 92, electric was $70 and I my income was less than half of what it is today, at $115 a ft for a long term investment in one of the premier neighborhoods, you did good. Maybe you could have done better but have no regrets because you went in knowing the facts and are prepared for any downturn unlike most buyers in the last few years. You have cusion for the bumpy parts because you can afford it now and the payment won’t be going up. Seems like fiction these days that someone bought a house with 20% down, conventional 30 year loan, can afford it and plans on staying there for years, that’s the way it was meant to be and that formula has always worked. BTW, My last house was a lennar, they build a nice house.

[temeculaguy]

Matt, I was thinking the exact same thing as i scrolled down until read your post, I hope 23109 doesn’t see this. I know he will and he’s been a good sport but at some point he’s going to realize that the house he rents will sell in the high 200’s before too long, it just will, granite or not, nobody will pay 350-400 for a 1900 sq ft when the big ones are heading towards $100 a ft.

New guy, you’ll be fine and you are brave man for throwing up your numbers, come back and visit us sometime. I suppose over time we will be saying goodbye to a lot of good people. I paid $100 a ft in 1992 and $80 a ft in 1998, but gas was a dollar in 92, electric was $70 and I my income was less than half of what it is today, at $115 a ft for a long term investment in one of the premier neighborhoods, you did good. Maybe you could have done better but have no regrets because you went in knowing the facts and are prepared for any downturn unlike most buyers in the last few years. You have cusion for the bumpy parts because you can afford it now and the payment won’t be going up. Seems like fiction these days that someone bought a house with 20% down, conventional 30 year loan, can afford it and plans on staying there for years, that’s the way it was meant to be and that formula has always worked. BTW, My last house was a lennar, they build a nice house.

[temeculaguy]

Matt, I’m chomping but I’m also willing to wait for what I wan’t at the price I wan’t. I have my target price, product and location decided. The real bit chomping will happen when those three things align and I don’t think it will be years, there are more than enough indicators that show the decline accelerating with the next twelve months being very exiting for this area in particular, San Diego may have to wait longer but the inland areas will fall faster and harder.

My goal, 250-300k for 2000 sq ft. in Redhawk or Wolf Creek. Right now the cheapest is about 350-400k for new and 25-50k higher for resale. If it comes to pass sooner, then great, if later, I’ll wait. When the time comes that I can buy a house that I will keep for years and it’s sales price is between 2x and 3x my annual income, then I’m done waiting. I don’t need the market to crash in order to buy, I just think it will. I can afford it today but I want to take a 15 or 30 fixed and have it be close to what rent would be and not have the payment exceed one week’s gross pay, then I’m happy.

[temeculaguy]

Matt, I’m chomping but I’m also willing to wait for what I wan’t at the price I wan’t. I have my target price, product and location decided. The real bit chomping will happen when those three things align and I don’t think it will be years, there are more than enough indicators that show the decline accelerating with the next twelve months being very exiting for this area in particular, San Diego may have to wait longer but the inland areas will fall faster and harder.

My goal, 250-300k for 2000 sq ft. in Redhawk or Wolf Creek. Right now the cheapest is about 350-400k for new and 25-50k higher for resale. If it comes to pass sooner, then great, if later, I’ll wait. When the time comes that I can buy a house that I will keep for years and it’s sales price is between 2x and 3x my annual income, then I’m done waiting. I don’t need the market to crash in order to buy, I just think it will. I can afford it today but I want to take a 15 or 30 fixed and have it be close to what rent would be and not have the payment exceed one week’s gross pay, then I’m happy.

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